Delhi, April 25: Hindustan Unilever (HUL) announced a significant rebranding move on Wednesday. The company has renamed its ‘health food drinks’ category as ‘functional nutritional drinks’ (FND) and has dropped the ‘health’ label from its product, Horlicks.

This move comes after the Ministry of Commerce and Industry directed e-commerce websites to remove drinks and beverages from the ‘healthy drinks’ category on their platforms, reported ET.

“We have changed the labels of the category to FND which is a much better way to call it,” said Ritesh Tiwari, Chief Financial Officer of Hindustan Unilever, at the earnings press conference on April 24. He highlighted the under-penetration of the FND market, indicating significant growth opportunities. Remove Bournvita From Category of ‘Health Drinks’: Government Tells e-Commerce Firms.

The regulatory attention stems from the lack of a precise definition for “health drinks” in the Food Safety and Standards Act 2006. The Food Safety and Standards Authority of India (FSSAI) recently asked e-commerce platforms to refrain from labelling dairy, cereal, or malt-based beverages as “health drinks” or “energy drinks”, aiming to prevent consumer confusion and misleading advertising. Nestle Adds Sugar to Infant Milk, Cereal Products Sold in India But Not in UK and Europe: Report.

These developments follow concerns raised about high sugar levels in beverages, exemplified by scrutiny of Mondelez India-owned Bournvita a few days ago. The government recently advised e-commerce websites that beverages such as Bournvita should not be labelled as “health drinks” since the category lacks a defined definition in the country’s food laws.

Last year, Cadbury Bournvita found itself in a controversy after a social media influencer alleged that the drink has high sugar content. Mondelez India, the parent company of Bournvita, issued a legal notice to the influencer to remove the video. However, the National Commission for Protection of Child Rights (NCPCR) requested the brand to retract all misleading packaging, advertising, and labels.

(The above story first appeared on LatestLY on Apr 25, 2024 12:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).