Labels are now the main course for F&B chiefs

Food safety, compliances, and label claims are now the top priorities for top executives at India's food and beverage companies, as regulatory scrutiny grows, according to the report. Chief executives and founders are now focusing on outcomes that were previously handled by functional heads. Angshuman Bhattacharya, a partner and national leader at EY-Parthenon, highlighted the high stakes and risks involved, stating that brand reputations are at risk due to the fear among brands that all hard work can be eroded.

The Food Safety and Standards Authority of India (FSSAI) has been increasingly enforcing regulations, which has forced brands to reevaluate their hard work and quality control measures. Executives from large packaged-food companies emphasized the shift in focus towards risk management in their boardrooms, with safety, compliances, and labelling taking priority over growth and inflation discussions.

Some start-ups are even redirecting funds from marketing to ensure detailed regulatory compliance checks. A report by AuthBridge revealed that nearly 10% of FMCG distributor applications failed critical regulatory checks, exposing companies to operational, financial, and reputational losses.