Hindustan Unilever, the manufacturer of popular health food drinks such as Horlicks and Boost, has undergone a significant rebranding initiative. In response to directives from the Union Ministry of Commerce and Industry, which instructed e-commerce platforms not to categorize certain beverages as ‘healthy drinks,’ Hindustan Unilever has opted to rename its products from ‘health food drinks’ to ‘functional nutritional drinks’ (FND). This rebranding affects prominent products like Horlicks and Boost, which will now fall under the new FND category.

Why This Change?

The decision to rename these beverages comes after regulatory scrutiny over the classification of certain drinks as ‘health drinks.’ The Food Safety and Standards Act does not delineate a specific category for ‘health drinks,’ prompting the Ministry of Commerce and Industry to advise against their classification as such on e-commerce platforms.

Earlier, the National Commission for Protection of Child Rights highlighted the absence of a clear definition for ‘health drinks’ under the Food Safety and Standards Act (FSS Act) 2006. This lack of clarity led to directives from the Food Safety and Standards Authority of India (FSSAI), urging e-commerce platforms to refrain from labeling dairy, cereal, or malt-based beverages as ‘health drinks’ or ‘energy drinks’ to avoid misleading consumers.

Hindustan Unilever’s Chief Financial Officer, Ritesh Tiwari, expressed the company’s adaptation to these changes, stating, “We have changed the labels of the category to FND which is a much better way to call it.” This shift aligns with the company’s strategy to leverage growth opportunities within the FND category, particularly targeting premium products catering to diabetes management and women’s health.

Implications: The rebranding of Horlicks and Boost reflects a broader trend in the regulatory landscape surrounding food and beverage categorization. As companies navigate these changes, consumer awareness and understanding of product labels become increasingly crucial. Hindustan Unilever’s move underscores its commitment to compliance while seeking growth opportunities within the evolving market dynamics.

Conclusion: The renaming of Horlicks and Boost as functional nutritional drinks marks a significant transition for Hindustan Unilever in response to regulatory directives. As the company positions itself within the FND category, it aims to continue offering innovative products while ensuring transparency and clarity in product labeling for consumers.