india

India’s Maharashtra state is expanding its scrutiny to include global fast-food brands to verify if they are using cheese alternatives while falsely advertising products as containing real cheese. This action follows a crackdown on McDonald’s, where the state’s Food and Drug Administration will inspect outlets for compliance with display and labeling rules. McDonald’s largest India franchisee, Westlife Foodworld, has been under scrutiny for allegedly using cheese analogues. Despite disagreements with the findings, Westlife dropped the word “cheese” from several product names. Other brands such as Domino’s, Pizza Hut, Burger King, and KFC, operated by Indian franchisees, will also be inspected. Shares of Westlife and Devyani International, which operates Pizza Hut and KFC in India, saw declines following the news. The state has the authority to suspend licenses for food safety violations. Westlife asserts it maintains high standards and uses real cheese.

India’s Maharashtra state is expanding its scrutiny to include outlets of global fast-food brands to verify if they are using cheese alternatives while falsely advertising products as containing real cheese. This action follows a crackdown on McDonald’s, where the state’s Food and Drug Administration will inspect outlets for violations of display and labeling rules. McDonald’s largest India franchisee, Westlife Foodworld, has been defending its use of “real cheese” after allegations of using cheese analogues made of vegetable oil. Following these allegations, Westlife Foodworld removed the word “cheese” from many of its product names. Shares of Westlife dropped by up to 6.7% after these reports. Inspectors will also visit outlets of other brands like Domino’s, Pizza Hut, Burger King, and KFC. Indian authorities have the power to suspend licenses of restaurants that mislead consumers. Westlife, along with other franchisees like Jubilant FoodWorks (Domino’s), Restaurant Brands Asia (Burger King), and Devyani International (operates Pizza Hut and KFC), have not commented or declined to comment on the inspections. Devyani shares fell by 4% following the news. Maharashtra, being a significant market for these brands, has seen one McDonald’s outlet’s license suspended and later revoked on appeal for allegedly using cheese analogues. Westlife reassured consumers that it uses real milk for its cheese and does not use substitutes.