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Westferry Times > Law and Articles > PepsiCo, Unilever Sell Lower Quality Products in India, Finds Report
Law and Articles

PepsiCo, Unilever Sell Lower Quality Products in India, Finds Report

Mona Porwal
By Mona Porwal Published November 9, 2024
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A recent report by the Access to Nutrition Initiative (ATNI) has revealed that major food and beverage companies, including Nestle, PepsiCo, and Unilever, are selling products of lower nutritional quality in low-income countries such as India compared to those sold in high-income nations. The findings have sparked concerns over the potential health risks these products pose to populations in developing countries.

The report, part of ATNI’s global index, assessed 30 leading multinational food companies to determine the healthfulness of their products. Using a rating system designed in Australia and New Zealand, it found that products sold in lower-income nations scored an average of 1.8 out of 5, significantly lower than the 2.3 average rating observed in high-income countries. Under this rating system, a score above 3.5 indicates a healthy product. The lower scores in countries like India suggest that the food and beverage items marketed there often fall short of basic health standards.

“It’s a very clear picture that what these companies are selling in the poorest countries in the world, where they are more and more active, are not healthy products,” said Mark Wijne, ATNI’s research director, in an interview with Reuters. Wijne also called on governments to take action by imposing stricter regulations to protect public health.

This is the first time the ATNI report has differentiated its assessment between low- and high-income countries, and the results have been met with considerable alarm. The index’s findings come at a time when the World Health Organization (WHO) reports that over one billion people worldwide are living with obesity, with around 70% of this population in low- and middle-income countries. The rapid rise of processed foods, sugary snacks, and fast-food items, such as potato chips and carbonated beverages, has been widely recognized as a key contributor to the global obesity crisis. In regions like India, where affordability and accessibility drive consumer choices, these low-nutrition products are becoming staples in daily diets, raising concerns about long-term health implications.

The effects of these health risks are not just limited to obesity but extend to an increase in non-communicable diseases such as diabetes and cardiovascular ailments, which are now on the rise in India and other developing nations. With limited healthcare resources, these countries are particularly vulnerable to the burden of diet-related diseases.

Public health advocates and social influencers in India are actively raising awareness about this issue. One such influencer, Revant Himatsingka, known as ‘Food Pharma’ on social media, has taken it upon himself to hold large corporations accountable for what he describes as “major health violations.” Himatsingka, who has millions of followers, has publicly criticized products from Nestle’s Cerelac to Kissan’s tomato ketchup, alleging that these items mislead consumers with marketing claims that downplay their unhealthy ingredients. However, his activism has not come without consequences; Himatsingka has faced multiple lawsuits from these corporations for his outspoken criticism.

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The report has intensified calls from health experts and consumer rights advocates for stronger regulation and more transparent labeling in countries like India. Many argue that these companies should be required to adhere to the same health standards in all markets, regardless of income level, to ensure that consumers everywhere are making informed choices.

In response to growing criticism, some companies have pointed to their efforts to offer healthier products, including sugar reduction initiatives and the introduction of alternative, low-calorie options. However, the ATNI report suggests these efforts are not widespread enough, particularly in low-income countries. Without government intervention and more robust policies, advocates argue, multinational corporations are unlikely to prioritize health over profit in these regions.

The findings underscore the need for greater vigilance by governments to regulate the sale of processed foods and to encourage public awareness of nutrition standards. Experts suggest that governments in low-income countries could implement taxes on sugary drinks, enforce stricter marketing restrictions on unhealthy foods, and promote clearer food labeling as immediate steps toward safeguarding public health.

As consumers in countries like India continue to demand better quality and transparency, the ATNI report may act as a catalyst for change, encouraging both policy shifts and corporate accountability in the global food industry.

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