Nestlé Japan, the local arm of the Swiss food behemoth, has admitted that its highest quality products are made with recycled unsold instant coffee and creaming powder.

The company insists that the practice was introduced to preserve natural resources and reduce wastage, however it has come in for much criticism from market watchers and consumers in Japan.

Local daily newspaper Asahi Shimbun highlighted that while the practice has been going on since the 1960s, the company does not label the new products as recycled.

Nestlé Japan said that there are no legal problems with failing to label the products as recycled, but that it will consider introducing the labels if the public are concerned.