Claims that Nestle’s popular noodle brand, Maggi, was unsafe, and contained harmful lead content has seen the noodle giant’s market share drop by almost half according to Nielsen data. The controversy had resulted in a ban on Maggi noodles, which was later overturned.
The share of the Nestle’s noodles brand in India dropped to 42 per cent in January from a high of 77 per cent in the year-ago month.
While Maggi regained the No. 1 slot in instant noodles last month, ITC Foods’ Sunfeast Yippee has covered much ground and came a close second with a 33 per cent share.
The category, dominated by Maggi until May last year, has become fragmented with others such as Nissin’s Top Ramen, Ching’s Secret, Wai Wai and Knorr having caught up.
At its peak, Maggi’s market share was 77-80 per cent. A year ago, Yippee had 14 per cent, according to industry estimates.
Countering claims that rivals are gaining ground in the instant noodles segment, Nestlé India, maker of Maggi noodles, has said it is working on widening the gap with rivals.