Health Drink Category Removal Impacts Amazon, Flipkart

On 10th April 2024, Commerce Ministry's directive forced major e-commerce platforms to reclassify drinks like Bournvita, Horlicks, impacting sellers and manufacturers.

Key Points

Ministry Directive: Commerce Ministry ordered Amazon, Flipkart, BigBasket to remove drinks from health category, citing absence of health drink definition under food safety laws.
NCPCR Inquiry: National Commission for Protection of Child Rights inquiry concludes no health drink defined under FSS Act, leading to advisory issuance.
Impact on Manufacturers: Brands unaffected if not labeled as health products, but advertisement inventories depicting products as healthy may require withdrawal.
Existing FSSAI Directions: FSSAI regulations on branding and advertising already in place, minimizing impact on existing inventory.
Platform Implementation: Marketplace platforms to require sellers to reclassify products, potentially leading to technology solution changes.
BigBasket's Inventory-led Model: Faster implementation expected due to direct impact on inventory-led firms like BigBasket.
Current Status: Despite directive, e-commerce platforms still categorizing products as health drinks, indicating ongoing adjustment process.