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Last Updated: October 2024

Nestlé

Nestlé, a conglomerate in the food and beverage industry, owns a portfolio that spans over 2,000 brands in over 188 countries, from coffee brands like Nescafe and Nespresso to names like KitKat, Milo , and Nesquik to infant formulas like Nan and Gerber and pet food brands like Purina and Friskies. Nestlé has a global reach and annual revenues in the billions. Nestle's influence extends beyond, reaching into the supply chain.

The Reach of Nestlé

Nestlé plays a significant role in shaping the food landscape worldwide, and its record raises concerns about its ethical role. Nestlé owns over 2000 brands worldwide. The following illustration showcases some of the global brands that Nestle owns:

While some brands may not be directly owned by Nestlé, the company may still profit from them, either directly or indirectly, through its stakes in their success. Examples include Oreo, Milka, Cadbury, Hello Kitty, Ahmad Tea, and Lucky Charms, where Nestlé may be a partner in ownership, responsible for sales in certain countries, or involved in their production.

Israel and Apartheid

Nestlé Osem's Support for the IDF

Osem Investments Ltd is an Israeli food manufacturer and distributor and a fully owned subsidiary of Nestlé. In addition to its local Israeli brands and Nestlé's products within Israel, Osem also owns and operates several global brands, including the Osem name brand, Bamba, Tivall, and Gratify.

There is substantial evidence of Nestlé-Osem providing support and donations to the IDF, including but not limited to the following instances:

Donating to the IDF

In an Instagram post on January 22, 2024, Osem-Nestlé celebrates its employees for sending care packages to injured IDF soldiers.

In another Instagram post on October 26, 2023, the Nestlé-Osem Instagram account shared a quote from Nissim Luke, the Managing Director of Kiryat Osem:

It was important to me that our beloved products will be available and getting to the citizens and soldiers on the front lines

Also, Osem-Nestle posted on the same date, an Instagram post with quotes form their "eBusiness and Digital Manager in the Snacks and Bakery Division":

I invest a lot of my free time in my private community in the Mazkeret Batya settlement. [...] With the outbreak of the war, I set up together with good friends, a logistic center that deals with collecting product donations from Mazkeret Batya residents so that we can pack and deliver personal packaging for the soldiers. Packages have everything that a soldier needs

On October 19, 2023, Osem-Nestlé visited IDF bases in the north and south, providing the IDF with various foods, beverages, and care packages, including Nescafé.

On one of their Instagram stories they show an instant of them donating to the IDF

Nescafé van going to IDF bases to show support and feed the IDF:

On October 15, 2023, Nestlé-Osem posted a solidarity statement with the IDF on Instagram that stated:

We at Osem-Nestle continue to work around the clock in order to continue to deliver our products, strengthen the IDF, the security and rescue forces, and, of course the people of the south. With the opening of this campaign, we have passed a food delivery to the rescue forces and soldiers in the gathering grounds, to the Association for the Soldier, as well as delivery to the residents of the southern settlements. [...] We salute the fighters, many of our employees joined them, and to the medical teams, and we will continue to support them as needed.

On October 10th, 2023 Nestlé-Osem shared on it's Facebook page a photo of IDF soldiers with Nestlé-Osem products that are donated to them with the hashtag "stand together"

Nestlé Osem's support for the IDF dates back well before the events of October 7th in Palestine. As early as March 2022, their Instagram account featured various statements of support and showcases of Nestle donations for the IDF.

Nestle Osem donations for the IDF in 2022

Nestlé Osem IDF Ad

Nestlé Osem even used IDF soldiers and their imagery to run marketing campaigns on various channels, including their social media.

Nestlé Osem Factory Built on Palestinian Land in Sderot

Sderot (Najd) is a city infamous for its residents' enjoyment of watching Gaza being bombed, an activity that became known as "Sderot Cinema." The city was built on the land of Palestinian farmers who were expelled to Gaza and is located less than a mile from the Gaza border. Sderot is one of the "cover settlements" that were intentionally and actively expanded to encircle Gaza.

Nestlé operates a factory in Sderot and actively promotes the city, its settlers, and its regional operations through social media, while investing millions of shekels into the city. The company also encourages volunteering at the factory and regularly donates its products to the IDF.

Nestlé's Post Oct. 7th Reaction

After October 7th, Israel denied Palestinian workers access from territories it controls, leaving farms around Gaza without their cheap labor. While these workers were being displaced, bombed, and killed, Nestlé's first response was to launch an ad campaign offering ice cream to Israeli volunteers and workers, replacing the to be killed Palestinian workers.

