Nestlé has described the accusations made by a coalition of its shareholders, regarding the FMCG’s heavy reliance on the sales of HFSS foods, as “disappointing and counterproductive.”
Coordinated by investment NGO ShareAction, the group had originally filed a resolution challenging the KitKat and Shreddies owner to change and “dramatically improve its impact on peoples health”.
Its shareholder’s actions had come amid complaints that the new targets Nestlé published last year, to sell “more nutritious” products by 2030, fell short of investor expectations.
The group claim the food and drink manufacturer’s “nutritious” sale target failed to fall in line with Nestlé’s overall expected growth, while the company also neglected to make a commitment on the sales of unhealthy products.
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Other grievances the group brought up include the FMCG’s inclusion of products such as coffee in its target, which ShareAction argues has no value and therefore “inconsistent with the nutrient profile model Nestlé has chosen.”
ShareAction chief executive Catherine Howarth OBE said: “Nestlé is the biggest food company in the world and has an enormous influence on billions of people’s diets and lives through the products it makes, advertises and sells to us.
“While the company claims in its mission statement that its products have ‘the power to enhance lives’, in reality three quarters of Nestlé’s global sales are unhealthy products containing high levels of salt, sugar and fats (HFSS).
“As Nestlé has consistently failed to set out how it will shift the balance of its sales towards healthier food options, concerned investors have been left with no option but to bring forward a resolution at the company’s AGM in April.
“Any move away from sales of unhealthy products by Nestlé will inevitably support healthier communities all over the world and in the long-term help economies too.”
Yet Nestlé has responded by accusing ShareAction of targeting the “wrong company”, adding that the group’s action were “disappointing” and “counterproductive”.
A spokesperson for Nestlé said: “We appreciate the constructive dialogue with ShareAction and the investor coalition over recent years, so this resolution is disappointing and counterproductive. ShareAction are targeting the wrong company. We are already moving and more would be accomplished by asking other firms to level up.”
“…we disagree with the notion that we should aim to limit growth in specific areas of our portfolio. A proportional target is counterproductive to our value creation model. It would require us to weaken valuable parts of our portfolio, creating opportunities for competitors without yielding public health benefits. Our goal is to achieve success across all segments of our portfolio, ensuring that we address responsibly the diverse needs and preferences of our consumers.”
The FMCG’s portfolio contains a range of notable grocery brands, including Aero, Häagen-Dazs, Nesquik and Quality Streets.
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