The consumer Goods Forum

CHAPTER 2
NUTRITION AND PRODUCT FORMULATION
PRACTICAL EXAMPLES
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PRACTICAL EXAMPLES

walmart
WALMART HAS REFORMULATED THOUSANDS OF EVERYDAY PACKAGED FOOD ITEMS TO ELIMINATE 50 MILLION POUNDS OF SODIUM FROM AMERICANS’ DIETS

WHY WE WERE MOTIVATED TO CHANGE

  • At Walmart, our journey with nutrition begins with our customers and our mission of helping people save money and live better.
  • Around the world, communities are increasingly challenged by rising obesity and other nutrition-related illnesses. Since 2011, we’ve been delivering on a series of public commitments aimed at making healthier food options both accessible and affordable in the US.
  • We envision a world where nobody has to choose between products that are better for them and ones they can afford.

HOW WE DID IT

  • We are working with suppliers to reduce salt and sugar and eliminate trans fats in key products, starting with our own Great Value brand.
  • We are working to improve the nutritional quality of our Great Value brand and national food brands in the US by reducing sodium by 25% and added sugars by 10%, as well as removing all industrially produced trans fats by the end of 2015 (FY2016), compared to our 2008 baseline.

IMPACT WE HAVE SEEN

  • Our estimates indicate that if the reformulations are adopted by the entire grocery industry, adults in the US will consume approximately 47 million fewer pounds of sodium each year.
  • Progress, by the end of FY2014:
    • reduce sodium by more than 16%;
    • continue to exceed our goal for sugar reduction; and
    • have fewer than 6% of products sold in US stores contain partially hydrogenated oils.
  • What does a 16% reduction in sodium look like? A few examples:
    • bread – 29mg reduction;
    • frozen single-serve meals – 147mg reduction; and
    • rice & beans – 287mg reduction.
  • Sometimes it’s challenging to find food substitutes or processes to make the desired advances without compromising taste, convenience, texture and other important qualities. We’re committed to finding solutions for healthier foods without sacrificing the characteristics our customers expect, and that takes time.

PRACTICAL EXAMPLES

ahold
AHOLD WORKED COLLABORATIVELY WITH INDUSTRY PARTNERS TO ACHIEVE PRODUCT FORMULATION AND REFORMULATION ACROSS THE NETHERLANDS

WHY WE WERE MOTIVATED TO CHANGE

  • Based on the National Food Consumption Survey, the health authorities developed recommendations on the overall consumption of specific nutrients and the related percentage in specific products.
  • These recommendations are the foundation for our Nutrition and Product Formulation policies. We apply this to all our own brand products.
  • We execute the formulation in a jointly approach with the industry organisations to achieve the highest impact.

HOW WE DID IT

  • Our Quality department worked in close cooperation with industry organisations CBL (retailers) and FNLI (manufacturers) to achieve product formulation and reformulation nation-wide.
  • The parties signed an agreement for 2014-2020 to reduce the amounts of salt, saturated fat and calories in certain product groups, with the overall ambition to bring healthier products to market.
  • For every product group, the involved parties agreed on reduction targets, taking in consideration that product quality should be maintained or even improved. For example, in the product groups bread, cheese and meat products, the parties already made major steps.

IMPACT WE HAVE SEEN

  • We lead together with others. As an industry, we can have a huge impact on the daily lives of our customers by working hand-in-hand.
  • This example clearly illustrates that we have a great opportunity to make a difference to people’s health by joining efforts.
  • A step-based approach contributes to consumer acceptance.
  • More information on the agreement: http://www.akkoordverbeteringproductsamenstelling.nl/
ahold-product-formulation

PRACTICAL EXAMPLES

unilever
UNILEVER HAS REFORMULATED ITS PRODUCTS GLOBALLY

WHY WE WERE MOTIVATED TO CHANGE

  • Unilever’s strategy for nutrition is better products help people to enjoy better diets and live better lives.
  • We currently focus our efforts on three key areas where our portfolio and scale allow us to have the biggest impact: heart health, obesity and undernutrition.
  • BETTER DIETS – BETTER LIVES Product reformulation alone is not enough to stimulate dietary changes among consumers. We work with many health influencers (ranging from chefs to public health authorities) to explain how our products fit into a healthy diet and to encourage healthier eating.
unilever-better-diets

HOW WE DID IT

  • When developing and launching our products and campaigns, we seek the advice of nutrition and health experts. Our global community of around 170 nutritionists maintain relationships with local experts and public health organisations to share knowledge and insights on the scientific, nutritional and health issues relevant to our brands.

IMPACT WE HAVE SEEN

  • In 2014, we achieved a 100% score within the Health & Nutrition criterion for the fifth year in a row in the Dow Jones Sustainability Indices (DJSI).
  • Named leader of our industry group in the 2014 RobecoSAM Corporate Sustainability Assessment.
  • In 2013 we came second in the inaugural Access to Nutrition Index (ATNI) which publicly rates the world’s 25 largest food and beverage manufacturers.
  • Specific goals include:
    • double the proportion of portfolio meeting Highest Nutritional Standards by 2020;
    • 75% of foods to meet 5g salt requirement per day by 2020;
    • saturated fat ≤33%* in 90% soft vegetable oil margarines by 2017;
    • trans fats from Partially Hydrogenated Vegetable Oil (PHVO) removed from all products by 2012;
    • reducing sugar by 25% in Ready to Drink Powdered Ice Tea and Milk Tea by 2020; and
    • all children’s ice creams ≤ 110kcals/portion by 2014 and 80% packaged ice creams ≤250 kcals/ portion by 2015.

