Home Retail Maggi strengthens position with 50 pc market share

Maggi strengthens position with 50 pc market share


instant noodles by have further strengthened its leadership position with more than 50 per cent market share in the noodles category, says Nielsen Report.

Maggi strengthens leadership position with 50 pc market share
After the success of Maggi noodles, the brand has also relaunched other variants like Vegetable Atta and Oats noodles

During the Maggi ban fiasco, FMCG major ITC had claimed that sales of its noodles brand Yippee are recovering and its market share has risen to anywhere between 30 and 40 per cent.

After the success of Maggi noodles, the brand has also relaunched other variants like Vegetable Atta and Oats noodles.

Nestle India has partnered with online marketplace Snapdeal for an exclusive preview sale. A kit consisting of 4-packs each of Vegetable Atta and Oats Noodles and 2 Maggi bowls are being offered to consumers at Rs 176 as a part of the preview sale starting from April 22.

The Maggi Chronicles

On April 12, 2016, Nestle revealed that CFTRI (Central Food Technological Research Institute, Mysuru) has cleared all samples of its instant snack brand Maggi noodles, stating that all 29 samples tested by the research institute are clear.

The reports state that lead levels for all samples are within permissible limits. The second batch of 16 samples were tested not only for lead and Monosodium Glutamate (MSG), but also for other safety parameters like metal contaminants, crop contaminants and toxic substances, that are applicable to instant noodles as a proprietary food.

Maggi noodles was banned by national food regulator Food Safety and Standards Authority of India (FSSAI) in June last year on allegations of more than permissible lead and traces of MSG.

However, in April of 2016, FSSAI issued a notification stating that a food business operator will not be prosecuted for presence of MSG in their products.

FSSAI says it cannot be scientifically established whether MSG, a popular preservative and flavour enhancer, has been added by a manufacturer or present naturally.

Financial Impact of Maggi Ban

In its full-year earnings declaration, Nestle, which follows the January-December calendar, had said growth of its zone AOA (Asia, Oceania and Africa) region was at 0.5 per cent, impacted by the Maggi noodles issue in India.

Nestle India had reported a decline of 17.2 per cent in net sales for the year ended December 2015, while its net profit fell to Rs 563 crore, from Rs 1,185 crore in the previous year.

The food maker, which also makes KitKat chocolate and Nescafe coffee, took a hit of Rs 450 crore, having destroyed over 30,000 tonnes of Maggi. The firm had reported its first loss in three decades at Rs 64 crore in the April-June quarter of 2015.