HUL renames its 'health food drinks' category; Horlicks is now 'functional nutritional drink'

FMCG major Hindustan Unilever has re-named its 'health food drinks' category as functional nutritional drinks (FND). The move comes after the Ministry of Commerce and Industry directed e-commerce websites to remove drinks and beverages like Horlicks and Bournvita from 'health drinks' category on their platforms.

"We have changed the labels of the category to FND which is a much better way to call it," said Ritesh Tiwari, chief financial officer of Hindustan Unilever at the earnings press conference on April 24.

The FND category is under-penetrated and hence there is a big opportunity for growth, Tiwari said, adding that HUL will focus on increasing customers and usage, and giving more benefits for consumers to upgrade in the FND category. The company is seeing better growth in its premium FND range which caters to Diabetes and women's health, Tiwari stated.

The Ministry of Commerce and Industry on April 10, asked e-commerce websites to remove Mondelez-owned Bournvita, among other drinks and beverages, from the ‘healthy drinks’ category on their platforms.

The National Commission for Protection of Child Rights (NCPCR) said that there is no "health drink defined under the FSS Act 2006, rules and regulations as submitted by FSSAl & Mondelez India.”

The Ministry in a notification said, “NCPCR, a statutory body constituted under section (3) of the commission for Protection of Child Rights (CPCR) Act, 2005 after its inquiry under Section 14 of CPCR Act, 2005, concluded that there is no "Health Drink defined under FSS Act 2006, Rules and regulations as submitted by FSSAl and Mondelez India Food Pvt Ltd.”

It therefore, advised all e-commerce companies and portals to remove drinks and beverages that included Bournvita from the ‘healthy drinks’ category.

Earlier, the Food Safety and Standards Authority of India (FSSAI) had informed all e-commerce platforms to refrain from labelling dairy-based, cereal-based or malt-based beverages as ‘health drinks’ or ‘energy drinks’.

The reason behind this is because ‘health drink’ isn’t defined in Indian food laws. ‘Energy drink’ on the other hand, by law, refers to flavoured water drinks - carbonated and non carbonated, under the FSS Act 2006.

According to the FSSAI, the use of these terms can mislead consumers. Hence, the body has asked all Food Business Operators (FBO) that operate via e-commerce to dissociate themselves from such terms by removing their drinks and beverages from these categories.

"This corrective action aims to enhance clarity and transparency regarding the nature and functional properties of the products, ensuring that consumers can make well-informed choices without encountering misleading information," the body said in a statement.