Nestlé's Reaction to Boycott Calls

Nestlé has faced various boycott calls over the years, whether for its baby milk and formula scandals, water controversies, or child labor accusations. Amid ongoing calls to boycott Nestlé for its support of the IDF and complicity in supporting current apartheid structures in Israel, the company has begun to notice "hesitancy" among consumers in certain markets when it comes to purchasing its products.

Despite the conglomerate boasting to its shareholders about a 1.15% growth (0.1% in the first quarter and 2.2% in the second) in the first half of 2024, Nestlé's Real Internal Growth was -1.3% in North America and 0% in Asia, Oceania, and Africa, possibly due to boycott calls or other market circumstances. In addition to their share buybacks and accumulating an additional 9.9 billion Swiss francs in debt, some panic is evident in Nestlé's statement to one of its largest markets, Malaysia, regarding its relationship with Israel.

Note: As of the day of writing this, the statement page on Nestlé's Malaysia website appears broken or hidden and can only be accessed by adjusting Nestlé's website through browser developer tools. Users might still see the following:

Nestle broken website non readable statement on Israel

2024 Nestle Adding Sugar to Baby Food in The Global South

A report by Public Eye has shed light on Nestlé's practices of adding sugar and honey to infant milk and cereal products sold in many low- and middle-income countries, contrary to international guidelines aimed at preventing obesity and chronic diseases. Samples of Nestlé's baby-food products from regions such as Asia, Africa, and Latin America were tested, revealing added sugar in brands like Nido and Cerelac, intended for children aged one and above and six months to two years, respectively. This stands in contrast to Nestlé's products in European markets, where formulas for young children contain no added sugar, and only some cereals aimed at older toddlers have added sugar. For instance, biscuit-flavored cereals for babies aged six months and older contained 6g of added sugar per serving in Senegal and South Africa but none in Switzerland.

Added sugar content of the same Cerelac wheat product in different countries

There is a double standard here that can’t be justified,

said Nigel Rollins, scientist at the World Health Organization (WHO) when confronted with this information.

Nestlé continues to assert that it adheres to World Health Organization (WHO) recommendations. The WHO's International Code prohibits the commercial promotion of infant formula and similar products to protect breastfeeding. This also applies to formulas for young children and baby foods, like Cerelac, which do not meet nutrition guidelines and contain "high levels of sugar." The Code was originally adopted in 1981 following the Nestlé "The baby killer" scandal.

However, Nestlé has employed social media influencers to promote its products online, with some influencers failing to disclose their sponsorship when promoting Nestlé's baby foods. In its communications, either directly or through third parties, Nestlé promotes Cerelac and Nido as brands aimed at helping children "live healthier lives," while disregarding the health and addiction effects of added sugar, such as obesity and other chronic non-communicable diseases like diabetes and high blood pressure.

Nestlé's marketing highlights vitamins, minerals, and other nutrients in its products, presenting them as essential for children’s growth and development. However, the report by Public Eye and the International Baby Food Action Network (IBFAN) found that out of 114 products examined in Nestlé's key markets across Africa, Asia, and Latin America, 106 (93%) contained added sugar.

Added sugar in Cerelac baby cereals in the main markets

The amount of added sugar is often not even disclosed in the nutritional information available on the packaging. Nestlé still promotes its Nido and Cerelac products as healthy and essential for children.

Water Scandals

The former CEO of Nestlé, Peter Brabeck-Letmathe, praised the commodification of water in a 2005 documentary, saying:

One perspective held by various NGOs – which I would call extreme – is that water should be declared a human right … The other view is that water is a grocery product. And just as every other product, it should have a market value.

Nestlé’s pursuit of profit in developing countries often comes at the expense of vulnerable communities.

The Ontario Six Nations Crisis

In 2018, it was reported that the Six Nations of the Grand River Indigenous reserve in Ontario, Canada, was facing a severe water crisis, with many homes lacking access to clean drinking water. For years, the community has struggled without clean water, leading to widespread health issues such as impetigo and other skin infections. This crisis impacts 91% of the homes in the community, with some homes having no water access at all.

Despite this dire situation, Nestlé has been permitted to extract millions of liters of water from nearby wells for commercial bottling, prioritizing profits over the basic human rights of the Six Nations community. According to a local resident and professor of Indigenous Studies at McMaster University:

Six Nations did not approve [of Nestlé pumping] they told Nestlé that they wanted them to stop. Of course, they are still pumping as we speak.

In response, the Six Nations are currently suing the province of Ontario, alleging that the water extraction violates their Indigenous rights.

