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Nestlé in society Creating Shared Value and meeting our commitments 2015

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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />

Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />

Nutrition, health<br />

<strong>and</strong> wellness<br />

Rural development<br />

Water<br />

Environmental<br />

susta<strong>in</strong>ability<br />

Human rights<br />

<strong>and</strong> compliance<br />

Our<br />

people<br />

FP6<br />

Mak<strong>in</strong>g pizza <strong>and</strong> snack<strong>in</strong>g<br />

healthier <strong>in</strong> the United States<br />

<strong>Nestlé</strong> USA pledged to improve the <strong>in</strong>gredient quality <strong>and</strong><br />

nutritional profile of several frozen pizza <strong>and</strong> snack<strong>in</strong>g br<strong>and</strong>s<br />

<strong>in</strong> <strong>2015</strong>, <strong>in</strong>clud<strong>in</strong>g DiGiorno®, Tombstone®, California Pizza<br />

Kitchen®, Jack’s®, Hot Pockets® <strong>and</strong> Lean Pockets®. These<br />

improvements <strong>in</strong>cluded the removal of artificial flav<strong>our</strong>s as well<br />

as the reduction of sodium by 10% across the entire portfolio<br />

of these br<strong>and</strong>s compared to 2013 levels * . <strong>Nestlé</strong> successfully<br />

achieved this commitment, mak<strong>in</strong>g changes to the <strong>in</strong>gredient<br />

profiles across the six br<strong>and</strong>s with<strong>in</strong> the United States –<br />

encompass<strong>in</strong>g 250 products – while ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the great<br />

taste consumers expect.<br />

As an example, DiGiorno®, an iconic br<strong>and</strong> <strong>and</strong> a pioneer <strong>in</strong><br />

terms of its crust, removed leaven<strong>in</strong>g acids <strong>and</strong> emulsifiers<br />

from its crust recipe for the Ris<strong>in</strong>g Crust l<strong>in</strong>e of products. In<br />

addition to simplify<strong>in</strong>g the <strong>in</strong>gredient label, sodium was reduced<br />

by an average of 11%. The renovated pizzas were able to<br />

ma<strong>in</strong>ta<strong>in</strong> the Ris<strong>in</strong>g Crust flav<strong>our</strong>, texture <strong>and</strong> shelf life that had<br />

made them popular <strong>and</strong> received a positive response from<br />

consumers, as well. Additionally, <strong>in</strong> the case of Hot Pockets®<br />

<strong>and</strong> Lean Pockets®, every recipe was renovated twice between<br />

2014 <strong>and</strong> <strong>2015</strong> to achieve significant nutritional enhancements,<br />

<strong>in</strong>clud<strong>in</strong>g reduc<strong>in</strong>g sodium.<br />

We know people want to feel good about the foods<br />

they eat, <strong>and</strong> they’re seek<strong>in</strong>g foods made with fewer<br />

artificial <strong>in</strong>gredients <strong>and</strong> less sodium. As one of the<br />

nation’s largest food companies, <strong>Nestlé</strong> is listen<strong>in</strong>g to<br />

consumers <strong>and</strong> deliver<strong>in</strong>g on their desire for<br />

convenient, great-tast<strong>in</strong>g foods that have an<br />

improved nutritional profile.”<br />

John Carmichael, President of the <strong>Nestlé</strong> Pizza<br />

& Snack<strong>in</strong>g Division, <strong>Nestlé</strong> USA<br />

*<br />

Reductions shown as sales-weighted l<strong>in</strong>e averages compared to 2013 sodium levels.<br />

Reduc<strong>in</strong>g sugars across <strong>our</strong> portfolio<br />

Our commitment<br />

Our objective<br />

Reduce sugars <strong>in</strong> <strong>our</strong> products<br />

By 2016 – We will further reduce sugar content by 10%<br />

<strong>in</strong> products that do not meet the <strong>Nestlé</strong> Nutritional<br />

Foundation (NF) criteria, to ensure cont<strong>in</strong>ual improvement<br />

even <strong>in</strong> more challeng<strong>in</strong>g areas of <strong>our</strong> product portfolio.<br />

Food <strong>and</strong> beverage categories reduced <strong>in</strong> sugar* (%)<br />

Categories: Confectionery, Beverages, Biscuits, Flav<strong>our</strong>ed<br />

Waters, Dairy Products, Ice Cream <strong>and</strong> Breakfast Cereals<br />

Target: 10% by 2016<br />

<strong>2015</strong> 4.1% (18 000 tonnes)<br />

0%<br />

5%<br />

10%<br />

*<br />

<strong>Nestlé</strong>-br<strong>and</strong>ed products sold under Licence Partners are not <strong>in</strong>cluded.<br />

The guidel<strong>in</strong>es issued by public health authorities recommend<br />

that people reduce <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong> their free sugars <strong>in</strong>take below<br />

10% of their total energy <strong>in</strong>take. Free sugars are added to a<br />

food or beverage for taste or technical properties, <strong>and</strong> are<br />

l<strong>in</strong>ked to obesity <strong>and</strong> other NCDs, such as diabetes.<br />

Our renovation work reduces sugar <strong>in</strong> <strong>our</strong> foods <strong>and</strong><br />

beverages without alter<strong>in</strong>g taste, texture, col<strong>our</strong> or structure.<br />

For certa<strong>in</strong> foods, such as sweetened condensed milk, we<br />

must follow strict requirements regard<strong>in</strong>g their composition,<br />

<strong>and</strong> we are work<strong>in</strong>g to improve nutrition labell<strong>in</strong>g. Track<strong>in</strong>g <strong>our</strong><br />

progress <strong>in</strong> sugar reduction has been challeng<strong>in</strong>g, due to the<br />

detailed level of <strong>in</strong>formation <strong>in</strong>volved <strong>and</strong> the extensive range<br />

of <strong>our</strong> portfolio. We aim to consistently provide solutions that<br />

achieve consumer preference <strong>and</strong> deter them from switch<strong>in</strong>g<br />

to a less nutritional product.<br />

All of the areas of <strong>our</strong> bus<strong>in</strong>ess <strong>and</strong> jo<strong>in</strong>t ventures that<br />

contribute to <strong>our</strong> added sugar total have reviewed the<br />

renovation activities <strong>in</strong> more than 20 of their country-level<br />

operations. We have identified 13 940 <strong>in</strong>dividual food <strong>and</strong><br />

beverage products that are not compliant with <strong>our</strong> NF sugar<br />

criteria, represent<strong>in</strong>g 7.1% of <strong>our</strong> total portfolio. By the end of<br />

<strong>2015</strong>, we reduced <strong>our</strong> added sugar content by 18 000 tonnes,<br />

the equivalent of 4.1% compared with <strong>our</strong> 10% objective.<br />

Further renovation work has been <strong>in</strong>itiated, show<strong>in</strong>g additional<br />

projected reductions of 3.6%. However, it is likely that this<br />

reduction work will cont<strong>in</strong>ue beyond 2016.<br />

Our objective<br />

By <strong>2015</strong> – Reduce the sugar content <strong>in</strong> any serv<strong>in</strong>g of<br />

children’s or teenagers’ breakfast cereal br<strong>and</strong>s to 9 g or<br />

less per serv<strong>in</strong>g, to promote a reduction <strong>in</strong> sugar <strong>in</strong><br />

children’s diets.<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 70

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