Horlicks rebranded as ‘Functional Nutritional Drink’ amid regulatory changes

In response to regulatory directives, Hindustan Unilever has rebranded its health food drinks, including Horlicks, as “Functional Nutritional Drinks” (FND). This move comes after the Ministry of Commerce and Industry instructed e-commerce platforms to remove such beverages from the ‘healthy drinks’ category due to concerns over misleading labelling.

Ritesh Tiwari, the chief financial officer of Hindustan Unilever, stated that the company’s decision to relabel the category as FND provides a more accurate description. Emphasizing the growth potential of the under-penetrated category, Tiwari outlined the company’s strategy to focus on expanding its customer base, enhancing usage, and offering additional benefits to consumers within the FND segment. Moreover, Hindustan Unilever has observed promising growth in its premium range, particularly in products targeting diabetes management and women’s health.

The regulatory scrutiny over the labelling of health drinks began when the National Commission for Protection of Child Rights highlighted the absence of a specific definition for ‘health drinks’ under the Food Safety and Standards Act 2006. 

Subsequently, the Food Safety and Standards Authority of India (FSSAI) directed e-commerce platforms to refrain from categorizing dairy, cereal, or malt-based beverages as ‘health drinks’ or ‘energy drinks,’ citing concerns about potential consumer misperception.