US activist investor Daniel Loeb on Sunday ratcheted up pressure on Nestlé management to raise its financial returns and sell its stake in L’Oréal SA, criticising Nestlé for what Loeb sees as a lacklustre effort to revamp the packaged-food giant’s strategy.

Loeb’s criticisms, contained in a letter to Nestlé’s top management and a 34-page report, suggest that a raft of changes initiated by Nestlé in the past year — including a large share buyback, a marketing deal with Starbucks and investments in rapidly growing companies like Blue Bottle Coffee — have failed to satisfy the investor.