Good Health through Nutrition NESTLÉ CANADA INC. Nutrition Health and Wellness Report NESTLÉ CANADA INC. Nutrition Health and Wellness Report Nestlé in Canada – Health and Nutrition �������������������������������������������������������������������� 5 Nutrition in Canada ������������������������������������������������������������������������������������������������������� 6 Nestlé Nutrition, Health and Wellness Values �������������������������������������������������������������� 7 Science-Based Solutions to Nutrition Needs ��������������������������������������������������������������� 8 Improving Canadians’ Food and Diets ����������������������������������������������������������������������� 9 Meeting the Nutrition Requirements of Groups with Specific Needs..................... 12 Empowering Consumers ��������������������������������������������������������������������������������������������� 13 Nutrition, Health and Wellness for Our Pets ��������������������������������������������������������������� 14 Nestlé Waters in Canada �������������������������������������������������������������������������������������������� 15 Nutrition, Health and Wellness in Our Community ��������������������������������������������������� 16 The Future of Food ������������������������������������������������������������������������������������������������������� 17 Nestlé in Canada – @nestle.ca Health and Nutrition Message from Bob Leonidas President and CEO, Nestlé Canada t Nestlé, our number one priority is to provide consumer Avalue. That value is delivered in many forms including nutrition, health and wellness. Nutrition actually forms the core of our company history when Henri Nestlé invented the first milk and cereal food for babies in 1867. Today, consumers’ nutritional concerns have evolved. The issues are complex and the opportunities are endless. We make it our mission to understand consumers’ interests and how we can help make the journey easier – and more enjoyable. At Nestlé in Canada and around the world, we invest in continuous improvement of our brands to enhance their quality and nutritional value. These efforts form a pillar of our overall commitment to Creating. Shared Value – which means we strive to create value for shareholders and society at the same time. The Journey At Nestlé Canada specifically, our vision is to be the leading nutrition, is long. health and wellness company in Canada. This vision extends to our sister companies in Canada – Nestlé Nutrition, Nestlé Professional, Nestlé Waters and Nestlé Purina. Though the work towards this vision continues, we owe Eat well. it to our consumers and stakeholders to outline a benchmark against that vision today. With our vision in mind, this report will highlight how we’re bringing the vision to life. We combine our consumer research, our well-established nutrition credentials, our food solutions based on science with an unwavering passion for the consumer. We know that consumers’ food choices represent physiological, societal and emotional needs. Our goal is to help find a place for all food within a healthy, balanced lifestyle. We look forward to continuing this journey with Canadian consumers. Nestlé in Canada Profile Nestlé Canada headquarters: Toronto, ON Total Nestlé in Canada sales: 2008 – $2.3 billion Factories, offices and distribution warehouses in Canada: 21 Employees across Canada: 3,500 5 Nutrition in Canada s part of our vision to be the leading nutrition, health and wellness company, we continually research the topic of Canadians’ health and well-being – to ensure we meet evolving consumer needs. The following includesA a simplified snapshot of the key areas of interest around health and nutrition in Canada today. Top of Mind Health Concerns A 2008, Health Focus study commissioned by Nestlé shows that almost half of Canadian shoppers consider themselves to be in excellent or very good health overall. Despite this optimism, cancer and heart disease top the list of health concerns – among both consumers and healthcare professionals. It’s no surprise that obesity remains top of mind. According to the Heart & Stroke Foundation of Canada, almost 60% of Canadians 18 years and older are overweight or obese. Overall, 26% of Canadian children ages two to 17 are overweight or obese – this percentage increases with age to 29% among those 12 to 17. Further, Healthy Active Kids Canada reports that 87% of children and youth are not meeting the recommended 90 minutes of physical activity a day. Along with obesity, diabetes is a major concern. According to the Canadian Community Health Survey (2004), about 1.3 million Canadians aged 12 and over, or 5% of the population, report they have been diagnosed with diabetes. The Canadian Diabetes Association