The term “functional nutritional drinks” (FND) has replaced “health food drinks” in Hindustan Unilever Limited’s (HUL) product category. The “health drink” label of Horlicks was dropped after the Union Ministry of Commerce and Industry asked that e-commerce platforms remove drinks and beverages from their lists of “health drinks.” The corporation which owns several brands like Boost and Horlicks changed its “health food drinks” category to “functional nutritional drinks” and rebranded its “health drinks” category.
At a press conference on 24th April, Hindustan Unilever’s Chief Financial Officer Ritesh Tiwari announced that the category is now more accurately and transparently described by the FND label. He drew attention to the unctional nutritional drink market’s underpenetration, which suggests enormous development potential.
Following consumer concerns regarding the excessive sugar content of beverages such as Horlicks and Bournvita, several modifications were implemented. The Food Safety and Standards Authority of India (FSSAI) was the subject of an investigation that was subsequently launched by the National Commission for Protection of Child Rights (NCPCR). The investigation ultimately resulted in an order from the centre to the online retailers.
The instructions issued by the ministry came after the FSSAI, on 2nd April, asked all e-commerce companies to ensure appropriate categorisation of food products sold on their websites. The FSSAI’s reaction followed observations of food items licensed as ‘proprietary food’, such as Dairy-based Beverage Mix, Cereal-based Beverage Mix, and Malt Based Beverage, being marketed on e-commerce platforms under misleading categories like ‘health drink’ or ‘energy drink’.
Asking e-commerce websites not to put dairy, cereal or malt-based beverages under the Health Drink or Energy Drink category, the FSSAI said that the term ‘Health Drink’ has not been defined in the food laws of India. On the other hand, the term ‘Energy Drinks’ is allowed to be used only for the products licensed under the Food Category System (FCS) and the carbonated and non-carbonated water-based flavoured drinks. It is not allowed to be used for dairy, cereal or malt-based beverages, which include the present ‘health drinks’ like Horlicks and Bournvita.
The ministry cited a finding by the child rights body National Commission for Protection of Child Rights that there is no beverage category called Health Drink under the rules. The statement by the ministry said, “National Commission for Protection of Child Rights, 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.”
Functional Nutritional Drinks
Drinks with additives that provide certain physiological or health benefits in addition to taste and hydration are known as functional nutritional drinks. These beverages can support the needs of individuals with protein and micronutrient deficiencies. They provide extra health benefits because they include specific components derived from bacteria, plants, animals, and marine sources. These are beverages containing vitamins, minerals, botanicals, herbs, amino acids, or other bioactive substances that address different parts of a person’s health.
HUL states that the ‘functional nutritional drinks’ category meets the demands of the population regarding micronutrient deficiencies and protein lack. The Institute for Integrative Nutrition defines functional nutrition as an all-encompassing approach to eating. It considers lifestyle factors that may influence an individual’s dietary choices.
The Food Safety and Standards Act of 2006 lacks a precise definition for “health drinks” which is the reason for the regulatory attention centred on this category. It is ambiguous what constitutes a “health drink” or an “energy drink,” hence the Food Safety and Standards Authority of India (FSSAI) has ordered online retailers to stop classifying dairy, cereal or malt-based beverages as such. The purpose of this action is to put an end to deceptive advertising and customer confusion. These actions come after complaints were made regarding excessive sugar content in drinks as revealed by the investigation of Bournvita, which is owned by Mondalez India, a few days ago.
The high sugar content of drinks like Bournvita and Horlicks sparked concerns, which led to the changes. This occurred when Food Pharmer, a social media influencer, brought attention to Cadbury’s Bournvita, a popular malted drink in the nation that is similar to Horlicks, due to its high sugar content. Afterwards, the Food Safety and Standards Authority of India (FSSAI) received an inquiry from the National Commission for Protection of Child Rights (NCPCR), leading to the Center’s directive to e-commerce companies.
