Creating Shared Value for Consumers
In 2008, Nestlé invested 1.98 billion CHF in product research and development, making it the world’s largest private nutrition, research and development organisation. Much of this research is guided towards developing nutritious products for consumers at all stages of life and condition, from young persons to the elderly, from elite athletes to those working to lose weight and obtain a more active and balanced lifestyle. Reducing the amounts of fat, salt and sugar contained in new and popular products whilst maintaining taste is one core goal of Nestlé Research. Its 60/40+ initiative aims to create products that 60% of consumers will prefer when compared to the most prominent competitor product, with an additional nutritional ‘plus’.
Particularly throughout the developing world, micronutrient malnutrition due to an inadequate diet is a widespread health problem that affects 2 billion people globally. Amongst the most common micronutrient deficiencies are iron, calcium, iodine, zinc and vitamins A and D, resulting in severe medical conditions ranging from impaired cognitive performance, brain development and resistance to infectious diseases, to decreased bone density, visual impairment and an increased risk of maternal and child mortality. As part of its Creating Shared Value initiatives, Nestlé, in consultation with local health authorities, is investing in the development of affordable vitamin and mineral fortified products for poorer groups to help prevent these micronutrient deficient conditions. Iodine-enriched Maggi bouillon cubes have proved to be a popular way of ensuring the crucial presence of trace-elements of iodine in the diets of many Central and West Africans, while Ideal powdered milk has increased quantities of iron, calcium, vitamins A, C and D consumed by many Brazilians.
Another way in which Nestlé incorporates its Creating Shared Value activities into the lives of consumers is through community education programs. These programs, particularly focused towards children in poorer Latin American regions, aim to highlight the importance of hygiene, nutrition, healthy eating and physical activity. To date it is estimated that 9.1 million people have been reached by Nestlé education programmes and initiatives. Following recent announcements at the Nestlé Creating Shared Value forum in New York, the company intends to double the number of countries in which it runs these projects by the end of 2011, bringing such schemes to over 100 countries where it operates.
