Nestle shareholders oppose proposal to cut back on 'unhealthy' product sales

In a recent Nestle shareholders' meeting, concerns over the company's sugar content in infant milk sold in poorer nations came to the forefront. This meeting, following a study revealing these practices, convened on April 18, addressing crucial decisions regarding Nestle's product offerings.

Proposal for Healthier Sales
ShareAction, a responsible investment NGO, presented a motion urging Nestle to scale back sales of food and beverage products high in sugar, salt, and fats. The proposal aimed to increase the proportion of sales from healthier products, necessitating Nestle to report sales figures for food and beverages based on their healthfulness and set targets accordingly.


“Nestle says it wants to improve global health, yet the majority of its global food and drinks sales are unhealthy products. Poor diets are cutting lives short by contributing to diabetes, heart diseases and some cancers,” said a statement from ShareAction. However, Nestle rejected this claim about the majority of its products being unhealthy. In its statement, it said that “people can enjoy indulgent products in moderation” and that it was up to individuals to make healthy choices.

Nestle's Response and Shareholders' Vote
However, Nestle shareholders voted against this proposal, with just 11% in favor, citing concerns about restricting the company's "strategic freedom." 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 Standards
ShareAction criticized Nestle's rejection, advocating for the implementation of internationally accepted standards for defining healthy food. They argued that Nestle's global influence on consumer diets necessitates a transition towards healthier products for the benefit of communities worldwide.

ShareAction called on Nestle “to implement internationally accepted standards that define healthy food rather than deviating from credible guidelines”. It further added: “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 us. Any move away from sales of unhealthy products by Nestlé will inevitably support healthier communities all over the world and in the long-term help economies too.”

Future Targets and Challenges
In 2023, Nestle set a target to increase sales of more nutritious food products by 50% by 2030. However, ShareAction raised concerns that this target aligns with Nestle's expected growth rate, which may not significantly impact consumer diets and public health.

Past Criticisms and Findings
Action on Sugar previously criticized Nestle for high sugar levels in cereals and yogurts marketed to children. Their findings showed that 65% of yogurts surveyed contained one-third of a 4-6 year-old's daily maximum sugar recommendation based on the manufacturer's recommended serving.

The outcome of the Nestle shareholders' meeting underscores ongoing debates about the responsibilities of food companies in promoting healthier diets. While Nestle has set targets for increased sales of nutritious products, questions persist about the company's commitment to reducing the impact of its products on consumer health. ShareAction's call for stricter standards reflects growing concerns about the global food industry's role in addressing public health challenges.

(With inputs from TOI)