The Opportunity in Targeting the Malnourished Elderly
In an effort to secure its foothold in the nutrition sector, Nestlé has identified a new market - elderly people who may suffer from malnutrition. Drinks, which claim to fight malnutrition among the elderly, will enter the Swiss market this year. Resource SeniorActiv supplements are said to include protein, calcium and vitamin D to promote muscle strength and prevent bone fractures. The company says that other ingredients promote digestive health.
Nestlé's plan is to "expand Resource SeniorActiv in other European countries, because as many as 40 percent of hospitalized patients are malnourished. About 90 percent of the elderly are deficient in vitamin D, and half don't get enough protein or calcium," the company said.
Chief executive officer Paul Bulcke pledged in 2008 to make Nestlé the world's biggest healthy eating company. Already the world's largest food company, its products include everything from confectionery to its most recent acquisition of Kraft Foods Inc.'s frozen-pizza operations in the U.S. and Canada. The latter is said to contain as much as 70 percent of the daily-recommended amount of saturated fat.
Nestlé Nutrition includes the Jenny Craig weight-loss programs as well as a number of nutrition products aimed at infants, weight management and healthcare.
In addition to the drinks, Nestlé's Revised Mini Nutritional Assessment Short Form (MNA-SF), needs less than four minutes to help medical practitioners "better identify those who would most benefit from oral nutritional supplements."
Commenting on the twin track initiatives, Richard Laube, CEO Nestlé Nutrition, said, "These are concrete actions to tackle a substantial healthcare and social issue. The older population is growing faster than any other segment. Older people are generally vulnerable to malnutrition and can slip into a spiral of muscle and weight loss resulting in fatigue and loss of independence. Targeted nutrition can make a big difference and screening for malnutrition is vital to getting a grip on the issue as a whole."
Discussion Questions: How do you rate the opportunity to provide nutritional products for the elderly? As the boomer population ages, what other food-related opportunities do you see on the rise?
[Author's commentary] With predictions about growth in the worldwide population of older people this century, combined with forecasts of longer-term food shortages, Nestlé may be jumping into a market full of opportunity. Preventing malnutrition in such a large group may also turn them into heroes.