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Creating Shared ValueIndividuals and familiesCommunitiesPlanetReporting and governanceFor individualsand familiesEnabling healthier and happier lives2030 Ambition To help 50 million children lead healthier lives.Nestlé forHealthier Kidsreached 29 millionchildren in 2018by rigorous research, which weshare with members of the healthand nutrition communitiesworldwide.Nestlé for Healthier KidsFood is not only a source ofnutrition, it is vital to our socialfabric. In every country, inevery culture, food bringspeople together. However, theway we consume food, and thekind of food we eat, hasbecome a contributing factor tothe public health challenges weface today, such as obesity andother forms of malnutrition, asrecognized by the World HealthOrganization (WHO). Inaddition, consumer food habitsare changing. In line with theseevolving issues, we aretransforming our products,making them healthier andnatural, to enhance quality oflife and contribute to a healthierfuture. Our work is supportedIt’s never too early to build healthyeating habits. Officially launched in2018, Nestlé for Healthier Kids is ourflagship initiative for children andfamilies. It brings together all ourefforts, from product reformulationto innovative nutrition and lifestyleservices for parents andcaregivers. Our ambition is to help50 million children lead healthierlives by 2030. Offering tastier and healthierchoices: We are committed todelivering more nutritiousproducts to kids and families byreducing sugars, sodium andsaturated fat in our products,adding fiber-rich grains,vegetables and micronutrients,and phasing out artificialingredients (pages 6–11). Inspiring people to leadhealthier lives: Adopting goodnutrition and hydration habitsfrom an early age is essential tochildren’s development. Ourprograms help parents andeducators improve nutritionknowledge, promote homecooking and encourage activelifestyles (pages 12–20). Building, sharing and applyingnutrition knowledge: Nestlé forHealthier Kids activities are builton scientific evidence, includingour studies into the eating habitsand nutritional intake of infantsand children. We also aim tounderstand, treat and helpprevent a range of medicalconditions by leveragingnutrition and life sciences(pages 21–23).Read more onlineCreating Shared Value progress report 20186

Creating Shared ValueIndividuals and familiesCommunitiesPlanetReporting and governanceOffering tastier andhealthier choicesOur commitments to offeringtastier and healthier choicesp.8 aunch more foods and beveragesLthat are nutritious, especially formothers-to-be, new mothers,and infants and childrenp.9Further decrease sugars, sodiumand saturated fatp.10 Increase vegetables, fiber-richgrains, pulses, nuts and seeds inour foods and beveragesp.11 Simplify our ingredient lists andremove artificial colorsp.12 Address under-nutrition throughmicronutrient fortificationAddressing the public health issues ofunder-nutrition and obesity or beingoverweight at a global scale requiresgovernments, health authorities, civilsociety and the private sector to worktogether. To that end, we use our R&Dnetwork, our expertise and our brandsto help address malnutrition in all itsforms, creating nutritious options thatare also tasty and convenient, to supporta healthy diet.Why it mattersOur contributionAround the world, about 2 billion people lackessential micronutrients in their diet (GlobalNutrition Report). Our own studies strengthenexisting, independent evidence that childrenaround the world don’t consume enough wholegrains or vegetables, or have sufficient calciumand vitamin D in their diets. The elderly andpeople living with severe intolerances are alsovulnerable to poor nutrition.The UN Sustainable Development Goals (SDGs)present a unique opportunity for tackling theunderlying causes of malnutrition on a globalscale. We are contributing to the goals byworking with partners to help address all formsof malnutrition and encourage healthy diets.To do so, we’re continuing to develop andlaunch more nutritious foods and beveragesas well as more sustainable products, simplifyingredient lists and remove artificial colors,while adding micronutrients where they aredeficient in local populations. We are alsocommitted to reducing the amount of sugars,sodium and saturated fat in our products, in linewith WHO recommended intake levels.Millions of people overconsume foods andbeverages high in sugars, salt and fat,contributing to a rapid rise in noncommunicablediseases such as type 2 diabetes and obesity.On the other hand, demand for organic productswithout artificial colors and flavors is growing,as is the market for vegetarian options andhealthier foods.We want to make a meaningful impact and tomove fast to get healthier versions of existingproducts on the shelf and to the consumer.However, we have to take the time to get it right.If the new, healthier version doesn’t taste good,consumers will simply buy a less nutritiousalternative that better suits their tastes.Our work on offering tastier and healthier choicescontributes to the following SDGs:How we map our materialissues to the UN SDGsCreating Shared Value progress report 20187

