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Infant Formula Controversy

Nestle has faced international boycotts for over 40 years for its marketing of infant formula in developing countries. Critics argue this led to malnutrition and even death for babies whose mothers could not afford adequate formula or clean water. Nestle defended its actions but adopted policies in line with WHO recommendations to promote breastfeeding. However, controversies over formula marketing and compliance with codes continue.

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Kaushambi Kaushal
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165 views17 pages

Infant Formula Controversy

Nestle has faced international boycotts for over 40 years for its marketing of infant formula in developing countries. Critics argue this led to malnutrition and even death for babies whose mothers could not afford adequate formula or clean water. Nestle defended its actions but adopted policies in line with WHO recommendations to promote breastfeeding. However, controversies over formula marketing and compliance with codes continue.

Uploaded by

Kaushambi Kaushal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Infant Formula Controversy

Company overview

•Founded in 1867.

•Headquarter: lake Geneva Vevey,


Switzerland.
• CEO: Peter Brabeck Letmathe

•It operates in 100 countries with 8000


product,2,47,000 employees & 500
Factories.
•Punch line : Good Food, Good life.

•First Product: “Ferine Lactee Nestle”


Case Overview

Nestle is world largest food processing company which is facing international


boycott over of 40 years since 1974. “ Nestle kills babies” and accused Nestle
of unethical and immoral behavior. The charges revolve around the sale of
infant feeding formula, which allegedly cause mass death of babies of
Third World.

Some of the Charges Are:-

Use of contaminated water making the milk is cause for the


death in the jungles of Northern Peru.

Believe of Nutrients in bottle results into malnutrition.

Due to presence of bottled milk mother gives less breast


feeding to their children which may cause weight loss.
Contd..

Nestle has defended all these charges with the proof. They have taken
resolution with help of World Health Organization (WHO) Code. They have
assured that to promote the breast feeding.

“Our company intends to maintain a constructive dialogue with the


governments and health professionals in all the countries it serves with the sole
purpose of servicing mothers and the health of babies” .

:- Nestle discusses the recommended WHO


Infant Formula Code.
Third World
Nestle Policies
 In the early 1970’s nestle began to review its infant formula on region basis. By
1978 the company had stopped all the advertising and direct sampling to
mothers. After 1982 they adopted articles of the WHO code as Nestle Policies.

 policies Include:-
(a) No Advertising to the general public.

(b) No Sampling to mothers.

(c) No Mother Craftworks.


Contd..

( d ) No use of commission / bonus for sales

( e ) No use of infant pictures on labels

( f ) No point – of –sale advertising

( g ) No financial or material inducements to promote products

( h ) No samples to physicians except in three specific situations


: A new product, a new product formulation, or a new
graduate physician; limited to one or two limited products

( i ) Limitations of supply to those requested in writing and fulfilling


genuine needs for breast milk substitute

( j ) Statement of the superiority of breast feeding on all levels / materials


Contd..

( k ) Labels and educational materials clearly stating the hazards


involved in incorrect usage of infant formula, developed in
consultation with WHO / UNICEF

As late as 1997 the interagency group on breastfeeding monitoring


( IGBM) claimed Nestle continues to systematically violate the WHO
code but the representative of Nestle and American home products rejected the
accusation and set they were complying with WHO and individual national codes on
the subject.
Responsibilities of company in this situations

• Company must have Stop the ad campaigns which effect the


third world people.

• Carry out the health education program as nestle did in 1978 to


make them to proper use of their product.

• They have to promote the breast feeding over the infant formula
product.

• They must have follow the code given by the WHO and
National codes given by other countries.
Why and how Breast feeding is important ?

Breast milk has many natural benefits which is lacking in formula. Breast-fed babies
are protected, in varying degrees, from a number of illnesses, including diarrhea,
bacterial meningitis, gastroenteritis, ear infection, and respiratory infection. Breast
milk contains the right amount of the nutrients that are essential.
Regular breastfeeding can also delay the return of fertility, which can help women in
developing countries to space their births. The World Health Organization
recommends that, in the majority of cases, babies should be regular breast fed for
the first six months
WHO Code for

•The Infant Formula Action Coalition (INFACT) with


the other world organization convinced WHO make a
code for nestle. 1981, by vote of 114 to 1
(3 countries abstained and the US was the only dissenting vote),
118 member nations of WHO Endorsed voluntary code.
8-page code urged a worldwide ban on promotion and
advertising of baby formula and called for a halt to distribution
of free product samples or gifts to physicians who promoted
the use formula as a substitute for breast milk.
In May 1981, Nestle announced it would support the code and
waited for individual countries to pass the national codes. By the
end of 1983, only 25 of the 157 member nations of the WHO had
established national codes.

In May 1982 Nestle formed the Nestle infant formula of Audit


Commission chaired by former senator Edmund J. Muskie, and
ask the commission to reviews the company’s instructions to feel
personal to determine if they could by improved to better
implement the code.

NIFAC recommended several clarifications for instructions that


it believed would better interpret ambitious areas of the code “In
Oct 1982 Nestle accepted those recommendations and issued
revised instructions to feel personnel.
How could Nestle have avoided the accusations of ‘killing
Third World babies”

 They were doing hard selling of their product which should not
be done.

 They had to promote formula food as the substitute of breast


feeding not as the replacement.

 Before launching their powdered formula they should give the


proper information regarding how to use that product.
Many poor mothers use less formula powder than is necessary,

in order to make a container of formula last longer. As a result,


some infants receive inadequate nutrition from weak solutions


of formula.

How the Nestle get affected by the new issue
: HIV Transmission through Breast milk.

HIV is transmitted through breast milk (the rate of transmission is about


15%), and as such, many people have advocated that any
mothers in areas of high prevalence should resort to artificial
feeding.  In many parts of the world, this is sensible, but in many
areas of Africa, IT IS HIGHLY DANGEROUS.

As outlined in the British Medical Journal, for many


African children the risk of bottle feeding is higher than
the risk of HIV mother to child transmission (MTCT). 
Artificial feeding should only be implemented
if it is completely feasible, safe, sustainable, and affordable.

In areas of high poverty, poor healthcare, and inadequate


sanitation, bottle-feeding does not meet any of these criteria.
Conclusion

According to Chinese standards, there should be no more than


30 to 150 micrograms of iodine per 100 grams of milk powder.
The Nestle product contains 198 micrograms of iodine. Taking
in excessive iodine can lead to a swollen thyroid gland.

He Tong, head of Nestle China's PR department, said the company


has not taken any measure to recall or stop the sale of the three-
plus milk powder for child growth.
Nestle says - Nestle milk powder contains more iodine than the national
limit, it does not affect those who drink it for just a short time.

The Chinese Consumer Association said Nestle China was given


15 days to offer an explanation before the report was released
last Wednesday, but the company seems to give no response,
the agency said.
Contd…

Nestle has become one of the world's most boycotted companies


following international outrage by campaigners who claim that it
is marketing baby milk formula as a substitute for breastfeeding
to people in the developing world, who are often unable to mix
it with clean drinking water.

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