Food manufacturers have come under pressure to improve the nutritional content of their portfolios as consumers look to eat healthier, a trend that has grown in recent years, especially since COVID-19.
So many investors have insisted that Nestlé should set a target to increase the portion of sales that come from better-for-you products. In a two-page letter to the world’s largest food company, the shareholders said the market is currently oversaturated with foods that cause harm to public health and that create “systemic risks to investor returns.”
“We have already made clear our willingness to escalate our engagement should Nestlé fail to provide assurance that it intends to reduce reliance on the sale of less healthy products,” the groups said.
Even as Nestlé has become more transparent about the healthiness of its food, investors are pushing for the company to do more. Last month, Nestlé said 37% of its net sales, excluding pet care and specialized nutrition, come from products that are considered “healthy.” And estimated that 43% of its net sales came from food and beverages that should be consumed occasionally or that should have their nutritional value improved.
In 2022, Nestlé committed to “increase the transparency of the nutritional value of our global portfolio” by benchmarking its offerings against the Health Star Rating (HSR) system, which assesses food based on attributes such as saturated fat, sodium, sugar, protein, and vegetables.