Dallas, Texas 11/15/2013 (Financialstrend) – The Switzerland based Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) has a market cap of close to $234 billion. This global food and beverage giant has its multi-nation operations spread across different time zones via its three stand alone operations centered on Europe, America and Asia, Africa and Rest of the World.
This Swiss multinational has been working towards lending itself friendlier to the proposed changes in regulation to be brought by U.S. Food and Drug Administration. Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) with its plethora of packaged food offerings is expected to be one of the prime business houses which might be impacted with the proposed change in law.
Readers should note that last week, the U.S. Food and Drug Administration announced that it would be attempting to bring down the quantity of trans fats which is being included in the packaged foods in U.S. The FDA has proposed that the content of hydrogenated oil which goes into the making of packaged food be cut drastically since it has determined that these oils can no longer be considered as “generally recognized as safe.” Food scientists have indicated that once the new regulations come into place, market players like Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) would really have to up their game in terms of newer technology and production standards to prove to FDA analysts that oils they are using to manufacture packaged foods are safe to eat.
Announcing the draft regulations which will be coming into effect after 60 days, post public scrutiny and accommodating any new changes Dr. Margaret A. Hamburg who heads the FDA in her role as its commissioner has been quoted as saying, “Life has many uncertainties, but we are on a clear track. We have solid evidence showing the need for today’s action on Trans fat.”