Following Nestlé’s announcement that the majority of its food portfolio is unhealthy, Khalid Peerbaccus, Senior Researcher at GlobalData, a leading data and analytics company, offers his view:

“With global obesity and methods of combating this issue at the forefront of many foodmaker’s strategies going forward, GlobalData has found that *57% of consumers globally say that, in the current situation, how the product/service impacts their health and wellbeing often or always has the greatest influence on their purchase choice, while a further **28% admit that this somewhat affects their product choices. Nestlé’s decision to update its portfolio to provide healthier products highlights the pressure major brands face to concede to consumer demand for healthier options in the food and drink category.

“While Nestlé admits that some of its categories and products will never be ‘healthy’, the fact that the company is willing to reassess and modify its products where it can to help combat global obesity and satisfy the demand for healthier food and drink is a step in the right direction. This move will reassure consumers that the company is looking into ways that can help cater to the health and wellbeing trend. Nestlé is the world’s largest food company and the move will have a knock-on effect on smaller brands, encouraging others to renovate their food and drink in line with the accepted external definition of health.

“The move comes after an internal presentation highlighted that some 70% of the brand’s food and beverage portfolio failed to meet the 3.5 threshold under Australia’s health star rating system. At the end of the day, the company’s main aim is to satisfy the taste buds of the consumer, which may be hard to do when readjusting salt and sugar levels to meet this health threshold; however, it is clear that there is demand for products that cater to the overall health and wellbeing of the consumer and this could be a strong incentive for Nestlé and other food companies to take the time to reassess their food and drink offerings and modify recipes.”