
In a strategic move, Hindustan Unilever, known for its brands like Horlicks and Boost, has rebranded its ‘health drinks’ category, dropping Horlicks from it and renaming it as ‘functional nutritional drinks’ (FND). This decision comes in response to the Union Ministry of Commerce and Industry’s directive to e-commerce platforms to remove drinks and beverages from the ‘healthy drinks’ category.
The rebranding reflects a broader industry trend towards more accurate labeling and consumer transparency. Ritesh Tiwari, the chief financial officer of Hindustan Unilever, emphasized the benefits of this shift, stating, “We have changed the labels of the category to FND which is a much better way to call it.” He highlighted the under-penetrated nature of the category, signaling significant growth opportunities.
Tiwari outlined the company’s strategic approach, focusing on increasing customer engagement, enhancing usage, and providing added benefits to encourage consumer upgrades within the FND category. Notably, Hindustan Unilever is witnessing robust growth in its premium segment, particularly in products targeting diabetes and women’s health.
The rebranding follows earlier discussions around the definition of ‘health drinks’ under the Food Safety and Standards Act 2006. The National Commission for Protection of Child Rights noted the absence of a clear definition for such beverages. Subsequently, the Food Safety and Standards Authority of India (FSSAI) cautioned against labeling dairy, cereal, or malt-based beverages as ‘health drinks’ or ‘energy drinks,’ citing potential customer misinterpretation.
This strategic move by Hindustan Unilever aligns with industry best practices and regulatory guidance, emphasizing clarity and accuracy in product categorization. It reflects a proactive approach to consumer expectations and market dynamics, setting a benchmark for responsible branding within the food and beverage sector.
Sources By Agencies