Nestlé reports on compliance and actions toward responsible marketing of breastmilk substitutes

22 Aug 2023 --- In 2022, Nestlé recorded 96 cases of non-compliance with the company’s policy to implement the WHO International Code of Marketing of Breastmilk Substitutes (BMS), which includes recommendations to regulate the marketing of BMS, feeding bottles and teats.

The company’s 2022 WHO Code Compliance Report notes most cases of non-compliance (81%) were detected by Nestlé’s WHO Code management system, which includes internal monitoring and a whistleblowing system. Of all cases, 39% are connected to digital and e-commerce concerns. 

“In 2022, among the instances of non-compliance, 75% were attributable to third parties that have a direct contractual relationship with Nestlé and 25% were attributable to Nestlé,” Marie Chantal Messier, head of food and industry affairs at Nestlé, tells Nutrition Insight. 

“This report demonstrates our efforts to maintain the highest standards of compliance regarding the responsible marketing of BMS. Having implemented our industry-leading policy since 1982, we believe that well-drafted and well-implemented legislation is the most effective way to establish WHO Code compliance across our industry.”

Messier adds that compliance with local regulations and the company’s policy for implementing the WHO Code is a priority at all levels of Nestlé, and the company investigates all allegations of non-compliance. 

Non-compliance cases decreased from 2021 (116 cases) and 2020 (121 cases). 

Root causes 
The report reads that over half of cases attributable to Nestlé (58%) were due to a lack of attention to the rules. An additional quarter of cases attributable to Nestlé were related to deliberate breaches of personal interest, half of which resulted in employee dismissals. 

A lack of attention to the rules was an important contributor to non-compliance cases.Four employees were disciplined in 2022, according to the company. Causes included inappropriately engaging healthcare professionals, failure to comply with policies and contact with pregnant women or mothers of infants and young children. 

The largest share of cases of non-compliance by third parties (96%) was related to Nestlé’s policies in The General Public and Mothers. These were primarily associated with promotion at the point of sale, such as discounts and rebates (57%), advertisements to the general public (23%) and special displays (20%). 

Nestlé notes that the most common root causes of third-party non-compliance were a lack of attention to the rules (50%), followed by lack of awareness (24%) and absence of legislation (15%). 

Addressing non-compliance 
Messier explains that Nestlé aims for continuous improvement, taking corrective actions each year to address non-compliance issues and advance the company’s WHO Code compliance record.

“We will host local, in-person workshops on WHO Code Compliance and update our internal compliance reporting system with regular reporting of several key performance indicators, for example.”

“We also support increased comprehension of and compliance with our policy among third-party partners both in our sphere of influence (e.g., retailers) and outside (e.g., distributors).”

She continues, stating that the company advocates implementing training for its distributors to address the predominant underlying factors concerning external entities. This training is designed to acquaint them with the regulations, compliance-related concerns, and the communication of such matters facilitated through the company’s Speak Up platform.

Through the company’s Speak Up reporting system, external stakeholders and employees can report potential instances of non-compliance, including WHO Code-related matters. Stakeholders can file a report anonymously online or over the phone. 

The company encourages training to ensure its distributors are aware of the rules. However, Nestlé warns that it is challenging for these messages to reach employees in retail stores given the company’s limited oversight. 

Nestlé takes corrective actions each year to address non-compliance issues, such as employee training.Employee training 
To mitigate the lack of understanding among employees Nestlé recorded in 2022 and to ensure proper education on rules and regulations, Messier explains that the company actively trains its employees. 

“For example, this year, we are rolling out a new, mandatory Nestlé Nutrition Fundamentals eLearning module to all Nestlé Nutrition business employees to support policy implementation.” 

She adds that in the case of any verified repeat cases, cautions or formal warnings are communicated to employees depending on the nature of the breach. 

“Compliance with our policy is mandatory for all our employees,” continues Messier. “When non-compliance is confirmed, we take firm and swift actions. For instance, in the case of verified repeat breaches, we communicate cautions or formal warnings to employees depending on the nature of the breach.”  

Responsible marketing  
Messier adds that Nestlé is dedicated to promoting the best nutrition for children worldwide.

“Nestlé was the first company to voluntarily implement recommendations from the WHO International Code of Marketing of Breastmilk Substitutes, and we continue to lead the way. Nestlé has evolved its policy for implementing the WHO Code.” 

As of January 1 this year, Nestlé has stopped the promotion of infant formula for babies aged 0-6 months as a minimum in all countries, including where no regulations exist. This extends the company’s practice of not promoting formula for babies aged 0-12 months as a minimum in 163 countries. 

“Through continued engagement to enhance compliance both within and outside of Nestlé, we are working to drive collective progress and contribute to a healthier future for generations to come,” Messier states. 

In recent years, the WHO has developed several reports addressing infant formula marketing practices which the organization notes affect parental decision-making. Meanwhile, industry stakeholders state they adhere to the WHO code of marketing of Breastmilk Substitutes. 

By Jolanda van Hal