Last September, Nestlé committed to boosting sales of more nutritious products by 50% by 2030. However, a coalition of investors led by ShareAction argued that this commitment significantly falls short of expectations regarding public health improvements. The group highlighted that the pledge includes items like coffee, which ShareAction claims has no nutritional value, as well as baby food, suggesting that Nestlé could easily reach its goal by increasing sales of these products instead. Maria Larsson Ortino, a senior global ESG manager at Legal & General Investment Management, one of the shareholders, mentioned that discussions with Nestlé since the announcement have stalled. She pointed out that Nestlé has not set specific targets for increasing sales of products that meet healthy standards. “We therefore deemed the next appropriate step to be to co-file this shareholder proposal,” Larsson Ortino stated, emphasizing the importance of nutrition to both the company and the food and beverage industry as a whole.
For the proposal to pass, Bloomberg reported that it would require support from at least 50% plus one vote of the registered share capital at the annual meeting in April. In its 2023 annual report, Nestlé estimated that 38% of its net sales, excluding pet care and specialized nutrition, came from products deemed “healthy” according to the Health Star Rating system, an increase of one percentage point from 2022. To meet its 2030 goal, Nestlé plans to invest significantly in renovating existing products and fostering innovation.
In a statement to Food Dive, Nestlé indicated that it would “agree to disagree” with ShareAction and disputed the claim that 75% of its sales are derived from unhealthy products. The Swiss company emphasized that it was the first in the food and beverage industry to provide transparency regarding the nutritional value of its entire portfolio based on a government-endorsed nutrient model. Nestlé also contested the idea that items like plain coffee or supplements, including calcium citrate usp monograph products, should be excluded, arguing that these are integral to their portfolio and consumed daily by many people. The company asserted that it has been actively working for decades to enhance its portfolio’s health profile and suggested that greater progress could be made by encouraging other firms to improve as well.
“ShareAction is targeting the wrong company. … While we acknowledge ShareAction’s viewpoint, we disagree with the idea that we should restrict growth in certain areas of our portfolio,” Nestlé stated. “A proportional target would necessitate weakening valuable segments of our portfolio and create opportunities for competitors without delivering any public health advantages.”