Creating Shared ValueIndividuals and familiesCommunitiesPlanetRead more about this commitmentReporting and governanceLaunching more nutritious productsOur commitment: Launch more foods and beverages that are nutritious,especially for mothers-to-be, new mothers, and infants and children.Why it mattersMaking nutrition affordableNestlé was founded on a promiseto deliver nutritious food to thosewho need it. Today, that spirit isreflected in our goal to transformour recipes, making it easy forpeople around the world toconsume healthy, affordable andtasty foods and beverages.Income level should not determinewhether someone can or can notenjoy nutritious food. We’velaunched a range of popularlypositioned products to enableconsumers at all income levels toaccess quality food that providenutritional value at an affordableprice and portion size.What we are doingMeeting the nutritional needsof the next generationIn Latin America, we expanded ourrange of nutritional productsthrough the acquisition of foodcompany Terrafertil. Its flagshipbrand, Nature’s Heart, provideshealthy, plant-based natural snacksthat are good sources of vitaminsand iron. Meanwhile, following30 years of research, Nestlé hasachieved a new scientificbreakthrough to develop an infantformula containing human milkoligosaccharides, which are keycomponents of breast milk.In 2018, we launched over 1300new nutritious products for babies,children, expecting women or newmothers. We also transformedexisting products, adding morevegetables, whole grains, milk, leanproteins, and essential vitaminsand minerals. By total sales, 82.5%of our foods and beverages nowhave Nestlé Nutritional Foundation(NF) status, up from 82.1% in 2017,including 93.1% of our productsconsumed by children (comparedwith 92.5% in 2017).Ensuring quality nutritionfor babiesIn Europe, we launched NaturNesBio in 2018, a new generation ofbaby foods that delivers betternutrition and taste. Made withorganic ingredients, the NatureNesrange (including carrots, spinach),uses a unique steam cookingprocess that helps preservenutrients and flavor. Recipes takeinto account the right balance ofmicronutrients, the quality ofessential fatty acids, andpotentially allergenic ingredientsand other ingredients that could beharmful to a baby’s fragile system.Read more about productquality and safety82.5% of allNestlé products,including 93.1% of thoseconsumed by children,have achieved NF statusProgress against our objectivesBy 2020: In both developed anddeveloping countries, design and launchfoods and beverages that address thedaily nutritional needs and key nutritionalgaps of infants, children up to age 12,new mothers and mothers-to-be.In progress Over 1300 newproducts were launched in 2018addressing specific nutritional needsand gaps of babies, children, expectingwomen or new mothers.Meeting demandfor flexitarian andvegetarian dietsThe demand for plant-basedfoods is increasing. To satisfythat need, we’ve created newproducts such as Coffee-mateNatural Bliss creamers, LeanCuisine plant-based mealoptions and our GardenGourmet range in Europe andthe Middle East.Read more about ourGarden Gourmet case studyCreating Shared Value progress report 20188

Creating Shared ValueIndividuals and familiesCommunitiesPlanetRead more about this commitmentReporting and governanceReducing sugars, sodium and fatOur commitment: Further decrease sugars, sodium and saturated fat.Why it mattersOverconsumption of sugars,sodium and saturated fat cancontribute to dietary and healthproblems and to increases inobesity, diabetes andcardiovascular disease. Reducingconsumption of these nutrients cancontribute to improving publichealth. So we are undertakingcomplex reformulations of ourfoods and beverages to be part ofthe solution. We do this carefully,ensuring that these changes don’taffect the taste or texture of ourproducts, which may causeconsumers to switch to lesshealthy alternatives.What we are doingOur commitment to reducingsugars, sodium and saturatedfatty acidsWe are actively working to reducesugars, sodium and saturated fat inproducts that can make a significantimpact for our consumers. Byaligning our commitment to WHOrecommendations, we are leadingin public health-sensitive