Nestlé Faces Mounting Pressure Over Sugar Content in Infant Products

A recent investigation has placed Nestlé under intense scrutiny regarding its baby food formulations across different global markets. The Swiss food conglomerate stands accused of applying inconsistent nutritional standards, with products in African nations containing significant added sugar while European equivalents remain sugar-free.

Research conducted by Public Eye examined nearly 100 Cerelac products distributed across 20 African countries. The findings revealed that an overwhelming 90% of these items contained added sweeteners, averaging approximately 6 grams per serving. One product available in Kenya registered the highest concentration at 7.5 grams per portion.

This stands in stark contrast to Nestlé's European offerings:

• Cerelac products marketed in Europe contain no added sugar
• African market products systematically include sweeteners
• World Health Organization guidelines since 2022 recommend against sweeteners for children under three
• Early sugar exposure can establish lasting preferences for sweet foods and contribute to obesity risks

Health Organizations Voice Strong Objections

Nineteen African civil society organizations have addressed a formal letter to Nestlé CEO Philipp Navratil, alleging the corporation is "knowingly endangering children's health for profit." Their communication describes a "preventable public health crisis" unfolding across the continent.

This controversy emerges against a troubling health backdrop: the number of overweight children under five in Africa has nearly doubled since 1990. Despite this trend, Nestlé continues marketing sugar-added infant products in these markets while selling sugar-free alternatives in Europe.

Should investors sell immediately? Or is it worth buying Nestle?

Corporate Response Meets Skepticism

Nestlé has vigorously disputed the allegations, with a company representative characterizing the report as "misleading and unfounded." However, the defense strategy has drawn criticism from health advocates.

The corporation maintains that sugar levels in its products fall below international Codex Alimentarius standards. Nestlé further contends that sweetness is necessary for infant acceptance of the food and suggests undernutrition represents a more pressing concern than obesity in African markets—a position that appears questionable given the documented surge in childhood overweight rates.

The company has committed to making sugar-free alternatives available across all markets by the end of 2025, noting that current availability stands at 97%.

Growth Strategy Complications

This controversy presents potential headwinds for Nestlé's strategic objectives. African markets represent crucial growth territories for the corporation, and sustained negative publicity could impede expansion plans. The current situation follows similar revelations from Public Eye in April 2024 regarding Nestlé's practices in Asian and Latin American markets, which prompted regulatory scrutiny in India.

This incident marks the latest in a sequence of reputation challenges for the food giant. Mounting pressure may compel faster implementation of sugar-reduction commitments. Whether these efforts will sufficiently mitigate brand damage remains uncertain. Nestlé shares currently trade at €85.88, showing relative stability with gains of nearly 4% compared to the 50-day average. The long-term financial implications of the sugar controversy, however, have yet to fully materialize.