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HUL Repositions Horlicks and Boost as “Functional and Nutritional Drinks” Amid Regulatory Pressure
This strategic move by HUL follows directives from the Ministry of Commerce and Industry, which instructed e-commerce platforms to remove all beverages from the ‘health’ category due to concerns over excessive sugar content.
- By PharmaNews Live Desk
- New Delhi
- Apr 26, 2024
Hindustan Unilever Limited (HUL), the parent company behind beloved brands ‘Horlicks’ and ‘Boost’, has undertaken a significant repositioning strategy, dropping the ‘health’ label from its products. Instead, it now categorizes them as “Functional and Nutritional drinks”.
This strategic move by HUL follows directives from the Ministry of Commerce and Industry, which instructed e-commerce platforms to remove all beverages from the ‘health’ category due to concerns over excessive sugar content.
In its filing, HUL stated, “Functional nutritional drinks (Horlicks & Boost) delivered high single-digit growth, driven by Plus range. Tea continued to strengthen value and volume market leadership.”
The Ministry of Commerce and Industry emphasized that there is no official definition of a ‘health drink’ under the Food Safety and Standards Act, 2006. This lack of clarity prompted the ministry to reevaluate the categorization of certain beverages.
The Food Safety and Standards Authority of India (FSSAI) has also issued instructions to e-commerce platforms to refrain from labeling dairy-based or malt-based beverages as ‘health drinks’.
The controversy surrounding the classification of such beverages escalated last year when the National Commission for Protection of Child Rights (NCPCR) demanded Bournvita to withdraw misleading advertisements and packaging after concerns over its high sugar content surfaced. Bournvita is a brand owned by Cadbury.
Following widespread criticism, NCPCR urged FSSAI to take action against companies labeling supplements as ‘health drinks’ without adhering to regulatory guidelines.