Nestlé noted that 37% of its net sales, excluding pet care and specialty foods, are from products that are considered “healthy” according to a widely used rating platform known as the Health Star Rating system.
The world’s largest food company said that 43% of its net sales are from food and beverages that should be consumed occasionally or that are intended to improve their nutritional value.
In 2022, Nestlé committed to “increase the transparency of the nutritional value of our global portfolio” by comparing its offerings to the Health Star Rating (HSR) system, which rates food based on attributes such as saturated fat, sodium, sugar, protein, and vegetables. Foods with an HSR score of 3.5 or more are considered healthier products.
With food manufacturers under pressure to improve the nutritional content of their portfolios and consumers looking to eat healthier, Nestlé is taking a big step to show the public how it’s done. The Swiss food and beverage giant said it is the first company to make public the nutritional value of its entire portfolio.
Nestlé, whose portfolio includes brands such as Nesquik, Lean Cuisine and Sweet Earth, is improving the nutritional content of its food and beverage products by reducing sodium, expanding sugar-free offerings and increasing the presence of plant-based products. They noted their commitment to reduce sodium in “frequently consumed products” by 2025 and 2030.
“We are focused on improving the nutritional value of our products,” Nestlé said in the report. “We are continuously improving the nutritional profile of our products by adding more whole grains, proteins and fiber, while reducing sugar, sodium and saturated fat – without sacrificing taste.”
For example, in 2022, Nestlé Health Science announced that it had reduced the sugar content of its Carnation Breakfast Essentials ready-to-eat and powdered products by 25%. They have also recently expanded their Natural Bliss creamer to include plant-based milk with an offering that combines oats and beans.
In a statement, Holly Gabriel, consumer health campaign manager at ShareAction, a climate advocacy group, praised Nestlé’s “use of the government-backed, internationally recognized nutrient profiling model [as] a welcome step forward for the company’s transparency to investors and consumers.”
However, she added that Nestlé, as one of the largest food and beverage companies in the world, has “extraordinary influence over what people eat and drink.” What this disclosure disturbingly shows is that the company is still too dependent on selling less healthy food and beverages.”
Marc Schneider, Nestlé’s CEO, told analysts during its earnings call in February that the company “has already made significant progress in reducing sodium, sugar and saturated fat.” However, he added that there are challenges to further improvement in some areas, especially in indulgent offerings.
“It is clear that while the work is ongoing, there are limits. Thus, pleasure-related categories will not be transformed into health-related categories,” Schneider said.
Three years ago, Nestlé discontinued its low-sugar Milkybar Wowsomes chocolate bar, which was launched in the UK and Ireland, as it faced low sales and difficult distribution, the BBC reports. The bar contained Nestlé’s sugar-reducing technology, which reduced the amount of sweetener by 30%.
Food and beverage companies have been criticized for not doing enough to make their products healthier. A 2022 study by the Access to Nutrition Initiative found that about 70% of all food and beverages are less than “healthy” and no major CPG derives most of its sales from “healthier” products.
The group analyzed the products and policies of 11 of the largest U.S. food and beverage companies, including Nestlé, PepsiCo, Coca-Cola, and Kraft Heinz.
It looked at several different aspects, including product health and targeted formula changes, responsible marketing, access and affordability of healthy foods, labeling, and lobbying for better nutrition strategies. The Access to Food Initiative gave each company a score from one to 10. Nestlé was ranked fourth with a score of 4.3.