It started with the book "The Baby Killer " by an NGO , Nestle was sued for Infant deaths but got away in court .
In 1981, the 34th [World Health Assembly]The Code covers infant formula and other milk products, foods and beverages, when marketed or otherwise represented to be suitable as a partial or total replacement of breast milk. It bans the promotion of breast milk substitutes and gives health workers the responsibility for advising parents. It limits manufacturing companies to the provision of scientific and factual information to health workers and sets forth labeling requirements.
Answer to your question in simple terms is parents would not experiment with food item of their infant. Being a parent from middle income group I have never ever dated to go beyond trusted Brand
Nestle: Negatively surprised with 10 yr trends. No volume growth in most categories except Maggi (prepared dishes). Seems like a case of share loss to Abbott, AMUL in baby foods and Mondelez in Chocolates. Maggi has held on though. (source: Spark)
Abbott India is also a prominent supplier of baby foods. Like Nestle is also placed in pharmacy shelves. Infact quality wise Abbotâs product is considered better. However Nestle has the edge in having a bigger and more prominent brand. Disc: Invested in both Nestle and Abbott
That is correct. Baby food is marketed by the Pvt entity. Listed entity deals with OTC medicines. I meant as a player in baby food/ formulations space, Abbott is a strong player in India.
This report is wrong. On the ground Dmart, Kirana Stores also sell Latogen and Similac. It is not pharmacist only product. I personally like Abbott Similac because by son didnât like Latogen when we tried. Similac was way better than latogen. It is bit costly than Nestle Latogen.
Another important factor is online ads on Baby foods are not banned. Youtube runs lot of baby foods ads. So Nestle will lose it monopoly but not so soon. They will make sure they maintain the volume and market dominance.
Indeed, Abbottâs Similac is a global leaderâŠit is no. 1 in USA, closely followed by Nestleâs GerberâŠIf only Similac was part of listed Abbott India!
Disc: Invested in Nestle. Not a buy/sell recommendation
I guess the discussion on Similac from Abbott & Lactogen from Nestle is redundant as Similac is not part of listed Abbott. If I am not wrong only Nestle has a baby food business AND listed!. This clearly is an edge over competition. Also Nestle can have a strong rural presence due to its distribution network. Though breastfeeding may seem common in rural areas, baby foods are not unheard of in rural /semi urban areas. Please feel free to disagree.
I felt Nestle couldnât capitalise on the lockdown last year for Cooking Aid/Maggi sales but I guess this time it is going to be good. Last quarter revenue grew by about 11%.
Saw this âmountainâ of Maggi in a departmental store and there were more in other aisle racks!
