Lindt has had enough of Indian regulations

Lindt, arguably the fave imported chocolate of Indians, has given up against Indian government regulations. 

Lindt & Sprungli has decided to fold its operations in the country after more than two of its consignments brought into India (in August 2013 and January 2014) were sent back due to a new set of import rules. 

"It's a business decision taken by Lindt. It is not easy to comply with rules so fast," said Jeevan Verma, who was country manager for Lindt India and who has now been reassigned as business head for the Narang Group, which holds distribution rights for Lindt & Sprungli. However, the marketing team, which was directly employed by the Swiss chocolate-makers, has lost its job. 

It all began in August 2013 when three consignments were stopped at the ports in Mumbai after the Food Safety and Standards Authority of India (FSSAI) announced new regulations on its website. "We suffered most losses then because August is when we procure the biggest orders considering the festive season," Verma said. Imported packaged foods consignments worth nearly Rs750-Rs1,000 crore were held back, of which one-third was chocolates. 

The new guidelines required the ingredients to appear in descending order of their composition by weight or volume at the time of its manufacture. Lindt adapted to these new regulations, changing the labelling specifically for India, and sent a fresh consignment in January 2014. This too was stopped due to another new ruling which stated that chocolates with vegetable oil or fat would not be allowed. 

A smaller consignment adhering to the 'no vegetable oil or fat' rule was imported, but again it was stopped as now the FSSAI wanted the manufacturers to mention the use of artificial flavours (such as vanilla, strawberry etc) on the label. "These rules were not specified earlier as it was open to interpretation," an official from Lindt stated. 

"We have been importing Lindt for close to six years now and we have never had any issues. The rules were changed overnight and there was no grace period given," Verma said. "For now we have put everything on hold. We have suffered great losses in the past year and we are not sure if new issues might come up." 

With business hit drastically as no products have been brought into the country since last August, Lindt and Sprungli is contemplating seeking legal recourse. "Some of the other brands have managed to get a stay order and have been able to get their products moving. Lindt too is contemplating moving the court," the official stated. 

Anirban Dutta Chowdhury, head of Nuance Group, which manages Duty Free in Bangalore too confirmed that imported chocolates of various brands have been off the shelf. "Lindt is the number one selling chocolate at Bangalore Duty Free. The brand has strong recall value." Imported chocolates will now have to be bought only abroad or in Duty Free outside the country. "However, the grey market is thriving on this latest restriction. But quality is compromised."