India without Maggi. Possible impacts on brand Nestlé

Maggi is in trouble. Governments across the country are filing cases and deploying food inspectors to test Maggi samples. Some are fawning to fine Nestlé for misbranding the noodles brand as a healthy food alternative.

The company recently released an official statement saying, “People can be confident that Maggi Noodle products are safe to eat. The quality and safety of our products are the top priorities for our Company.”

Most find it hard to believe that a world class brand like Nestlé would not comply with industry norms. Some argue that a company as blue chip as this one has more at stake than anyone else.

That didn’t stop the Delhi government from banning sales of Maggi noodles today.

What if this leads to a chain of bans across India till it wipes our favorite ‘two minute snack’ off the map?

The only way to realize the worth of the brand is to witness a market without it. How much exactly would the brand be set back for? What would the market look like without India’s leading noodles seller? Let’s find out.

Enter a world without Maggi.

It’s impossible to quantify the exact amount of losses the parent brand would incur. Considering that Maggi accounts for around 15-16,000 Crores of Nestlé’s turnover one could guess it’s surely not in pennies.

Industry experts project that the brand would suffer a three stage hit.

“If Nestlé can’t sell Maggi at all, that in itself will be a big setback for the brand. It’s also a brand for ketchup and other condiments. The whole brand will get impacted because of this, even when the ban would be on Maggi noodles. More than the money, Nestlé’s reputation in India will go for a big hit”, Arvind Singhal, Chairman at Management Consulting firm Technopak predicts.

Maggi currently sells instant soups, ketchups, seasonings and instant noodles in India.

What’s the way forward if it does get banned?

“Maggi as a brand has not been banned. It’s just one product. The company can still have a product recall and re-launch it by saying it’s totally compliant”, Singhal says.

While there is no use crying over spilt Maggi, looks like it’ll take more than a few bans to wipe out your favorite midnight snack.

(Image credit: Indiatimes)