Major Food Companies Are Having a Hard Time Overcoming Their Junk Fixation, a Study Finds

According to a report, the majority of food and beverages offered by four out of five worldwide companies in three important marketplaces are unhealthy, with Kraft Heinz Co. doing the worst.

An NGO called Global Action on Salt, Sugar & Health chose 2,346 products from Australia, France, and Mexico that were sold by Danone, Kellogg Co., Kraft Heinz, Nestlé SA, and Unilever Plc. The three most popular standards—Health Star Rating, Nutri-Score, and Warning Labels—were used to rank them. All companies sold a higher percentage of unhealthy food than Danone did.

The most crucial move any firm should do to enhance public health, according to Mhairi Brown, policy and public affairs lead at WASSH, is to increase the nutritional composition of food and drink by reformulating recipes with less salt, sugar, and saturated fat. "However, by relying solely on industry’s willingness and without government enforcement, we are unlikely to see a meaningful shift," the statement said.

Since obesity is already a public health concern in countries like the US and is on the increase in developing countries, producers are under obligation to make their products healthier. According to a study supported by the pharmaceutical firm Novo Nordisk, the global economic burden of excess body weight would more than double to $4.27 trillion in 2035 from levels in 2020 as the prevalence of the illness continues to climb. Wegovy, an anti-obesity medication, is sold there.

Lowering the salt and sugar level of their foods may help shield business profits from regulations limiting the marketing and sale of junk food. Making portfolios healthy is further encouraged by investors placing more focus on environmental, social, and governance issues.

Danone, the manufacturer of Activia yogurt, defied the trend. Just 35% of the goods had scores that fell below the norms for being healthful. Last week it made a commitment that, as per government policy, at least 90% of products sold in the UK and Ireland would not be high in sugar, salt, or fat.

A spokeswoman for Unilever said that the firm is dedicated to providing customers with healthier options and referred to the survey's results as incomplete and deceptive since they were focused on a limited portion of their product line. According to its spokesman, Kraft Heinz is committed to lowering the amount of sugar and salt in its products while also pointing out that there isn't currently a universally accepted framework for determining how nutritious food products are.

Kris Bahner, a representative for Kellogg, said the cereal manufacturer was always improving the nutritional value of its products. A representative for Nestle refused to comment.

According to the survey, items were chosen based on the lines that were stated on the websites for the firms and significant retailers.

In order to assist investors review their offers and assess the effect of prospective anti-junk-food legislation on sales, organizations have been urged to be more open about the health of their portfolios by groups like ShareAction, an investor advocacy group that backed the study.

While Nestlé pledged to do the same in its 2022 annual report, Danone, Unilever, and other companies have yet to follow suit, making it difficult to obtain a complete picture for comparison. Danone and Unilever report on the content of their portfolios using nutrition models that have been approved by the government.