Nestlé sets ambitious sales targets for healthier foods
Nestlé aims to significantly increase its sales of health food products. CEO Mark Schneider has set a target of 20-25 billion Swiss francs more revenue in this area by 2030, the company announced last Thursday.
The target is ambitious as, if achieved, it would mean a 50% increase in sales compared to 2022.
For food ratings, Nestlé relies on the “Health Star Rating,” a rating system for packaged foods that stems from an initiative by the governments of Australia and New Zealand. It has now become established, particularly in the English-speaking world. Unlike Nutriscore, which is commonly used in Germany, the Health Star Rating does not classify foods on the basis of traffic light colors, but with a scale of one to five, whereby high values stand for better nutritional value.
Nestlé considers a Health Star rating of 3.5 or more to be nutritious and wants to expand its business with these foods. Today, foods with a Health Star rating of 3.5 or more account for 37 percent of total sales, excluding pet food, of CHF 73.1 billion. Nestlé generates a further 20 percent of its sales with specialty foods, such as those for the healthcare sector. Nestlé also wants to grow further in this business.
Making life easier for the food giant, the coffee business with the Nespresso, Starbucks and Nescafé brands has grown strongly in recent years. Black coffee is one of the product categories with a rating above 3.5, and many of the Group’s dairy products also do well in it. The luxury water brands Perrier or San Pellegrino – like any water – receive the best possible rating of five.
Nestlé CEO Schneider reshapes the brand portfolio
Meanwhile, Nestlé CEO Schneider has already significantly reshaped the brand portfolio. He has invested billions in the Nestlé Health Science division and added brands for vitamin preparations and nutritional supplements. The brand for plant-based meat substitutes, Garden Gourmet, has also grown strongly recently.
There is some room for improvement in ready-to-eat meals, confectionery and cookies. The Swiss group wants to provide consumer with more information on how snack foods can fit into a balanced diet. In the case of ready meals and drinking chocolate, the Group is also researching which ingredients can be replaced to improve nutritional values without compromising taste.
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