FMCG Industry Snapshot

position late on Sunday in a letter to the hedge fund's investors. In the letter, Third

Point said it was urging the Swiss group to improve margins, buy back shares and

get rid of non-core businesses, including its $27 billion stake in L'Oreal . Third

Point's 40 million shares - or 1.3 percent of the total - make it Nestle's eighth-

largest shareholder, according to Thomson Reuters data. The $10 billion added to

Nestle's market value on Monday showed that shareholders hoped the investment

would spark change at a company which has a reputation for being slow-moving

and insular. "Nestle has arguably been lackadaisical and complacent and

underperformed its potential," Bernstein analysts said. "It might now be stirred

into action by an external force." New York-based Third Point is an $18 billion

hedge fund run by American billionaire Daniel Loeb. Loeb runs a multi-strategy

portfolio though he is known as an aggressive, bare-knuckled shareholder activist

who has taken on major companies such as Yahoo Inc and Japan's Sony Corp .

http://timesofindia.indiatimes.com/business/international-business/u-s-activist-

presses-for-bold-action-at-nestle/articleshow/59328409.cms

FSSAI issues draft regulations for organic food products

Food regulator FSSAI has come out with a draft regulation for organic food

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products, seeking to ensure that these food items are actually organic. Organic

foods will have to comply with the provisions under the National Programme for

Organic Production (NPOP) administered by the government or the Participatory

Guarantee System for India (PGS-India) run by the Agriculture Ministry or any

other standards notified by the food authority. The Food Safety and Standards

Authority of India (FSSAI) has sought public comments of the draft regulations,

which has been prepared in view of rising demand for organic food products, being

considered as healthy, in the country. "Organic food products are either those

grown under a system of agriculture without the use of chemical fertilisers and

pesticides or made from organically produced raw materials ... Currently, a number

of food products are being marketed as organic," the FSSAI said. However, the

regulator said that consumers do not have any way to check the authenticity of

organic food products due to lack of a regulatory framework. "The draft regulation

on organic food is aimed at overcoming this problem and ensuring that what is

sold as organic food is really organic," FSSAI said. The draft regulation mandates

that labelling of organic foods should convey full and accurate information on the

organic status of the product. http://indiatoday.intoday.in/story/fssai-issues-

draft-regulations-for-organic-food-products/1/987800.html

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