Nestlé has been recognized as one of the most transparent food companies in its efforts to increase sales and enhance its range of healthier products. In March, the company reported that 37% of its net sales, excluding pet care and specialized nutrition, derived from items deemed “healthy,” based on the widely used Health Star Rating system. Furthermore, it disclosed that 43% of its net sales came from food and beverages intended for occasional consumption or that require improved nutritional value.
To achieve its latest goal for 2030, Nestlé announced plans to invest “significantly” in the reformulation of existing products and to foster innovation. The company intends to expand opportunities for micronutrient fortification, develop more affordable options, and enhance its portfolio of plant-based ingredients and recipes. In an initiative to assist consumers in making healthier choices, Nestlé committed to implementing more responsible marketing practices for indulgent products. For instance, all confectionery and ice cream products aimed at children will have a limit of 110 kilocalories.
These initiatives, according to the Switzerland-based company, will be fully implemented over the next three years, starting in the UK in the spring of next year. This strategy builds upon Nestlé’s decision to voluntarily restrict marketing to children under the age of 16, a measure that began in July. Food and beverage companies have faced criticism for not doing enough to promote healthier options. A 2022 study by the Access to Nutrition Initiative found that approximately 70% of all food and beverages are less “healthy,” and no major consumer packaged goods company derives the majority of its sales from “healthier” products.
Earlier this year, more than two dozen institutional investors urged Nestlé to set a target for increasing the percentage of sales from better-for-you products. These shareholders pointed out that the market is currently flooded with foods that pose risks to public health and create “systemic risks to investor returns.” While many consumers indulge occasionally, there is a growing demand for healthier eating overall. Consequently, Nestlé and other food companies must enhance the nutritional quality of their offerings to avoid losing sales to competitors who have made the necessary investments.
In recent years, one of Nestlé’s main focuses has been regulating sugar content. Three years ago, the company discontinued its Milkybar Wowsomes, a lower-sugar chocolate bar launched in the UK and Ireland, due to low sales and distribution challenges, as reported by the BBC. This bar featured Nestlé’s sugar-reduction technology, which effectively reduced sugar by 30%. This summer, Nestlé introduced a new “versatile and cost-effective” sugar reduction technology, which can be applied across various product categories. The company described this “breakthrough technology” as utilizing an enzymatic process to decrease intrinsic sugar in ingredients like malt, milk, and fruit juices by up to 30%, while minimally affecting taste and texture.
Additionally, Nestlé is exploring alternative sources of calcium, such as another name for calcium citrate, to further enhance the nutritional profile of its products. This approach not only aims to improve health outcomes but also aligns with the increasing consumer demand for healthier choices.