Investors urge Nestlé to become less reliant on unhealthy products
20 Apr 2023 --- Nestlé investors are calling on the company to rebalance its sales toward healthier products. The group of investors, coordinated by responsible investment NGO ShareAction, expressed their support for Nestlé’s recent nutrition-focused disclosure but said it doesn’t go far enough.
In response to calls from the group last year, Nestlé agreed to report on the healthiness of sales globally and report this for 13 key markets using recognized, government-endorsed nutrient profiling models, which it did last month.
“Nestlé has said it wants to sell healthier food, but it hasn’t given assurance that it will also address its less healthy food sales, which is essential to turn the tide against the harmful effects of diet-related ill health, says Simon Rawson, Deputy CEO from ShareAction.
Evolving expectations
Nestlé has an opportunity to stay ahead of food-related regulations and evolving stakeholder expectations, according to Rawson.
Moreover, recent research published by the World Obesity Federation shows that more than half of the world’s population will be overweight or obese by 2035 unless action is taken.
“Nestlé could do much more to support population health,” Rawson adds.
ShareAction has been coordinating the Healthy Markets Initiative for over four years. This aims to improve public health by ensuring healthy food and drink products are affordable and accessible to all.
Nestlé is the world’s biggest food company and owns brands like KitKat and Shreddies. (Credit: Nestlé)It aims to boost health integration into investment decisions and coordinates collaborative engagement with the food retail and manufacturing sector, aiming to drive performance improvements.
Unilever also engages with ShareAction and investors from the Healthy Markets Initiative as these commitments are developed and implemented in the run-up to its 2024 Annual General Meeting.
Too much salt, sugar and fat?
ShareAction says 40% of Nestlé’s sales of everyday foods in the UK were high in salt, sugar or fat.
Nestlé said its reporting on the healthiness of its global sales was a world first and pledged to set a target for healthier sales later this year.
But ShareAction said it also wanted Nestle to reduce the amount of unhealthier foods it sells.
In April, it launched a new KitKat breakfast cereal in supermarkets across the UK. It contains 7.4g of sugar per 30g serving. This is higher than adults’ recommended average refined sugar intake per meal. Nestlé says KitKat cereal was designed to be enjoyed as an “occasional, indulgent” breakfast option.
A closer look at Nestlé developments
The company said it has also been taking a “massive” hit to its profits as the price of food ingredients reached record highs. Historically high commodity prices have punished the company’s volume growth, which has remained flat from a year ago.
Earlier this month, Nestlé subsidiary Lean Cuisine met the American Diabetes Association Better Choices for Life Program frozen entrée nutrition guidelines. Lean Cuisine is the first brand to participate in the program to develop a full range of meals in the US designed to support people in managing blood sugar levels.
Meanwhile, in response to the growing demand for immunity-boosting food and plant-based alternatives, Nestlé is poised to unveil a plethora of NPD linked to wellness, health and nutrition.
One of the latest plant-based products in its line-up is its Natural Bliss oat milk. It is hailed as containing 5g of protein per serving and all the amino acids needed in the diet to ensure high-quality protein.
Edited by Elizabeth Green
