Global Index

India Spotlight Index

Global Index 2018

Koninklijke FrieslandCampina

Rank
4
Score
6.0
8 (2015)

Nutrition

3
7.0

Undernutrition

1
7.4

BMS

4
2.5

Product Profile

1
7.7

Nutrition General

A Governance (12.5%)
8.4
B Products (25%)
7.9
C Accessibility (20%)
4.5
D Marketing (20%)
7.7
E Lifestyles (2.5%)
5.1
F Labeling (15%)
7.2
G Engagement (5%)
6.1

Undernutrition

A Governance (12.5%)
7.4
B Products (25%)
7.0
C Accessibility (20%)
7.2
D Marketing (20%)
9.4
E Lifestyles (2.5%)
0.0
F Labeling (15%)
7.5
G Engagement (5%)
5.0

Corporate Profile

Headquarters
The Netherlands
# of employees
21,927
Market capitalization
Not Available (Cooperative structure)
Reported product categories
Baby Food, Dairy, Oils and Fats, Juice
Total revenues*
$11,576 m
Reported revenue by geography**
Not available
* Source: company financial statement FY2016, USD historic exchange rate ** Source: Morningstar

Main areas of strength

• FrieslandCampina’s score has increased from 2.8 in 2016 to 6.0 out of 10 in 2018. The company has achieved the largest increase in score compared to the 2016 Global Index across all companies in the Index and now ranks fourth.
• Through its new ‘Route 2020’ strategy and ‘Nourishing by nature’ purpose, the company demonstrates a clear focus on nutrition, including strong commitments to address undernutrition in developing countries. Its updated Nutrition Policy, part of its CSR strategy, is strongly embedded in the company governance structure and integrated into its central commercial strategy.
• FrieslandCampina implemented the Global Nutritional Standards, a new Nutrient Profiling System (NPS) to drive its product reformulation efforts, since the 2016 Index assessment with strong nutritional criteria, based on WHO recommendations according to company information. Although it does not include criteria related to fruits, vegetables, nuts or legumes, it covers both ‘positive nutrients’ and ‘negative nutrients’.
• FrieslandCampina now discloses information about its new ‘Broadening access to nutrition’ strategy, one of the four pillars of its Nutrition Policy. Despite the fact that it was still under development at the time of assessment, relevant commitments are made to increase the affordability and accessibility of products suitable to prevent and combat undernutrition. The combination of strong commercial performance in developing and marketing milk-based products to undernourished consumers along with relevant philanthropic programs including school milk programs, has made FrieslandCampina the top performing company on undernutrition.
• The Corporate Standard for Responsible Marketing Communications is the company’s new responsible marketing policy, which now covers marketing to all consumers in addition to marketing to children. The policy has been published on the corporate website since August 2017, increasing the company’s performance substantially compared to 2016.

Priority areas for improvement

• The company’s ‘Broadening access to nutrition’ strategy is under development and concrete objectives are not yet defined regarding affordability and accessibility of healthy products. The company should address this for low-income populations in developed and developing markets.
• FrieslandCampina ranks first on the Product Profile (PP) assessment with a score of 7.7 out of ten. An important limitation is that its main product category, ‘Dairy’, was assessed in only 2 countries. The company reports to derive 62% of sales volume from healthy products, which is lower than the result of the PP assessment (using a Health Star Rating (HSR) cutoff of 3.5 or more). Despite the company’s relatively good performance, there is significant scope to further improve the healthiness of its portfolio.
• FrieslandCampina commits to not perform any marketing activities in primary schools in its updated responsible marketing policy. The company could improve in this area by committing to not perform marketing activities in or near primary or secondary schools, or in other places popular with children.
• FrieslandCampina runs various consumer-oriented education programs, but no evidence was found of independently designed and implemented programs aimed at undernourished consumers, which it should develop.
• The company should commit to implementing an interpretative front-of-pack (FOP) labeling system, covering (and displayed on) all products globally.
• FrieslandCampina ranks fourth on the breast-milk substitutes (BMS) sub-ranking. Its policy commitments align quite closely though not fully to the International Code of Marketing of Breast-milk Substitutes (The Code) and subsequent World Health Assembly (WHA) resolutions, and they are not applied to growing-up milks nor where local regulations are weaker than the company’s own policy. In Nigeria various incidences of non-compliance with The Code were found. The company should re-double its efforts to ensure that it complies with its own policy and extend its commitments so that its marketing complies with The Code in all countries, for all products.

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
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+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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