Maggi is gone and there are some lessons for big corporates

Nestle has removed Maggi from store shelves. Good step but came a bit too late. For once I’m ready to give benefit of doubt to Nestle that may be Maggi is unhealthy but it is safe. But the way the controversy has snowballed reaffirms that no one trusts big corporations. They are satan inc.

No one trusts governments either. GOI bans Greenpeace on some un-substiantiated biased information and most people believe that Government is at fault. GOI must have something fishy to hide. GOI bans Maggi without conclusive evidence  and everyone thinks Nestle is at fault.

That is why big corporations need to rethink the image that they project to the general public.For instance Nestle’s chairman proudly said  that humans don’t have right over water.  Apparently Nestle has right over all the water in the world so that they can package it and sell it to Humans. And then some years back Nestle milk for infants had Melamine in it. Melamine can cause kidney damage in young kids. So how are we supposed to trust Nestle. I also feel uncomfortable with the fact that how companies like Nestle dominates a large chunk of our life and food.

Over the last 10 years Nestle has effectively changed the staple diet of young kids. Now every kid wants to eat Maggi. And on top of it is marketed with some top brand ambassadors shouting some very in -conclusive slogan- “Taste Bhi, Health Bhi”. That is simply mis leading advertisement. A generation of kids who are severely under nourished thanks to Nestle. So people are not completely off the mark when they think Nestle is the devil and are rejoicing.

The fact however is that we can’t teach morality to businesses. But markets can. 15 years back Dhara was effectively killed because of Dropsy scandal. Cadbury had a tough time too when their chocolates came packed with some worms.

In the near term people will not eat Maggi and that is going to dent Nestle’s profit. In the stock markets Nestle stock is already taken a beating and is down some 15% in the past one week. I will not be surprised if it comes to some 4000 levels. We can’t even begin to calculate the damage done to Maggi brand.

Screen Shot 2015-06-05 at 9.31.46 am

So here is my suggestion to Nestle. When it all dies down please do not come back with even catchy adverts on how Maggi is best and healthy. Pause. Think why people hate you so much. And fix that. Till then enjoy all the 2 minute Maggi that is lying in your offices 🙂 Or you can hire Ramgopal Verma to do Maggi advert  titled ” Maggi ke Sholay” where Gabbar (  must be played by Amitabh Bacchan ) will say t ” Sardar Humne aapka namak khaya hai, to ab tu Maggi Khaa”

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One thought on “Maggi is gone and there are some lessons for big corporates

  1. Very interesting presentation. I presume this large MNC will shortly buy the top branded heroes ( in the instant case Amitabh Bachhan etc) to buy the kids’ attention to use Maggi. The GOI will smile as public memory is very short. Nestle has taken the opportunity over poor administrative control in India. GOI should give good lesson to Nestle so that they never dare to under estimate India. Make Swachha Bharat. Swipe the corrupted Nestle.

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