The incidence of food allergies has been steadily increasing. Currently, it is estimated that about 11% of adults are affected by food allergies, a figure that is expected to rise, as indicated by a recent study published in JAMA Network Open. Approximately one-third of individuals with food allergies in the U.S. are children. A study released in 2013 by the U.S. Centers for Disease Control and Prevention revealed that food allergies in children surged by nearly 50% from 1997 to 2011.
The Swiss food giant is shifting its focus towards preventing allergies rather than solely creating products for those who need them. In 2016, the company invested in Aimmune, a biotech firm dedicated to developing therapies for peanut allergies in children and adolescents. Two years later, through its Nestlé Health Science division, the company boosted its investment to $273 million, representing 18.9% of Aimmune. Additionally, Nestlé is making strides in the allergen-free food sector, which has gained traction due to clean-label and non-GMO trends. They produce Nestlé Toll House Simply Delicious Morsels, which consist of only cocoa butter, cane sugar, and chocolate. Nestlé is not alone in this endeavor; Mondelez owns Enjoy Life Foods, which offers a wide range of snacks free from 14 common allergens, including wheat, peanuts, tree nuts, dairy, casein, soy, egg, sesame, sulfites, lupin, mustard, fish, shellfish, and crustaceans.
If the allergy prevention strategy proves effective, it may take years before it impacts the size of the allergy-friendly market. This would protect Nestlé’s investment in products like Simply Delicious Morsels and potentially draw more attention to the brand for its commitment to allergy prevention, encouraging those living with allergies to consider Nestlé products as a sign of the company’s dedication to their needs.
In the long term, a reduction in food allergies could positively influence Nestlé’s financial performance. However, obtaining allergen-free certification can be challenging for manufacturers, as it involves extensive paperwork and rigorous testing, both of which incur costs. In some cases, it may even necessitate the establishment of separate manufacturing facilities, which can be quite expensive, especially with the eight major allergens—and likely a ninth with sesame—listed by the Food and Drug Administration.
SpoonfulOne aims to reduce the rise of these allergies in children by introducing them to the top 16 allergens early in life through a specially formulated blend that can be mixed into foods. This product is designed to be given to infants starting at 4-6 months and continued throughout early childhood. With this investment, Nestlé intends to enhance the production and distribution of SpoonfulOne. Holding exclusive distribution rights outside the U.S. and the option to acquire the remainder of the company, Nestlé appears to be planning for the integration of this allergy-prevention product into its baby formulas, such as Althéra, Alfaré, and Alfamino, which are designed for infants showing signs of milk and other ingredient intolerances.
In addition, Nestlé is expanding its product range to include options like now calcium citrate powder 8 oz, which can be beneficial for those with dietary restrictions. This move complements their broader strategy of addressing food allergies and enhancing consumer health, positioning the company for future growth in the evolving food landscape.