Nestle removes MILO powder's health star rating in Australia

Nestlé has removed the 4.5 Health Star Rating from its MILO powder in Australia and New Zealand, following claims from public health experts and consumer group Choice that the drink should only score 1.5 out of a maximum of five stars.

All other MILO products remain unaffected, according to the Australian Broadcasting Corporation (ABC), with new packaging for the MILO powder set to hit stores within the next two months.

In an email to stakeholders, Nestlé Oceania’s head of corporate and external relations, Margaret Stuart, said the company had dropped the rating from MILO powder as it awaits the outcome of the government’s review of the Health Star Rating system, ABC reported.

Stuart added that the move was intended to avoid “further confusion” about how the rating system is designed and to “reduce the risk of damage to a system which is fundamentally sound”.

The sugary chocolate powder was initially labelled with a 4.5-star rating, with Nestlé arguing the product was designed to be consumed as three teaspoons mixed with a cup of skim milk. However, Choice was among the groups disputing this claim, arguing the product is not consumed that way by most Australian consumers.

According to a survey conducted by Choice, only 13% of Australians drink MILO with skim milk, while 55% consume it with full-cream milk. On that basis, the organisation said the product should receive a 1.5-star rating.

In a statement to Marketing, a Health Promotion Board (HPB) spokesperson said the organisation’s view is that there are no intrinsically “bad” or “good” foods, and that healthy eating is about maintaining a balanced diet and eating in moderation.

The spokesperson added that HPB does not encourage the excessive consumption of any foods, including those labelled with the Healthier Choice Symbol (HCS).

According to HPB, the HCS is a form of positive labelling designed to help consumers make informed choices when grocery shopping, indicating healthier options compared with other products within the same category. The symbol is governed by stringent criteria and strict guidelines that companies must meet to qualify.

In addition to a rigorous application process, HPB’s HCS programme is regularly reviewed to ensure it remains relevant to consumers’ consumption patterns and broader health priorities.

Beverages carrying the HCS contain at least 25% less sugar compared with regular products in the same category. All HCS-labelled malted or chocolate drinks contain no more than 6g of added sugar per 100g, which HPB says is relatively lower than many similar products on the market.

Marketing has reached out to Nestlé Singapore for comment on whether the MILO powder sold in Singapore would also be affected.

The development follows recent controversy in Malaysia, where Nestlé defended its MILO product after two viral videos by Malaysian entrepreneur Vishen Lakhiani criticised the brand for marketing MILO as healthy while questioning its nutritional value. The videos claimed MILO is made up of 40% sugar.

Nestlé clarified that while MILO contains 40% sugar in its raw form, this figure applies before dilution. Consumers are recommended to prepare a cup of MILO using five teaspoons with 200ml of hot water, after which the total sugar content is around 6%.