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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 />

Customer health <strong>and</strong> safety G4-DMA, FP7<br />

Micronutrient fortification<br />

Our commitment<br />

Our objective<br />

Help reduce the risk of undernutrition through<br />

micronutrient fortification<br />

By 2016 – We will reach 200 billion micronutrientfortified<br />

serv<strong>in</strong>gs of foods <strong>and</strong> beverages annually<br />

worldwide, help<strong>in</strong>g to address global micronutrient<br />

deficiencies with a special focus on children <strong>and</strong> women<br />

of childbear<strong>in</strong>g age.<br />

Total number of micronutrient-fortified serv<strong>in</strong>gs of foods<br />

<strong>and</strong> beverages annually worldwide (billion)<br />

Goal by 2016: 200 billion<br />

<strong>2015</strong> 192<br />

2014 183<br />

2013 167<br />

A key product area <strong>in</strong> <strong>our</strong> fortification efforts is condiments,<br />

such as bouillon cubes <strong>and</strong> season<strong>in</strong>gs as well as soups.<br />

These are good carriers for nutrients as they build on exist<strong>in</strong>g<br />

eat<strong>in</strong>g habits <strong>and</strong> are consumed widely <strong>and</strong> frequently, <strong>and</strong><br />

rema<strong>in</strong> affordable to many populations. Iron-fortified bouillons,<br />

soups <strong>and</strong> noodles have been deployed with success <strong>in</strong> South<br />

Asia, Central <strong>and</strong> West Africa (CWAR), South Africa <strong>and</strong><br />

Eastern Europe.<br />

The impact of fortify<strong>in</strong>g foods<br />

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

National nutrition surveys conducted <strong>in</strong> the Philipp<strong>in</strong>es <strong>in</strong>dicate<br />

that micronutrient deficiencies rema<strong>in</strong> prevalent among<br />

children. As an example, the 7 th National Nutrition Survey (2008)<br />

<strong>in</strong>dicated that around 20% of children aged 1 to 12 years old<br />

suffer from anaemia. Studies have shown that the economic<br />

impact of the condition on the local economy is substantial.<br />

Ideally, nutrients that are essential for health should be<br />

obta<strong>in</strong>ed from a balanced <strong>and</strong> varied diet. For a number of<br />

reasons, this is not always possible, particularly <strong>in</strong> develop<strong>in</strong>g<br />

countries. The food <strong>and</strong> beverage <strong>in</strong>dustry, therefore, has a<br />

unique opportunity to contribute to tackl<strong>in</strong>g this major global<br />

health gap by improv<strong>in</strong>g the nutrition status of people at risk<br />

through the addition of relevant micronutrients to foods <strong>and</strong><br />

beverages. We track the number of fortified serv<strong>in</strong>gs sold <strong>in</strong><br />

66 key countries identified as possess<strong>in</strong>g significant<br />

deficiencies, <strong>and</strong> we estimate the number sold <strong>in</strong> the rest of<br />

the world.<br />

Many of <strong>our</strong> foods <strong>and</strong> beverages, <strong>in</strong>clud<strong>in</strong>g cereals <strong>and</strong><br />

milk, provide n<strong>our</strong>ishment for particularly vulnerable groups<br />

<strong>in</strong>clud<strong>in</strong>g <strong>in</strong>fants, children <strong>and</strong> expectant mothers. In <strong>2015</strong>, we<br />

faced challenges due to general <strong>and</strong> specific economic<br />

conditions, such as not sell<strong>in</strong>g any Maggi products for a period<br />

of six months. However, we still <strong>in</strong>creased the number of<br />

fortified serv<strong>in</strong>gs we delivered <strong>in</strong> <strong>2015</strong> when compared to<br />

2014, plac<strong>in</strong>g us on track to meet <strong>our</strong> 2016 objective.<br />

In terms of <strong>our</strong> efforts to provide affordable foods <strong>and</strong><br />

beverages for target consumers, especially low- to middle<strong>in</strong>come<br />

socio-economic groups <strong>in</strong> develop<strong>in</strong>g regions, 79%<br />

of <strong>our</strong> PPPs sold <strong>in</strong> <strong>2015</strong> were fortified with at least one of the<br />

‘Big 4’ nutrients (iron, iod<strong>in</strong>e, vitam<strong>in</strong> A <strong>and</strong> z<strong>in</strong>c).<br />

<strong>Nestlé</strong> Research has worked together with the local Food <strong>and</strong><br />

Nutrition Research Institute (FNRI) <strong>and</strong> the W<strong>in</strong>terthur Institute<br />

of Health Economics, Zurich, to <strong>in</strong>vestigate the impact of<br />

micronutrient deficiencies <strong>in</strong> the Philipp<strong>in</strong>es, determ<strong>in</strong><strong>in</strong>g that<br />

there were substantial economic <strong>and</strong> health risks. Based on the<br />

f<strong>in</strong>d<strong>in</strong>gs from additional research conducted <strong>in</strong> 2012, scientists<br />

have confirmed that fortified milk can be an effective option <strong>in</strong><br />

reduc<strong>in</strong>g anaemia <strong>in</strong> children that regularly consume it over a<br />

period of months.<br />

As a result, <strong>Nestlé</strong> Research engaged with private <strong>and</strong> public<br />

stakeholders to create an awareness campaign that could<br />

enc<strong>our</strong>age more mothers to feed their children with fortified<br />

powdered milk. The availability <strong>and</strong> popularity of <strong>Nestlé</strong>’s Bear<br />

Br<strong>and</strong> fortified powdered milk <strong>in</strong> the Philipp<strong>in</strong>es made it an easy<br />

choice on which to build the campaign. Through the use of<br />

posters, onl<strong>in</strong>e advertis<strong>in</strong>g <strong>and</strong> videos, <strong>and</strong> with the support of<br />

the Government, Bear Br<strong>and</strong> helped publicise the consequences<br />

of iron deficiencies <strong>in</strong> the Philipp<strong>in</strong>es among mothers.<br />

The research group has cont<strong>in</strong>ued to work on tailor<strong>in</strong>g<br />

different strategies to reach children <strong>and</strong> their families through<br />

better access to micronutrients <strong>and</strong>, <strong>in</strong> <strong>2015</strong>, the research was<br />

presented to public health authorities <strong>and</strong> local government<br />

bodies. The research group is also <strong>in</strong>vestigat<strong>in</strong>g how to apply<br />

similar methods <strong>in</strong> India, where the cost of iron deficiency<br />

anaemia is the equivalent of CHF 3.1 billion (USD 24 billion) per<br />

year <strong>in</strong> lost productivity, accord<strong>in</strong>g to estimates by <strong>Nestlé</strong><br />

Research <strong>and</strong> the W<strong>in</strong>terthur Institute of Health Economics.<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> 75

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