Shareholders Reject Proposal to Reduce Unhealthy Foods
During the annual general meeting (AGM), Nestle’s shareholders rejected a proposal which could have seen the company reduce its reliance on unhealthy foods and cut back on the use of salt, sugar, and fats.
Nestle held its 157th Annual General Meeting (AGM) at the SwissTech Convention Center in Lausanne. More than 1,000 of Nestle’s shareholders attended the AGM in person.
The company had argued that there is “nothing wrong” with people enjoying “indulgent products” in moderation. Around 88 per cent of shareholders voted against the proposals, while 11 per cent voted in favor. About 1 per cent abstained from the vote.
Nestle has been pressured by shareholder activists through a coalition led by responsible investment charity ShareAction. The charity’s deputy chief executive, Simon Rawson, mentioned, “While the majority of shareholders did not support the resolution, we hope that it has encouraged them to think about the public health impacts of their investments.”
Controversy Surrounding Nestle
Nestle faced criticism after reports revealed that the company added sugar and honey to infant milk and cereal products sold in many poorer countries. Samples of the products sold in Asia, Africa, and Latin America were sent for testing by campaigners from Public Eye, a Swiss investigative organization.
The International Baby Food Action Network and Public Eye analyzed the composition of around 100 baby foods sold by Nestlé globally. Experts caution against giving honey to infants due to potential health risks.
Laurent Gabrell, co-author of the Public Eye investigation, stated, “By adding sugar to these products, Nestlé’s aim is to create an addiction in children, making them crave more in the future.”