Bharti Wal-Mart suspends CFO, employees amid bribery probe

 Michelle Russell | 23 November 2012

Bharti Wal-Mart has suspended a number of its employees, one of which is understood to be its CFO, while it investigates alleged violations of US anti-bribery laws.

A spokesperson for Bharti Wal-Mart confirmed the move today (23 November) and said the company is "committed to conducting a complete and thorough investigation".

"Wal-Mart and Bharti have suspended a few associates pending the outcome of the investigation," the spokesperson said. "It would be inappropriate for us to comment further until we have finished the investigation."

It is understood the the Indian joint venture of Wal-Mart Stores has suspended five employees in total, including CFO Pankaj Madan, as part of an ongoing global investigation by the US retail giant against alleged corrupt practices, Reuters reported. Four of the employees are understood to be from Bharti's legal team.

According to the publication, Wal-Mart last week opened internal inquiries or investigations into bribery allegations in Brazil, China and India, following an earlier probe in Mexico. Indian authorities are also investigating claims the retailer violated foreign exchange rules when it invested $100m in a domestic unit owned by its wholesale joint-venture partner.

India's government finally allowed foreign direct investment in the country's retail sector in September after a number of delays. Indian opposition parties and the Congress party-led coalition government had opposed the move that would allow retail giants like Wal-Mart into the sector. Opponents believe greater foreign investment will hit domestic operators, particularly smaller, traditional outlets.

Opposition politicians demanded a debate and vote on the policy decision when the Indian parliament opened for its winter session yesterday, Reuters noted, threatening to halt parliamentary proceedings.

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SUMMARY OF CASES OF VIOLATION OF SECTION 24 OF FSS ACT, 2006 & FSS (PACKAGING AND LABELLING) REGULATION, 2011:

SUMMARY OF CASES OF VIOLATION OF SECTION 24 OF FSS ACT, 2006 & FSS (PACKAGING AND LABELLING) REGULATION, 2011:

Click here to download the summary of cases.

INDIA: Mondelez "co-operating" with authorities over Cadbury tax probe

By Michelle Russell | 22 November 2012

Mondelez International has said it is co-operating with authorities in India over alleged tax evasion in the country.

The snacks group's Cadbury India unit is being investigated over claims the company may have evaded as much as INR2bn (US$36.3m) in taxes.

According to Reuters, finance minister SS Palanimanickam told India's Parliament this week: "Two cases of tax evasion by Cadbury India Limited has been detected by the Directorate General of Central Excise Intelligence during the years 2009-10 to 2012-13, up to 31st October, 2012."

A spokesperson for Cadbury said in a statement: "A compliant and ethical corporate culture, which includes adhering to laws and regulations in the countries in which we operate, is integral to our success. To that end, we are fully co-operating with the authorities on this enquiry. Since the investigation currently is under way, it will be inappropriate on our part to discuss the details at this time."

This is the latest of two cases against Cadbury's Indian unit. In January last year, an investigation was launched to investigate whether Kraft Foods needed to pay taxes arising from it takeover of Cadbury.

Kraft rejected the criticism levelled at the company. However, the probe is understood to be ongoing.

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FSSAI asked to make new guidelines for junk food in schools

Posted on 21 November 2012 by Arshiya

The Delhi High Court has given the Food Safety and Standards Authority of India (FSSAI) a six month period to come out with guidelines on implementing rules to ban junk food in and around schools. 

The two  judge bench gave the order on January 11. The next hearing is scheduled for July 25.

The court passed the order on a Public Interest Litigation (PIL), filed by Uday Foundation, a non-profit in Delhi, which alleges that junk food causes damage to health and mental growth of children. The PIL was filed in 2010. The foundation works on children's health, and has sought a ban on sale of junk food in schools and within 500 metre radius of educational institutions.

Initially the respondents to the PIL were Delhi state and the FSSAI, but there have been attempts by others with vested business interests to join the respondents- this include the All India Food Processor's Association of India, All India Restaurant Association of India, Association of street vendors and the Halwai Association. The last three were the latest additions for the January 11 hearing. The bench  reprimanded the new parties and said that since they were joining for self interest and not public interest they wouldn't be allowed. 

