Nestlé says that less than half of products are healthy – 03/21/2023 – Market

Nestlé acknowledged that the nutritional value of less than half of its core food and beverage portfolio could be considered “healthy” using a commonly accepted definition, despite pressure on packaged food manufacturers to make more nutritious products.

The world’s largest food company’s annual report showed that 54% of its food and beverage products by revenue – excluding products such as pet food, baby food, vitamins and specialty medical nutrition – scored below 3.5 in the ranking. widely used health star rating (HSR).

Foods with a lower score are not considered “generally healthy,” according to the nonprofit Access to Nutrition Initiative. The HSR takes into account the level of saturated fat, sugar and salt in individual products, as well as “positive nutrients” such as fiber, fruits and vegetables.

Nestlé, whose products include Smarties chocolates, Nesquik milkshake and Nescafé coffee, released the figures after pressure from some shareholders and activists for the industry to be more transparent about the nutritional value of its products.

The Switzerland-based group said it was setting a standard for transparency and was the first in the industry to report the nutritional value of its entire global portfolio.

Holly Gabriel, an activist at responsible investment charity ShareAction, welcomed the disclosure but said it disturbingly shows that the company still relies too heavily on selling unhealthy food and drinks.

Packaged food groups are under scrutiny for their role in the global obesity problem. In an attempt to improve diets, some governments have introduced taxes on high-sugar products and implemented restrictions on advertising and sales promotions.

Nestle chief executive Mark Schneider told analysts on a conference call last month that the group has already made “great progress” in reducing sodium, sugar and saturated fat.

The food maker said it had recently reduced sodium in products such as Mahler Seafood Creamy Soup, introduced more sugar-free Coffee Mate varieties and launched more plant-based foods including Garden Gourmet Schnitzel.

However, industry executives have argued there are limits to how much they can produce healthier food, especially as inflation has squeezed consumer spending and driven up industry costs.

“Of course, while the work continues, there are limits,” Schneider said. “Categories related to pleasure [como confeitaria] will not be turned into health-related categories.”

In its annual report, Nestlé divided its net sales into four categories: 17% came from products with an HSR score of less than 1.5; 18% of them with grades between 1.5 and 3.5; and 30% with a rating of at least 3.5. The remaining 35% came from pet and other products to which the HSR does not apply.

The data was compiled by the company and audited by the independent Bureau Veritas. Nestlé first released the figures on Tuesday, although the Financial Times reported about two years ago an internal company presentation that also showed a high proportion of its portfolio below 3.5 points on the scale.

Mark Wijne, director of research at the Access to Nutrition Initiative, also said the disclosure was “very welcome” but showed that companies like Nestlé can and must do more to innovate and promote healthier alternatives.

Nestlé added that it “has come a long way and now wants to go further. We are committed to setting a global target for the healthiest part of our portfolio later this year.”

The HSR was originally developed by authorities in Australia and is now also used by investors and policymakers around the world.

Translated by Luiz Roberto M. Gonçalves