Rivals gain as Maggi market share declines

NEW DELHI: The controversy over Maggi noodles, which led to a ban that was overturned, has seen its market share drop by almost half, according to industry executives who drew on Nielsen data.

The share of the Nestle’s noodles brand in India dropped to 42% in January from a high of 77% in the year-ago month. While Maggi regained the No. 1 slot in instant noodles last month, ITC Foods’ Sunfeast Yippee has covered much ground and came a close second with a 33% share. The category, dominated by Maggi until May last year, has become fragmented with others such as Nissin’s Top Ramen and Cup Noodles, Ching’s Secret, Wai Wai and HUL’s Knorr having caught up.

Maggi was banned last year in June and returned to stores in early November after a five-month ban and voluntary recall over allegations by food regulator Food Safety & Standards Authority of India (FSSAI) over excessive lead and mislabelling of flavour enhancer monosodium glutamate (MSG).

“We have reintroduced Maggi noodles across all geographies except Nagaland and Tripura where we are engaging with the authorities to commence sale,” a Nestle spokesperson said. “The response has been overwhelming.”