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Companies Selling Healthier Food Are Seeing Healthier Profits

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Healthier food healthy profits

A report from the Hudson Institute, a non-partisan policy research organization, shows that healthier food is resulting in healthier profits for the 15 largest food and beverage companies.

The institutes Obesity Solutions Initiative found companies with the most "better for you" products grew faster, had higher profits and superior shareholder returns over the last 5 years.

After analyzing companies including Coke, Pepsi, General Mills, Kellogg’s, General Mills, Nestle, Dannon, Nabisco and Campbell Soup, researchers found companies that sold more “better for you” products reported almost double the profit margin and stock performance.

Experts who did not work on the study were quick to point out that "just because it’s better for you doesn’t mean it’s good for you."

Marion Nestle, author of Food Politics, continued to emphasize, "What people should really be eating is real foods, not packaged foods."

From a business standpoint, the author of Appetite for Profit: How the Food Industry Undermines Our Health and How to Fight Back, says the promising figures may not mean America is starting to eat healthier, writing:

“The higher growth is usually because these are newer products, which tend to do better in growth figures, so it’s somewhat misleading to even say ‘better for you’ products are growing faster when they may just be newer.”

That being said, those behind the study hope the findings will encourage companies to develop more nutritious products due to the growing demand of "better for you" foods.

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