Maggi ban costs Nestle $50.5m

Nestle said yesterday that India's decision to ban the Swiss food giant's hugely popular Maggi instant noodles over safety concerns had led to $50.5 million worth of goods being withdrawn, reports AFP from Zurich.
Nestle said its Indian unit had estimated the value of Maggi noodle stocks withdrawn from the shelves at 2.1 billion rupees.
Another 1.1 billion rupees worth of Maggi stocks were in factories and with distributors, the company said. India's food safety regulator had banned the product over tests which it said showed the noodles contained excessive levels of lead. The total cost of the shock ban would be given
later, Nestle said. The world's biggest food company is challenging the June 5 order from the government's food safety regulator.
The company had already announced it was pulling the product from sale when the Food Safety and Standards Authority of India (FSSAI) imposed a ban following similar moves by some state governments.
Nestle, which says the noodles are safe to eat, said it would keep the product off store shelves despite the court action it has launched challenging the ban.

Maggi ban costs Nestle $50.5m

Nestle said yesterday that Indias decision to ban the Swiss food giants hugely popular Maggi instant noodles over safety concerns had led to $50.5 million worth of goods being withdrawn, reports AFP from Zurich. Nestle said its Indian unit had estimated the value of Maggi noodle stocks withdrawn from the shelves at 2.1 billion rupees. Another 1.1 billion rupees worth of Maggi stocks were in factories and with distributors, the company said. Indias food safety regulator had banned the product over tests which it said showed the noodles contained excessive levels of lead. The total cost of the shock ban would be given later, Nestle said. The worlds biggest food company is challenging the June 5 order from the governments food safety regulator. The company had already announced it was pulling the product from sale when the Food Safety and Standards Authority of India (FSSAI) imposed a ban following similar moves by some state governments. Nestle, which says the noodles are safe to eat, said it would keep the product off store shelves despite the court action it has launched challenging the ban.