PRACTICAL EXAMPLES

pepsico
PEPSICO ACHIEVE PRODUCT FORMULATION AND REFORMULATION ACROSS KEY BRANDS AND MARKETS GLOBALLY, AND SUPPORTED INNOVATION

WHY WE WERE MOTIVATED TO CHANGE

  • PepsiCo believes we have a role to play in addressing some of the world’s most pressing public health challenges, including nutritional imbalances, obesity and other lifestyle‐related diseases.
  • These issues are changing the food and beverage industry and shifting consumers toward more nutritious products.

HOW WE DID IT

In 2009, we established  targets for the reduction of sodium, saturated fat and added sugars in key global brands and countries, including:

  • increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio;
  • reduce the average amount of sodium and sugar per serving in key global food brands by 25 percent and average amount of saturated fats per serving by 15 %;
  • internal team was formed composed of members from our R&D, nutrition, sales, legal, communications, finance and public policy & government affairs groups which implements, tracks and reports progress against goals; and
  • our Global Nutrition Group (GNG) drives innovation and brand development in fruits and vegetables, grains, and dairy. GNG develops nutrition-focused innovations that are crafted into product concepts.

IMPACT WE HAVE SEEN

  • PepsiCo has increased investment in R&D and built new capabilities to help us develop breakthrough innovation that supports global product innovation and renovation.
  • We have made progress on all of our goals. However, we have more work to do to meet our sodium reduction goal.

PRACTICAL EXAMPLES

dia_logo_small
DIA ARGENTINA OFFERS GLUTEN-FREE PRODUCTS UNDER ITS PRIVATE LABEL BRAND

WHY WE WERE MOTIVATED TO CHANGE

  • Based on its private label as a key element of price and product differentiation, DIA Argentina has aligned with the nutrition and product formulation commitment.
  • DIA Argentina offers a wide variety of gluten free products under its private label brand.
dia-gluten-free-products

HOW WE DID IT

  • Gluten-free products are specially designed and manufactured for coeliac customers that are intolerant to gluten.
  • Promoted the products, together with local NGOs (coeliac national associations, etc), through diverse channels (loyalty club exclusives, magazines, coupons, billboards, digital media, TV spots, loyalty club TV shows, etc) informing the community about the coeliac disease, helping promote its correct treatment and spreading tips & recommendations.
  • Gluten-free products can be obtained in every store throughout the country without paying a premium price for them, following DIA’s price and product differentiation policy.
  • Private label products in DIA Argentina are manufactured by many local SMEs
  • All SMEs that have participated have been enthusiastically supporting the action of promoting healthier food and raising awareness of coeliac disease.
  • Correct labelling of products from a wellness perspective (gluten free, sodium free, etc.) was an important innovation for many SMEs that participated in the process.
  • The CGF has helped in communicating the labelling process to different players in the chain, which continues to prove extremely useful.

IMPACT WE HAVE SEEN

  • In the last three years the number of gluten-free products has almost tripled and it keeps growing.

dia-gluten-free-growthdia-gluten-free-billboard

PRACTICAL EXAMPLES

ajimoto
AJINOMOTO APPLIES ITS EXPERTISE IN FOOD SCIENCE AND AMINO ACID NUTRITION IN GHANA

WHY WE WERE MOTIVATED TO CHANGE

  • As described in Ajinomoto’ motto “Eat Well, Live Well“ Ajinomoto contributes to a healthy society worldwide by providing nutrition through delicious foods.
  • Ajinomoto tries to solve both under-nutrition and over-nutrition problems in the world. Here is an example of addressing under-nutrition problems in children in Ghana through a unique product formulation.
  • Ajinomoto believes that it can make unique contribution to improving nutrition of mothers and children in developing countries by applying its expertise in food science and amino acid nutrition.
  • Ghana Nutrition Improvement project (GNI project) was launched in 2009 to commemorate 100 year anniversary of Ajinomoto Group.
  • Through GNI project Ajinomoto aims to establish a model of “Social Business”, which is defined as the business to solve the social problems in developing countries through sustainable business.
  • The objective of GNI project was to improve nutrition of children aged 6-24 months, a part of the most crucial period of nutrition improvement called “First 1000 days” from pregnancy to 2 years of age.

HOW WE DID IT

  • There were three key issues in developing the product for nutrition improvement:
    • Acceptability: The product should respect local food culture and should be preferred by local people. Sensory tests were conducted in collaboration with local partners, University of Ghana.
    • Accessibility: The product should be accessible to majority of target population. A nutrition supplement was developed, which is added to “Koko”, a traditional corn-based porridge for weaning infants, which is popular throughout Ghana.
    • Affordability: The product should be affordable for the target population. Using local ingredients and establishing local production facility in collaboration with local partners were the keys to achieve affordability.
  • The nutrition supplement named “KOKO Plus” was formulated following the recommendations of WHO etc.
  • Amino acid (Lysine) was used to improve the quality of the protein and micronutrient (vitamins and minerals) mixture was added to satisfy micronutrient requirement of children.

IMPACT WE HAVE SEEN

  • Up to 2015, pilot studies (a nutritional efficacy study and distribution model studies) were conducted using the locally produced KOKO Plus product.
  • The result of the nutritional efficacy study suggested that KOKO Plus, which is the combination of Protein/ Amino acid and micronutrients, could be an effective approach in improving important parameters of under-nutrition, stunting and anaemia.
  • The concept of “better protein quality with amino acid supplementation” would be emphasised in formulating foods for nutrition improvement.
  • We are now preparing for scaling up the production and the distribution of KOKO Plus to achieve sustainable business in Ghana.
  • The model established in Ghana will be expanded to the neighbouring countries in West Africa and also other developing countries in the world.

 

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