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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 />

S<strong>in</strong>ce 2012, <strong>Nestlé</strong> has been work<strong>in</strong>g to reduce sugar content <strong>in</strong><br />

its breakfast cereals, collaborat<strong>in</strong>g with General Mills as Cereal<br />

Partners Worldwide (CPW) to promote better nutrition at<br />

breakfast. The aim has been to reduce sugar to 9 g or less per<br />

30 g serv<strong>in</strong>g, <strong>in</strong> l<strong>in</strong>e with the EU Pledge on Children’s Nutrition.<br />

Cereal br<strong>and</strong>s <strong>in</strong>cluded <strong>in</strong> the CPW renovation<br />

• Nesquik® (also sold as Milo® <strong>and</strong> Nescau® <strong>in</strong><br />

certa<strong>in</strong> markets)<br />

• Chocapic® (also sold as Koko Krunch® <strong>in</strong> certa<strong>in</strong> markets)<br />

• Honey Cheerios®<br />

• C<strong>in</strong>i M<strong>in</strong>is®<br />

• Cookie Crisp®<br />

• Golden Grahams®<br />

• Lion®<br />

• Crunch®<br />

• Stars® (also sold as Estrelitas® <strong>and</strong> Kosmostars® <strong>in</strong><br />

certa<strong>in</strong> markets)<br />

• Snow Flakes® (also sold as Zucosos® <strong>in</strong> certa<strong>in</strong> markets)<br />

• Trix®<br />

• La Lechera® (also sold as Moça Flakes® <strong>in</strong> certa<strong>in</strong> markets)<br />

• Golden Nuggets®<br />

This has been a complicated challenge, as sugar is a<br />

component of most breakfast cereals, <strong>and</strong> contributes to the<br />

texture, col<strong>our</strong> <strong>and</strong> flav<strong>our</strong> of the gra<strong>in</strong>s. Nevertheless, <strong>our</strong><br />

cereal renovation work has seen us reduce sugar globally by<br />

approximately 20% (more than 9000 tonnes) <strong>in</strong> <strong>our</strong> br<strong>and</strong>s for<br />

children <strong>and</strong> teenagers.<br />

The renovation of breakfast cereals, a nutritious <strong>and</strong> convenient<br />

food option, has required <strong>in</strong>tensive development, product test<strong>in</strong>g<br />

<strong>and</strong> research trials to ensure they are still tasty, while reduc<strong>in</strong>g<br />

sugar. We are pleased to announce that <strong>in</strong> <strong>2015</strong> CPW cont<strong>in</strong>ued<br />

to reformulate over 100 recipes to achieve <strong>our</strong> objective to reduce<br />

the sugar content <strong>in</strong> breakfast cereals for children <strong>and</strong> teenagers<br />

to 9 g per serv<strong>in</strong>g. This <strong>in</strong>cludes br<strong>and</strong>s such as Nesquik,<br />

Chocapic, Honey Cheerios, Lion <strong>and</strong> Milo, as well as more than<br />

15 other <strong>Nestlé</strong>-br<strong>and</strong>ed breakfast cereals. The last section of<br />

renovated recipes will be <strong>in</strong>troduced for production <strong>in</strong> 2016.<br />

Remov<strong>in</strong>g trans fats <strong>and</strong> reduc<strong>in</strong>g saturated fats<br />

across <strong>our</strong> portfolio<br />

Our commitment<br />

Our objective<br />

Reduce saturated fats <strong>and</strong> remove trans fats <strong>in</strong><br />

<strong>our</strong> products<br />

By 2016 – We will further remove trans fats orig<strong>in</strong>at<strong>in</strong>g<br />

from partially hydrogenated oils (PHOs) from all <strong>our</strong> foods<br />

<strong>and</strong> beverages.<br />

Spend<strong>in</strong>g on oils purchased already<br />

compliant with policy (%)<br />

<strong>2015</strong> More than 98.5<br />

100%<br />

Healthy diets do <strong>in</strong>clude fats but too much fat, especially<br />

hydrogenated fats, poses a significant risk for the development<br />

of NCDs, such as heart disease. Most trans fatty acids are<br />

formed when vegetable oil undergoes a process known as<br />

hydrogenation, which makes it more solid at room temperature.<br />

The partially hydrogenated oils (PHOs) can be used for fry<strong>in</strong>g,<br />

<strong>and</strong> can give foods a longer shelf life, which is why they are<br />

often present <strong>in</strong> foods that can be stored at room temperature.<br />

In 2014, we renewed <strong>our</strong> <strong>Nestlé</strong> Policy on Trans Fat <strong>and</strong><br />

committed to remov<strong>in</strong>g trans fat orig<strong>in</strong>at<strong>in</strong>g from PHOs from<br />

<strong>our</strong> foods <strong>and</strong> beverages by the end of 2016, to m<strong>in</strong>imise the<br />

daily <strong>in</strong>take of trans fats by <strong>our</strong> consumers, as recommended<br />

by the WHO. As of 1 January 2014, 612 oils were used by<br />

<strong>Nestlé</strong> worldwide.<br />

Today, more than 98.5% of the oils that we purchase for use<br />

are compliant with the policy. All factories that do not use oils<br />

that comply with the policy are currently engaged <strong>in</strong><br />

renovation activities. Many are collaborat<strong>in</strong>g with <strong>our</strong> suppliers<br />

<strong>and</strong> the technical community to ensure we rema<strong>in</strong> on track to<br />

meet <strong>our</strong> objective.<br />

Our objective<br />

Renovat<strong>in</strong>g for tastier <strong>and</strong><br />

healthier snacks <strong>in</strong> Brazil<br />

Nescau® is one of Brazil’s market leaders <strong>in</strong> chocolate dr<strong>in</strong>ks.<br />

As the lead<strong>in</strong>g nutrition, health <strong>and</strong> wellness company, <strong>Nestlé</strong><br />

wanted to ensure that Nescau® would be a tastier <strong>and</strong> healthier<br />

snack choice for children <strong>in</strong> Brazil. So, we reformulated the<br />

recipe <strong>and</strong> as a result we were able to ensure that added<br />

sugars <strong>in</strong> a serv<strong>in</strong>g of Nescau® contribute less than 3% of the<br />

energy requirements of moderately active children. Fat was<br />

also reduced by 45% <strong>and</strong> prote<strong>in</strong> content <strong>in</strong>creased by 26%<br />

(more milk added). The product launch was accompanied by<br />

proactive campaigns to expla<strong>in</strong> the change <strong>in</strong> taste <strong>and</strong><br />

benefits of the new recipe. More than 70% of healthcare<br />

professionals considered the dr<strong>in</strong>k as a good snack option <strong>and</strong><br />

63% of consumers said they will buy the product aga<strong>in</strong>.<br />

By 2016 – We will further reduce saturated fats by 10%<br />

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

Foundation (NF) criteria.<br />

Food <strong>and</strong> beverage categories reduced <strong>in</strong> saturated fats*<br />

(%)<br />

Categories: Frozen Foods, Cul<strong>in</strong>ary Products,<br />

Confectionery, Coffee-Based Beverages, Dairy Products,<br />

Ice Cream <strong>and</strong> Beverages<br />

Target: 10% by 2016<br />

<strong>2015</strong><br />

2.2% (1900 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 />

<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> 71

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