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Maggi’s troubles in India may have wiped $200 million off its brand value

It’s been about a month since Maggi—Nestle’s popular instant noodle brand—got into trouble India after food inspectors found dangerously high levels of lead and monosodium glutamate in the product.This fiasco could result in Maggi losing over $200 million (Rs1,283.6 crore) in brand value, according to Brand Finance, a brand valuation consultancy.

“Any health concerns raised by a credible source such as the Food Safety and Standards Authority of India (FSSAI) will most certainly damage customer loyalty and consideration of a food brand,” David Haigh, chief executive officer of Brand Finance, said in a release. “Maggi’s parent company, Nestle, will have to turn around swiftly to ensure that the Maggi brand can retain its dominance in the Indian market.”

The FSSAI banned the sale of Maggi noodles on June 5, which it said was based on lab tests that confirmed that the noodles contained lead and flavour enhancer monosodium glutamate in excess of permissible limits.
Nestlé, which says the noodles are safe to eat, has said it will keep the product off store shelves despite its court action challenging the ban.

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