Maggi Noodles Crisis Case Study
Nestlé Maggi Noodles crisis in India
1. Summary
In May 2015, India’s favourite snack, Nestlé Maggi Noodles faced its worst scare in the country and a minor labelling dispute has raised into its biggest crisis in India to date. Nestlé brought instant noodles to India, where noodles were not previously part of the culinary culture. Now the same product which contributes more than 20% of $1.5bn of overall Nestle sales in India, finds itself out of the Indian market. This was confirmed after the Food Safety and Standards Authority of India (FSSAI) officially banned Maggi noodles form the domestic market. After having raked among top five trusted brands in 2014 in India by Economic Times, Maggi now has to decide strategy to bring back Noodles to
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These products are already recognized as of international quality and have become huge brands in themselves. In recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita. Nestlé India has always focussed on initiatives that help to improve the quality of life of the society as a whole through health food segment.
2.2 Nestlé’s Maggi Noodles business
MAGGI 2-Minute Noodles which defines the Instant Noodles category is one of the largest & most loved food brands in India. Generations have grown up loving the signature taste of Maggi Masala. Its slogan of 2 minute Maggi has helped build its image as an instant food that requires little efforts to prepare.
In India’s Noodles market of Rs. 1300 Cr, Nestlé Maggi has the highest share of about 70%. The other prominent brands are ITC Sunfeast Yippee with 17% and HUL’s Knorr Soupy Noodles with 10%. Maggi noodles also contribute to the biggest selling Nestlé product in India as generates about 20% of Nestlé India’s $1.5bn revenue in the country.
3. Maggi Noodles crisis in
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