U.S. Spotlight Index

Global Index

India Spotlight Index

U.S. Spotlight Index

Nestlé S.A.

Corporate Profile

Rank
1
Score
5.3

Product Profile

Rank
4
Score
4.9

Product Profile

Revenue Score
Bottled Water 30-40% 3.0
Confectionery 10-20% 1.0
Dairy 10-20% 1.2
Ice Cream and Frozen Desserts 10-20% 2.3
Ready Meals 20-30% 3.1
Company type
Publicly traded
Headquarters
Switzerland
No. of U.S. employees
51,000
U.S. revenue range*
USD 15-20 billion
* Source: Euromonitor International, 2017.

Nutrition

1
5.3

Corporate Profile

  • Governance

    Overall scores
    Rank 1
    Score7.203
    Scores per criterion
    Criterion Absolute score Weighted score
    Strategy 8.525 2.838825
    Management 7.083 2.358639
    Reporting 6 1.998
    Average scores
    Lowest 0.347
    Average 3.4163
    Highest 7.203
  • Products

    Overall scores
    Rank 2
    Score6.965
    Scores per criterion
    Criterion Absolute score Weighted score
    Formulation 4.763 2.3815
    Profiling 9.167 4.5835
    Average scores
    Lowest 0.084
    Average 3.168
    Highest 7.452
  • Accessibility

    Overall scores
    Rank 3
    Score0.928
    Scores per criterion
    Criterion Absolute score Weighted score
    Pricing 1.042 0.521
    Distribution 0.813 0.4065
    Average scores
    Lowest 0
    Average 0.6996
    Highest 2.946
  • Marketing

    Overall scores
    Rank 2
    Score5.53
    Scores per criterion
    Criterion Absolute score Weighted score
    Policy (all) 4.167 1.04175
    Compliance (all) 4.167 1.04175
    Policy (children) 8.55 2.1375
    Compliance (children) 5.238 1.3095
    Average scores
    Lowest 0.704
    Average 3.879
    Highest 6.98
  • Lifestyles

    Overall scores
    Rank 1
    Score7.38
    Scores per criterion
    Criterion Absolute score Weighted score
    Employees 7 2.331
    Breastfeeding 9.375 3.121875
    Consumers 5.764 1.919412
    Average scores
    Lowest 0
    Average 4.148
    Highest 7.38
  • Labeling

    Overall scores
    Rank 1
    Score8.75
    Scores per criterion
    Criterion Absolute score Weighted score
    Facts 8.75 8.75
    Average scores
    Lowest 1.25
    Average 5.75
    Highest 8.75
  • Engagement

    Overall scores
    Rank 5
    Score4.458
    Scores per criterion
    Criterion Absolute score Weighted score
    Lobbying 3.916 1.958
    Stakeholder 5 2.5
    Average scores
    Lowest 0.833
    Average 3.4706
    Highest 5.542

Main areas of strength

• Nestlé leads the U.S. Index Corporate Profile with a score of 5.3 out of 10 on the Corporate Profile.
• The company has adapted its global Board-approved nutrition strategy to the U.S. market and has 14 U.S.-specific nutrition-related commitments on a comprehensive range of topics, including product reformulation, marketing and nutrition labeling. Accountability for implementation of the U.S. nutrition strategy rests with the Nestlé Operating Company CEO.
• Nestlé is one of two companies in the Index that publishes an annual U.S.-specific report and the only one to publish it in addition to its global report.
• Nestlé’s product reformulation targets, to reduce salt/sodium, added sugar and saturated fat, cover all relevant foods and beverages in the U.S. market. Its approach to product formulation and reformulation is aligned with the 2015–2020 Dietary Guidelines for Americans (DGA).
• For the marketing to children aspect, Nestlé sets an industry-leading audience threshold of 25% for children aged 2-12 for all media and in addition, does not market any products to children under 12. This is a stronger commitment than that applied globally. Further, Nestlé commits not to market in or near elementary schools, including through digital marketing.
• Nestlé has an industry-leading global ‘Maternity Protection Policy’ based on the principles of the International Labor Organization’s (ILO) Maternity Protection Convention (C183). This is a global policy that applies fully to the U.S. and includes provisions that go beyond national regulations and include paid maternity leave.
• Nestlé is one of the top-ranking companies on nutrition labeling. It has committed to provide nutrition information on Front-Of-Pack (FOP) through the industry-developed Facts Up Front system and online through the SmartLabel system that will be fully implemented in 2018.
• Nestlé makes a global commitment to engage with governments and policymakers to support measures to prevent and address obesity and diet-related chronic diseases, and extends this commitment to third-parties that lobby on Nestlé’s behalf.

Priority areas for improvement

• Nestlé ranks joint fourth on the U.S. Index Product Profile with a relatively low score of 4.9 out of 10. It was estimated to generate only 29% of 2016 sales from healthy products (having a Health Star Rating (HSR) of 3.5 or more) and 34% from products that meet World Health Organization (WHO) Euro criteria for marketing to children. Nestlé does not publicly disclose the percentage of healthy products in the United States, or the sales derived from them. Nestlé should improve its transparency in this area and step up its product reformulation, new product development and/or make acquisitions to improve the healthiness of its U.S. product portfolio.
• Nestlé does not have a clear policy on improving the affordability and accessibility of its healthy products that focuses on priority populations in the United States, whose access to healthy food is constrained by low income or geographic factors. Nor does it commit to donating a high percentage of healthy products to programs that address food insecurity, such as food banks either. The company should improve and disclose more information on these topics.
• Nestlé could improve its policy on marketing to children by extending its commitments to middle and high schools and to other places popular with children.
• Brand-level sponsorship is excluded only for some types of educational programs in the United States. Nestlé should exclude brand-level sponsorship, define specific health outcomes and commission independent evaluations for all programs.
• Nestlé states in its global Breast-milk Substitutes Marketing policy, that as a minimum, it complies with the International Code of Marketing of Breast-milk Substitutes (The Code) and relevant World Health Assembly (WHA) resolutions, as implemented by governments all over the world. This includes therefore so-called lower-risk countries (defined by the FTSE4Good risk-rating system based on levels of infant and child morbidity, mortality and undernutrition), of which the United States is one. It applies additional policy commitments in higher-risk countries when they are stricter than local legislation implementing the Code. Nestlé is urged to extend these commitments to the United States and all other lower-risk countries.

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

Access to Nutrition Foundation
Arthur van Schendelstraat 650
3511 MJ 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

© Copyright Access to Nutrition Foundation. All rights reserved. | Disclaimer | Legal | Privacy policy