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Dabur Seeks Clarity on FSSAI's '100% Juice' Claim Directive

Synopsis: Dabur India, a homegrown FMCG major, is seeking clarity on the Food Standards and Safety Authority of India's recent directive to remove claims of '100 per cent juice' from the packaging and advertising of their 'Real Activ' brand. The company declares that the product is reconstituted on the back of the pack along with proper nutritional labeling.
Thursday, June 13, 2024
Dabur
Source : ContentFactory

Dabur India, a prominent player in the Indian FMCG sector, is currently seeking clarification from the Food Standards and Safety Authority of India regarding its recent directive to remove claims of '100 per cent juice' from product packaging and advertising. The company, which sells its 'Real Activ' brand with the claim of 100 per cent juice, is looking to understand the implications of this directive and how to comply with the cited rules.

Mayank Kuar, the business head of food and beverages at Dabur India, addressed the issue at the sidelines of the 15th edition of FICCI Foodworld India. He stated, "We are seeking clarity from the FSSAI on what they mean by the directive. We declare that the product is reconstituted at the back of the pack along with proper nutritional labelling." Kuar further added that the directive came late at night, and the company is still trying to comprehend how to adhere to the mentioned rules.

On June 3, the FSSAI mandated all food business operators to remove any claims of '100% fruit juice' from all labels and advertising, deeming them misleading. The authority has set a deadline of September 1, 2024, for companies to exhaust all existing packaging material and comply with the new regulations. This directive has left Dabur India, along with other FMCG companies, scrambling to understand the implications and make necessary changes to their packaging and advertising strategies.

Dabur India's 'Real Activ' brand has been a popular choice among consumers, with the company promoting it as a 100 per cent juice product. The company's stance on declaring the product as reconstituted on the back of the pack, along with proper nutritional labeling, raises questions about the interpretation of the FSSAI's directive. Dabur India's seek for clarity highlights the need for more detailed guidelines and explanations from the regulatory authority to ensure smooth compliance by food business operators.

The FSSAI's decision to ban claims of '100% fruit juice' stems from concerns over misleading advertising and the potential impact on consumer trust. The authority aims to promote transparency and accuracy in food labeling, ensuring that consumers can make informed choices based on reliable information. However, the sudden nature of the directive and the tight deadline for compliance have left many FMCG companies, including Dabur India, grappling with the challenges of adapting their packaging and marketing strategies.

As Dabur India awaits further clarification from the FSSAI, the company may need to explore alternative ways to communicate the nature and composition of its 'Real Activ' brand to consumers. This could involve revising the packaging design, modifying advertising campaigns, and finding new ways to highlight the product's nutritional benefits without relying on the '100 per cent juice' claim.

NSE: DABUR

Current Price: ₹560.95

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The stock is in an uptrend, trading above its 50-day and 200-day moving averages, indicating a positive market sentiment. The moving average convergence divergence (MACD) indicator shows a bullish crossover, suggesting a potential continuation of the uptrend. The stock has recently broken through a key resistance level at ₹550, which now acts as a strong support level. Fibonacci retracement levels suggest that the stock may face some resistance at ₹570, which coincides with the upper Bollinger Band. However, if the stock manages to break through this resistance, it could potentially target the next Fibonacci level at ₹585. Overall, the technical analysis suggests a positive outlook for DABUR, with the stock showing strong momentum and the potential for further gains in the near term.