Maggi sales plummet across India

MUMBAI: Maggi noodle sales have been hit hard ever since it was revealed that a sample tested for quality by a government agency about two weeks back contained monosodium glutamate (MSG) and lead beyond permissible levels. The brand from Swiss foods major Nestle, which is synonymous with noodles in India, has therefore also witnessed a severe dent in its popularity and image. Modern retailers say the impact could be in the range of 15-20% in large metros, but what makes matters worse for Nestle is that the general trade appears to be against stocking the brand given the decline in sales from regular consumers. Maggi, which clocks around Rs 1500 crore annually, contributes a significant portion of Nestle's total business in India. What's more a Mumbai-based retailer feels since Maggi is generic to the noodles category the controversy could impact sales of the entire category, which includes similar products sold by its competitors. TOI spoke to a large number of distributors, stockers, retailers and consumers from across major cities to gauge the impact on sales and consumer behaviour on Monday and most of them seemed worried. In many departmental stores in Bengaluru, sales are down 40% during the last fortnight. "It is probably a matter of time that Maggi will sell again. For now the fear has hit parents since it involves children,'' said Ravishankar R, a store manager in Bengaluru. Some retailers estimate the impact could be bigger. Anup Acharya, the manager at Foodhall, a department store in Bengaluru, said Maggi sales are down as much as 60%. A Kolkata distributor said sales have dropped over 30% in last few days, but a top official of the chain said the drop was not significant in the first two weeks. At Anand Stores in Kolkata's New Market that usually sells five-six cartons (each carton contains 48 packets) of the 2-minute noodles snack, there has been virtually no sale in the past seven days. "We've barely sold six packets of Maggi instead of 280-plus packets a week. Earlier Maggi would be a must item on a mother's shopping list. Now, it has been struck off," said Rabi Roy of Anand Stores. Distributors of the brand in Ahmedabad said their orders have fallen by 5-10% over the last one week. They, however, expect the situation to become clearer in the first week of June, since most of the big stores and super markets order stocks for a month. A distributor of Nestle products, said. ``We saw a slight decline in orders from small provision stores which place orders weekly." Similarly executives at supermarkets in Ahmedabad said that they saw 5-10% decline in retail sales. As social media went abuzz, sales of Maggi began to dip with rising consumer concerns. "I am shocked that a brand that was a children's favourite has been cheating them," said Usha Jagadeesh, who was browsing the section at a Big Bazaar outlet in Bengaluru. "I am now scared to give Maggi to my children, who enjoy it. I used to give it to them at least twice or thrice a week but now, I have switched over to another brand," she added. Bina Ahmad, mother of an eight year old who purchased mega packs of Maggi earlier which the entire family loved to gorge on, is unwilling to risk instant noodles unless they are tested. She though admitted that she was having a tough time convincing her son to have alternative snacks items. "My kids are big fans of Maggi, but after the ongoing controversy I am not allowing my kids or any other family member to eat it,'' said Meera Gupta, a housewife from Jaipur. In Mumbai, a group of male paying guests staying together in Malad raid the mall counter for various brands of noodles regularly. Most young men who leave home to study or work in another city are taught to prepare tea, eggs and noodles, says Ashraf Khan who cooks for the group often. He says,``We buy brands of noodles which offer good discounts, say three packs for the price of two. Now we make sure to not buy Maggi.'' Local vendors and shopkeepers in Lucknow claim that sale of Maggi has gone down significantly in the past week. Amrit Lal, an owner of a departmental store at Jopling Road, said: "It has been over a week now that there has been not a single customer asking for Maggi". It has also affected sales of other Nestle products like tomato ketchup and soups, Lal added. In Lucknow, even city malls appear to be cagey about stocking the brand. Gurjeet from a super market in Hazratganj, said, "We have returned the entire stock to the vendor as now no one is asking for it". In Uttarakhand, where the 2-minute noodle is a popular snack among tourists and trekkers, demand has plummeted. Dhaba owners said many tourists now prefer paranthas and other alternatives. "Earlier, I used to sell around 40-60 packets of Maggi around this time of the year due to the heavy rush of travellers going towards hill stations like Mussoorie. But things have changed over last week. I'm hardly able to sell 15-20 Maggi packets a day," said Saneev Rawat, a shop owner in the city. Ajay Puri, president of the Hotels Association of Uttarkashi says that the controversy has hit many dhaba owners and small restaurateurs. As against 9,600 small Maggi noodle packs a week, a grocer in Pune's Koregaon Park said sales have now dropped by around 50%. A dealer in Raipur said the brand's sales have dropped by nearly 40% and retailers are not placing more orders apprehending a possible ban on the product. Shopkeepers in Chandigarh too complain of a considerable drop in the sale. "There is a decrease of 70%-80% in the sale of Maggi in my shop,''said Rajnish Luthra, a Zirakpur shopkeeper. Vineet Batra, owner of Mani Ram Balwant Rai, one of the big wholesalers in Ludhiana, said, "Maggi sales have gone down by more than 50%. People are reluctant to buy it now." In Bhopal, sales have dropped by more than 50%. Lakshman Ahuja, proprietor of Ahuja Proteins, city's biggest general store said, "Only 25% of the rolling stock is being sold. Generally, students buy 5-10 packets at a time but we have sold no Maggi packets on Monday. This has never happened." In Guwahati, too, the news on the food safety of Maggi has had a negative effect in dealer sales. "Parents have stopped their kids from having Maggi. Sales have decreased by around 40%," said Mithun Dey, a dealer in Ulubari in Guwahati. The story is no different in Hyderabad. "I run a kirana store in the Ameerpet area and I can see that even my regular customers, who used to buy Maggie on a daily basis, are no longer buying it. It's surprising because Ameerpet is an area where a lot of students and bachelors reside. Even these people are shunning Maggi now," said K Santosh, the owner of a kirana store. A manager of Ratnadeep Supermarket chain at Somajiguda area of Hyderabad, said: "We have not ordered any new stocks in the last eight days. This news has not just affected Maggi sales, but has also hit sales of other instant noodles brands.'' Describing the lack of stock movement at his shop, Rajendra Pareek of the Jai Bharat General Store in Raja Park, Jaipur, said: "There is steep decline in sales of Maggi at my shops. Earlier, we had to refill our stock twice a month, however, this time our shelves are packed.'' Another Jaipur retailer, Ravi Gupta, Gupta Store, Mansarovar said Maggi sales have come down by 30%. Chennai seems to be the only city to buck the trend. Two Nestle distributors in Chennai said they have not heard or observed any impact in the sale of Maggi among the retailers network they serve. In a media statement, a Nestle India spokesperson said on Monday: "We understand that consumers are concerned by reports that the authorities in Uttar Pradesh have found elevated levels of lead in a sample pack of Maggi noodles. We are fully cooperating with the authorities who are conducting further tests and we are awaiting their results.'' Nestle India has submitted Maggie noodles samples from almost 600 product batches to an external laboratory for independent analysis and the company tested samples from almost 1,000 batches at its laboratory. "These samples represent around 125 million packets. All the results of these internal and external tests show that lead levels are well within the limits specified by food regulations and that Maggi noodles are safe to eat. We are sharing these results with the authorities,'' the spokesperson said while adding, the company regularly monitors all its raw material for lead, including testing by accredited laboratories "which have consistently shown levels in Maggi noodles to be within permissible limits''.