Tesco sets healthy food sales targets after shareholder pressure

(Alliance News) - Supermarket chain Tesco PLC announced Friday targets to offer more nutritious ...

Alliance News 5 March, 2021 | 6:28PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Supermarket chain Tesco PLC announced Friday targets to offer more nutritious foods following pressure from shareholders to take part in efforts to combat obesity.

Britain's top supermarket said it would strive to raise sales of healthy products to 65% of total sales by 2025, up from 58% currently.

It also set 2025 targets for increasing sales of plant-based meat alternatives by four, as well as having its prepared meals contain at least one of the five daily government-recommended fruit and vegetable portions.

In order to reach the goals Tesco said it will make changes to the composition of its products - without changing the taste - to reduce salt, sugar, fat and calories.

The supermarket also said it will strive to ensure the healthy products are not more expensive.

"Customers are telling us they want to eat a more healthy, sustainable diet, but without having to stretch the weekly shopping budget," Tesco Chief Executive Ken Murphy was quoted as saying in a statement.

"We've worked hard to help our customers eat healthily and we're proud of our track record, and it's clear we can do more," he added.

However the announcement followed a resolution submitted by several shareholder for the upcoming annual meeting to force the supermarket to produce more healthier products.

The activist group ShareAction, which coordinated the shareholder action, said it was the first health-based shareholder resolution filed at a UK-listed company.

While there remain questions to be answered about Tesco's pledges, ShareAction said it looks forward to working with Tesco and food manufacturers to meet the challenge of improving diets.

"Tesco's new plans are an important recognition of the role supermarkets play in shaping our diets, at a time when our health has never been more critical," said Jessica Attard, who handles health issues at the group.

She added that "today's news demonstrates the power of investor engagement."

Data released by Britain's National Health Service last year showed that two-thirds of adult men in England were overweight or obese, and 60% of women.

source: AFP

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Tesco PLC 280.80 GBX -1.92

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures