Maggi Case Study

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In a soup over Maggi noodles, what’s the worst for Nestle? A quality scare is a food brand’s worst nightmare, especially when children are involved. Nestle India Ltd’s share fell by 9.1% on Wednesday, after more states began to conduct tests on its instant noodles brand Maggi for higher-than permitted levels of lead and for the presence of monosodium glutamate. Fears that this situation is developing into a full-blown crisis have made investors bearish. Parallels can be drawn with the Cadbury Dairy Milk incident in 2003 when worms were found in some chocolates in Maharashtra. It blew up in the company’s face and took some explaining to both consumers and the government, changes in packaging and a high-profile marketing campaign before order was restored. It still took eight months for chocolate sales to go back to pre-crisis levels, according to a case study by the Fletcher School at the Tufts University. So far, Nestle has said that tests done in-house and in an independent laboratory show that lead content in Maggi noodles…show more content…
“We will do whatever it takes to have Maggi back on shelves soon.” However, while the widely televised Nestlé conference was on, the country’s food safety regulator put out an order recalling Maggi noodles from all states, saying it was “unsafe and hazardous for human consumption’’. That was not the only face-off between Nestlé and Indian authorities. By early evening, Nestlé India moved Uttarakhand High Court against the hill state government’s 90-day ban on Maggi. The court has given the Uttarakhand government 15 days to reply to Nestlé’s plea. Apart from moving court, the company has sought results of the laboratory tests conducted by

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