The All India Food Processor's Association (AIFPA), however was allowed to become a part on November 2 last year. This nodal agency of the food processing industry in India, represented by senior counsel Mukul Rohatgi, wanted its point of view to be considered by the court since it did not want to be inadvertently dragged into the ban. This is because the petitioners in the case have failed to specify what kind of food items should be included in junk food or fast food. The association represents those involved in the processing of fruits and vegetables, meat and fish, milk and milk products and makers of biscuits and confectionary products.

However, the centre was supposed to file an action taken report by December, which they didn't on account of lack of time. They filed their report on January 10. The affidavit states that though taking a decision on banning junk food in schools is an administrative decision of those who run it, the Ministry of Health and Family Welfare have taken some actions.

For instance the ministry of health and family welfare has already requested the chief ministers and the health ministers of the states and the ministry of human resources development (HRD) for taking steps to ban, restrict availability or withdraw such food items from canteens of schools and educational institutions.

The affidavit also pointed out that a circular has been issued to hostel mess in navodaya vidyalaya by the navodaya vidalaya committee suggesting daily menu for hostel menu and had very clearly stated that no junk food was to be served in the hostel. The committee is an autonomous body under HRD ministry. This circular was issue on July 13, 2011. 

The affidavit added that the Kendryia Vidyalaya's also have been concerned about the problems of junk food and have been issuing circulars from time to time highlighting the problems of junk food and promoting good food eating habits. The FSSAI stated that the Central Board of Secondary Education (CBSE) have also written to all the school affiliated to the board highlighting the concern over junk food and adulteration.

The FSSAI elaborated on their part, in the affidavit, that they were playing. They submitted that the statutory body was undertaking
a project for development of guidelines for making available quality and safe foods in school and has invited proposal from experienced agencies, organizations, institutions for development of guidelines for making available quality and safe food in school.

After completion of this process the FSSAI will be in a position to frame guidelines for making available healthy food in school canteens. At the moment the Food Safety and Standards Act does not define any food as junk food or fast food. All food that has been categorized as junk food falls under the category of proprietary food.

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NI cuisine chain Punjab Grill opens overseas outlets at Bangkok, Abu Dhabi

Tuesday, November 20, 2012 08:00 IST 
Our Bureau, Mumbai

Punjab Grill, the North Indian frontier cuisine chain from Amit Burman-promoted LiteBite Foods, on Monday announced the opening of two new overseas outlets in Bangkok and Abu Dhabi, marking the international expansion of the brand.

The two new overseas outlets, spread over 4,000 sq ft each, will take people in Bangkok and Abu Dhabi on an epicurean journey through India’s richly diverse Northwest Frontier Province — the undivided Punjab region. “Punjab Grill is the face of Lite Bite Foods in the international markets, offering authentic & the best that North Indian frontier cuisine has to offer under one roof. Punjab Grill promises to provide a culinary haven that would recreate the scintillating magic of royal & traditional Punjabi cooking, in turn offering a truly gastronomical adventure to the food lovers,” said LiteBite Foods chairman Amit Burman.

The new Punjab Grill Outlet in Bangkok is situated in the Radisson Hotel, while the Abu Dhabi outlet is at Bawabat Al Sharq being developed by Baniyas. “These new outlets mark Punjab Grill’s initial steps in the overseas markets. We are now exploring a number of other destinations like Hong Kong, London, Dubai and Malaysia, besides expanding the brand’s presence in India,” added Burman

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Nestlé invests big in R&D centre for India

By RJ Whitehead,15-Nov-2012

Nestlé CEO Paul Bulcke and 

Minister  Tariq Anwar 

mark the occasion

Understanding India’s consumer food trends is never an easy job, and with this in mind, Nestlé has opened its first research and development centre in the country. It will use the new facility to generate a better knowledge of the market, tastes and people.  

The centre, which will specialise in Asian noodles and Indian cooking, will focus on developing highly nutritious, affordable products in smaller serving sizes for lower income consumers.Researchers will gain expertise in the use of local ingredients and culinary traditions – work Nestlé expects to be a source of new ideas for products.The company, which directly employs 7,000 people in India and sells its products in around 4m outlets, has invested CHF50m (US$53m) in the centre, which is located in Manesar, close to Nestlé India’s headquarters in Gurgaon.“This R&D centre will help us gain insights into local consumers’ eating habits and taste preferences, as well as give us greater expertise in using and processing local ingredients to develop products for India and beyond,” said Paul Bulcke, Nestlé’s chief executive, at the facility’s inauguration.”

