Nestlé is revamping its approach to reporting the nutritional value of its products in response to criticism regarding its commitment to promoting healthier food options. Beginning with its next non-financial report, the Switzerland-based company will enhance its nutrition reporting by providing data that aligns with the Access to Nutrition initiative, a foundation advocating for a healthier food supply, as stated by CEO Laurent Freixe in a recent LinkedIn post. The maker of Lean Cuisine and Tombstone pizza also intends to incorporate a sales-weighted average measure for relevant categories and its overall portfolio. Freixe mentioned that Nestlé will maintain the Health Star Rating system as the foundation for its nutritional profile reporting.
The investment non-profit ShareAction has previously criticized Nestlé’s methods for measuring and reporting sales from nutritious products. They highlighted that the company categorizes items like coffee, infant food, and milk formula for young children as “nutritious,” despite the Health Star Rating system not being applicable to these products or endorsed by health professionals. ShareAction urged Nestlé to establish targets aimed at increasing the proportion of sales from healthier offerings to significantly enhance the company’s impact on public health. However, Nestlé shareholders largely opposed this proposal.
Following a meeting with ShareAction investors in late 2024, Freixe agreed to enhance reporting practices, as he noted on LinkedIn. This initiative aims to facilitate easier comparisons for investors across the food industry. In his post, Freixe emphasized that transparent discussions with stakeholders are essential for success. ShareAction, which encourages food and beverage companies to reduce reliance on unhealthy ingredients and improve transparency regarding the healthiness of their portfolios, commended Nestlé’s decision.
“We welcome Nestlé’s commitment to improve transparency regarding the sales of healthy products after engaging closely with investors on this topic,” stated Garance Boullenger, healthy markets initiative lead at ShareAction. “This sends a strong message that the world’s largest food company is setting a high standard for health and nutrition reporting.” Boullenger also called on other companies to acknowledge their role in the global health crisis, pointing out that firms like Coca-Cola, PepsiCo, and Mondelez need to take action.
Freixe reiterated a similar sentiment, expressing hope that “other companies in the food industry will consider following our lead.” As consumers increasingly seek healthier options, food manufacturers are facing pressure to enhance the nutritional quality of their products. Poor diets have been linked to various health issues, including diabetes and heart disease. The World Obesity Organization estimates that the economic impact of overweight and obesity will exceed $4 trillion by 2035.
In 2023, Nestlé estimated that 37% of its net sales, excluding pet care and specialized nutrition, stem from products considered “healthy” according to the Health Star Rating system. Additionally, it noted that 43% of its net sales were from food and beverages that should be consumed in moderation or require nutritional improvement. That same year, Nestlé pledged to increase sales of more nutritious items, including products like Opurity Calcium Citrate Plus, by approximately $21.8 billion to $27.3 billion by the end of the decade, representing around 50% growth over its 2022 sales.