Swiss packaged-food giant Nestle has set a target to increase sales of products with a higher nutritional value by the end of the decade. The company, known for its popular KitKat chocolate bars and Nescafe coffee, plans to achieve a 50% growth compared to 2022 levels, amounting to an increase of between 20 billion Swiss francs and 25 billion Swiss francs ($21.7 billion-$27.2 billion) by 2030.
Focus on Healthy Choices
Nestle’s objective is to improve the health profile of its portfolio by promoting the consumption of nutritious products. This includes plant-based options like vegan burgers, powdered-milk, select ready meals, as well as baby foods, and vitamin and mineral supplements. Excluded from this initiative are petcare products and infant formula for children aged 0-to-12 months.
Responding to Changing Demands
The move toward healthier offerings comes as food-and-beverage companies face increasing pressure to address the health concerns associated with their products. Consumers have become more conscious of the nutritional content in their food, leading to a demand for alternatives that are lower in sugar and saturated fats.
Introducing the Nutrient Profiling System
Nestle took a step in the right direction last year by implementing the HSR (Health Star Rating) system. This international nutrient profiling system evaluates packaged products based on various components such as energy, saturated fat, total sugars, sodium, protein, dietary fiber, and the presence of fruit, vegetables, nuts, and legumes. The system assigns a rating from half a star to five stars, with a score of 3.5 stars or above indicating that a product is considered healthy.
Progress Made
In Nestle’s 2022 report, it was revealed that 37% of the company’s revenue (excluding pet food) was derived from food-and-beverage products with a rating of 3.5 stars or higher. Additionally, 43% of revenue came from products with a lower rating. The remaining 20% of sales consisted of specialized nutrition products, such as infant food and medical nutrition, which are not covered by the HSR system.
Nestle’s commitment to increasing the sales of nutritious products demonstrates its dedication to meeting consumer demands for healthier options. With this initiative, the company aims to make a positive impact on the well-being of its customers while still delivering the quality and taste for which it is known.
Nestle Focuses on Product Transparency and Health
Nestle, the well-known company that produces a variety of consumer goods such as multivitamins, bottled water, breakfast cereals, and confectionery items like Milkybar and Smarties, is embracing a new approach to meet the demands of investors and prioritizing the health of its consumers.
Investors across the food industry have been increasingly seeking transparency regarding the nutritional value of products. They aim to gain a deeper understanding of companies’ sustainability efforts and drive initiatives that encourage consumers to make healthier choices.
Nestle has responded to these calls by committing to enhance its current offerings and expand its range of affordable products. The company plans to implement various initiatives, including the adoption of more responsible marketing practices. Specifically, Nestle will focus on children’s confectionery and ice cream to ensure that portions in these categories contain 110 kilocalories or less.
To kickstart these changes, Nestle will introduce more visually intuitive front-of-pack portion guidance for confectionery products in the United Kingdom starting next spring. This step aligns with Nestle’s previous decision to voluntarily restrict marketing targeting children under the age of 16. This policy took effect at the beginning of July this year and applies to television, online platforms, social media, and gaming platforms with a significant audience consisting of individuals under 16 years old.
Nestle’s commitment to transparency and the health of its consumers is commendable. With these initiatives, the company aims to lead the way in promoting responsible marketing practices and offering healthier product options to its customers.