Tapping into a global network

Johannes Baensch, Nestlé’s global head of research and development, said that the company’s Indian R&D operation will work closely with our other such facilities across the world. It will also nurture local talent, with Nestlé set to recruit the majority of its employees from a regional pool of science and engineering graduates.“They will be part of our global workforce, sharing knowledge with their colleagues worldwide, and have opportunities to work with our R&D operations in other countries,” Baensch added.

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Monster Rehab Energy Drink Class Action Lawsuit

Tuesday, 13 November 2012 11:54

Monster Energy Co. has been hit with a class action lawsuit claiming that its Monster Rehab Green Tea + Energy drink contains unknown amounts of epigallocatechin-3-gallate (ECGC), “an extremely dangerous and potentially lethal ingredient,” and that the company fails to warn consumers that it could cause hepatoxic side effects, or chemical-driven liver damage.

California resident and lead plaintiff Jennifer Wooding alleges in the Monster Rehab class action lawsuit that medical research shows ECGC has been linked to liver injuries and could cause adverse side effects, and that it should not be consumed with alcohol or by those with compromised livers. Yet advertisements for Monster Rehab suggest it should be consumed as a pick-me-up after a long night of partying.  

"Instead of being the safe energy drink that Defendants promised, the subject product causes dangerous hepatotoxic side effects, including without limitation, death, acute liver failure, hepatitis and other liver injuries," the Monster Rehab class action lawsuit says. "Despite knowing that the subject product could result in severe injury and even death in susceptible users, Defendants marketed and sold the subject product to millions of unsuspecting consumers without any warning whatsoever."

While ECGC has antioxidant properties in small doses, the class action lawsuit points to 20-year-old research that shows ECGC has toxic liver effects “when used in the doses present in dietary supplements.” 

Monster Rehab Green Tea + Energy contains an unknown amount of ECGC, which has been linked to numerous cases of liver injury in Europe, the class action lawsuit says. 

It is the latest development in a series of legal filings against the popular energy drink company. 

The FDA is investigating five deaths and one non-fatal heart attack in connection with Monster Energy drinks that occurred over the past year. The family of one of these victims, a 14-year-old girl who died of a toxic caffeine overdose, has filed a wrongful death lawsuit against Monster over their daughter’s death. The company has also been hit with a class action securities fraud lawsuit filed by investors accusing Monster of failing to disclose it is being investigated for alleged false advertising and marketing by a state Attorney General.

Other energy drink makers are also facing litigation over allegedly dangerous amounts of caffeine in their products. The makers of Four Loko are still fighting a class action lawsuit alleging the now-banned alcoholic energy drink “causes sickness and alcohol poisoning, and even death.” And an October 2012 class action lawsuit claims VPX Redline energy drink causes extreme adverse health effects that resemble a cocaine overdose.

The Monster energy drink class action lawsuit is seeking to represent a proposed class of all consumers nationwide that purchased Monster Rehab Tea + Energy. It is seeking restitution, punitive and treble damages, a corrective advertising campaign and more for alleged violations of the Consumers Legal Remedies Act and California Business and Professions Code, breach of express and implied warranties, and unjust enrichment.

The Monster Rehab Class Action Lawsuit case is Wooding v. Monster Energy Company, et al., Case No. 30-2012-00609716-CU-BT-CXC, California Superior Court, Orange County

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'I'll contribute to policy implementation in agriculture': Tariq Anwar

Thursday, November 15, 2012 08:00 IST 
Abhitash Singh, Mumbai

After taking charge as minister of state for agriculture and food processing industries, Nationalist Congress Party (NCP) leader Tariq Anwar said he would not only concentrate on mainline agriculture but also on allied sectors such as dairying and animal husbandry.

During his felicitation programme in Mumbai on November 11, Anwar informed FnB news via telephone, “I am very thankful to Sharad Pawar, the agriculture minister, for showing interest in me and giving me an oppotunity to be a state agriculture and food processing minister. I would try my level best to contribute to policy formulation and implementation in not only mainline agriculture but also allied sectors such as dairying and animal husbandry.”

