Explained: How healthy are your health drinks?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In response to the Ministry of Commerce and Industry’s directive to e-commerce platforms to reclassify drinks and beverages away from the ‘healthy drinks’ category, Hindustan Unilever has opted to rename its product segment as Functional Nutritional Drinks (FND).

The decision follows ongoing debates regarding the sugar levels in popular malt-based beverages.

Rohit Jawa, MD & CEO of Hindustan Unilever, defended the company’s stance, asserting that the sugar content in Horlicks is comparatively lower than that of its competitors. During a post-earnings conference, Jawa emphasised that the sugar levels in their products comply with the standards set by the Food Safety and Standards Authority of India (FSSAI).

Malt-based powders like Bournvita, Complan and Horlicks have come under the scanner recently with the government ordering e-commerce companies to remove them from the ‘health drinks’ category. Food safety regulator FSSAI said it doesn’t have any definition for the term. The move came a year after the National Commission for the Protection of Child Rights received complaints about the high sugar content in Bournvita.

While the government’s move has caused some ripples, experts tracking the FMCG sector are not certain they will last. According to their estimates, around 15-20% of the brands’ product portfolio may depend on e-commerce. For some companies, it could be as high as 30-40 percent and for some as low as 10%.

Ankur Bisen, Senior Partner & Head, Consumer, Food & Retail, Technopak Advisors, said that customers could face some navigation issues initially as they may think the product is unavailable. He explains, “There will be minor disruptions here and there, which will be operational in nature, but nothing that is fundamental or very high risk as far as the sales are concerned.” “As far as long term is concerned; we have seen many such controversies emerge in the past. And after a point in time, we have seen the sales of such products bounce back,” Bisen adds.

One of the reasons for this could be brand recall. Many of these brands have been in India since the 1950s, and have ingrained themselves in consumer psyches. Reports suggest that Horlicks and Boost command a 50% market share while Bournvita’s market share is 13-15%. Products like Complan, Pediasure, Ensure, Milo and Protinex account for the rest. The products have positioned themselves as providers of essential micro-nutrients to children, for many consumers, the preference is about taste.

A student in Noida told CNBC-TV18 that he drank Boost because he was into sports and he thought it would give him the stamina he needed. Another student said that she drank Bournvita because she did not like the taste of plain milk. The mother of a 7-year-old said that she gives her child Horlicks hoping that his height will increase.

Meanwhile, nutritionists have welcomed the government’s order to e-commerce companies because they believe these products should not be consumed regularly, given their high sugar content. For instance, a 20-gram serving of Bournvita contains about 6.4 grams of added sugar, while that of Complan has 5 grams and Pediasure has 4.5 grams. However, the added sugar content in Horlicks and Boost is lower.

Dr Eileen Canday, Head of Department, Nutrition and Dietetics, Sir HN Reliance Foundation Hospital, said, “There are many companies who use various terms and terminologies for a product, however, they do not even mention about why they are claiming that and what the trials & studies are.” She added, I think it’s a very good move by the government, which says that you should know what you are drinking, it need not necessarily be healthy or good for your body.”

However, advertising watchdog ASCI said that it hasn’t received many complaints against advertisements by these beverage powders. Manisha Kapoor, CEO & Secretary General, ASCI, said that in the past year, the council received nearly 800 complaints linked to beverages. “Out of these, the number of complaints for malt products was seven and about five of them had to change what they were saying in the ads, while two were found to be okay.” She added that all of them were not necessarily related to health claims made by brands.

With a rise in health-conscious consumers, experts believe that brands may have to evaluate their portfolios, rework formulae and launch products that are healthier.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow