Nestlé Revamps Nutritional Reporting: A Bold Response to Consumer Concerns

Nestlé is making strides to report nutritional values more transparently. This change comes after criticism that the company, known for products like Hot Pockets and Nescafe, wasn’t doing enough to promote healthier options.

In its next non-financial report, Nestlé plans to align its nutrition reporting with the Access to Nutrition initiative. CEO Laurent Freixe announced this update on LinkedIn, emphasizing a commitment to clearer data.

Additionally, Nestlé will introduce a sales-weighted average for its products, using the Health Star Rating system as a cornerstone for its reporting. This move aims to give a clearer picture of the nutritional quality of its offerings.

Investment firm ShareAction has previously criticized Nestlé for how it classifies nutritious products. The group pointed out that items like coffee and infant food are included in Nestlé’s “nutritious” category, even though they don’t fully meet health standards. ShareAction has encouraged Nestlé to set targets to boost sales from healthier products to better support public health.

While shareholders recently voted against this proposal, Freixe has committed to improving transparency following discussions with ShareAction investors. This decision is intended to help investors compare company portfolios more easily.

Freixe believes that open conversations with stakeholders are essential for success. ShareAction welcomed the move, stating it sets a high standard for health and nutrition reporting in the food industry.

Garance Boullenger, from ShareAction, stressed that companies should take responsibility for their role in the global health crisis. She noted that other major brands, like Coca-Cola and PepsiCo, need to step up their efforts as well. Freixe echoed this sentiment and hopes that others in the industry will follow Nestlé’s lead.

As consumer awareness about health grows, food manufacturers are under increasing pressure to enhance the nutritional quality of their products. Poor diets are linked to serious health issues, including diabetes and heart disease. The World Obesity Organization estimates that the economic impact of obesity could exceed $4 trillion by 2035.

In 2023, Nestlé claimed that around 37% of its net sales from regular food products fell into the “healthy” category based on the Health Star Rating. However, 43% of their sales came from items that could be labeled as occasional or needing nutritional improvement.

Nestlé aims to increase sales of healthier products by 20 to 25 billion Swiss francs (roughly $21.8 billion to $27.3 billion) by the end of the decade, which represents a substantial growth from its 2022 figures.

This focus on health comes at a crucial time as consumers demand better nutritional options and accountability from food companies.

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