Lausanne, Switzerland

During the annual general meeting (AGM), Nestle's shareholders rejected a proposal which could have seen the company reduce its reliance on unhealthy foods and also cut back on the use of salt, sugar and fats. 

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Nestle held its 157th Annual General Meeting (AGM) on Thursday (Apr  18) at the SwissTech Convention Center in Lausanne. More than 1,000 of Nestle's shareholders attended the AGM in person.

As mentioned in a report by UK-based agency PA, the company had argued that there is "nothing wrong" with people enjoying "indulgent products" in moderation. 

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Around 88 per cent of shareholders voted against the proposals, while 11 per cent voted in favour. About 1 per cent abstained from the vote. 

Nestle has been pressurised by shareholder activists through a coalition led by responsible investment charity ShareAction.

As quoted, the charity's deputy chief executive, Simon Rawson, said: "While the majority of shareholders did not support the resolution, we hope that it has encouraged them to think about the public health impacts of their investments." 

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Controversy related to Nestle 

Nestle has landed in hot water after reports emerged that the world's largest baby food company has been adding sugar and honey to infant milk and cereal products sold in many poorer countries. 

Samples of the product sold in Asia, Africa and Latin America were sent by the campaigners from Public Eye, which is a Swiss investigative organisation, to a Belgian laboratory for testing. 

The International Baby Food Action Network and Public Eye examined the composition of around 100 baby foods sold by Nestlé around the world. 

Experts have advised that infants should not be given honey, as occasionally, it contains bacteria that can produce toxins in a baby's intestines, leading to infant botulism, which is a very serious illness. 

As quoted, Laurent Gabrell, co-author of the Public Eye investigation, said: "By adding sugar to these products, Nestlé's sole aim – and that of other manufacturers too – is to create an addiction or dependency in children, because they like the taste of sugar. And so, if the products are very sweet, they'll be asking for more in the future." 

(With inputs from agencies)