Amid controversies revolving around health drinks, Hindustan Unilever Limited has made a significant rebranding of Horlicks after recent regulatory changes in the health drinks category. The company has renamed its category to functional health drink (FND) and dropped the health label.The move from the company has come after the Ministry of Commerce and Industry instructed the e-commerce platforms to remove drinks and beverages from the health drinks category.The significant change was announced by Ritesh Tiwari, the Chief Financial Officer of Hindustan Unilever during the earnings press conference on April 24.Tiwari emphasized that the category is now more accurately and openly described by the switch to the FND name. He drew attention to the FND markets under penetration, which suggests enormous development potential.The Food Safety and Standards Act of 2006 lacks a precise definition for health drinks, which is the reason for the regulatory attention centered on this category. Notably, the Food Safety and Standards Authority of India (FSSAI) recently directed e-commerce platforms to abstain from categorizing dairy, cereal, or malt-based beverages as health drinks or energy drinks due to the lack of legal clarity. This move will not only prevent consumer confusion but will also refrain from misleading advertising practices. All these developments have come amid raising concerns about the high sugar level contents in the food products and drinks like baby food products and Bournvita who came under scrutiny a few days ago.
