U.S. Spotlight Index

Global Index

India Spotlight Index

Global Index 2018

Nestlé S.A.

Rank
1
Score
6.8
2 (2015)

Nutrition

1
7.8

Undernutrition

2
6.2

BMS

2
4.5

Product Profile

13
3.8

Nutrition General

A Governance (12.5%)
9.8
B Products (25%)
8.0
C Accessibility (20%)
5.9
D Marketing (20%)
8.1
E Lifestyles (2.5%)
8.0
F Labeling (15%)
8.2
G Engagement (5%)
7.9

Undernutrition

A Governance (12.5%)
7.5
B Products (25%)
4.9
C Accessibility (20%)
6.7
D Marketing (20%)
4.4
E Lifestyles (2.5%)
8.0
F Labeling (15%)
10.0
G Engagement (5%)
2.5

Corporate Profile

Headquarters
Switzerland
# of employees
335,000
Market capitalization
$221,698 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, Cereals
Total revenues*
$88,786 m
Reported revenue by geography**
Rest of World 70%, U.S. 30%
* Source: Morningstar, USD historic exchange rate ** Source: Morningstar

Main areas of strength

• Nestlé’s score has increased from 5.9 in 2016 to 6.8 out of 10 in 2018. The company also improved its position compared with the 2016 Global Index and now ranks first.
• Nestlé leads the 2018 Global Index with above average performance in all categories of the Index. Its overall nutrition governance and management systems are comprehensive, well-structured, transparent and applied globally with a clear accountability structure.
• The company has a global Board-approved nutrition strategy. This includes a comprehensive set of 15 nutrition-related targets updated in 2016, which are directly linked to the SDGs.
• The company has formalized most of its nutrition-related commitments in global policies, which are to a large extent disclosed publicly.
• Since the last Index, Nestlé has updated its policy on marketing to children, which sets an industry leading audience threshold of 25% for children aged 2-12. Furthermore, Nestlé remains one of the few companies to conduct an independent audit, in addition to participating in industry association audits that review the company’s compliance with its policy on marketing to children.
• Nestlé has an industry leading global ‘Maternity Protection Policy’ based on the principles of the ILO’s Maternity Protection Convention (C183).
• The company further updated and strengthened its labeling standards and has more comprehensive standards and policy relating to engagement with governments and policymakers.
• The company’s efforts to tackle undernutrition are delivered through commercial strategies focused on children and women as well as key priority groups, and is extended to developing countries, including high priority countries. It also pursues ‘Creating Shared Value’ program initiatives to promote healthy diets and nutrition education.

Priority areas for improvement

• Nestlé reports that a high percentage of sales are generated by products that meet the company’s definition of healthy. The Product Profile, using the Health Star Rating (HSR) system, estimated a much lower percentage. Nestlé should review its NPS to ensure it aligns with internationally recognized systems such as the HSR.
• Nestlé ranks thirteenth in the Product Profile assessment with a score of 3.8 out of 10, based on an assessment of its major product categories in nine countries. Nestlé was estimated to derive only 19% of its total sales from healthy products. These findings illustrate that Nestlé has significant scope to improve the healthiness of its portfolio through product reformulation, innovation and/or portfolio changes.
• While Nestlé’s policy on marketing to children is considered relatively strong, it does not extend to secondary schools and the approach to marketing in places popular with children could be strenghtened.
• Nestlé does not commit to exclusively support programs designed and implemented by third-parties with relevant expertise that provide nutrition education or promote healthy lifestyles among consumers. Nestlé should seek to support unbranded programs to avoid the impression that educational programs are used for marketing purposes.
• Nestlé ranks second on the breast-milk substitutes (BMS) marketing sub-ranking. The wording of its policy aligns closely with the International Code of Marketing of Breast-milk Substitutes (The Code) and subsequent World Health Assembly (WHA) resolutions, although the policy is not applied to all products and in lower-risk countries. In both Thailand and Nigeria, many 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 it 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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info@accesstonutrition.org

Funders

Bill & Melinda Gates Foundation

Ministry of Foreign Affairs

Robert Wood Johnson Foundation

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