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Nestle and the Maggi Controversy – How Much Does It Hurt the Company?

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This is a guest post by Darshesh Thacker, who’s currently studying and interning at Capital Mind . Since 1982, Indian households have spent many an hour over their favourite Maggi noodles. Glitzy advertisements year after year have managed to keep the consumers hungry and lured them into buying Maggi 2-minute noodles which made it an Indian household staple. However the last few weeks have seen a sudden turn of events with everyone doubting their beloved snack ever since the high lead content in Maggi controversy surfaced in the public eye. So not only has our evening snack schedule gone for a toss but also the financial stability of Nestle India. The background: Maggi samples were found to have excessively high lead content in them, by government tests of the Maggi “Tastemaker”. The lead levels were apparently higher than the maximum permissible limits. This has since led to a ban by many states, and as the controversy boiled over, Nestle decided to take the product off the shelves.… (Read On…)

[via Capital MindCapital Mind]

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