Investors Raise Health Concerns, Nestlé Defends Strategy

The push for reform followed reports revealing that roughly 70% of Nestlé’s food and drinks sold in the U.K. fall into the “less healthy” category due to high levels of fat, sugar, or salt. ShareAction, a responsible investment group leading the campaign, argued that growing public awareness of diet-related health risks—such as obesity and heart disease—makes it crucial for companies like Nestlé to reformulate their products.

Nestlé responded by presenting data showing that 60% of its sales (excluding pet food) come from items labeled as “nutritious” or “specialized,” such as vitamin-enriched cereals and allergy-friendly foods. The company noted that only 21% of its sales come from indulgent treats like chocolate and cookies. Nestlé’s chairman emphasized that the company promotes balanced diets and transparency, allowing customers to make informed choices. “People deserve the freedom to enjoy occasional treats without feeling guilty,” he stated, adding that removing these options would limit consumer choice and hurt the business financially.

Critics, however, questioned Nestlé’s definitions. For example, the company classifies coffee as a “nutritious” product due to its antioxidants, despite its limited contribution to a balanced diet. ShareAction also pointed out that many of Nestlé’s so-called healthier products still contain significant amounts of sugar or salt, undermining their nutritional value.

Nestlé’s 2030 Health Pledge Faces Skepticism

In September, Nestlé announced a goal to increase sales of “nutritious” foods and beverages by 50% by 2030. However, this pledge failed to satisfy critics, who argue that the target lacks ambition. ShareAction and other advocacy groups accused the company of portraying ordinary business growth—such as selling more coffee or vitamins—as a health initiative, rather than committing to reducing unhealthy ingredients in its core snack brands.

For instance, Nestlé’s definition of “nutritious” includes products like baby formula and protein bars, which already cater to specific health-conscious markets. Meanwhile, sugary cereals, flavored milks, and chocolates remain untouched by stricter nutritional standards. Critics warn that without clear plans to reformulate these items, Nestlé’s long-term health goals risk being more about marketing than meaningful change.

The company has made some adjustments, such as adding vegetables to microwavable meals and reducing salt in instant noodles. Yet these efforts are overshadowed by its continued reliance on bestselling sweets and snacks. Analysts note that indulgent products often have higher profit margins, making them critical to Nestlé’s bottom line.

Balancing Profit and Public Health

The debate reflects a broader tension in the food industry: how to address health concerns without alienating customers or sacrificing revenue. Nestlé insists that offering variety—from vitamin-packed foods to occasional treats—is essential to meet diverse consumer needs. It also argues that education, not product elimination, is the best way to promote healthier lifestyles.

Public health advocates disagree. They argue that companies have a responsibility to make all products healthier, not just a select few. With diet-related illnesses straining healthcare systems worldwide, pressure on food giants like Nestlé is unlikely to fade.

For now, shareholders have chosen to prioritize financial stability over bold health reforms. However, as consumer preferences evolve, Nestlé may face tougher questions about whether its current strategy can withstand increasing demands for transparency and wellness. The company’s ability to innovate—while keeping its chocolate-loving customers happy—will likely determine its path forward.

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