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# Horlicks Sheds "Health" Label: A Shift to Functional Nutrition in a Regulatory Landscape

Introduction

Hindustan Unilever Limited (HUL), the parent company of popular malt beverage Horlicks, has undergone a recent rebranding. In response to directives from the Indian Ministry of Commerce and Industry, HUL has dropped the "health" label from Horlicks and reclassified its "health food drinks" category as "functional nutritional drinks" (FND). This move reflects a broader shift in the regulatory environment and consumer understanding of such beverages.

Regulatory Push for Accuracy

The Ministry's directive targeted e-commerce platforms, instructing them to remove drinks and beverages from the "healthy drinks" category. This action highlights a concern about potentially misleading health claims associated with these products. Horlicks, for instance, has long been marketed as a source of essential nutrients for growing children and adults alike. However, the high sugar content in many such drinks raises questions about their overall healthfulness.

Functional Nutrition: A More Nuanced Approach

The term "functional nutritional drink" offers a more nuanced description. It acknowledges the presence of vitamins, minerals, and other potentially beneficial ingredients, but avoids implying a guaranteed health benefit. This aligns with a growing consumer movement towards informed dietary choices.

HUL's Perspective

HUL's Chief Financial Officer, Ritesh Tiwari, emphasized the rebranding as a move towards greater transparency. He believes "FND" is a more accurate representation of the category.  Furthermore, HUL sees the FND market as an under-penetrated space with significant growth potential. This suggests a strategic shift towards highlighting specific nutritional elements within Horlicks, rather than relying on a broad "health" claim.

Conclusion

The rebranding of Horlicks reflects a changing regulatory landscape and consumer awareness regarding beverage health claims. The adoption of the "functional nutritional drink" label signifies a move towards greater transparency and a focus on specific nutritional value. Whether this shift translates to a reformulation of Horlicks with lower sugar content remains to be seen. However, it  undoubtedly paves the way for a more informed conversation about the role of such drinks in a balanced diet.
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