Six infants died from kidney damage, and a further babies were hospitalised.
Nestle has bowed to pressure from public health advocates and is removing the Health Star Rating from Milo.
Nestle said the rating reflected that Milo is designed to be consumed as 3 teaspoons in a cup of skim milk Public health groups say many people don't consume it that way, it should have 1. Margaret Stuart, Nestle Oceania's head of corporate and external relations, told stakeholders in an email the company had decided to remove the rating from the powder in Australia and New Zealand "pending the outcome of the Government's review of the Health Star Rating system".
It said the rating was in line with food regulations and the requirements of the Health Star Rating system. But public health groups say in reality, that was not how many people consumed Milo and when judged on its merits alone, it should only get 1. In a regular serving of Milo powder, 46 per cent is sugar.
However Nestle says that much of that comes from the milk powder and malted barley ingredients. The rating will only be removed from the Milo powder, but not other Milo products. New packaging will come into stores in the next two months.
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Climate change is a critical global challenge, and already affects how we do business. In the last century, average global temperatures rose by almost 1°C, causing huge changes in our climate and forcing food producers to adjust how, when and where they grow their crops.