nutrientreduction. In both adults andchildren, WHO recommendsreducing the daily intake of freesugars to less than 5% of totalenergy intake (conditionalrecommendation). Currently,around 45% of our foods andbeverages provide less than 5%sugars (added), enabling consumersto use those products while meetingthe WHO’s strict conditionalrecommendation. Of the 55%remaining, 45% are in scope of oursugars commitment and 10% arenot relevant as their sugar content isregulated; for example, as perCODEX. We’re committed toreducing the sugars in the productsin scope by an average of 5% by theend of 2020 while retaining thetastes consumers enjoy. To date, wehave already implemented a 0.8%reduction, equivalent to around10 000 tonnes of sugar.Reducing sugar contentWe are gradually reducing sugar incocoa malt beverage productswhile also offering naturalalternatives with significantly lesssugar and sweetness. We are alsohelping to change consumer tastes,offering popular ready-to-drinkproducts with various sugar andno-added sugar options.Progress against our objectivesBy 2020: Reduce the sugars we add inour foods and beverages by 5% tosupport individuals and families inmeeting global recommendations*.In progress 0.8% of sugarremoved from our foods and beverages.Reducing sodium inour productsOur team in the Middle East hasbeen gradually continuing toreduce sodium in Maggi soup. Wehave also removed ingredients thatconsumers do not easily recognizeand increased vegetable contentper bowl in the Maggi 11Vegetables Soup. We have alsoreduced sodium in this productby 25% since 2015.Implementing our saturatedfat commitmentsImprovements to the manufacturingprocess of our popular Asian noodlessuccessfully reduced oil contentby 12%–16% per serving in theupdated products launched in 2018.Next year, with the use of a locallyproduced, nutritionally superior oilcontaining 80% less saturated fat,the saturated fat content will bereduced even further.Reducing sugar in ourchocolate drinksNestlé Indonesia launched animproved Milo chocolate maltdrink with 25% less sugar.In Singapore, we haveintroduced the first Milopowder with no added tablesugar or artificial or naturalsweeteners, just more naturalgoodness from malt and milk.Read more about ourMilo case studyBy 2020: Reduce the sodium we add inour products by 10% to supportindividuals and families in meeting globalrecommendations*.In progress 2% of sodiumremoved from our foods and beverages.By 2020: Complete the 10%commitment taken in 2014, to reducesaturated fat by 10% in all relevantproducts that do not meet the NF criteriawith respect to saturated fat*.In progress We have achieved 7%of this objective and we are working onthe remaining 3% gap.*These results apply to productswithin the scope of our commitment,not to our global product range asmany of our products already meetrecommended levels.10 000 tonnes ofsugar removedfrom our foodsand beverages sinceJanuary 1, 2017Creating Shared Value progress report 20189

Creating Shared ValueIndividuals and familiesCommunitiesPlanetRead more about this commitmentReporting and governanceAdding vegetables, fiber and whole grainsOur commitment: Increase vegetables, fiber-rich grains, pulses,nuts and seeds in our foods and beverages.Why it mattersWhat we are doingVegetables, grains, bran, pulses,nuts and seeds are all excellentsources of fiber, vitamins, mineralsand nutrients. Our studies aboutkids’ eating patterns and gaps intheir nutrition suggest that theydon’t eat enough of theseingredients, impacting theirgrowth, development and health.So we’re putting more of them inour recipes. We also help familiesby promoting healthy cooking athome and providing nutritionaladvice on-pack and online.Helping individuals andfamilies achieve balanced dietsWe are increasing the amount ofvegetables, fiber-rich grains,pulses, nuts and seeds in ourrecipes through product innovationand renovation and remain on trackto achieve our objective by 2020.By the end of 2018, we had added170 million portions of vegetables(in the culinary category) and 484million portions of fiber-rich grains,pulses, nuts and seeds versus thebaseline of 2016. We have alsodelivered more than 25 billionservings of whole grains since2005, when we first started addingthem to our products.Achieved goal to add484 million portionsof fiber-rich foodsto our productsWe make every effort to ensurethat in the process of increasingthe nutritional profile of our foodsand beverages we don’t make ourproducts less appealing toconsumers through changes totexture, taste or appearance.Progress against our objectivesBy 2020: Add to our products at least750 million portions of vegetables,300 million portions of nutrient-richgrains, pulses and bran, and more