Key findings: Sector-level
- 15% of the sales of the nine Index companies in 2015 were estimated to be derived from products that are ‘healthy’ (i.e. achieve 3.5 stars or more on the Health Star Rating system – the threshold for healthy used by this study.)
- Of the foods sold, 16% were estimated to have met the healthy standard whereas only 12% of the beverages sold were estimated to have met that standard.
- Only 8% of the 2015 sales of the nine Index companies were estimated to be generated by products of sufficient nutritional quality to be marketed to children, according to the WHO EURO nutrient profiling model.
- Just 7% of the foods and 8% of the beverages sold by these companies are suitable to be marketed to children.
Key findings: Company-level
- The Product Profile results provide an indication of the overall nutritional quality of the sales of each company in 2015.
- The local Indian companies in the Index do relatively well in the Product Profile. Mother Dairy ranked first, with a sales-weighted score of 5.6 out of 10. This is because 77% of its sales derive from drinking milk products with an average of 2.7 out of 5 stars. (Some of the company’s products in this category have relatively high sugar levels which brings down the average score). Amul ranked third, with a score of 4.4 out of 10 and Britannia Industries ranked fourth with a score of 3.6. Parle Products ranked fifth with a score of 3.2 out of 10.
- Hindustan Unilever ranked highest among the multinationals, at second with a score of 4.6 out of 10.
- Coca-Cola India, Nestlé India, PepsiCo India and Mondelez India all ranked in the bottom four, with scores ranging from 3.0 to 1.1 out of 10
- The proportion of companies’ 2015 sales estimated to be generated from healthy products (i.e. that achieve an HSR rating of 3.5 stars or more) varies significantly. Mother Dairy was estimated to have generated 46% of its 2015 sales from healthy products whereas only 23% of Amul’s sales in that year derived from healthy products. Hindustan Unilever and Coca-Cola India each generated approximately 12% of 2015 sales from products that achieved an HSR rating of 3.5 or more.
- Britannia Industries, PepsiCo India, Nestlé India and Parle Products derived less than 10% of their total 2015 sales from healthy products. Mondelez India does not sell any products with an HSR above 3.5 stars.
- In terms of the percentage of 2015 sales estimated to be generated by products suitable to be marketed to children, Mother Dairy generated around 15% of sales that year from such products. Hindustan Unilever and Coca-Cola India derived 12% of 2015 sales from such products. All other companies generated less than 8% of their sales from products suitable to be marketed to children. (Note that this does not imply that these companies actually market these products to children.)
Are products labeled in accordance with Indian labeling regulations and with Codex recommendations?
- At the time of publication, the FSSAI required the nutrients shown in table below to be included on product labels. In June 2016, it passed an amendment creating additional labeling requirements for saturated and trans fats for packaged foods, but this amendment only comes into force from 2 December 2016. This amendment brings Indian labeling requirements more closely into line - but not fully - with nutrients recommended to be included on labels by Codex Alimentarius Guidelines on Nutrition Labeling CAC/GL-2-1985 (most recently amended in 2011). These new requirements do not include salt/sodium to be labeled.
- The analysis presented below assessed compliance with Indian regulations in force as of the end of June 2016.
- As illustrated in graph below, most of the companies exhibit a high level of compliance with the statutory Indian labeling requirements in force at the time of analysis; average compliance is 96%. One company is in complete compliance: Parle Products. Britannia Industries and PepsiCo India achieved 99% compliance and Hindustan Unilever 98%. All other companies, other than Amul, had greater than 90% compliance. Only 89% of Amul’s product labels were aligned with Indian regulations on nutrition labeling.
- Compliance with the more comprehensive Codex recommendations is much lower, as shown in graph below, with only 23% of all products overall labeled in line with them. However, Mondelez India achieved the highest level of compliance, at 85%, followed by Hindustan Unilever with 79%. The majority of Nestlé India’s products also complied (61%). PepsiCo India, Britannia Industries and Amul’s level of compliance was very low, below 20%. Three companies did not label any products in line with Codex – Coca-Cola India, Parle Products and Mother Dairy.
Download the full Product Profile chapter here and the The George Institute study in full here.