estimates that approximately 90% of people with diabetes have Type 2 diabetes which is lifestyle related and can be managed through a healthy diet and physical activity. Most recently, we’ve seen significant media profile around sodium levels in our food. Health Canada recommends an upper intake of 2300 mg of sodium per day for healthy adults. According to Statistics Canada, the average Canadian consumes in excess of 3,100 mg of sodium a day. Additionally, research shows that lowering sodium consumption could reduce the incidence of stroke and heart disease by as much as 30%. Interest in Health Benefits of Food So where does the food we eat fit? It seems that Canadians are quick studies! Canadians report being almost twice as knowledgeable about ingredients such as fibre, calcium and Omega-3 fatty acids relative to their global counterparts. We’re seeing that knowledge, interest and usage of antioxidants and whole grains are on the rise. There is also a trend toward supplementation and fortification to augment foods that are naturally rich in vitamins and minerals. Based on these highlights and the depth of other nutrition concerns on the minds of Canadians these days, the goal of this report is to tell you how Nestlé is responding to meet evolving consumer needs. Nutrition, Health and Wellness Report Nestlé Nutrition, Health @nestle.ca and Wellness Values t Nestlé, our nutrition, health and wellness commitment is underpinned A by long-standing fundamental values: Positive Nutrition We’re committed to increasing the nutritional value of our products while maintaining or improving the high quality and taste consumers expect from Nestlé brands. We believe in a lifestyle that includes a balanced diet, proper nutrition and physical activity. Where possible, we actively promote this belief. Moderation We believe moderation and variety is key to achieving a healthy, balanced diet. We discourage over-consumption. Authenticity and Transparency We provide factual and transparent nutrition and health information in all our communication. We continually encourage and empower consumers to make informed Take care of choices about their diet and lifestyle. and the We believe that science and research form the foundation for us to satisfy nutrition, consumer need for nutrition, variety, taste and convenience. Commitment to Quality and Safety taste buds are free to play. Every day, millions of people all over the world show their confidence by choosing Nestlé products. This confidence is based on our reputation for the high standards that have been established over many years. At Nestlé, our commitment to quality and safety is non-negotiable. We hold ourselves to the highest standards. Strict quality procedures are implemented consistently and rigorous monitoring systems are in place. Commitment to Responsible Advertising As a global company, Nestlé has a strong position on advertising to children that is consistent with the Canadian Advertising Initiative, an industry commitment to responsible advertising. Nestlé does not advertise to children under six years old and will only advertise products that have a nutritional benefit (such as Nesquik with 1/3 Less Sugar) to children between the ages of six and 12 years old. 7 Science-Based Solutions to Nutrition Needs ince developing the first milk-based food for infants more than 140 years ago, Nestlé has beenS a global leader in nutrition research and product development. With 27 research, development and technology facilities worldwide, we have the largest R&D network of any food company. Nestlé’s research, development and technology network, together with local markets, employs around 5,000 people. In 2008, Nestlé invested 1.98 billion Swiss Francs in R&D. Bringing together all of its global R&D resources, Nestlé provides high quality, safe food and beverages for consumers worldwide. In Canada, over 55 Registered Dietitians are employed by Nestlé across many functions from marketing to sales. Additionally, four full-time Nestlé Canada employees have PhDs specializing in Nutrition and Food Science. Beyond sound nutrition, the future of foods will Nestlé Research increasingly be driven by science – and Nestlé scientists are already hard at work. As an example, 5,000 people directly involved in R&D globally Canadian consumers have only recently been hearing more about the benefit of probiotics in food. However, this topic has been a key area of research for Nestlé 1.98 billion Swiss Francs – 2008 spending on R&D for more than 25 years, as we seek to pioneer new and innovative applications. In Canada, backed by this R&D pipeline is a long-term commitment – experience and science, we recently launched the first from ideas, to products across and only infant formula, as well as baby cereal,