Nestle under fire after admitting 60% of its food product is unhealthy

Nestle - the world's largest consumer food company and home to brands such as Kit-Kat, Nescafé and Smarties - has admitted that its products still "underperform" against "external definitions of health".

Consumer food giant Nestle is under pressure after admitting that more than 60% of its biggest selling products are unhealthy.

However, the significant range of baby food, infant formula and maternal nutrition product it makes in Ireland has not been included in that huge percentage, as only its mainstream food and drink products were assessed.

In an internal presentation for its top executives – seen and reported on by the Financial Times – the world’s largest food company said the majority of its popular products don’t meet “a recognised definition of health”.

The FT reported that the assessment applied to about half of Nestle's overall portfolio – or about half of its near €85bn annual revenue.

Reports point to predictable areas like confectionery, ice cream and pizzas as the problems for Nestle, leading some analysts to suggest an overhaul of the group’s product portfolio and even an exit from mainstream confectionery.

Excluded from the assessment of what is deemed less than healthy at Nestle were its baby food products – some of which Nestle makes in Ireland – and its coffee, specialist medical nutrition and pet food products.

The Swiss food giant makes baby infant formula – through its SMA label and other brands – at its facility in Askeaton, Co Limerick. It employs around 700 people in Ireland.

Nestle’s shares have risen by 9% over the past 12 months, but were slightly down on the latest news.

International food companies are under pressure to do more to help the global fight against obesity. 

Nestle said it is working on updating its nutrition and health strategy, but also admitted that some of its product ranges will never be healthy.

“We have made significant improvements to our products . . . [but] our portfolio still underperforms against external definitions of health in a landscape where regulatory pressure and consumer demands are skyrocketing,” the FT quoted Nestle’s presentation as saying.

The report said the internal document showed that only 37% of Nestle’s products rated higher than 3.5 on Australia’s one-to-five health star rating system, which is used as a barometer by international nutrition research groups.

-additional reporting Reuters