Australia’s biggest snack and food brands are under pressure. Consumers want more sustainable products. Governments are tightening regulations. And the climate crisis isn’t going away. In response, companies like Nestlé (makers of Milo), Arnott’s (the force behind Shapes and Tim Tams), and others are rolling out sustainability plans. Some are ambitious. Others are vague. And while the marketing is green, the progress is mixed, leaving the future of the favourite snacks of Australians uncertain.
Nestlé: Cleaning Up Milo’s Footprint
Nestlé is one of the world’s largest food companies, and its Australian arm has been vocal about its sustainability goals, particularly for its iconic products, such as Milo.
In 2022, Nestlé Oceania announced that its Smithtown factory in New South Wales, where Milo is produced, had reached a major milestone. It was using 100% renewable electricity. The company has also committed to making all its packaging recyclable or reusable by 2025. That includes the often-criticised Milo tins, which are now widely recyclable. However, some inner liners and plastic lids remain problematic in specific council recycling systems.
Nestlé is also working to reduce emissions across its entire supply chain. The company has begun collaborating with farmers to reduce dairy emissions, which are one of the largest contributors to Milo’s carbon footprint. It’s a step in the right direction, but critics argue Nestlé’s global supply chains still rely heavily on emissions-intensive processes. The scale of change remains slow.
Arnott’s: Small Moves with Big Brands
The Arnott’s Group, best known for Shapes, Tim Tams, and Jatz, has made sustainability a bigger part of its public messaging in recent years. In 2023, the company released its first Environmental, Social, and Governance (ESG) report. It outlines goals, such as reaching net-zero emissions by 2040 and transitioning to 100% recyclable packaging by 2025.
One practical change already visible to shoppers is the switch to recyclable soft plastics in packaging. However, Australia’s soft plastic recycling systems, particularly following the collapse of REDcycle, aren’t yet capable of handling the volume. While the packaging can be recycled, most of it still ends up in landfills.
Arnott’s has also committed to reducing food waste and sourcing ingredients more sustainably. For example, they’ve joined the Australian Food Pact and aim to halve food waste in operations by 2030. However, they haven’t yet released detailed progress updates, making it difficult to assess their progress.
The Push for Plant-Based Products
Both Nestlé and Arnott’s are expanding their plant-based offerings, which could lower their environmental impact if consumers shift their habits. Nestlé now produces plant-based Milo and other dairy-free options, tapping into the growing market for vegan and lactose-free foods. Arnott’s has also launched more vegetarian-friendly products and reformulated some lines to reduce saturated fats and sugar.
While these moves are often framed as health decisions, they also align with sustainability goals. Plant-based foods generally require less water and produce fewer greenhouse gases. Still, these products make up only a small fraction of total sales. They also often come with more complex packaging, which adds to the sustainability challenge.
Comparing Commitments: Real Action or Greenwashing?
When you line up the two giants side by side, Nestlé appears further along in terms of measurable progress. Its transition to renewable energy at key factories is tangible. Its work with farmers, though limited, also signals a willingness to tackle the root of emissions, not just the packaging.
Arnott’s has been slower to act. Its ESG commitments are solid on paper but less clear in execution. Its reliance on recycling systems that aren’t fully functioning, such as the now-defunct REDcycle, raises questions about whether packaging changes are meaningful or merely cosmetic.
That said, both companies are navigating a difficult environment. Consumer demand for convenience often conflicts with the need for sustainable packaging. Without national recycling reform or stronger infrastructure investment, progress will remain limited.
What About Other Aussie Snack Brands?
Smaller brands like Carmen’s, Freedom Foods, and even supermarket labels like Coles’ “I’m Perfect” snacks are also trying to show eco-credentials. They’re using upcycled ingredients, sourcing locally, or minimizing packaging. These niche efforts show creativity and often outpace the big players in innovation. However, they don’t yet have the market share to make a significant impact at the national level.
The Bottom Line
Australia’s biggest snack brands are increasingly discussing sustainability. Nestlé is making some real progress with Milo’s production and packaging. Arnott’s is setting ambitious targets for Shapes and Tim Tams, but still has work to do in terms of execution.
The road to a truly sustainable snack aisle is long and complicated. For now, progress is uneven. It’s more a patchwork of good intentions than a consistent shift. However, with consumer expectations rising and environmental pressure intensifying, these brands can’t afford to settle for half-measures.
If they want Australians to continue snacking guilt-free, they’ll need to make sustainability a central part of their business practices. Not just a marketing line.