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Nestlé plans to keep its Health Science unit under the leadership of its new CEO, Laurent Freixe, according to chairman Paul Bulcke. Analysts had speculated that the division could be reviewed under the new CEO, but Bulcke stated in an interview that the unit would be retained because it is a promising field with benefits for society. The Health Science unit, which includes medical nutrition, pharmaceuticals, and active nutrition products, recorded sales of $3.77 billion in the first half of 2024. Freixe, who will replace current CEO Mark Schneider on September 1, emphasized the importance of gaining market share and improving performance in his new role. [Extracted from the article]

Oatly, a Sweden-based alternative dairy company, has reported a narrowing of losses in the second quarter, with CEO Jean-Christophe Flatin describing it as a "quarter of solid progress." The company saw its losses decrease by $41.5 million compared to the previous year, while revenue increased by 3.2%. Oatly's North American operation also reported its first full quarter of positive earnings, with $1.2 million in adjusted EBITDA. The company has seen positive signs from its China operation as well. Oatly has adjusted its full-year guidance upwards and remains on track with its cost-saving program and manufacturing facility exits. [Extracted from the article]

The Australian government has accepted all the recommendations from a review of the country's grocery code, aiming to crack down on anti-competitive behavior in the sector. Supermarket groups that violate the updated code may face significant fines. The review found that the current voluntary code fails to address the power imbalance between supermarkets and suppliers, including farmers. The recommendations include making the code mandatory for all supermarkets with an annual revenue over A$5bn, strengthening dispute resolution arrangements, and introducing a whistleblower complaints mechanism. The government plans to prioritize implementing these changes. [Extracted from the article]

Portugal's new government has decided to halt the implementation of Nutri-Score front-of-pack labels, which rank products based on their nutritional value. The previous socialist government had proposed adopting this labeling system, but the current Democratic Alliance center-right government has questioned its legality and expressed concerns about potential confusion for consumers. Nutri-Score has been implemented in several European countries, but it has not yet been approved at the EU level. The decision on which nutrition labeling scheme to recommend at the EU level has been postponed. [Extracted from the article]

According to a report by The Food and Drink Federation (FDF), half of UK food and drink businesses are planning to maintain low levels of investment in the coming year. The FDF is calling for increased collaboration with the government to stimulate private sector investment, which it believes is crucial for long-term food security and growth. The report highlights that investment in the food and drink manufacturing sector has fallen by 30% since 2019, in contrast to a 5% growth in the rest of the manufacturing industry. The FDF attributes this decline to various factors, including Brexit, the pandemic, geopolitical unrest, extreme weather conditions, and inflationary pressures. The report also emphasizes the challenges posed by regulatory burdens and labor shortages. The FDF suggests that strengthening collaboration with government, universities, and research institutions, as well as investing in science and innovation, will enhance the resilience of the food supply chain. The report also raises concerns about the costs associated with the Extended Producer Responsibility scheme and the 'Not for EU' labeling policy. The FDF estimates that implementing the labeling policy could cost the industry £150m and result in ongoing costs of £250m per year. The report identifies growth and innovation as top priorities for the sector, with 84% of businesses aiming to increase UK sales and 53% focusing on new product development. The FDF urges the government to create a favorable climate for capital expenditure and innovation to support a sustainable and resilient food supply chain. [Extracted from the article]

A senior executive at Arla Foods, a Danish dairy company, has called for the dairy industry to modernize its messaging in order to attract consumers. Patrik Hansson, Arla's CMO, emphasized the need for innovation and finding new ways to engage with the next generation. He also highlighted the importance of addressing issues such as obesity and climate change. Hansson believes that the dairy industry has the potential to tackle these problems and called for greater collaboration with non-dairy sectors. [Extracted from the article]

The Science Based Targets Initiative (SBTi), a climate-certification organization, has faced backlash from its own staff over its proposal to allow companies to use environmental attribute certificates to offset emissions from their supply chains. Some employees called for the withdrawal of the offsetting plan and the resignation of SBTi CEO Luiz Amaral and board members who supported the initiative. Amaral responded to the complaints, stating that the SBTi's dedication to science-based decarbonization and standard-setting governance remains unchanged. He acknowledged the concerns but confirmed that the offsetting plan will proceed, with a draft paper to be published in July 2024. The inclusion of carbon offsets in a company's ranking raised concerns about 'greenwashing', but Amaral emphasized that companies cannot buy their way out of taking action and that voluntary standards are important for decarbonization efforts. [Extracted from the article]

Applied Nutrition, a UK sports nutrition business, is focusing on B2B sales and expanding into overseas markets. With support from JD Sports and listings in major US retailers like Walmart, the company is well-positioned to capitalize on the growing interest in health and wellness following the COVID-19 pandemic. Applied Nutrition is also benefiting from the increasing presence of sports nutrition products in supermarkets, as grocers tap into consumer demand for protein and carbohydrate supplements. The company is prioritizing exports, particularly in the US market, which accounts for 50% of global supplement sales. UK sports nutrition brands are trusted worldwide due to their compliance with regulations and high-quality ingredients. Applied Nutrition is considering various options for future growth, including a potential £1 billion flotation. The company sees opportunities for expansion in adjacent categories and is open to white-label partnerships with supermarkets. [Extracted from the article]

PepsiCo has partnered with other organizations to launch the Mega Green Accelerator, aimed at supporting start-ups in the Middle East and North Africa. The accelerator will focus on circular economy solutions, clean energy transition, and climate mitigation technologies, including water and agriculture. Start-ups chosen for the program will receive seed funding, mentorship, and access to prominent business leaders in the region. The initiative aims to address the urgent sustainability challenges in the Middle East, which is warming at a rate twice the global average. PepsiCo has previously launched similar accelerator programs in Europe and Asia Pacific. [Extracted from the article]