Investors Urge Nestlé to Enhance Focus on Healthy Food Sales

This demand arises as research reveals that 70% of Nestlé's sales in the UK consist of high-fat, high-salt, and high-sugar foods, such as KitKat.

Friday, March 15, 2024 7:08 AM UTC

Nestlé faces pressure from a coalition of shareholders demanding a significant shift towards healthier food offerings. The investors, led by ShareAction, are pushing for the Swiss food giant to set clear targets to increase the global sales proportion of nutritious products. This demand arises as research reveals that 70% of Nestlé's sales in the UK consist of high-fat, high-salt, and high-sugar foods.

Increased Investor Advocacy

Bloomberg reported that investors managing $1.68 trillion in assets, prominent names like Legal and General Investment Management, are backing this resolution. The shareholders are seeking a commitment from Nestlé, which will be put to vote at the upcoming AGM on April 18. Catherine Howarth, CEO of ShareAction, emphasized the influential role Nestlé plays in shaping consumer diets worldwide.

Focus on Healthier Communities

According to Fortune, the call for Nestlé to prioritize healthier product sales stems from concerns over the company's current sales composition. Investors urge Nestlé to realign its product portfolio to support healthier communities globally. The move towards healthier offerings is expected to benefit economies in the long run.

ShareAction's initiative follows earlier criticism of Nestlé's strategies to boost sales of nutritious products. Investors expressed apprehension regarding a new healthy food target announced by Nestlé last September, which they believe undermines the company's commitment to promoting balanced diets.

Nestlé's Response and Strategy

In response to investor pressure, Nestlé set a 2030 target to increase the sales of more nutritious products by 50%. The company plans to invest significantly in revamping existing products and driving innovation to achieve this goal. Nestlé aims to substantially grow healthier product sales by 2030, aligning with its overall growth projections.

Shareholders argue that Nestlé's proposed growth targets align with the company's anticipated expansion. They question how the new targets promote healthier food options and balanced diets. The shareholders call for clearer strategies to ensure Nestlé's leadership in advancing nutritious offerings.

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