The State of the Nation's healthy sales reporting

At the beginning of the month The Food Foundation released its flagship report, The state of the Nation's food industry, detailing the progress major UK food businesses are making to transition to healthier and more sustainable diets. 

Here we explore developments in healthy food sales reporting and its relationship to the government’s 10 Year Health Plan for England. 

Healthy food sales reporting is increasingly seen not just as a transparency exercise, but as a foundational step in shifting the food system towards better population health outcomes. With mandatory reporting now signposted in government policy, and advocated for by many NGOs and industry leaders, it’s important to understand where the food industry currently stands.  

The state of healthy food sales 

In total, 37 businesses were included in the Food Foundation’s report and split into six categories: retailers, manufacturers, wholesalers, casual dining, quick service or fast-food restaurants, and contract caterers. The latter three were then grouped into ‘Out of Home’. 

• 13 of the 37 businesses analysed (35%) have set a healthier food sales-based target and disclose data on sales of healthier versus less healthy foods, up from 9 last year. 

• Eight (22%) businesses established a fruit and vegetable sales-based target and disclose this data. A further three (8%) businesses disclose data on sales of fruit and vegetables but lack a target. 

By sector 

• All of the UK’s 11 major supermarkets and 7 manufacturers surveyed have a target or commitment to increase sales of healthy food. 

• Zero out of 16 out of home businesses have a sales-based target for increasing the sales of healthy food. 

• Bidfood was one of three wholesalers to have a target. 

• While many retailers now disclose the percentage of protein sales for animal and plant-based products, many do not publish targets. Lidl GB is the only major food business with a public facing target for the ratio of plant to animal protein sales, who also discloses data on their progress. Compass Group also has a protein split target, but doesn't disclose their progress against this. 
   

It’s important to note that ‘healthy’ and ‘less healthy’ foods can be defined in different ways across businesses, reflecting varying product portfolios, data capabilities and resources. Most often businesses will use the high fat, sugar and salt (HFSS) score which is based on the UK’s 2004 nutrient profiling model (NPM) however, this is not always the case. This lack of a single, agreed upon definition remains one of the key challenges for industry and policymakers alike. 

IGD opinion  

The data clearly indicates that UK retailers and manufacturers lead in healthier sales reporting and targets. This is largely attributable to the mandatory HFSS legislation, which has had a greater impact on retailers and, subsequently, manufacturers than on other food sectors. It’s also important to note that many retailers implemented aspects of HFSS legislation voluntarily, several years before it became mandatory.  

While there is significant work required for wholesalers and out of home, there are shining examples within these sectors. Compass Group UK&I are aiming to shift the percentage of its products containing animal protein to plant protein by 40% before the end of the decade. As highlighted by The Food Foundation, Wagamama restaurants has maintained a 50% plant-based menu since 2021. Even within manufacturing Samworth Brothers have made significant progress this year by disclosing fruit and vegetable data, animal and plant-based protein sales, and setting a target for healthy food sales. 

IGD has also produced an iterative ‘Framework for population diet change’ which highlights how multiple levers must work together to drive sustained change. By pulling on several of these levers, particularly senior leadership buy-in through ‘Building the value case’, the process of reporting healthier food sales can become more embedded and scalable. If you want to explore how the framework applies to your organisation, you can contact IGD’s Health team: [email protected]. 

A level playing field 

In the absence of mandatory reporting systems, it is empowering that businesses have created health targets and definitions themselves. However this has led to a lack of standardisation between targets, and a large gap forming between businesses and sectors that monitor health, and those that may not. 

Looking ahead, much of the industry discussion has coalesced around the need for a ‘level playing field’, one where a market rewards businesses that are making significant progress towards healthy and more sustainable diets and doesn’t put them at an economic disadvantage to businesses that are slower to make the transition.  

Tesco, amongst others, have called on the government for mandatory reporting for all supermarkets and major food businesses. Mandatory reporting on healthy food sales is one of the first steps of the government’s 10 Year Plan for England, the aim is reporting then leads to target setting to increase sales of healthy food. Together, the new standards will get the food industry closer to this level playing field.  

Crucially, mandatory reporting should be viewed as an enabler of comparability rather than simply a compliance exercise. Consistent metrics allow progress to be measured fairly, support informed target setting, and helps translate reporting into meaningful reformulation and menu changes that can improve population diets over time. 

The immediate need is agreement on consistent standards and metrics. Although the 2004 Nutrient Profiling Model (NPM) is widely used by businesses, the government may opt for a different NPM when formalizing the metrics for mandatory reporting. A change in models would require significant investment and raises the open question of whether it would materially improve health outcomes over the existing framework. A change in models would require significant investment and raises the open question of whether it would materially improve health outcomes over the existing framework. 

Summary 

Healthy food sales reporting is gaining traction among the UK food industry, with retailers and manufacturers demonstrating what is possible when clear policy signals align with commercial incentives. With mandatory reporting signposted in the government’s 10 Year Health Plan, consistent standards and shared learning will be critical to extending progress across all sectors. If implemented well, reporting has the potential to act as a catalyst: supporting better targets, better products and, ultimately, healthier diets.