nutsand seeds.In progress 170 million portionsof vegetables added to our foods andbeverages and 484 million portions offiber-rich grains, pulses, nuts andseeds, versus the baseline of 2016.Adding vegetables andpromoting fresh ingredientsWe have been increasing theamount of non-starchy vegetables inour recipes, especially in ourprepared meals, sauces, dressingsand condiments. Getting children toeat vegetables can be particularlychallenging; we aim to help parentsand caregivers by includingvegetables in snacks, sauces andinnovations such as the new line ofMakaron pasta mixes (Poland),which provide vegetables in an easyto prepare mix.Getting more wholegrain† from breakfastcerealsThrough Cereal PartnersWorldwide (CPW), our jointventure with General Mills,we have set whole grainrequirements for ourbreakfast cereals. We wantcereals that are popular withchildren and teenagers tocontain more whole grainthan anything else. Ourprominent on-pack WholeGrain Tick helps parentseasily identify Nestlé cerealscontaining at least 8 g ofwhole grain per serving.Read about CPW researchinto whole grainsBy 2020: In addition to whole grainalready being the main ingredient inour ready-to-eat breakfast cereals forchildren and teenagers, all ourNestlé-branded cereals that carry GreenBanner will be a source of fiber* andmade with whole grain**.In progress 96% of children’sor teenagers’ breakfast cereals soldhave more whole grain than anyother ingredient.*All products that carry 3 g or more offiber per 100 g on pack nutrition table.**Having a minimum of 8 g of wholegrain per serving.† Whole grain refers to whole, unprocessedgrains containing 100% of the original kernel,including bran, germ and endosperm.Creating Shared Value progress report 201810

Creating Shared ValueIndividuals and familiesCommunitiesPlanetRead more about this commitmentReporting and governanceSimplifying ingredient listsOur commitment: Simplify our ingredient lists and remove artificial colors.Why it mattersConsumers increasingly expect toknow what is in the foods andbeverages they buy. They want tobe able to recognize the ingredientslisted on the label for a variety ofreasons, such as ensuring that thecontent is nutritious, that it fits alifestyle or health concern, or thatit is sustainably manufactured.This means providing simple, clearinformation about our products,and removing unfamiliaringredients from our recipes.What we are doingA move toward ‘kitchencupboard’ ingredientsThrough the Maggi Simply Goodinitiative, we’re transforming ourculinary products by simplifyingrecipes, and replacing ingredientsthat consumers don’t easilyrecognize with more familiaralternatives, such as vegetables,herbs and spices. Nestlé India’srecent Maggi Masalas of Indianoodle range, for example, wasinspired by the regional cuisines ofPunjab, Mumbai, Chennai andWest Bengal, bringing localconsumer tastes and preferencesinto innovation.Supported by a network of nutritionexperts, we are working to findsuitable replacements for theingredients we plan to phase outover the next couple of years. Wehave already started researchingoptions, both within our own R&Dand manufacturing operations andin collaboration with suppliers.Measuring our progressWe have set up a system thatenables us to track the change inweight of ingredients we use in ourrecipes and those ingredient namesthat are disliked or not understoodby consumers. Along with this,we collect information on concretecases in which ‘unfamiliar’ingredients have been or are beingremoved from our recipes. Thesecase stories are communicatedthrough this and other publicationsto illustrate the extent of our work.Focusing on natural colorsProgress against our objectivesWe complement this approachby removing artificial colors, andother additives such as emulsifiers,from our foods and beverages.During 2018, the volume of in-scopeartificial colors we purchased fellby 13.2%.We are also working with marketsand business units around theworld to overcome the challengesof changing the remaining artificialcolorant compounds in ourformulations, such as the difficultyin matching the brilliance or hue ofartificial colors and the higher costof some non-artificial colors.13.2% decreasein artificial colorsBy 2020: Continue removingunfamiliar ingredients.In progress We’re transformingour culinary products by simplifyingrecipes and replacing ingredients thatconsumers don’t easily recognize.By 2020: Remove all artifi

Good Food, Good Life Creating Shared Value and meeting our commitments 2018 Progress report Nestlé. Enhancing quality of life and contributing to a healthier future. 3 Creating Shared Value 5 Our 2020 commitments and progress 6 For individuals and families 7 Offering tastier and