Nestle Half-a-Billion in the Hole After India Sues Over Lead Content

When a large multinational corporation faces court proceedings from a nation that is a burgeoning global power, the conflict is sure to be protracted and aggressive. India took Nestle to court after tests had revealed Maggi noodles contained much greater amounts of lead than the legal limit. The government took action by submitting a claim to the nation’s highest consumer court, the National Consumer Disputes Redressal Commission (NCDRC) and pursued 6,400 million Rupees ($98.6 million) in compensation from the Swiss-based food giant. “In recent months, we had over 2,700 samples of MAGGI Noodles tested by several accredited laboratories both in India and abroad. Each one of these tests has shown lead to be far below the permissible limits,” the government's statement said.

Maggi Noodles' two-minute advertising campaign made the snack very popular in India, becoming the nation’s fastest-selling food, racking up approximately 15 billion Rupees ($240 million) a year in sales. Tests also found traces of monosodium glutamate (MSG) in the noodles, and despite Nestle India appealing to Mumbai’s High Court, the noodles were banned from sale across the country in 2015. They have since returned to shops in India, but estimated sales drops, product recalls and damages paid, resulted in the company expecting an estimated loss of half a billion dollars, a costly punishment indeed!

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