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To what extent does Nestle’s poor health impact its performance?

An internal investigation into Nestle’s products has raised some thorny questions about its future
To what extent does Nestle’s poor health impact its performance?
  • 70 per cent of Nestle’s food and drink portfolio has been deemed unhealthy according to an internationally recognised industry standard 
  • Portfolio investment and capex are key to continued growth

Nestle (CH:NESN) is no stranger to poor publicity. In the 1990s it faced backlash for the aggressive marketing of its baby formula in sub-Saharan Africa, the 2000s brought scandal around labour rights on cocoa plantations, and in the 2010s it was named as one of the world’s most prolific plastic polluters. 

This decade another scandal is brewing – one centered around the sale of sugar-heavy food and drink and its impact on the weight of the populations of the 186 nations in which Nestle sells goods. High-sugar products have gained particular prominence in the wake of the Covid-19 pandemic, as the virus had an outsized impact on obese populations. 

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