Nestlé and Unilever aid Indian nutrition: Opportunities spotlighted amid dearth in healthy F&B offerings

27 Feb 2020 --- Despite the opportunity presented in a population of over 1.3 billion people, healthy products still remain a small part of the Indian food industry. This is according to the second iteration of the India Access to Nutrition Spotlight Index launched by the Access to Nutrition Initiative (ATNI). The report highlights that more innovative, healthy and affordable products can and should be introduced to make a real difference for a country fighting the double burden of malnutrition.

Notably, Hindustan Unilever and Nestlé India are leading the way in healthy standards, both scoring 6.9 out of 10 in the index. Meanwhile, Britannia Industries and Coca-Cola India have had the most substantial progress across most elements of the Index since 2016. 

“India is among the top ten consumers of fast food in the world. This, coupled with the fact that India is set to become the third-largest consumer economy, presents an enormous opportunity for F&B companies to make nutrition a core part of their business plans. They can also adopt comprehensive, public and commercial strategies to address issues related to the double burden of malnutrition in India,” says Inge Kauer, Executive Director of ATNI. 

She continues that lifestyle changes in India have caused a shift in consumer habits – from the consumption of traditional food to more urban dietary patterns consisting of packaged and processed foods that are high in sugar, fat and salt. “However, ATNI sees F&B  companies in India showing their commitment to providing healthy food and engaging in a dialogue on how to support India’s Eat Right Movement,” Kauer explains. 

The independent national assessment analyzes the 16 largest F&B manufacturers in India for governance, products, accessibility, marketing, lifestyles, labeling and engagement to create the final ranking. These companies cover nearly a third of the food and beverage market. The Index’s ultimate goal is to drive the private sector’s performance on healthy, affordable diets and address undernutrition, obesity and diet-related diseases.

Click to EnlargeThe independent national assessment analyzes the 16 largest F&B manufacturers in India. (Source: ATNI)Hindustan Unilever and Nestlé India spearhead healthy products
Commenting on the Index, Nestlé India states that its own strengths include overall nutrition governance and management systems that have a clear accountability structure, alongside a pledge to reduce fat, salt and sugar in its products. Additionally, the company has committed to addressing the affordability of its nutritious products and its responsible marketing policies. 

“Nestlé India believes that nutrition is a fundamental need and the food industry has a vital role to play in enabling healthier lives. Driven by our purpose of enhancing quality of life and contributing to a healthier future, we are constantly striving to increase the nutrient profile of our products, innovate with new and nutritious offerings, and are a proud signatory of the ‘Eat Right Pledge’ and strongly support India’s ‘Eat Right Movement.’ This recognition motivates us to do more and provide our valued consumers with healthier products and ensure continued commitment to transparent and consumer-friendly policies,” says Suresh Narayanan, Chairman & Managing Director at Nestlé India.

Meanwhile, Hindustan Unilever ranked particularly well in governance, accessibility, lifestyle and nutrition labeling. The company actively supports the Eat Right Initiative, while also having a pricing strategy to improve the affordability of products and its product distribution initiative (Project Shakti). 

Additionally, the Unilever Sustainable Living Plan (USLP) linked reformulation approach aims to reduce levels of salt, sugar and saturated fats in products, and the company has an initiative to drive healthier diets and lifestyles for its employees.

A mixed picture?Click to EnlargeLifestyle changes in India have caused a shift in consumer habits.
A previous Index of the top ten companies published in 2016 also provides a base to compare the new results with. Average scores increased from 3 out of 10 in 2016 to 4.2 out of 10 in 2020. However, the overall average Index score is 3.1, which is similar to the 2016 iteration. 

ATNI also stresses that current industry efforts are not sufficient to match the scale of the nutrition challenge that India faces. It notes that few companies provide evidence of tackling undernutrition, micronutrient deficiencies and overweight and obesity challenges comprehensively in all relevant business areas.

Notably, less than a third of the estimated 2018 sales of packaged foods and beverages in India is derived from healthy products. Additionally, only 12 percent of the nearly 1,500 products analyzed meet the World Health Organization’s nutrition criteria for marketing to children.

For the nine companies assessed in both Indexes, the estimated sales from healthy products increased from 15 percent in the 2016 India Index to 23 percent currently. However, the research found no increase in the percentage of healthy products, by number, in the companies’ overall portfolios.

“Among the 16 largest F&B manufacturers, most take action to fortify products or commit to reformulate products in line with government initiatives to address India’s nutrition challenges. Ten of the 13 companies, for which staple food fortification is relevant, voluntarily fortify some or all of their products according to the standards set by Food Safety and Standards Authority of India (FSSAI). This is a big improvement since 2016 when ATNI found very few companies producing some fortified foods. FSSAI has since effectively stepped up their guidance to industry on fortification,” concludes Dr. Rajan Sankar, Director of Nutrition at Tata Trusts and member of the ATNI Board.

Edited by Katherine Durrell

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