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Shareholder Resolution Challenges Nestlé’s Health Credentials

Shareholder Resolution Challenges Nestlé's Health Credentials Nestlé Food and Beverage Business
A coalition of Nestlé shareholders is requesting the company to significantly enhance its offering of healthy food products.

The investors, organized by investment advocacy group ShareAction, have called on Nestlé to establish an internationally recognized target to boost the proportion of sales from healthier items.

This call to action arises from research by Oxford University and BiteBack revealing that 70% of Nestlé’s UK sales consist of high-fat, high-salt, and high-sugar foods.

With support from investors holding $1.68tn in assets under management, including Legal and General Investment Management, the resolution will be voted on at Nestlé’s AGM on 18 April.

Catherine Howarth, CEO of ShareAction, stated: “Nestlé’s global influence on diets and lives necessitates a shift towards healthier product offerings to benefit communities worldwide.”

ShareAction’s resolution comes after the organization criticized Nestlé six months ago for its approach to promoting healthier products.

Investors raised concerns about Nestlé’s 2030 target to increase sales of “more nutritious” products by 50%, arguing that it includes items that shouldn’t qualify as healthy.

In response, Nestlé defended its growth plan, emphasizing the importance of maintaining a diverse portfolio to meet consumer preferences.

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