Nestlé's announcement that it is to update the health credentials of its range, following the admission that a sizeable number of its products do not meet 'a recognised definition of health', should help to better align the company with consumer needs, GlobalData has said.
The revelation was revealed by the Financial Times earlier this week, and was made in an internal presentation for top executives, which was seen by the paper.
According to a recent GlobalData survey, 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.
With this in mind, Nestlé is right to take steps to improve the health credentials of its range, says Khalid Peerbaccus, senior researcher at GlobalData.
'Reassess And Modify'
“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," Peerbaccus said.
"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."
Clearly, Nestlé would have preferred for the information revealed by the Financial Times to remain private, however its leak reveals the challenges that many consumer goods firms face in terms of balancing taste and nutrition.
"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," said Peerbaccus.
"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.”
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
