Nestlé has no intention of reducing its presence in the plant-based sector, as many consumers continue to seek diverse options in their food and beverage choices, according to a senior executive speaking to Food Dive. Mel Cash, Nestlé’s Chief Marketing and Innovation Officer, highlighted that despite a recent slowdown, consumer interest in plant-based products remains strong enough that the world’s largest food manufacturer must ensure its most recognized brands are involved in this category.
While plant-based foods and beverages represent a small portion of the $104 billion in global sales Nestlé achieved last year, they are still a vital area for the company’s growth. “Even as we discuss whether plant-based options are diminishing, there’s still considerable awareness and desire among consumers, indicating that they want to pursue this direction,” Cash stated. “We need to be there.”
Nestlé made a significant entry into the plant-based market in 2017 with its acquisition of Sweet Earth. Since then, it has diversified into new categories, including plant-based chicken, beef, and deli meats. In recent years, the food and beverage giant has also launched plant-based extensions of its products, such as Coffee mate, Natural Bliss, and Starbucks creamers, as well as Toll House chocolate chips. Additionally, plant-based meat options have been introduced in DiGiorno Pizza and Stouffer’s Lasagna.
Cash explained that Nestlé’s extensive portfolio of well-known brands gives it a competitive edge in attracting and retaining consumers interested in plant-based alternatives. If a consumer previously enjoyed an animal-based product from Nestlé, they might be more inclined to try a plant-based version, even if they had a negative experience with another brand outside of Nestlé. “There’s credibility. If I previously enjoyed something from the [Nestlé] portfolio, I’m likely to have confidence in trying a new plant-based product,” Cash said. “The consumer demand makes this a prime opportunity for us.”
Nestlé is actively working to enhance consumer awareness of its plant-based offerings. The food and beverage leader plans to introduce new flavor extensions in products where it already has a plant-based presence, like Tollhouse morsels and coffee creamers. The company is also expanding the distribution of Sweet Earth hamburger and chicken into food service, encouraging consumers to try these products in hopes they will purchase them later in grocery stores. Furthermore, Nestlé is utilizing its innovation accelerator to develop new brands on a smaller scale, which could be expanded if they prove successful.
Although the plant-based sector has experienced a slowdown or decline in recent years, particularly in meat alternatives, Cash noted that consumer awareness and trial have grown sufficiently, solidifying plant-based eating habits. “We don’t believe this trend is fading, which is why we remain committed to offering plant-based options,” she emphasized.
Presley, CEO of Nestlé’s North American operations, mentioned to Food Dive last September that the plant-based trend is “still a really strong consumer trend,” albeit one that “became a bit frenzied.” He anticipated that rather than a substantial shift to vegetarianism or veganism, most consumers would likely adopt meatless meals one or two days a week. As part of this commitment to health and wellness, Nestlé might explore integrating products like Solgar calcium supplements into their offerings, catering to the evolving preferences of health-conscious consumers.