U.S. Spotlight Index

Global Index

India Spotlight Index

Global Index 2018

Nestlé

Corporate Profile

Rank
2
Score
5.9
3 (2013)

Corporate Profile

A Governance (12.5%)
8.7
B Products (25%)
6.4
C Accessibility (20%)
6.7
D Marketing (20%)
7.4
E Lifestyles (2.5%)
7.1
F Labeling (15%)
6.0
G Engagement (5%)
5.2
Highest score among rated companies
The percentages in parentheses indicate the weight assigned to each Category
Headquarters
Switzerland
Market capitalization
$235,530 m
# of employees
339,000
Total revenues*
$92,224 m
Reported product categories
Baby Food; Powdered & liquid beverages; Pet Care; Nutrition & health care; Dairy; Confectionery; Ready Meals; Ice cream; Water; Canned/ Preserved Food; Chilled & Frozen Processed Food; Snack foods
Reported revenue by geography**
Rest of the world and corporate 33%, United States 25%, Europe 15%, China 7%, Brazil 5%, Mexico 3%, Philippines 2%, Canada 2%
* Source: Capital IQ, USD exchange rate as of 31 Dec 2014 ** Source: Capital IQ

Nutrition general

1
6.6

Undernutrition

1
6.3

BMS

1
3.6

Corporate Profile

  • Governance

    Overall scores
    Rank 1
    Score8.731
    Scores per criterion
    Criterion Absolute score Weighted score
    Strategy 8.281 2.757573
    Management 8.225 2.738925
    Reporting 9.688 3.226104
    Average scores
    Lowest 0
    Average 3.5622272727273
    Highest 8.731
  • Products

    Overall scores
    Rank 2
    Score6.409
    Scores per criterion
    Criterion Absolute score Weighted score
    Formulation 5.318 2.659
    Profiling 7.5 3.75
    Average scores
    Lowest 0
    Average 2.7987727272727
    Highest 8.427
  • Accessibility

    Overall scores
    Rank 1
    Score6.68
    Scores per criterion
    Criterion Absolute score Weighted score
    Pricing 7.344 3.672
    Distribution 6.016 3.008
    Average scores
    Lowest 0
    Average 1.1542272727273
    Highest 6.68
  • Marketing

    Overall scores
    Rank 3
    Score7.394
    Scores per criterion
    Criterion Absolute score Weighted score
    Policy (all) 9.25 2.3125
    Compliance (all) 4.167 1.04175
    Policy (children) 7.825 1.95625
    Compliance (children) 8.333 2.08325
    Average scores
    Lowest 0
    Average 3.7889090909091
    Highest 8.539
  • Lifestyles

    Overall scores
    Rank 1
    Score7.072
    Scores per criterion
    Criterion Absolute score Weighted score
    Employees 7.375 2.455875
    Breastfeeding 8.125 2.705625
    Consumers 5.716 1.903428
    Average scores
    Lowest 0
    Average 2.4945
    Highest 7.072
  • Labeling

    Overall scores
    Rank 2
    Score5.963
    Scores per criterion
    Criterion Absolute score Weighted score
    Facts 3.8 1.9
    Claims 8.125 4.0625
    Average scores
    Lowest 0
    Average 2.3608181818182
    Highest 6.22
  • Engagement

    Overall scores
    Rank 2
    Score5.156
    Scores per criterion
    Criterion Absolute score Weighted score
    Lobbying 1.563 0.7815
    Stakeholder 8.75 4.375
    Average scores
    Lowest 0
    Average 2.7793636363636
    Highest 6.25

Areas of strength

- As in 2013, Nestlé is among the top three performers in the ATNI Global Index.
- Nestlé’s overall nutrition governance and management is comprehensive and transparent, as was the case in the 2013 Global Index. It has developed and published its ‘Creating Shared Value’ framework which clearly elaborates commitments, objectives, targets and policies on nutrition, health and wellness to guide its activities and provide accountability.
- As in 2013, the company’s commitment to deliver more healthy foods incorporates a specific commitment to target low-income groups. Nestlé’s Popularly Positioned Products (PPPs) are an effective way of increasing access to nutritious and fortified foods. Three quarters of PPPs meet Nestlé’s Nutrition Foundation criteria and many of the products sold in developing markets are fortified to help address specific micronutrient deficiencies. Nestlé has leveraged its PPP model to reduce prices and enhance distribution of these products through adjusted formats, local manufacturing and non-traditional routes to market.
- Nestlé disclosed its Policy on Micronutrient Fortification of Food and Beverage Products, which covers product labeling and the use of health and nutrition claims. This enhanced disclosure increases transparency and accountability.
- Nestlé’s efforts to tackle undernutrition are almost exclusively delivered through commercial strategies focused on children, women and key priority groups. These strategies focus on developing countries, including high-priority countries. It also pursues initiatives to promote healthy diets, nutrition education and active lifestyles through its Creating Shared Value program.

Areas for improvement

- Nestlé makes significant efforts to reformulate its products, but there is no evidence that it has introduced new products which meet its Nutrition Foundation criteria in recent years.
- While Nestlé’s policy on marketing to children is considered relatively strong, the company has not addressed areas for improvement identified in 2013, including: raising the definition of the age of a child to 16; lowering the threshold for defining a child audience to 25%; and extending its policy to apply to secondary schools. However, it should be noted that the company’s definition of a child audience applies to new media, an improvement from 2013.
- Nestlé has not improved its approach to developing and implementing independent consumer-oriented healthy eating and active lifestyle programs. It does not commit to exclusively supporting independent programs implemented by third parties with relevant expertise, but rather maintains involvement in their design and implementation.
- The company does not have a strategic and comprehensive approach to funding non-commercial initiatives to address undernutrition either through its own programs or other organizations. A commitment to do this could generate a meaningful impact on quality for life of undernourished people.
- Nestlé should develop a commitment to playing an active and constructive part in supporting the efforts of developing country governments to address undernutrition.
- Nestle ranked first on the breast-milk substitutes (BMS) sub-ranking. Its policy commitments align strongly with the International Code of Marketing of Breast-milk Substitutes (The Code) and subsequent World Health Assembly (WHA), although 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.

Improving nutrition for all

The Access to Nutrition Index rates food and beverage manufacturers´ nutrition-related policies, practices and disclosures worldwide on a recurring basis.

Contact

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info@accesstonutrition.org

Funders

Bill & Melinda Gates Foundation

Ministry of Foreign Affairs

Robert Wood Johnson Foundation

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