Hindustan Unilever (HUL) has renamed its “health food drinks” category to “functional nutritional drinks” (FND) following a government directive. The Ministry of Commerce and Industry asked e-commerce platforms to remove drinks like Horlicks from the “healthy drinks” category.
HUL’s CFO, Ritesh Tiwari, said FND is a more accurate description and presents a significant growth opportunity. The company aims to increase its consumer base, and product usage, and introduce new benefits within the Functional Nutritional Drink (FND) category. They report strong growth in their premium FND range targeting specific health needs.
This change comes after the National Commission for Protection of Child Rights (NCPCR) raised concerns about the lack of a legal definition for “health drinks” in India. The Food Safety and Standards Authority of India (FSSAI) also requested e-commerce platforms to stop categorizing beverages like Horlicks as “health drinks” or “energy drinks.”
Despite the rebranding, Horlicks reportedly achieved market share gains in FY24. The Indian health beverage market is expected to reach $3.84 billion by 2026, growing at a rate of 9.89% annually.
Also read – Bournvita is to be Removed From the Health Drink Category, Ministry Issues Advisory
