The Saga of Maggi, Nestle’s Controversial Flagship Brand in India

Abstract

This case documents the crisis faced by Nestle India’s flagship brand Maggi since April 2015. Indian food regulators banned the sale of Maggi noodles for the presence of excess lead and added MSG. Though this resulted in huge financial and brand value losses, consumers’ responses varied from boycott to purchase of Maggi from the black market at almost double the price. As Nestle won its battle against the Food Safety Standards Authority of India in the Mumbai High Court in October 2015, it faced competition from existing and new players at a new level. Though Nestle’s Maggi instant noodles still remain the market leader with 48% of market share, it is nowhere close to its earlier share of 60–70%. Nestle is still determining whether it will ever be able to eliminate the reputation dent and win consumer trust or whether the competition will overtake Nestle.