Hindustan Unilever (HUL) has made a strategic move in response to the Union Ministry of Commerce and Industry directive. The directive urged e-commerce websites to remove drinks and beverages from their platforms’ “healthy drinks” category. Following this directive, HUL has rebranded its health food drinks as Functional Nutritional Drinks (FND).
Ritesh Tiwari, the chief financial officer of HUL, expressed the company’s decision to change the labels of the category to FND, considering it a more accurate description. Tiwari further emphasized that the FND category offers significant growth opportunities as it remains under-penetrated. HUL focuses on expanding its customer base, enhancing usage, and providing additional benefits to encourage consumer upgrades within the category.
HUL has also observed stronger growth in its premium product range, particularly targeting diabetes management and women’s health. This diversification indicates HUL’s commitment to catering to evolving consumer needs and capturing market segments with specific health concerns.
The rebranding initiative comes after the National Commission for Protection of Child Rights (NCPCR) highlighted the absence of a clear definition for “health drinks” under the Food Safety and Standards Act of 2006. Subsequently, the Food Safety and Standards Authority of India (FSSAI) directed e-commerce platforms to refrain from categorizing dairy, cereal, and malt-based beverages as “health drinks” or “energy drinks” to avoid misleading consumers.
The recent ministry directive to remove beverage offerings from the “healthy drinks” category on e-commerce platforms may impact brands like Bournvita, which have traditionally positioned themselves as healthy options. These developments follow concerns raised a year ago when Mondalez India-owned Bournvita drew attention due to its high sugar levels.
HUL’s rebranding initiative reflects its adaptability to regulatory changes and commitment to ensuring product categorization transparency and clarity.
