Nestle Investors Vote Against Curbing Sales of 'Unhealthy' Products Despite Recent Controversy Over High Sugar Content in Baby Foods

In a recent Nestle shareholders' meeting, concerns regarding the company's sugar content in infant milk sold in impoverished nations took centre stage. This meeting, held on April 18, addressed pivotal decisions regarding Nestle's product portfolio and its implications for public health, as per a ET report.

Proposal for Healthier SalesShareAction, a responsible investment NGO, introduced a motion urging Nestle to curtail sales of food and beverage items high in sugar, salt, and fats. The proposal aimed to boost the proportion of sales from healthier products, calling for Nestle to report sales figures based on the healthfulness of its offerings and establish corresponding targets.

According to ShareAction, Nestle's focus on healthier sales aligns with its stated commitment to improving global health. They argue that reducing the prevalence of unhealthy products is crucial for combating diseases like diabetes, heart disease, and certain cancers.

Nestle's Response and Shareholders' VoteHowever, Nestle's shareholders ultimately voted against the proposal, with only 11 per cent in favour, citing concerns about constraining the company's strategic flexibility. Nestle responded by asserting that individuals should be able to enjoy indulgent products in moderation, emphasizing personal responsibility in making healthy choices.

Calls for Global StandardsShareAction criticized Nestle's rejection, advocating for the adoption of internationally recognized standards for defining healthy food. They argue that Nestle's extensive global reach necessitates a shift towards healthier products to benefit communities worldwide.

ShareAction emphasizes the need for Nestle to adhere to credible guidelines in defining healthy food, given its significant influence on consumer diets and overall well-being. They argue that transitioning away from unhealthy product sales could foster healthier communities and bolster long-term economic prosperity.

Future Targets and ChallengesNestle had previously set a target to increase sales of nutritious food products by 50 per cent by 2030. However, ShareAction expressed concerns that this target may align too closely with Nestle's expected growth rate, potentially limiting its impact on consumer diets and public health outcomes.

Past Criticisms and FindingsThis meeting comes amidst past criticisms of Nestle's product offerings, particularly regarding high sugar levels in cereals and yoghurts marketed to children. Action on Sugar's findings revealed that a significant portion of yogurts surveyed contained excessive sugar levels, raising concerns about their impact on children's health.