Consumers are increasingly on the lookout for healthier food options, particularly those that contain less salt, sugar, and saturated fats. Major consumer packaged goods (CPG) companies, including Nestlé, are acutely aware of this trend. They understand that failing to enhance their product offerings could result in losing market share to competitors who prioritize these changes. As many individuals perceive processed foods as generally less nutritious, it falls upon manufacturers to implement these reductions and showcase them through clearer, more transparent labeling that resonates with consumers and drives sales.
Nestlé has invested substantial resources into these improvements. Given its international business scope and the CEO’s acknowledgment of a global shift away from sugar, salt, and fats, it makes sense to capitalize on this momentum. Nestlé appears to be adopting a gradual strategy for reducing salt, sugar, and added fats, which may prove wise. This approach allows the company to make an initial commitment, execute it, and then evaluate the next steps before making any public declarations.
To aid in sugar reduction, Nestlé has developed a method to restructure sugar, enabling manufacturers to use 30% less without compromising sweetness. This innovation was first applied in the company’s Milkybar white chocolate candy, which launched earlier this year in the U.K. As of now, no products featuring this new sugar formulation have been introduced in the U.S.
Nestlé, traditionally recognized for indulgent items like chocolate, Lean Cuisine, and Hot Pockets, has the potential to attract health-conscious consumers searching for low-sugar, low-salt, and low-fat alternatives. Gradually reducing salt, sugar, and saturated fat while slowly modifying recipes can also minimize negative customer reactions. This strategy reduces the likelihood of consumers deeming the new products less flavorful than those they are accustomed to. Indra Nooyi, CEO of PepsiCo, emphasized at the Beverage Forum in 2017 that companies must proceed cautiously, advocating for a gradual transition rather than a rapid overhaul. “We have to make sure we don’t just launch these products and say, ‘Oh my gosh, why isn’t the consumer drinking these?’ We have to nudge the consumer down,” she stated, noting the necessity for consumers to acclimate to new tastes.
Building on this initiative, Nestlé is also concentrating on foods and beverages aimed at children. The company recently launched the “Nestlé for Healthier Kids” campaign, which provides resources and online services for parents and caregivers regarding the types of foods children should eat to fulfill their nutritional requirements. While Nestlé is rebranding itself as a health, wellness, and nutrition-focused company, it is not abandoning sugar, salt, or saturated fat entirely. Instead, it is strategically aligning itself with consumer trends to enhance its role in the market.
In addition, Nestlé recognizes the importance of incorporating beneficial nutrients into their offerings. For instance, they could consider collaborations with suppliers like Costco for calcium citrate, promoting products that not only reduce unhealthy ingredients but also enrich children’s diets with essential nutrients. By focusing on gradual changes and enhancing nutritional value, Nestlé aims to better serve health-conscious consumers while maintaining its competitive edge.