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Nestle is betting on The “Healthy Food” and “Ecology” Trends !

Nestle to sell a chocolate made without added sugar (CNBC)

  • Nestlé is about to launch a new 70% dark chocolate bar, the “Cacao Fruit Chocolate”, which does not include any added sugar.
  • It will be made from the cacao fruit only, with the white cacao pulp acting as a natural, more sustainable and healthy sweetener. The new product will be launched in Japan this autumn and is expected to be introduced globally by 2020.
  • Another 100% cacao fruit juice with lime granita will be commercialised end of this week at the KitKat Chocolatory Ginza Store. The two products will be sold at $3.7 and $6.93, respectively.
  • The company is looking to patent the pulp mixture process, which helps to reduce food waste, as it uses 31% of the pod vs. the current 22%.

Analysis and Comments

  • You should expect a continued increase in product reformulations and product innovations along the lines of Nestlé’s most recent launch.
  • This is largely driven by a combination of pressure coming from both the public as well as a growing number of governments and regulators, the latter of which are increasingly aware of the strain that obesity & diabetes is putting on global healthcare systems.
  • Already, diabetes care forms 10-15% of healthcare budgets, and Healthcare analysts expect a near doubling of the number of diabetes patients by 2025, which risks bankrupting publically funded healthcare programmes in Europe and making health insurance increasingly unaffordable.

Nestlé develops recyclable paper packaging for Yes snack bars (SupplyChainDive)

  • Nestlé has developed a high-speed flow packaging technology that allows paper to be used on a larger scale instead of plastic films and laminates. As a result, Nestlé will sell its Yes snack bars in a recyclable paper wrapper.
  • The packaging, made of water-based coating and sustainable sources, is available in 13 countries and will be introduced in Europe and other locations going forward.
  • Nestlé has been committed to make all its product packaging recyclable or reusable by 2025, and other manufacturers (e.g. PepsiCo, Nestlé, Mars) have launched recyclable packaging programs as well.
  • According to Reuters, the company may also use paper packaging for its Kit Kat bars and other products, once it is able to supply sufficient amounts of the specially coated paper.

Analysis and Comments

  • As the article states, consumers’ demand for sustainable and environmental standards in the food industry has been increasing steadily, with a Nielsen survey from 2018 stating that 48% of U.S. consumers were likely to change their purchases to meet environmental standards.

Nestle Share Price

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