Global Index

India Spotlight Index

Global Index 2018

Kellogg Company

Rank
8
Score
5.0
10 (2015)

Nutrition

9
5.0

Undernutrition

5
5.2

Product Profile

10
5.0

Nutrition General

A Governance (12.5%)
6.0
B Products (25%)
3.8
C Accessibility (20%)
4.6
D Marketing (20%)
5.2
E Lifestyles (2.5%)
4.3
F Labeling (15%)
6.8
G Engagement (5%)
5.1

Undernutrition

A Governance (12.5%)
7.0
B Products (25%)
4.7
C Accessibility (20%)
5.9
D Marketing (20%)
7.5
E Lifestyles (2.5%)
7.3
F Labeling (15%)
0.0
G Engagement (5%)
5.6

Corporate Profile

Headquarters
U.S.
# of employees
33,577
Market capitalization
$25,865 m
Reported product categories
Cereals, Dried and Frozen Processed Food, Snack Bars, Savoury Snacks
Total revenues*
$13,014 m
Reported revenue by geography**
North America 65%, Rest of World 35%
* Source: Morningstar, USD historic exchange rate ** Source: Morningstar

Main areas of strength

• Kellogg’s score has increased from 2.5 in 2016 to 5.0 out of 10 in 2018. The company achieved a substantial increase in score compared to the 2016 Global Index and now ranks eigth.
• Kellogg has improved its commitments and disclosure in Category A and several other categories of the ATNI methodology through its new Kellogg ‘Nutrition Milestones’ document, published in September 2017. The company is commended for publishing this document, which clarifies how its central business strategy relates to its nutrition strategy, including the ‘Global Breakfast Food Beliefs’ articulated in 2015 and the new ‘Global Snack Food Beliefs.’
• New commitments to improve the affordability and accessibility of healthy products for low-income consumers are disclosed by the company, relevant as well for products that aim to address undernutrition in developing countries.
• Similar to 2016, Kellogg’s responsible marketing approach is codified in a policy that includes a wide range of commitments covering marketing to all consumers, as well as specific commitments regarding marketing to children.
• New compared to 2016, Kellogg now commits to follow Codex guidance on nutrition and health claims in markets where regulation is weak or lacking.
• The company has improved its score in Undernutrition-related aspects of the ATNI methodology by disclosing new commitments and by providing clarification about its approach. The company’s ‘Growth 2020’ strategy, which aims to double the business in emerging markets, is linked to commitments to provide targeted, fortified products that address nutritional deficiencies in developing countries. Kellogg is one of only a few companies that commit to creating and delivering marketing strategies appropriate to reaching undernourished populations in developing countries.
• Similar to 2016, its philanthropic undernutrition strategy is driven primarily through its ‘Breakfast for Better Days’ program that includes food bank donations and breakfast programs. Both its commercial and philanthropic approaches are focused on children and youth under 18.

Priority areas for improvement

• Kellogg ranks tenth in the Product Profile assessment with a score of 5.0 out of 10, based on an assessment of its major product categories in eight countries. Kellogg was estimated to derive only 24% of its total sales from healthy products, i.e. products achieving a rating of 3.5 stars or more on the Health Star Rating (HSR) system. These findings illustrate that Kellogg has significant scope to improve the healthiness of its portfolio through product reformulation, innovation and/or portfolio changes.
• The ‘Nutrition Milestones’ document contains many commitments that are not disclosed elsewhere, or only to a limited extent. The company is encouraged to update the document in the future to ensure transparency on its activities and progress. The various commitments made in the document should be reflected as well in future formal reports such as the annual report, showing the integration of its focus on nutrition and health with its commercial strategy.
• Currently, the company defines various product reformulation targets that cover only selections of products; cereals, snack foods and products marketed to children. Kellogg should define a comprehensive set of targets, covering all products globally and all relevant nutrients to increase or decrease.
• Kellogg still does not apply a fully-defined Nutrient Profiling System (NPS) but it applies a limited set of nutritional criteria defined over ten years ago. The company uses various definitions of healthy products, e.g. based on regionally defined criteria. The company is strongly encouraged to adopt an NPS that is based on internationally recognized criteria, e.g. as applied in the HSR system, and to adopt a clear definition of healthy products based on it.
• Although Kellogg has a strong marketing policy that covers all consumers, the company should update it to cover all new media channels. In addition, it is recommended to extend its commitments to not perform marketing activities in or near primary or secondary schools, or in other places popular with children.
• To complement Kellogg’s nutrition labeling commitments, the company should commit to implement interpretative front-of-pack labeling globally.

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
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info@accesstonutrition.org

Funders

Bill & Melinda Gates Foundation

Ministry of Foreign Affairs

Robert Wood Johnson Foundation

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