Nestle Case - Baby Food Controversy

Nestle is a major player in the baby food market controlling 40% share worldwide (Rizvi. 2000) but over the years it has been facing a lot of controversy and allegations regarding their marketing practices in the developing world and is facing an international boycott movement of its products in 19 countries (Rizvi. 2000). This negative publicity has lead to the erosion of the Nestle brand image to a certain extent (Datamonitor, Nestle Company Profile. 2005).

Although Nestle has faced a lot of criticism regarding fair-trade and other issues like genetically modified food, we will focus on the baby food controversy and specifically events occurring in Pakistan in 2000.

Baby Food Controversy

The issue was first highlighted by Derrick Jelliffe, Director of the Caribbean Food and Nutrition Institute, who raised the dangers of improperly used breast milk substitutes. He took the matter to the United Nations in 1971 but his efforts failed because other health experts in the meeting emphasized the importance of breast milk substitutes for the nutrition of the infant (Nestle). In 1972, Protein Advisory Group (PAG) issued a statement outlining the responsibility of the governments, the doctors as well as the manufactures and called attention to the marketing practices and product labeling of the baby food products (Nestle).

In the coming years Nestle was faced by a lot of criticism and different organizations launched campaigns against the Swiss giant. In 1977 the first official boycott of Nestle was launched lead by U.S.-based INFACT (Infant Formula Action Coalition) and a ban on the promotion of infant formula products was demanded (Nestle). “Through a fascinating series of events spanning a generation and involving the courts, the US Senate, a group of Catholic nuns, the Securities and Exchange Commission, and concerned citizens, the WHO/UNICEF Code for Marketing Breast milk Substitutes