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(Bloomberg) -- Nestle SA said 2017 sales growth will be at the lower half of its forecast after the slowest first-half revenue growth this century.

Sales increased 2.3 percent on an organic basis, the Vevey, Switzerland-based company said in a statement Thursday. Analysts expected 2.7 percent. The company’s forecast for organic sales growth this year is 2 percent to 4 percent.

Chief Executive Officer Mark Schneider is under pressure to prove he’s taking strides to turn around the maker of Nespresso coffee and Gerber baby food after activist investor Dan Loeb revealed a $3.5 billion stake last month, demanding asset sales and higher shareholder returns. The food industry has been struggling with slowing sales as consumers shun packaged food they perceive as unhealthy. Unilever last week said it’s boosting efficiency measures after reporting sales growth that met analysts’ estimates, helped by price increases that offset stagnant volume.

Schneider has started an overhaul by reviewing Nestle’s U.S. confectionery business for a possible sale, as well as announcing a buyback of as much as 20 billion francs in shares.

To contact the reporter on this story: Corinne Gretler in Zurich at cgretler1@bloomberg.net.

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Thomas Mulier

©2017 Bloomberg L.P.

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