INVESTOR BRIEFING CALL ON 2016 INDIA SPOTLIGHT INDEX · CALL ON 2016 INDIA SPOTLIGHT INDEX ... Amul...

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INVESTOR BRIEFING CALL ON 2016 INDIA SPOTLIGHT INDEX 24 January 2017 Twitter @ATNIndex #ATNIndex #Indiaspotlightindex 1

Transcript of INVESTOR BRIEFING CALL ON 2016 INDIA SPOTLIGHT INDEX · CALL ON 2016 INDIA SPOTLIGHT INDEX ... Amul...

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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1. Introduction

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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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2. Why an Indian

Spotlight Index?

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India’s double burden of malnutrition

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Micronutrient deficiencies

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India’s F&B sector has a powerful role to play

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3. The first India

Spotlight Index

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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 India Spotlight Index methodology

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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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4. Key findings and

recommendations

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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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5. Responses to India

Spotlight Index

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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.

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Q&A

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5. ATNF next steps for

2017/2018

• 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

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6. Building the investor

signatory base

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

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Discussion