Exploitation in Pakistan

A forensic audit report presented to Pakistan’s Supreme Court in 2018 revealed that Nestlé extracted 4.43 billion liters of water from 2013 to 2017, paying virtually nothing to the government for this extraction. Additionally, 43% of the extracted water was wasted during a time when local communities were already suffering from inadequate access to clean water. The court noted that the plastic bottles used did not meet health standards, and Nestle water was not found to meet the standard considered to be fit for human consumption.

Nigeria: Profits Amid Poverty

In 2016, Nestlé Nigeria launched a N5.6 billion water factory in Manderegi, promising to provide potable water for 1,000 local residents and improve their technical skills. However, two years later, wastewater from the factory has contaminated the local stream, eliminating the community’s alternative water sources. The promised water taps, of which there are only four, offer minimal access and are often controlled by Nestlé for their own purposes. Additionally, erosion caused by the factory’s discharge has damaged roads and farmlands. Despite Nestlé's promotional claims, residents remain frustrated with unfulfilled promises, relying on unsafe water sources.

You will be shocked that the taxes paid by these companies are no different from the costs of water for a three-bedroom flat

said an environmental activist with Environmental Rights Action (ERA), highlighting the minimal contribution these companies make relative to the community’s suffering.

Flint, Michigan: A Tale of Contrasts

According to an article by The Guardian, Nestlé pays only $200 per year to pump water from the aquifer in Evart, Michigan, extracting nearly 100,000 times the amount used by an average resident and selling it under brands like Nestlé Pure Life and Ice Mountain. Meanwhile, just two hours away, Flint residents contend with lead-contaminated tap water that costs them over $200 per month despite being unsafe for use.

Nestlé has applied to increase its water extraction by 60% to 210 million gallons per year without additional cost, while local residents, who pay as much monthly as Nestlé does annually, are told they have no right to water when theirs is shut off or contaminated.

Illegal Water Filtration in France & Europe

In 2024 in Europe, Nestlé has faced legal action over its practices in France. For decades, Nestlé allegedly used illegal methods to filter water for its Vittel, ContreX, Perrier, and Hépar mineral water brands. According to the advocacy group Foodwatch, these filtration methods involved the use of ultraviolet light, which is not permitted under French law for mineral water.

The California Water Extraction Controversy

In 2016, while California residents were urged to reduce water consumption due to severe drought, Nestlé was allowed to continue pumping water from the San Bernardino National Forest. According to the Desert Sun, the company extracted millions of gallons under a permit that had expired in 1988, paying just $524 annually for access. Nestlé then sold this water under its Arrowhead Mountain Spring Water brand.

Unethical Sourcing and Child Labour

Nestlé, have faced multiple reports and allegations of unethical sourcing practices concerning its coffee and cocoa beans. The allegations include slave labor, child labor, sexual abuse, unethical sourcing, and customer deception. Despite frequently promoting programs to ensure "ethical sourcing" and introducing certification standards for farms, these initiatives often fall short. Nestle can't even trace half of where theri coca comes from.

Starbucks & Nespresso

Nestlé's Nespresso and its partner company, Starbucks, have faced multiple reports and allegations of unethical sourcing practices concerning its coffee and cocoa beans. The allegations include slave labor, child labor, sexual abuse, unethical sourcing, and customer deception. As Nestlé is the producer and seller of all Starbucks retail products, it is also directly responsible for all Starbucks' unethical practices.

Chocolate Sourcing

Nestlé, along with other major chocolate companies like Hershey and Mars, signed the Harkin-Engel Protocol in 2001, pledging to eradicate the worst forms of child labor in their cocoa supply chains. Nearly 20 years after this pledge, Nestlé and other chocolate companies still cannot guarantee that their chocolates are produced without child labor.

As of 2019, Nestlé could trace only 49% of its global cocoa supply back to farms. The company, like others in the industry, has missed multiple deadlines (2005, 2008, 2010) to uproot child labor from their cocoa supply chains. Nestlé supports third-party certification programs (such as Fairtrade, Utz, and Rainforest Alliance), but reports have shown how these methods do not work as long as farmers are not well paid.

In a 2017 report, Nestlé admitted that when auditors came for certifications, children were often hidden from view, and farmers denied their presence. The company, along with others in the industry, has spent millions on initiatives to address child labor, but progress has been slow and insufficient. Nestlé is still unable to fully investigate the depth of the child labor problem in its supply chain, according to some industry consultants.

Sources:

Benjamin Netanyahu stood on a stage here and handed out etched glass trophies to 53 foreign businessmen whose companies had each sunk $50 million or more into the Israeli economy. https://www.nytimes.com/1998/10/18/weekinreview/the-world-israeli-business-flies-like-a-dove.html

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