Westlife Foodworld, the largest franchisee of McDonald's in India, has been cleared of allegations of using cheese substitutes in its products. The Food Safety and Standards Authority of India (FSSAI) confirmed that Westlife uses 100% real cheese, allowing the company to retain the term "cheese" in its product names.
This comes after a McDonald's outlet in Mumbai faced a license suspension in November 2023 for allegedly using misleading cheese alternatives. The suspension was overturned, but Westlife removed "cheese" from certain items to comply with local regulations.
Westlife has now received national verification from FSSAI, stating that their products contain real cheese and no substitutes. This decision is binding on all local authorities, including the Maharashtra government which had previously raised concerns.
"The verification confirms the brand's assertion that it uses 100% real cheese and that it does not use any cheese analogues or substitutes in any of its products," Westlife said in a statement.
The news comes as a relief for Westlife, whose shares had dropped significantly following the initial allegations. After the press conference, the company's shares rebounded by 9.4%.
"This is just a bump in the road for Westlife's long-term plans," said Saurabh Kalra, managing director of Westlife. The company is working with state agencies to address any remaining concerns.