Major packaged food companies such as Nestlé, ITC, Britannia, PepsiCo, and Danone are now tying the Key Result Areas (KRAs) of their CEOs and top executives to nutritional goals as part of their wellness and sustainability strategies. These goals include reducing sugar, salt, and trans fats while also incorporating healthier ingredients such as millets, oats, and proteins into their products. The shift in performance metrics comes amid growing consumer awareness about healthier diets, increased scrutiny from shareholders, and heightened government focus on wellness.
For years, KRAs in the FMCG sector have been focused on environmental goals, diversity hiring, and reducing carbon footprints. However, these companies are now adding nutrition to their leadership metrics, integrating it into their Environmental, Social, and Governance (ESG) mandates. Industry leaders believe this shift is crucial to remain competitive and meet the rising demand for healthier food options.
Britannia, for instance, is focusing on reducing sugar and sodium levels while boosting whole grain content across its product line, making it a critical KRA for its leadership. Similarly, Danone and PepsiCo have made nutrition strategies a direct responsibility for their leadership, with regular oversight to ensure compliance.
Nestlé and ITC have set up dedicated nutrition teams and incorporated nutritional goals as part of their ESG commitments. Nestlé India has introduced millets in variants of products like Maggi noodles, Ceregrow, and Milo, while ITC is working to include nutritious ingredients like millets and oats in products such as Sunfeast biscuits and Yippee noodles. ITC has also launched the “Right Shift” brand, targeting consumers over 40, with products that include nutritious cookies and roasted snacks.
The focus on healthier options is also being driven by regulatory changes. The Food Safety and Standards Authority of India (FSSAI) is planning to make it mandatory for companies to clearly label ingredients on the front of packaging. As part of its ESG strategy, Britannia has removed transfats from its bakery products and is reducing sugar content across its portfolio.
Krishna Malladi, partner at Deloitte, notes that FMCG companies are increasingly dedicating roles and responsibilities to nutrition strategies, creating new revenue streams targeting wellness and nutrition opportunities. This trend reflects a broader shift in the industry, with global reports highlighting that food companies, including Danone and PepsiCo, are placing nutrition at the forefront of executive responsibilities and linking it directly to executive compensation.
As the wellness and nutrition market continues to grow in India, FMCG companies are aligning their goals with consumer health trends, ensuring that nutrition and sustainability are key drivers of their business models.