The sugar content in these drinks is much above the acceptable limits.
Hindustan Unilever Limited (HUL), the owner of popular brands 'Horlicks' and 'Boost' has dropped health from its label and has repositioned its brands as "Functional and Nutritional drinks".
The decision by the HUL comes after the Ministry of Commerce and Industry directed e-commerce websites to remove all drinks and beverages from the 'health' category on their websites. The Centre said the sugar content in these drinks is much above the acceptable limits.
In a regulatory filing by the HUL, it reported a 1.53 per cent decline in consolidated net profit to Rs 2,561 crore for the fourth quarter of FY24.
The company in its filing said, "Functional nutritional drinks (Horlicks & Boost) delivered high single-digit growth, driven by Plus range. Tea continued to strengthen value and volume market leadership," it said.
What the ministry said
"National Commission for Protection of Child Rights (NCPCR), a statutory body constituted under Section (3) of the Commission of Protection of Child Rights (CPCR) Act, 2005 after its inquiry under Section 14 of CRPC Act 2005 concluded that there is no 'health drink' defined under FSS Act 2006, rules and regulations submitted by FSSAI (Food Safety and Standards Authority of India) and Mondelez India Food Pvt Ltd," the ministry said in a notification, dated April 10.
As per the regulatory body, 'health drink' is defined in India's food laws and to project something under the same violates the rules. The FSSAI, earlier this month, also instructed e-commerce portals against labelling diary-based or malt-based beverages as 'health drinks'.
The row began last year when NCPCR had asked Bournvita to withdraw all "misleading" advertisements, packaging and labels soon after a video by influencer Revant Himatsingka, aka FoodPharmer, highlighting the drink's high sugar content went viral and sparked widespread criticism. Bournvita is a brand owned by Cadbury.
After the video went viral, the child rights body asked the FSSAI to act against companies labelling supplements 'health drinks' and failing to meet guidelines.