Leading food delivery platform Zomato has implemented a zero-tolerance policy on analogue dairy products, refusing to list food items made using these substitutes with immediate effect. As reported by Press Trust of India, Moneycontrol, Business Standard, and Zee News, the company has delisted dishes that restaurant partners declared contained 'analogue dairy' as part of its comprehensive food safety compliance measures. This policy represents a significant escalation from previous warnings, with the platform now taking concrete action against non-compliant establishments. In a communication to merchants issued on Monday, Zomato stated that dishes containing analogue cheese, analogue paneer and other analogue dairy products will be turned off from the platform with immediate effect. The company has also made clear that restaurant partners that remain non-compliant will be delisted from the platform, with Zomato reserving the right to take additional actions under its policies and applicable law.
Restaurants listed on the platform have been directed to take corrective measures including switching to natural dairy products wherever possible, removing affected dishes from their menus if an immediate switch is not feasible, and checking product labels and ingredient declarations supplied by vendors to ensure ingredients are accurately represented. According to Press Trust of India, Moneycontrol, Business Standard, and Zee News, Zomato has called upon restaurant partners to take immediate measures such as transition to natural dairy products, remove items containing analogue dairy products from their menu where transition is not immediately feasible, and review product labels and ingredient declarations provided by restaurant suppliers to verify the ingredients being used and ensure accurate representation of the products listed on Zomato. The company has also issued warnings and directions to restaurant partners asking them to switch to natural dairy products and remove items containing analogue dairy products from their menus.
The policy implementation comes amid heightened regulatory scrutiny of food safety and adulteration, with the Food Safety and Standards Authority of India (FSSAI) taking regulatory action against two food businesses after inspections found food safety violations and non-compliance. As reported by Press Trust of India, Moneycontrol, Business Standard, and Zee News, the Maharashtra Food and Drug Administration banned the production, distribution and sale of artificial 'analogue' paneer for one year, citing public health concerns following laboratory findings where more than 35 per cent of recent paneer samples tested in the state failed quality tests due to vegetable-fat adulteration. This regulatory pressure has led to the license suspension of many popular eateries, creating a broader compliance environment that Zomato is responding to through its zero-tolerance approach. The company emphasizes that its priority is to ensure that customers receive food that is accurately represented, safe and meets the expected quality standards.
According to Press Trust of India, Moneycontrol, Business Standard, and Zee News, CEO Aditya Mangla commented on the ban, stating that the company's core mission is better food for more people and emphasizing that safeguarding customer health and maintaining clear standards for food listed and served by restaurant partners were central to the decision. The CEO noted that at Zomato, their core mission is better food for more people, and that means safeguarding customer health and upholding clear standards for what's listed and served by their restaurant partners. The policy reflects Zomato's wider focus on healthier food choices, food quality and greater transparency for customers, while also aligning with applicable regulatory requirements. Mangla emphasized that this commitment is being taken together with partners who share the same values, noting that the initiative is being undertaken to strengthen transparency and food quality for consumers, in line with food safety and regulatory requirements.
The policy announcement has had minimal impact on Eternal Ltd shares, which were trading at ₹326.65 apiece on the NSE at 12:30 p.m. on Monday, down 0.41%. The muted market reaction suggests investor confidence in the company's proactive approach to food safety compliance amid regulatory pressures, even as the company faces operational restructuring challenges. As reported by NDTV Profit, the company has let go of 250 employees in its latest round of layoffs and discontinued its Customer Delight operations in Hyderabad while reorganising in-house operations from a single location in Gurgaon. Zomato has also reserved the right to recover any loss, cost, damage or expenses that the company may incur or suffer when non-compliant products are delivered to customers, demonstrating the company's commitment to maintaining strict compliance standards.
