FSSAI crackdown in consumer interest, says Britannia chief Rakshit Hargave

New Delhi: The recent crackdown by the Food Safety and Standards Authority of India (FSSAI) on packaged foods and drinks across multiple categories and dozens of brands for alleged violations of labelling and hygiene standards is good for consumers and in the right direction, Britannia Industries managing director Rakshit Hargave said.

The crackdown has prompted several packaged food and beverage companies to challenge FSSAI's actions, with some seeking more time to comply and others moving court. "Consumers' interests should be protected and any measures that work in their favour should be taken forward," Hargave told ET.

Also read| FSSAI crackdown sends food, beverage firms back to drawing board


In recent weeks, 'energy' drink makers including Red Bull and Reliance Consumer Products have written to the regulator seeking a one-year extension to drop the word from their energy drink labels. Dabur last week moved court against the regulator's prohibition on the sale of several products carrying '100%' claims, including honey, sesame oil, coconut water and coconut milk.

Amid increasing competition from regional and digital-first brands, Britannia is stepping up its focus on smaller regional markets through local products and more regional teams. "With ecommerce and quick commerce, everybody has a level playing field. All brands get consumer trials but how do you build those trials into bigger brands? While competition is an opportunity for smaller companies to be able to show what they're doing, especially in our kind of categories where there are relatively low barriers to entry, you have to invest in products, search and innovation," Hargave said. While premiumisation across categories will be a core growth lever for urban consumers, the company is accelerating its regional strategy, he said.

Also Read| Delhi HC stays FSSAI ban on Dabur's '100% purity' claims

Like other packaged goods makers, Britannia has also indicated a fresh round of price increases of 1.5-2% in the second quarter. Some of these could also come in the form of lower grammage on ₹5 and ₹10 packs.