Nestlé (NESN.S) is failing the fitness test. According to an internal document cited by the Financial Times, more than 60% of the KitKat maker’s mainstream food and drinks do not meet a “recognised definition of health”. That jars with a strategy of “health, nutrition and wellness”. The analysis only focuses on half the Swiss group’s portfolio, though Chief Executive Mark Schneider isn’t deaf to the charges. Since a Third Point attack in 2018 which pushed a similar strategy, he’s sold down ice cream, dumped U.S. confectionery, ditched Herta sausages and expanded pet food. The latter represented 14% of sales in 2018 compared to 17% last year. Nutrition and health science shrunk during the period, but that’s because Schneider sold a Botox unit to focus on nutrition, recently acquiring much of supplements maker Nature’s Bounty read more . But Aeros or greasy Hot Pockets will never be good for you, so ramping up divestments is now a vital ingredient. (By Dasha Afanasieva) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: Short-sellers and their targets get a warning read more Manila snackmaker’s flat IPO may find some fizz read more Tata’s BigBasket deal bags top super-app item read more Klarna $50 bln value beats richly priced rivals read more Third Point activist flips script on Dan Loeb read more
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