India's food regulator takes legal action against Nestle

India's food regulator announced on Friday, September 18, that it is pursuing legal action against Nestle after finding a sample of the company's baby food to be substandard. The Food Safety and Standards Authority of India (FSSAI) stated the sample of Nestle's follow-up formula for infants did not meet prescribed biotin requirements.

Nestle responded that its products are fully compliant with all applicable regulations. The company said it will continue to work closely with the regulator but did not specifically comment on the finding of the substandard sample. This scrutiny is part of a broader crackdown on India's US$100 billion food industry, which has included surprise factory visits and product testing.

Regulatory Findings on Biotin

Officials found the sample was substandard with respect to biotin, also known as vitamin B7. The FSSAI specifies a standardized reference range for this nutrient in baby food. A reanalysis of the sample confirmed it was non-conforming with respect to the biotin requirements under Indian laws, according to a social media post from the regulator. The FSSAI did not say whether it would order a recall of the product.

Legal Cases and Market Impact

The FSSAI has filed three separate adjudication cases against Nestle. Two additional cases concern the baby food products NAN Excella Pro Stage 1 and Lactogen Pro 1, which the regulator says made misleading claims in breach of regulations. Following news of the action, Nestle's shares in India fell almost 3 percent.

India is a key growth market for Nestle. Milk and nutrition products, including infant formulas and baby foods, were the company's biggest revenue category in the year ending March 2026. This category generated a third of its product sales, worth US$2.4 billion.

Nestle's Response and Past Issues

In response to the notice on labeling, Nestle India said it submitted a detailed response to the authorities. The company stated the labels in question are factual and supported by scientific literature. "The labels were approved by the expert committee of FSSAI," it added.

This is not the first time Nestle has faced regulatory action in India. In 2015, authorities banned its popular Maggi noodles over alleged excess lead levels and labeling lapses, triggering a massive recall. The product later returned to shelves after fresh tests.

Debate over food safety in India has intensified recently. A Reuters report last month stated the government opted for a weaker labeling regime after lobbying by Coca-Cola and groups backing Nestle and PepsiCo. These groups argued that warning labels were ineffective. Many companies have implemented such labeling measures voluntarily in European markets.