BackNestle India to complete Maggi recall by July-end
Till now, Nestle has destroyed about 30% of the estimated 30,000 tonnes of Maggi noodles that it's recalling
Premium
New Delhi: Nestle India Ltd hopes to complete the recall and destruction of Maggi 2-minute noodles by the end of July, and have the product back on shop shelves “as soon as feasible", the company said.
The Swiss multinational’s Indian arm started the recall—the largest in its history—after the alleged detection of high levels of lead and monosodium glutamate in the instant noodles.
So far it has destroyed about 30% of the estimated 30,000 tonnes of Maggi noodles that it’s recalling—about 2,500 tonnes more than its initial estimate.
By 25 June, Nestle India had sent about 17,000 tonnes of Maggi noodles to 11 cement plants across the country for incineration. Of this, 8,500 tonnes have been destroyed, said Luca Fichera, executive vice-president (supply chain) at Nestle India, who is overseeing the recall.
About 1,422 tonnes of Maggi were at five factories of Nestle, around 8,975 tonnes in 38 distribution centres, about 7,000 tonnes were with direct distributors and the remaining with about 3.5 million retailers, Nestle said.
The company has no idea exactly how much of the noodles are with consumers and retailers who are out of its direct reach, but estimates the figure at as much as 40% of the total.
“...we are trying our best to collect maximum possible. We have also started campaigns to make consumers aware of the recall and what they need to do to return Maggi noodles," said Fichera.
After it started the campaign, about 2,000 consumers and retailers contacted the company to return the product. “We have sent our people to collect from their places and this will continue as long we need to," said Fichera.
To speed up the incineration of the instant noodles, Nestle increased the number of cement plants from six to 11. Besides this, about 1,000 tonnes a day can be destroyed in third-party cement plants located in Tamil Nadu, Madhya Pradesh, Maharashtra, Chhattisgarh, Karnataka, Rajasthan, Andhra Pradesh and Gujarat.
Fichera said rains in some states has meant delays in transportation, disrupting the destruction of the noodles. Nestle India has deployed 40 employees at the 11 cement plants to monitor the incineration.
Around 10,000 trucks are being used in recalling the 2-minute instant noodles and sending them to cement plants for incineration.
On 15 June, Nestle India informed the BSE that it would be destroying Maggi noodles worth ₹ 320 crore. The actual cost may be more.
“The recall process is complex and ‘reverse distribution’ in nature. There are many more costs involved, which include logistics, packaging, transport, handling and storage, apart from other associated costs. We are yet to gauge the total (financial) burden," said Fichera.
On Friday, The Economic Times reported that Nestle India was working on an alternative snack that can take the place of Maggi noodles.
Responding to the report, a Nestle India spokesperson said, “We are making all efforts to have Maggi noodles back on the shelves as soon as feasible and do not comment on speculation. Innovation and renovation of products is an ongoing process at Nestle India and all our businesses work closely with Nestle R&D (research and development) to convert consumer insights into relevant products."
Despite the controversy, Nestle India claims that Maggi noodles is safe for consumption and the recall is to ensure that consumer trust is not eroded.
After the controversy erupted, the company tested 2,700 samples—1,857 samples in its own accredited laboratory and 833 at a third-party accredited laboratory. Fichera said the tests found the noodles safe for consumption.
Nestle India may have to change the packaging of Maggi noodles before it attempts to bring the product back to shop shelves. The company needs to ensure that no old stock, if any, with any retailer gets sold to consumers. “We are looking into all possibilities," Fichera said, declining to comment on possible changes in packaging.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
