Food giant Nestle is set to lose more than £127m and suffer brand damage worth billions of US dollars, after India banned its Maggi noodles on food safety fears, warns a brands consultancy.Brand Finance calculated the damage following the Food Safety and Standards Authority of India’s (FSSAI) verdict that the noodles were “unsafe and hazardous”. Some noodle packets contained “higher-than-allowed levels of lead” and Nestlé had failed to comply with the nation’s food safety laws, it said.Maggi’s brand was valued at £1.54bn ($2.4bn) before the food safety ban, which ranked the noodle manufacturer as the 23rd most valuable food brand in the world. But Brand Finance calculated Nestlé’s decision to destroy noodles valued at £32m, combined with a damaged brand, will result in a reduced brand value of £1.41bn ($2.2bn). Brand Finance boss David Haigh warned health concerns raised by a credible source such as the FSSAI would most certainly damage customer loyalty and consideration of a food brand.Nestlé accounted for 80% of India’s lucrative instant noodles market, after their launch in the country 32 years ago.
