Adroit Market Research - Industry Insights

Nestle is a Swiss transnational food & drink company located in Switzerland. Nestle products involve medical food, baby food, breakfast cereals, bottled water, tea and coffee, dairy products, confectionary, frozen food, ice cream and pet foods. This study discusses the accusations Nestle faced in the baby infant formula controversy. Many of the charges were accused on the issues of advertising and marketing of the baby food products, disheartening breast feeding among the third world mothers and resulting in the products misuse, contributing to infant deaths and malnutrition. This study also focuses on the precautionary measures taken by Nestle for infants formula products marketing.<

Nestle is a Swiss transnational food & drink company located in Switzerland. Nestle products involve medical food, baby food, breakfast cereals, bottled water, tea and coffee, dairy products, confectionary, frozen food, ice cream and pet foods. This study discusses the accusations Nestle faced in the baby infant formula controversy. Many of the charges were accused on the issues of advertising and marketing of the baby food products, disheartening breast feeding among the third world mothers and resulting in the products misuse, contributing to infant deaths and malnutrition. This study also focuses on the precautionary measures taken by Nestle for infants formula products marketing.

In early 1970’s Nestle Alimentana Vevey, Switzerland is the world’s largest companies of food-processing at war with world. Nestle was under the fire from Pan American Health Organization for the accusations of mass amount of deaths amongst the infants of the world. Consequently, Nestle started to suffer from the boycott of their products globally. Nestle was under the attack globally, where several charges were brought in contrast to Nestle were for the issues of their marketing and advertising campaigns. The charges filed against the Nestle allocated with the suspected discouragement of breast feeding, specifically amongst the third world mothers. The accusations appealed that the marketing and advertising strategies of Nestle are accountable for mothers of third world to exploit their products that resulted in the death and malnutrition of infant.

In the year 1974, a report was published by British Journalist that claimed that the manufacturers of powdered-formula participated in the death of infants of Third World by selling their products to the people unable to use the products properly. The report alleged the industry of influencing mothers to give breast feeding and use the formulas of powdered milk. The report was then published by the Third World Working Group titled as “Nestle Kills Babies”, and suspect Nestle for immoral and unethical behavior. Even though there are various companies marketing new born baby formula globally, Nestle was recognized all over the world. This occurrence is showing various issues significant to all the multinational companies. Previous of speaking these issues, there are the charges accused by defense by Nestle and Infant Formula Action Coalition are described.

Accusations:

Many of the charges were against the infant formulas concentrating on the concerns of marketing and advertising of the products have depressed the breast feeding amongst the Third World mothers and are leading towards the misuse of the products, participating to the infant death and malnutrition. Some of the accusations are listed below:

• Peruvian nurse described that formula had discovered their way to Amazon tribes in the northern Peru jungles. Here, only water comes from the river which is highly contaminated and serves as the local toilet and laundry that are formula-fed infants coming with the continuous attacks of vomiting and diarrhea.

• During the Third World, several parents are diluting the formula to increase the supply. Many of them even trust that bottle is having the nutrient qualities and simply fill it with water and the result is severe malnutrition.

• In the Philippines, Mexico, Africa and Central America has seen the drastic change in the occurrence of breast feeding. Critics are responsible for the reduction on the promotion and advertising of infant formula. Clever radio jingles praise the miracles of “white man’s powder that helps baby glow and grow”. The nursing mothers in hospitals visit “Milk nurses” and house and offer samples of formula. These activities are influencing mothers for giving up breast feeding and an alternative to bottle feeding as it is the trendy thing to do or as people are hitting it to them that this is the only thing to do”.

Security:

Following points are considered in the security of marketing of the infant’s formula in Third World countries:

• Nestle debates that the company has not once supported the bottle feeding rather than breast feeding. The company claims that it “believes that breast milk is the superior food for new borne and influences breast feeding across the globe that is been done from years.
• On the other hand, company mostly believes that baby formula is having the important role in infant nutrition as supplement where infant requires nutrition sufficient and precise foods in the addition of breast milk and alternative for breast milk when mother chooses not to breast feed.
• In the emerging nations, mothers are suffering from several dietary deficiencies. In Philippines, mother from the poor family nursing a child is generating a pint of milk every day. In United States, mothers are usually producing a quart of milk per day. On comparing U.S and Filipino mothers producing milk is equally nutritious. But the problem is that there is less for the Filipino baby which may develop the malnutrition.
• Several poor women in Third World bottle feed due to the work schedules in factories or fields will not allow breast feeding. Claim that Third World women can breast feed completely for one or two years and have healthy, well-developed children is shocking.
• Weaning foods can be differentiated as native cereal gruels of millet or rice, or the milk formula that is manufactured commercially. Conventional native weaning foods are made by mixing rice, millet flour or maize with water and then by cooking the mixture.

Nestle Assisting the WHO Code

The company is having the strong record of development and assist in implementing the WHO code, involving the following:

• Instant support for the WHO code and testimony to this effect ahead of U.S. Congress.
• Issuance of instructions to all agents, employees and distributors to implement the code in all Third World countries.
• Establishment of audit commission, to endure the compliance of company with code.
• Inclination to meet the concerned church leaders, organization leaders and international bodies are concerned with the Nestle’s application of code.
• Issuance of revised instructions to Nestle personnel, recommended by Muskie committee to explain and provide the effect to the code.
• Consultation with NIFAC, UNICEF and WHO to interpret the code and implement the superior specific provisions, involving clarification by UNICEF/WHO of the term of children required to be feed the alternative of breast milk, because of recognizing the need for supplies in hospitals.

Twists:

The new environmental factor has made the total case more complex: In 2001 it was believed more than 3.8 Mn children across the globe had contracted the Human Immunodeficiency Virus (HIV) at mother’s breasts. In several countries mothers are told to bottle feed their children. Although, more than 90% of the infections of child occurring in the emerging countries. In many of the infected areas, greater than 70% of mothers are not carrying the virus and breast feeding is the best option. In Thailand, many of the pregnant women are providing testing and find HIV positive, given free milk powder.

In the year 2004, demand for infant formula in South Africa has increased the supply as HIV infected mothers has shifted to infant formula for feeding their children. In that year the demand increased by around 20% and government examined the shortages as Nestle twisted to come up with demand.