FOOD PRODUCT IMPROVEMENT

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1 FOOD PRODUCT IMPROVEMENT profiles, reformulation and marketing to children B. Vandewaetere Nestlé Z-EMENA

2 Overweight and obesity: a reality in Europe

3 Good news: We can do something about it! Including Industry & dietitians McKinsey, 2014

4 Nestlé s purpose gives meaning to what we do, with strong focus on helping children lead healthier lives Where we make an impact 4 Nestlé Marketing Communication to Children Policy

5 Investing in nutrition makes business sense 5

6 6

7 We have been reformulating many of our products over time -38% sugars -24% sugars - 30% sugars -26% sugars We made whole grain our #1 ingredient, whilst reducing sugars in our best-selling cereals in Europe 2003 vs 2016 for the Europe region

8 % reduction Reformulation = sugars, calories and portions! Pirulo Tropical (Europe) Bum Bum (DE, AT, CH) Pop Up Smarties (Europe) Added Sugar Calories Portion size

9 Portion guidance: a very effective way to tackle overweight & obesity 9

10 A chacun sa portion : portion guidance at different levels Product guidance on-pack Brochure for health professionals Online tool: 10

The journey continues: our 2020 commitments Further decrease sugars, sodium and

products by 5% By 2020: Reduce the sodium we add in our products by 10% By 2020:

relevant products that do not meet the NF criteria with respect to saturated fats

11 The journey continues: our 2020 commitments Further decrease sugars, sodium and saturated fat Our objectives towards 2020 By 2020: Reduce the sugars we add in our products by 5% By 2020: Reduce the sodium we add in our products by 10% By 2020: Complete the 10% commitment taken in 2014, to reduce saturated fats by 10% in all relevant products that do not meet the NF criteria with respect to saturated fats September 2017 Nestlé in Society: Creating Shared Value and meeting our commitments

reformulation strategies 5 Criteria for effective Nutrient Profiling

Focus on nutrients to limit and potentially include nutrients to

12 Healthy by design! Nestlé is using Nutrient Profiles as an effective tool to guide reformulation strategies 5 Criteria for effective Nutrient Profiling scheme for product reformulation: 1. Category-specific approach 2. Focus on nutrients to limit and potentially include nutrients to encourage in a non-compensatory approach 3. Thresholds rather than scoring 4. Preferable standard reference amounts 5. Validation 12

13 But how to Ensure that front-runners are not penalised by the market? Provide an incentive to compete on nutritional qualities, not just taste & price? EU level playing field needed, starting with EU Nutrient Profiles

14 Today, there are too many different nutrient profiles E.g.: EU nutrient profiles, UK Traffic Lights, Nordic Keyhole, school canteen criteria, Nutriscore, OfCom nutrient profiles Careful for unintended consequences! Per 100g Current recipe UK traffic lights WHO Europe WHO PAHO criteria (%kcal) Energy kcal Fat g/100g Saturated fat g/100g ???? 4.9 Total sugar g/100g Fibre g/100g Sodium (salt) mg/100g Whole grain % EXPERIENCE FIRST-HAND DURING BREAK!

15 But even with the right nutrient profile, sugar reduction can be a challenge Taste Sweet taste Masking of taste Emphasising other tastes Caramelisation Texture Structure/bulk Mouthfeel Gelling Stabilisation Reducing freezing point Health Liquid vs solid food matrix Dental caries Calories weight management, diabetes Cost and consumer acceptance 15

16 Hollow sugar : cutting-edge innovation as part of the solution

17 Level playing field Nutrient Profiles for different purposes, defined at EU level Industry agreement on the need to adapt recipes and taste

Example of adapting to a less sweet taste: Nescau New recipe launched with -55% sugar, -45% fat and +25% protein content important impact on nutrition & TASTE!

18 Example of adapting to a less sweet taste: Nescau New recipe launched with -55% sugar, -45% fat and +25% protein content important impact on nutrition & TASTE! Launch was accompanied by proactive information campaign towards consumers and health practitioners strong buy-in from healthcare professionals! Consumers quickly embraced new recipe and sales even increased Critics about new formula Smell Texture Jan Feb March April May June

19 Level playing field Nutrient Profiles for different purposes, defined at EU level Industry agreement on the need to adapt recipes and taste RESPONSIBLE MARKETING TO CHILDREN

20 EU Pledge shows that multi-stakeholder approach works! No advertising of products to children under 12 years, except for products which fulfil common nutrient profiles - 83% children s exposure to advertising for products that do not meet nutrition criteria through children s programmes and - 48% through all programmes (2016) No product marketing communications to children in primary schools 100% compliance rate (2016) 20

beverage products with added sugar Other categories: only products that achieve EU pledge criteria

21 Nestlé Marketing to Children Policy continues to evolve No direct marketing to children below 6 No direct marketing for biscuits, sugar and chocolate confectionery products, icecream and water-based beverage products with added sugar Other categories: only products that achieve EU pledge criteria Removing on-pack licensed characters primarily appealing to kids < 12 in confectionery and ice-cream products

Final goal: making the healthy choice, the easy choice We believe we re on the right track, and are determined to go even further Level playing field is needed, with nutrient profiles as a key driver

22 Final goal: making the healthy choice, the easy choice We believe we re on the right track, and are determined to go even further Level playing field is needed, with nutrient profiles as a key driver for: Reformulation Marketing to children and intuitive front-of-pack labelling As part of an EU Nutrition Policy, with other legal / non-legal initiatives and based on all-of-society approach, incl. dietitians community

23 Enhancing quality of life and contributing to a healthier future

EU food policy: public health beyond the internal market

EU food policy: public health beyond the internal market Alexandra Nikolakopoulou Head of Unit E.1, Food information and composition, food waste Health and Food safety Directorate General Brussels, 21