Global Index

India Spotlight Index

Global Index 2018

Arla Foods amba

Rank
11
Score
3.3
14 (2015)

Nutrition

12
3.5

Undernutrition

12
2.2

Product Profile

3
6.1

Nutrition General

A Governance (12.5%)
4.5
B Products (25%)
4.1
C Accessibility (20%)
5.0
D Marketing (20%)
1.7
E Lifestyles (2.5%)
1.7
F Labeling (15%)
2.5
G Engagement (5%)
2.3

Undernutrition

A Governance (12.5%)
5.3
B Products (25%)
0.9
C Accessibility (20%)
4.5
D Marketing (20%)
0.0
E Lifestyles (2.5%)
0.0
F Labeling (15%)
2.5
G Engagement (5%)
1.2

Corporate Profile

Headquarters
Denmark
# of employees
19,000
Market capitalization
Not Available (Cooperative structure)
Reported product categories
Dairy, Soup, Concentrates
Total revenues*
$10,102 m
Reported revenue by geography**
Not Available
* Source: company financial statement FY2016, USD historic exchange rate ** Source: Morningstar

Main areas of strength

• Arla’s score has increased from 1.9 in 2016, to 3.3 out of 10 in 2018. Since 2016, the company has strengthened its performance, particularly with respect to improving the affordability and accessibility of its healthy and fortified products for low-income populations. This has led to an overall ranking increase from fourteenth to eleventh place.
• The company reports that its health strategy, which was launched in 2014, is one of the contributing elements to both its vision and ‘Good Growth 2020’ business strategy which emphasizes nutrition and healthy foods. Through its health strategy, Arla states that it aims to, "help people eat healthily" by offering healthy and natural products and by being transparent in terms of nutritional information. The company's health strategy is complemented by its relatively strong Food Nutrition Criteria, which includes a formal Nutrient Profiling System (NPS).
• Since 2016 the company has enhanced its approach to making healthy products accessible and affordable, including fortified products designed for low-income consumers in developing countries. For example, Arla conducted a field study in the Democratic Republic of Congo (DRC) to evaluate the affordability of a specifically designed product aimed to address undernutrition among low-income consumers. Furthermore, the company has become a member of the GAIN Nordic Partnership, which aims to develop affordable and nutritious foods in collaboration with local manufacturers.
• Notably, Arla established within its confidential Responsible Marketing Policy the audience threshold for children below the age of 18 and 12 respectively, which is 30%. Defining the threshold for children aged 13-18 is considered best practice. Arla is the only company that address this age group. Arla’s approach is aligned with the definition of a child that is outlined in the UN Convention on the Rights of a Child.

Priority areas for improvement

• Arla ranks shared third in the Product Profile assessment with a score of 6.1 out of 10, based on an assessment of its major product categories in nine countries. Arla was estimated to derive 47% of its total sales from healthy products, i.e. those that achieve a rating of 3.5 stars or more in the HSR system. Although this result is encouraging, Arla still has a little over half of its total portfolio that needs to be improved through product reformulation, innovation and/or portfolio changes.
• Regarding marketing to all consumers, Arla could further enhance its responsible marketing guidelines and bring them in line with the standards set out in the International Chambers of Commerce Framework for Responsible Food and Beverage Marketing Communications (ICC Framework). Furthermore, it should start monitoring the performance of its marketing practices targeted at all populations and children to ensure full compliance with declared standards.
• Arla should strengthen its program to support employee health and wellness by implementing strategic plans and making it available to all employees and family members globally. Further, it should implement a global policy and relevant conditions to support breastfeeding at work.
• Arla can further strengthen its labeling commitments, particularly with respect to front-of-pack (FOP) labeling. The company should implement FOP labeling in an interpretative format, providing indications of how healthy the product is. All labeling commitments and practices should extend to its global product portfolio and include target dates for rolling them out across all markets.
• Arla can improve its approach to addressing undernutrition by defining and disclosing commitments and objectives that are currently missing, for example in relation to product development, specific marketing strategies and nutrition labeling of products for the undernourished.
• During the engagement with ATNF, Arla shared many relevant policies and examples that are not publicly disclosed. The company could increase transparency, which would in turn improve its overall score.

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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3511 MH Utrecht
The Netherlands
+31 (0)30 410 09 16

info@accesstonutrition.org

Funders

Bill & Melinda Gates Foundation

Ministry of Foreign Affairs

Robert Wood Johnson Foundation

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