He added, “Our agriculture and food processing industries are growing at a very rapid pace and it is boosting our economy. These sectors have an important role to play in overall growth of the country. It will help in the well-being and prosperity of farmers.”

When asked about his plan to boost agriculture in Bihar (although he is an elected representative from Maharashtra), he replied, “I had a word with Nitish Kumar, chief minister, Bihar, and said that I will try my level best to boost the agriculture sector of Bihar, but that doesn't mean that I will not concentrate on Maharashtra. I will do the balancing act and try to make all the states happy as MoS for Agriculture and Food Processing Industries.”

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INDIA: Mondelez to boost local chocolate production

By Dean Best | 13 November 2012

Mondelez has seen
"extraordinary growth"
in India in recent yearstion

Mondelez International, the owner of Cadbury and Toblerone chocolate, is to expand its chocolate production in India.

CFO David Brearton said Mondelez did not have the capacity in India to meet the demand for its chocolate.

"In India, our challenge is keeping up with demand for our chocolate," Brearton said. "We've run into capacity constraints after posting extraordinary growth over the past couple of years. We're driving productivity and removing bottlenecks at existing plants to stretch current capacity. And we expect new production lines to come on stream by the middle of next year."

Mondelez's Cadbury arm is the dominant force in India's chocolate market, where it accounts for over half the market.

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New packaging norms under Legal Metrology (Packaged Commodities) Rules, 2012

Friday, November 02, 2012 08:00 IST

In tune with the announcement by the ministry of consumer affairs, food and public distribution that the new packaging norms – the Legal Metrology (Packaged Commodities) Rules, 2012, under the Legal Metrology Act, 2011 – would come into effect from Nov 1, 2012, a communication issued on Thursday notified the standard sizes for various commodities.

The commodities and specified packaging standards include:
Baby food: 25 gm, 50 gm, 100 gm, 200 gm, 300 gm, 350 gm, 400 gm, 450 gm, 500 gm, 600 gm, 700 gm, 800 gm, 900 gm, 1 kg, 2 kg, 5 kg and 10 kg.

Weaning food: Below 50 gm no restriction, 50 gm, 100 gm, 200 gm, 300 gm, 400 gm, 500 gm, 600 gm, 700 gm, 800 gm, 900 gm, 1 kg, 2 kg, 5 kg and 10 kg.

Biscuits: 25 gm, 50 gm, 60 gm, 75 gm, 100 gm, 120 gm, 150 gm, 200 gm, 250 gm, 300 gm, thereafter in multiples of 100 gm up to 1 kg and thereafter in multiples of 500 gm up to 5 kg.

Bread including brown bread but excluding bun: 50 gm and thereafter in of multiples 50 gm upto 500 gm and above 500 gm in the multiples of 100 gm.

Un-canned packages of butter and margarine: Below 25 gm no restriction, 25 gm, 50 gm, 100 gm, 200 gm, 500 gm, 1 kg, 2 kg, 5 kg, and thereafter in multiples of 5 kg.

Cereals and pulses: Below 100 gm no restriction, 100 gm, 200 gm, 500 gm, 1 kg, 2 kg, 5 kg and thereafter multiples of 5 kg.

Coffee: Below 25 gm no restriction, 25 gm, 50 gm, 75 gm, 100 gm, 150 gm, 200 gm, 250 gm, 500 gm, 1 kg, 1.5 kg, 2 kg, and thereafter in multiples of 1 kg.

Tea: Below 25 gm no restriction, 25 gm, 50 gm, 100 gm, 125 gm, 250 gm, 500 gm, 1 kg and thereafter in multiples of 1 kg.

Materials which may be constituted or reconstituted as beverages: Below 50 gm no restriction, 50 gm, 75 gm, 100 gm, 200 gm, 250 gm, 400 gm, 450 gm, 500 gm, 750 gm, 1 kg and thereafter in multiples of 1 kg (56 gm and 61 gm for medical purpose only).

