The local government in Delhi prohibited Nestlé’s main product in India - Maggi Noodles, mentioning excessive lead content as per authorities’ laboratory evaluations. Nestle challenged the authorities evaluations, noting that internal and third party evaluations demonstrate the merchandise to be safe.
There is extreme confusion in the media and amongst Nestlé’s customers, and Maggi’s sales started declining. Other local governments and India's national food safety regulator additionally contemplate prohibitions. Nestle must identify the best way to react - choices include suing the regulators and removing the merchandise, which might affect up to 25% of Nestle India’s sales.
Publication Date: 02/04/2016
This is just an excerpt. This case is about Accounting about Accounting
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