Nestlé India, manufacturers of Maggi noodles, has started destroying the whole lot of noodles which came under scanner with tests finding presence of heavy metal Lead and MSG (monosodium glutamate) beyond permissible limit. Around 400 million packets of Maggi noodles are being destroyed.
The total quantity of noodles was close to 27,000 tonne worth Rs 210 crore. The company started destroying the product after an order of Food Safety & Standards Authority of India (FSSAI) directing it to do so due to lack of adherence with prescribed regulations of FSS Act of 2006.
Subsequently Nestlé had to remove Maggi noodles from shelves across the country.
According to food safety department, UP, the company has been asked to clear the whole batch from the state and destroy it. It was also directed to submit the report that the said batch has been removed and destroyed accordingly.
“Our job will start thereafter. And we’ll see if there is complete compliance with the authority’s order,” said an official with the Uttar Pradesh food safety department.
Meanwhile, Nestlé has started one of the largest recalls. According to the company, they have a long route to market. The company in a statement said, “We have 8 factories in India, five of which produce Maggi noodles, and 38 distribution centres where we store our products. These are under Nestlé’s direct control. From these distribution centres we sell to 1,400 distributors. Once the products are bought by these distributors they are no longer under Nestlé’s direct control. The distributors sell them on to other distributors, or to direct retail. We also sell directly to big chains like Walmart, Reliance, ABL and Big Bazar. We estimate that we are 3.5 million retail outlets in India. Around half of these are covered by the supply chain through these 1,400 distributors, the rest are the result of other routes to market.”
Recalling 27,420 tonne of Maggi noodles
Nestlé announced the withdrawal on June 5, 2015, and the operation was fully operational two days later. The statement said, “We estimated that there were 27,420 tonne of Maggi noodles in the factories / distribution centres / distributors / market on June 5. This is an estimate because although we know with certainty how much was in our factories and in our distribution centres, the stock which was with customers and retailers and in consumers homes was not under our control, making it difficult to be certain how much had been consumed and how much was stored.”
Three parts to the withdrawal
Nestlé stated, “Step one was blocking the distribution of stock at our own warehouses and distribution centres. This was done immediately; Step two was blocking orders by our 1,400 distributors so that no more stock went into the market. This was done immediately; and Step three was more complicated. It involved getting the stock back from our 1,400 distributors, and their distributors, and their customers, and from consumers. Getting loose packets of Maggi noodles back to our distribution centres.”
The statement by Nestlé
Cartons: We estimate that 40% of the 27,420 tonne of Maggi noodles we are recalling is no longer in cartons, but in packets on the shelves at home or in the retailers. So we need to source 1.4 million cartons to move the packets of Maggi noodles back to our facilities. We are buying cartons from all over the country.
Trucks: 27,420 tonne of Maggi noodles would fill 2,500 trucks. But there are multiple journeys involved (from the retail outlet to the distributor, from the customer to our distribution centre, from the distribution centre to the incineration plant etc.). Maggi noodles are sold all over the country so many thousand truck journeys will need to be made to complete the task.
High Temperature Thermal Destruction: The packs of Maggi noodles are mixed with fuel and subjected to high temperature thermal destruction in cement kilns. The process has been approved by the Indian government, and the fact that the noodles are being used for fuel reduces the environmental impact. The current capacity is 700 tonne a day across five facilities, meaning that it will take at least 40 days to destroy 27,420 tonne.
Refunds: There are multiple cash and credit transactions that need to be paid throughout the process as the product changes its hands on its way back to Nestlé India. This adds to the complexity of the situation. Nestlé India’s salesforce is supporting this process. In supply chain there are around 50 people working on it full time, along with others from our customers and other partners. We have also put in place measures to ensure consumers can easily get information on the withdrawal from the company.
