Dabur India Shares Fall Over 4% After FSSAI Bans ‘100%’ Claims On Honey, Ghee, Coconut Water

Dabur India’s shares declined over 4 percent after the Food Safety and Standards Authority of India (FSSAI) directed food businesses to stop using the term “100%” on food product labels and advertisements. FSSAI directed Dabur India Limited to immediately prohibit the sale of the food products mentioned in the notice and all other food products carrying misleading “100%” claims, and to submit an Action Taken Report (ATR) within 15 days.

 on X, FSSAI stated, “FSSAI has issued a Prohibition Order directing M/s Dabur India Limited to immediately cease the sale of food products carrying misleading “100%” claims. FSSAI made note of several non-compliances, carrying misleading “100%” claims, such as “100% Natural”, “100% Pure,” “100% Purity Guaranteed,” “100% Organic” and “100% Tender Coconut Water.” The authority stated these claims violate the FSS (Advertising & Claims) Regulations, 2018, as they are ambiguous, unverifiable and likely to mislead consumers.

Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey were found displaying the Jaivik Bharat logo without valid FSSAI organic endorsement, in violation of the FSS (Organic Foods) Regulations, 2017. FSSAI also flagged Dabur Homemade Coconut Milk, which was being sold/marketed with the claim “100% Purity,” stating that such a claim is not permissible for compound foods. The authority stated that despite an earlier notice directing the discontinuation of misleading “100%” claims, Dabur had not taken satisfactory corrective action.

The regulatory action has sparked concerns among investors about the potential impact on brands-what they are stating/claiming, the packaging and marketing that the brand is conducting. Experts believe Dabur India has a strong presence across honey and other food categories and therefore when this order was issued, the stock’s performance reflected investor reaction to the development. Investors are now eyeing further developments in the matter. Dabur India stated, “Dabur India Limited believes that the declaration on our product labels comply with the prevailing legal and regulatory framework and are consistent with long-standing industry practices. Dabur stands by the purity and quality of its products and has never made any misleading claims. However, as a good corporate citizen, Dabur had already initiated transitioning of the product labels as mentioned in the FSSAI letter to new labels/advertisements without the 100% claim. Most product labels/ advertisements/ website as mentioned in aforesaid order, have either already transitioned or are in the process of transition. The company is responding accordingly to FSSAI and the company will continue to engage constructively with them to resolve the matter. We reiterate that Dabur stands by the purity and highest standards of quality of its products and does not make any misleading claims. We continue to maintain the highest standards of quality, food safety and regulatory compliance in the manufacture and sale of its products. Dabur is also seeking legal advice on the future course of action.”