Areas of strength
- In the 2016 Global Index, FrieslandCampina ranks eight, which is a significant improvement on its previous rank of nineteenth in the 2013 Global Index. Its proactive engagement has contributed to this improvement.
- FrieslandCampina has a framework in place through which it addresses issues of nutrition in its commercial strategy. The company focuses on product development, labeling and consumer-oriented programs. Managerial accountability and responsibility for implementation is assigned to a corporate executive one level below the CEO, who reports to the CEO and Chairman.
- FrieslandCampina has a range of product reformulation targets covering all relevant product categories.
- Formal policies guide the company’s approach to marketing to children. The company sets a stricter threshold than most other companies assessed for determining whether its marketing is directed at children. FrieslandCampina has a threshold of 30%. Most other companies assessed have a threshold of 35% child audience.
- The company has improved the quality of its reporting since the 2013 evaluation. Global reporting is provided against all objectives and targets, and includes an outlook on future plans.
- Through engagement with ATNF, the company has disclosed a NPS that it uses to guide new product development and reformulation efforts.
- FrieslandCampina’s BOEST program, through which it supports employee health and wellness, indicates a notable improvement since the 2013 Global Index, as programs for employee health and wellness were not previously disclosed.
- In addressing undernutrition, FrieslandCampina has provided evidence of its work to complete nutritional profiling in both higher- and lower-priority countries through its South East Asia Nutrition Survey (SEANUTS). The company has also developed beverages for children that seek to address nutritional deficiencies. Further, FrieslandCampina tracks the revenues it derives from products that are specifically formulated for the undernourished.
Areas for improvement
- FrieslandCampina’s approach to undernutrition remains relatively poor in comparison to its initiatives to address obesity and diet-related chronic diseases. Milk would be a good avenue for the company to pursue a targeted approach to fortification, as it possesses a high underlying nutritional value. The company should also explore opportunities to address undernutrition through other product lines.
- Additionally, FrieslandCampina should target those groups on which it could have the most impact. A focus on school-age children is important but the company could also emphasize other populations at risk, such as women of childbearing age.
- The company’s commitment to affordability could be strengthened by publicly publishing a strategy and nutrition policy to improve access to nutritious and fortified foods for low-income consumers.
- FrieslandCampina ranked third on the BMS sub-ranking. While its policy commitments align reasonably well with The International Code of Marketing of Breast-milk Substitutes (The Code) and subsequent World Health Assembly (WHA), they are not applied to all products in all markets. In both Vietnam and Indonesia, multiple observations of non-compliance with The Code were made.