Nestle admits it could have averted crisis

Senior executives of Nestle India have admitted to colleagues in meetings that the recall of Maggi noodles, its biggest brand, could have been handled better. Some said the crisis that led to the country's largest product recall could have been averted had engagement with the government and regulators been better.

Nestle India, when contacted, declined to comment. Company insiders said this was the first time senior executives had made an admission of this kind. Brand and public relations experts have been unanimous that events leading up to the June 5 ban and recall of Maggi noodles could have been handled better had Nestle India been more proactive.

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"This is a government body that has come out with these findings and not some random allegation made by an aggrieved consumer on social media. Families with kids are bound to take this seriously," said N Chandramouli, chief executive officer, Trust Research Advisory, a Mumbai-based company that comes out with the annual Brand Trust Report. Nestle was perceived as being feeble in its defence after findings by the Food and Drugs Administration in Uttar Pradesh that Maggi contained lead and monosodium glutamate beyond the permissible limit.

As the matter escalated with more states claiming Maggi was unsafe, the company did not do much apart from issuing statements rebutting these findings, experts said.

Nestle India's efforts at communicating its view through a series of ads received a jolt when brand ambassador Madhuri Dixit and former endorsers Amitabh Bachchan and Priety Zinta were issued notices by the Uttarakhand food regulator. The regulator also stopped Nestle India from producing Maggi noodles at its Pantnagar plant, with the health and Union food and civil supplies ministries stepping in to take stock.

By the time the Food Safety and Standards Authority of India issued the ban and recall order on June 5, matters had gone out of hand. Even the presence of Paul Bulcke, Nestle's global chief executive, in India could not help salvage matters.