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TRANSCRIPT
INVESTOR BRIEFING
CALL ON 2016 INDIA
SPOTLIGHT INDEX
24 January 2017
Twitter @ATNIndex #ATNIndex #Indiaspotlightindex1
1. Introducing the Access to Nutrition Foundation
2. Why has ATNF published an India Spotlight Index?
i. India faces a double burden of malnutrition
ii. F&B manufacturers can play a powerful role in tackling the double burden
3. First India Spotlight Index
i. Three elements: Corporate Profile, Product Profile, BMS marketing assessment
ii. Overall results
4. Key findings and recommendations
5. Responses to the India Spotlight Index
6. Q&A
7. Next steps
8. Building the ATNF Investor Signatory base
9. Discussion
Agenda
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What ATNF aims to achieve – our theory of
change
Encourage improvements in companies’ policies, practices and performance to result in:
• Greater consumer access to more nutritious foods and beverages
• An environment facilitating the consumption of healthier foods and beverages
Investors
Provide context for company engagement
Media
Raise profile of industry role in malnutrition
Civil society
Facilitate effective advocacy
Policymakers
Inform regulatory and policy agenda
Academics
Stimulate research on best practices
Provide companies a tool for
benchmarking their nutrition practices
Serve as an impartial source of
information for interested stakeholders
Stimulate dialogue,
build knowledge and
encourage action
ATNI seeks to
Accountability tool
Given its size and reach, the private sector can play a powerful role in addressing obesity and undernutrition and related
diseases thereby making a significant contribution to achieving several SDGs.
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• The first India Spotlight Index ranks the 10
largest F&B manufacturers in India (selected
using Euromonitor data, total India revenues in
FY2014)
• Seven are listed companies in their own right or
subsidiaries of MNCs – shown in bold.
• Four more companies that have the ability to
fortify foods (dairy, oil and/or wheat) were
approached to be interviewed about their
fortification activities and efforts to tackle
undernutrition:
• Adani
• Cargill
• ITC
• Nandini (KMF)
Amul
Britannia Industries
Coca-Cola India
Mondelez India
Mother Dairy
Nestlé India
Parle Products
PepsiCo India
Ruchi Soya
Hindustan Unilever
Company selection
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The largest F&B manufacturers have much to do
to help fight malnutrition in India
No. 1 on the
Product Profile:
healthiest product
portfolioNo. 1 on the
Corporate Profile:
strongest policies,
practices and
disclosure
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Corporate Profile ranking: Indian companies need
to develop stronger nutrition policies and practices
…and although the majority
of the ten companies
assessed have a
commitment to combat
undernutrition, most
companies do not produce or
produce very few fortified
packaged foods.
• Based on analysis done by Sustainalytics incorporating companies’ published materials and confidential
information provided under NDA.
• A score of 10 means companies’ policies, practices and disclosure meet best practice according to the methodology.
CORPORATE PROFILE
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Product Profile ranking: MNCs particularly need to
improve the nutritional quality of their portfolios
• Based on analysis done by The George Institute, in Australia which analysed products’ nutritional quality
using the Health Star Rating system and WHO Europe nutrient profiling model.
• Sales data provided by Euromonitor.
• Score reflects the nutritional quality of the companies’ 2015 sales
Only 12% of beverages
sold by the Index
companies in 2015, and
16% of foods, were
estimated to be of high
nutritional quality
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Summary findings
• Active engagement welcomed: Seven out of 10 of
the companies engaged actively in the research
process.
• F&B manufacturers must do more: Taken as a
whole, the largest food and beverage manufacturers in
India are falling far short of what they need to do to
help fight the enduring and mounting double burden of
malnutrition in India.
• Only 15% of the foods and beverages sold in India
in 2015 were of high nutritional quality.
• Essential to act now: Despite the small role packaged
products currently play in many Indian people’s diets,
F&B manufacturers in India have an unprecedented
opportunity, as consumption of these products starts to
grow in line with increasing incomes, to become a
major part of the solution to India’s double burden of
malnutrition.
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Corporate Profile findings and recommendations
• Nutrition commitments need to be disclosed: All companies
score relatively well on nutrition commitments. Indian-based
companies can improve by adopting and disclosing their nutrition
strategies and policies responsible policies.
• Affordability and accessibility needs to improve: All
companies can do more to ensure that their healthy products are
more affordable and accessible in India.
• Stakeholders’ views should inform strategies: All companies
should engage more actively with stakeholders to inform their
nutrition strategies and practices.
• Fortification must be scaled up: Nine of the companies
assessed have established a commitment to combatting
undernutrition by fortifying their products – but they must
significantly scale up these activities if they are to truly deliver on
their commitments.
• Effective fortification requires clear and enforceable
government standards: Large-scale fortification needs to be
underpinned by commitments and investment by the companies
to build the market for fortified products.
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• Level of healthy sales is low: Only 16% of foods and 12%
of the beverages sold in 2015 met the healthy standard (a
Health Star Rating of 3.5 or more).
• Robust Nutrient Profiling Systems (NPS) are key: All
companies that have not yet done so need to adopt a robust
NPS to accurately define healthy products, identify how they
need to be improved and monitor progress. Those that already
have one should review it to ensure it appropriately identifies
healthy products.
