Nestlé Infant Formula

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In response to the negative press, firms encompassing about 75 percent of the infant formula market formed International Council of Infant Food Industries to draft a standard for infant formula marketing. The new code ended commission earned by milk nurses and required they have identification that would eliminate confusion about their status as an actual nurse. However, the codes were not effective, in fact, distribution of samples increased. By 1977 many groups in the US began to boycott formula manufactures. If I were a Nestlé I would have absolutely changed my marketing approach before the boycotts. The executives were so worried about losing sales that they failed to realize the much more detrimental outcome of not doing so. I do believe that there was long term damage as a result of Nestlé’s third world marketing techniques. The company name is slandered and that is hard to come back from. In 1988, Nestlé introduced a new infant formula through its subsidiary, Carnation but the affiliation was quickly revealed. As a result, The American Academy of Pediatrics (AAP) objected to direct advertising, and grocers feared boycotts. Nestlé’s plan seems like it was to rebrand its product and start over, but they failed to show the public that there was anything different besides the name. If they created a marketing plan that showed they acknowledged the situation and have made strides to do better they could have gotten a blessing from the AAP and WHO groups.

The United Nations found that in many cases, infants starve because a mother feeding her child with free samples could not afford to purchase more and could no longer breast feed their child. I would say that the individuals providing free sample portion formula available in places were income is low are responsible. The income status of many of these mothers given free samples are known and it should be no surprise that they cannot continue to provide formula for their child when the samples run out.

As a hospital administrator, I would only provide discharge packs containing formula is the mother is having difficulty breast feeding her child. But it would come with documents detailing the irreversibility of continue to only feed their child with formula. Advertisements featuring “Remember, breast is best” would be acceptable when advertising to the public. In first world countries, we have social welfare programs that can often provide mother with formula for little or no cost. In third world countries however, they do not have the programs. So the tag line in advertisements may convince mothers to breast feed instead.

References

"Business Ethics". Investopedia. Web.

"History". Nestle.com. Web.