Nestlé Faces Shareholder Resolution over Health Credentials
March 14, 2024 at 02:15 pm EDT
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On March 14, 2024, the investors, coordinated by investment lobby group ShareAction, have challenged Nestlé to set an internationally accepted target to increase the proportion of its sales from healthier products. The demand comes as 70% of Nestlé's sales in the UK are from foods that are high in fat, salt and sugar, according to research by Oxford University and BiteBack. Investors with $1.68tn in assets under management, including Legal and General Investment Management, are supporting the resolution, which will be voted on at Nestlé's AGM on 18 April.
Catherine Howarth, chief executive at ShareAction, said that Nestlé is the biggest food company in the world and has an enormous influence on billions of people's diets and lives through the products it makes, advertises and sells to all. Investors expressed concern that Nestlé's recently announced 2030 target to increase sales of more nutritious products by 50% undermines its commitment to promoting balanced diets globally. In response to the planned AGM resolution, Nestlé defended its position, refuting claims regarding the proportion of unhealthy products in its sales.
The Company argued that products like coffee and supplements should be included in its portfolio and disagreed with the idea of limiting growth in specific segments. Nestlé aims for success across all areas of its portfolio, emphasizing consumer diversity and the importance of moderation in dietary choices.
Nestlé S.A. is the world's leading agri-food group. Net sales break down by category of products as follows:
- powdered and liquid beverages (26.7%): soluble coffees (Nescafé and Starbucks brands), coffee in capsules (Nespresso), chocolate drinks (Nesquik, Milo, etc.), tea drinks (Nestea), etc.;
- pet food (20.3%): brands such as Purina, Friskies, Felix, etc.;
- pharmaceutical, nutrition and well-being products (16.4%): nutritional supplements (Resource, Boost, Nutren, Optifast, Peptamen brands, etc.), infant and maternal nutrition products (NAN, illuma, Cerelac, Nido, Gerber), ketogenic beverages (BrainXpert), (Nesquick, Fitness, Cheerios, Lion, etc.), etc.;
- ready meals and seasoning products (12.5%): frozen and chilled dishes (Lean Cuisine, Hot Pockets and Stouffer's brands), soups (Maggi), etc.;
- dairy products and ice cream (11.8%): powdered milk, sweetened condensed milk, yoghurt and cream desserts, ice cream (Nido, Nesvita, Carnation, La Laitière, Coffee Mate, Nestlé Ice Cream, Dreyers, Häagen-Dazs, Extrême brands, etc.);
- chocolates, sweets and biscuits (8.7%): Kit Kat, Smarties, Cailler, Terrafertil, etc. brands;
- bottled waters (3.6%): Nestlé Pure Life, Vittel, Perrier, S. Pellegrino, etc. brands.
Net sales are distributed geographically as follows: Switzerland (1.2%), France (3.8%), the United Kingdom (3.8%), Germany (2.4%), Europe (12.8%), the United States and Canada (35%), China (5.9%), Asia and Oceania (21.4%) and Latin America (13.7%).
NESTLÉ S.A. 