• Widespread reformulation is urgently needed by cutting
sugar, salt and saturated fat particularly. Beverage producers
also need to take steps to reduce sugar levels in their products
substantially and to diversify product ranges to offer more
healthy beverages.
• Marketing spending must be redirected towards healthier
products.
• Nutrition labeling needs to be better: Although most
companies largely comply with current Indian labeling
regulations, Indian-based companies particularly should adopt
formal commitments to disclose more nutrition information on
product labels in line with Codex.
Product Profile findings and recommendations
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• Few products suitable to be marketed to children:
Just 7% of the foods and 8% of the beverages sold by
these companies are suitable to be marketed to children.
• Reformulation needed: Companies urgently need to
consider the formulation of products typically consumed
by children.
• Stronger policies needed to restrict marking to
children: Companies should adopt a strong policy on
responsible marketing to children. Indian companies
particularly are encouraged to sign up the FBAI
marketing pledge - at a minimum.
• Strict practices needed in and near schools: All
companies should also prohibit marketing activities in
and near primary and secondary schools (following the
lead of Mondelez) and commission independent audits.
Of particular concern is marketing to children
Product Profile findings and recommendations
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BMS marketing assessment
findings and recommendations
• One Indian company in compliance with IMS Act: Only one company of the eight assessed in Mumbai
- Raptakos Brett – was found to be in complete compliance with the IMS Act.
• Strong regulation and vigilant monitoring shown to be important: The other seven companies
assessed were were found broadly to comply with the IMS Act. e.g. no adverts were found on traditional
media, no point-of-sale promotions in ‘bricks and mortar’ retail stores and only one non-compliant label
among 44 products.
• Cause for concern remains: Many examples of several types of non-compliant marketing were
identified, like those found by the Breastfeeding Promotion Network (BPNI), which do not comply with the
letter or the spirit of the IMS Act, such as promotions by online retailers and promotional wording on
product labels.
• Action must be taken: BMS companies, online retailers and marketing sites must take steps to address
the issues identified to bring their marketing into line with the letter and the spirit of the IMS Act. Efforts
must be redoubled to make sure that healthcare workers understand the limited circumstances when it is
appropriate to recommend BMS products. The Government of India and other stakeholders should
continue their vigilant monitoring and investigation of BMS marketing.
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Responses to India Spotlight Index
• F&B manufacturers: Companies welcomed the India Spotlight
Index. They acknowledge that there are nutrition issues to fight
in India and that the Index is a very important tool for doing so.
Hindustan Unilever and Danone communicated about the India
Spotlight Index.
• Launch: On the day of the launch, Dec 14th, ATNF published a
press release to highlight key messages. This was followed by a
panel discussion with representatives of government, industry,
research and civil society. Most prominent Indian (print) medias,
The Economic Times, The Times of India, The Hindu Business
Line, Business Standards, The Financial Express, reported on
the launch of the first India Spotlight Index.
• Multi-stakeholder & NGO meetings: ATNF hosted a multi-
stakeholder meeting attended by the companies and NGOs to
present the results. During an interactive session of The
Coalition Food & Nutrition Security India, ATNF presented the
India Spotlight Index, the key results and future plans. The
findings were well taken.
• Social media: ATNF received comprehensive social media
attention. The Food Safety and Standards Authority of India, key
stakeholder and influencer in India, retweeted number of ATNFs
tweets.
• All products are published on ATNF website: Please use them!
India Index report, Executive Summary, Company Scorecards, BMS
Scorecards, Westat BMS assessment report, TGI Product Profile
report, Corporate Profile methodology document.
• ATNF engagement meetings with companies and stakeholders
on India Spotlight Index planned for Q1-2017 including:
• One-on-one meetings with each company to discuss their
results
• BMS stakeholder meeting and separate policymakers’
meeting
• New action research programmes will start in 2017
• Strategic review to guide ATNF’s expansion to take place in H1
2017.
• ATNF will look to extend its support to investors in their
engagement during 2017.
• ATNF will organize consultations on 2018 Global Index
methodology in H1 2017.
• 2018 Global Index to be published Q1 2018 and India Index 2 in
December 2018.
• ATNF hopes also to publish a US Spotlight Index in mid 2018.
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ATNF next steps for 2017/2018
ATNF encourages any investors who are not already
signatories to join the c. 50 current signatories and to sign
the Access to Nutrition Index Investor Statement (available
on website).
• The Investor Statement articulates the commitment of
signatories to support the Access to Nutrition Index.
• Signatories recognize that health and nutrition are among
the most important drivers of future growth in the food and
beverage sector and that those manufacturers that are
most effective in anticipating and responding to these
factors will be better positioned to deliver superior and
more sustained financial performance over time.
• Signatories commit to factor food and beverage
manufacturers’ nutrition practices into their responsible
ownership activities and their investment analysis.
• A large signatory base helps ATNF to make the case that
companies should engage in the Index research and sends
a strong signal to other stakeholders of the importance
investors place on the Indexes.
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Building the Investor Signatory base
For more information contact Rachel Crossley at [email protected] or
visit www.accesstonutrition.org/investors