HealthGap Project

Corporate Accountability in
Public Health
Jahnavi Pericherla
Nestlé’s baby cereals in low- and middle-income countries were found to contain added sugar, unlike those sold in Europe, echoing its past formula marketing scandal. Weak regulations make poorer nations easy targets, highlighting the need for stricter enforcement, consumer education, and stronger oversight to protect public health.
In recent news, Nestlé’s baby products have come under intense scrutiny. Swiss watchdog Public Eye and the International Baby Food Action Network (IBFAN) conducted an investigation that revealed a troubling inconsistency in Nestlé’s baby cereal products. They found that a serving of Nestlé cereal sold in some markets contained at least 6 grams of sugar, about a cube and a half of the sweet stuff. Yet, Nestlé’s baby cereals sold in European and other first-world countries contained little to no added sugar. This apparent double standard has sparked widespread outrage, especially in light of the World Health Organization’s (WHO) warnings about the risks of high sugar intake in children, including obesity and cardiovascular diseases.
A flashback: The discovery of this inconsistency is not entirely surprising as this is not the first time that Nestlé has faced ethical controversies. The most infamous of these dates back to 1974, with a publication by Mike Muller titled “The Baby Killer.” This paper exposed Nestlé’s unethical marketing practices in third-world countries, where they aggressively promoted formula milk to mothers, suggesting it was more nutritious than breast milk. The paper described how the company manipulated mothers into buying its products, employing tactics such as distributing free samples and using salesgirls dressed as nurses. This triggered a decade-long controversy and a fierce battle fought by international NGOs, public health professionals, and religious organizations.
The public outcry eventually led to the WHO’s development of the International Code for Marketing of Breast-Milk Substitutes, which established guidelines for companies like Nestlé, dictating ethical responsibilities in marketing baby formula. After years of resistance, Nestlé eventually complied with these guidelines.
The big question: Why third-world countries? So why do multinational corporations like Nestlé target third-world countries with their ethically questionable products? One reason is simple market economics: these countries often have growing populations, rising demand for consumer goods, and vulnerable customer bases who may not have access to robust awareness and healthcare systems. Offering cheaper, sugar-laden products is an attractive option in markets where strict regulation is lacking. This leads to the second reason: a lack of stringent guidelines and enforcement in these regions. Some European countries have stricter regulations enforced by international organizations, providing a higher level of protection for their consumers.
So, what can governments and policymakers do? The key lies in a combination of advocacy, awareness, and strict monitoring. Governments must invest in public health campaigns in collaboration with national and international bodies to educate consumers about the dangers of high-sugar products and the benefits of breast milk for infants. Additionally, stronger surveillance and enforcement mechanisms are crucial to ensure companies comply with ethical standards. Increased funding for investigations into corporate practices can help identify and address ethical violations more rapidly.
As the Nestlé controversy unfolds, it serves as a powerful reminder of the ongoing need for vigilance and advocacy to ensure that corporate profits do not come at the expense of public health, especially where the big corporations like Nestlé hold enormous market shares around the globe and there could be millions of children who will face the impacts both directly and indirectly.
Sources: euronews. (2024). What is the sugar scandal hitting Nestlé and what happens now? [online] Available at: https://www.euronews.com/health/2024/04/19/what-is-the-sugar-scandal hitting-nestle-and-what-happens-now. Sasson, T. (2016). Milking the Third World? Humanitarianism, Capitalism, and the Moral Economy of the Nestlé Boycott. The American Historical Review, [online] 121(4), pp.1196–1224. doi:https://doi.org/10.1093/ahr/121.4.1196
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