Edible oils, vanaspati, ghee, butter oil: 50 gm, 100 gm, 200 gm, 250 gm, 500 gm, 1 kg, 2 kg, 3 kg, 5 kg and thereafter in multiples of 5 kg. If net quantity is declared by volume then 50 ml, 100 ml, 200 ml, 250 ml, 500 ml, 1 litre, 2 litre, 3 litre, 5 litre and thereafter in multiple of 5 litre and the net quantity must be declared by mass also in the same size of letters/ numerals.

Milk powder: Below 50 gm no restriction, 50 gm, 100 gm, 150 gm, 200 gm, 250 gm, 500 gm, 1 kg and thereafter in multiples of 500 gm.

Rice (powdered), flour, atta, rawa and suji: 100 gm, 200 gm, 500 gm, 1 kg, 1.25 kg, 1.5 kg, 1.75 kg, 2 kg, 5 kg, and thereafter in multiples of 5 kg.

Salt: Below 50 gm in multiples of 10 gm, 50 gm, 100 gm, 200 gm, 500 gm, 750 gm, 1 kg, 2 kg, 5 kg, and thereafter in multiples of 5 kg.

Aerated soft drinks, non-alcoholic beverages: 65 ml (fruit-based drinks only), 100 ml, 125 ml (fruit-based drinks only), 150 ml, 160 ml, 175 ml, 180 ml, 200 ml, 240 ml, 250 ml, 300 ml, 330 ml (in cans only), 350 ml, 400 ml, 475 ml, 500 ml, 600 ml, 750 ml, 1 litre, 1.2 litre, 1.25 litre, 1.5 litre, 1.75 litre, 2 litre, 2.25 litre, 2.5 litre, 3 litre, 4 litre and 5 litre.

Mineral water and drinking water: 100 ml, 150 ml, 200 ml, 250 ml, 300 ml, 500 ml, 750 ml, 1 litre, 1.5 litre, 2 litre, 3 litre, 4 litre, 5 litre and in multiples of 5 litre.

However, non-standard packs which have already been manufactured and packed on or before October 31, 2012, and are ready for sale in different retail outlets, have been exempted from penal action. Controllers of Legal Metrology in all the states and UTs have been asked to ensure strict compliance of the order.

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US: Food sites remain closed after Hurricane Sandy strikes

By Dean Best | 30 October 2012

Food manufacturers in the US, including Hershey and Nestle, have kept sites closed after Hurricane Sandy hit the east of the country last night.

Confectionery giant Hershey confirmed to just-food its facilities in Pennsylvania remained shut for a second day.

Nestle's US arm said facilities including its Nestle Nutrition site in Florham Park in New Jersey would be closed "at least through Tuesday".

Hurricane Sandy hit the eastern seaboard of the US yesterday evening local time. The US National Hurricane Center said the storm hit Atlantic City at 2000 ET, with sustained winds of 80mph or more and flood tides as high as 13 feet.

President Obama declared New York City a major disaster area. According to the federal government, over 8m homes and businesses across 17 states were without power. Half of those affected were in New York and New Jersey. NBC News reported 27 had been killed at the time of writing.

Reuters and Bloomberg have reported the economic cost of the storm could be as much as US$20bn, although it will be months before the full impact can be accurately estimated.

In the food industry, manufacturers have closed production sites and offices and retailers have shut stores.

PepsiCo, Unilever and Mars Inc were among the companies that had closed sites in the eastern part of the US yesterday.

PepsiCo told just-food today its offices in Westchester County remain closed. "Several of our sites throughout the affected region have lost power and are starting their assessment to determine the impact of the storm. We are working to resume operations as quickly and as safely as possible," a spokesperson said.

A statement on Wal-Mart Stores' website said as many as 294 "facilities" had been closed, including stores, clubs and distribution centres.

Convenience retailer 7-Eleven said around 350 stores on the East Coast were closed as of this morning, mostly due to power outages or forced evacuations. At the height of the emergency, some 500 stores were closed, it said.

"We are working around the clock with product suppliers, fresh food commissaries and bakeries to provide new products daily to the stores, as well as working with gasoline wholesalers and terminals to make deliveries to our higher-volume gasoline stores," 7-Eleven said.

Belgian retailer Delhaize Group, which owns US chains including Food Lion and Hannaford, told just-food overnight it had closed over 130 stores in the region.

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