According to a new analysis by USDA economists,

A tax-induced 20-percent price increase on caloric sweetened beverages could cause an average reduction of 37 calories per day, or 3.8 pounds of body weight over a year, for adults and an average of 43 calories per day, or 4.5 pounds over a year, for children. Given these reductions in calorie consumption, results show an estimated decline in adult overweight prevalence (66.9 to 62.4 percent) and obesity prevalence (33.4 to 30.4 percent), as well as the child at-risk-for-overweight prevalence (32.3 to 27.0 percent) and the overweight prevalence (16.6 to 13.7 percent).

Soft drink companies know this all too well.  Hence, intense industry lobbying.  In the case of New York State, the lobbying succeeded.  Soda taxes are history (for now).

New York Times 7-2-10

As the New York Times explains:

Final lobbyist filings are not yet in, but estimates of the amount spent…range from $2.5 million, by Mr. Finnegan’s count, to $5 million, by the beverage industry’s count. The American Beverage Association spent $9.4 million in the first four months of the year to oppose New York’s soda tax, according to a search of public lobbying records by the New York State Healthy Eating and Physical Activity Alliance. Most of the money was spent on advertising, media and strategy.

This is a setback, but probably temporary.  Sooner or later, soda taxes will come.  Bring on the research!

Addition, July 5: Harvard researchers have just published a paper in the American Journal of Public Health showing that raising the price of sodas in a hospital cafeteria does indeed discourage sales.

If we are to successfully combat global undernutrition, efforts must be sustained by multiple stakeholders from various sectors. We believe that trust is built through industry’s demonstration of practical actions that improve health, and recognition of these actions by governments and nongovernmental organizations. Only through new and innovative public–private sector partnerships can we truly make a difference.

Three international public health leaders counter with no, it can’t, in an article entitled “The snack attack.“  They point to irreconcilable differences between the the goals of private industry and public health:

The problem lies with food, drink, and associated companies whose profits depend on products that damage public health and that also have damaging social, economic, and environmental impacts. These most of all include transnational companies, of which PepsiCo is one. To succeed, big business must sustain and increase annual turnover, profit, and share price…We suggest that public health professionals see papers such as those of Yach et al. as part of the marketing strategies of transnational food and drink companies…The privatization of public health does not work.

This argument reminds me of the editorial that David Ludwig and I wrote for JAMA late in 2008: “Can the food industry play a constructive role in the obesity epidemic?”  We concluded:

With respect to obesity, the food industry has acted at times constructively, at times outrageously. But inferences from any one action miss a fundamental point: in a market-driven economy, industry tends to act opportunistically in the interests of maximizing profit. Problems arise when society fails to perceive this situation accurately.

While visionary CEOs and enlightened food company cultures may exist, society cannot depend on them to address obesity voluntarily, any more than it can base national strategies to reduce highway fatalities and global warming solely on the goodwill of the automobile industry. Rather, appropriate checks and balances are needed to align the financial interests of the food industry with the goals of public health.

PepsiCo owns Pepsi Cola, of course, but also Gatorade, Frito-Lay snacks, and Aquafina water, among many other brands.  According to Advertising Age (June 22, 2009), PepsiCo earned $43 billion in worldwide sales in 2008. Its product-specific advertising expenditures in 2008, just for “measured media” (meaning run through advertising agencies) were, for example:

• $162 million for Gatorade
• $145 million for Pepsi Cola
• $27 million for Tostitos
• $14 million for Doritos
• $11 million for Fritos.

These figures, staggering as they may be, do not include the amounts Pepsi spends on lobbying, supporting the American Beverage Association’s efforts to fight soda taxes, funding medical research at Yale, or marketing to children and adults in India and other developing countries, as previously discussed on this site.

Is corporate “social responsibility” really responsible?  Or is it just marketing?  And what should be the checks and balances?  You decide.

Added April 17: This comes from a former employee of PepsiCo who asks that I post this anonymously:

I think you probably know that the “marketing dollars,” the share (ads/direct marketing), of companies like Pepsico are only a fraction of what are their actually marketing/promotions budgets.  Many years ago, PepsiCo made a conscious effort to redefine/shift budgets to what is called promotional spending from traditional marketing spending.  In doing so though, they keep the control and allocation of the funds in the hands of the marketing teams.

For Pepsi I know that the $145 million you mention is probably only 25% of what Pepsi “internally” considers consumer marketing spending.  For example, direct to retails “incentive” bonus funds are given for moving volume — those funds are almost entirely funneled into the retails increasing consumer marketing to their direct customers.  There are even examples where they can hide 10′s of millions of dollars at a time by linking event sponsorships (stadiums, etc.) to retailer agreements, thus moving those dollars to long-term “capital expenditures.”  I would guess that for Pepsi alone that that $145 million could be as much as a billion a year for direct and indirect consumer marketing spending.

It is not just obscene how much gets spent to increase volume… since, for companies like PepsiCo, Coke, etc.  Volume is the only way they generate higher profit to their shareholders.  As you say, to expect a corporation to do things for the good of the consumer just shows a misunderstanding of their primary function when they are a for-profit entity.

Kudos for first lady’s anti-obesity campaign

Nutrition and public policy expert Marion Nestle answers readers’ questions in this monthly column written exclusively for The Chronicle. E-mail your questions to food@sfchronicle.com, with “Marion Nestle” in the subject line.

Q: What do you think of Mrs. Obama’s “Let’s Move” campaign against childhood obesity? It doesn’t say much about junk food or food marketing. Isn’t this a cop-out?

A: Skeptic that I usually am, I have nothing but applause for Michelle Obama’s decision to adopt childhood obesity as the first lady’s official cause. Lady Bird Johnson’s legacy is the flowers that bloom throughout the nation’s capital. Obama must want hers to be the flowering of better health for our nation’s children.

Yes, Obama is sensitive to political realities. She calls her campaign “Let’s Move” rather than “Let’s Eat Less Junk Food.” But its goals are crystal clear. Her campaign aims to improve food in schools and eliminate “food desert” areas without access to healthier foods.

The White House organic garden is an integral part of this effort. It is no accident that Will Allen, the charismatic head of Growing Power, the group that runs urban farms in Milwaukee and Chicago, spoke at the campaign news conference. Good food, he said, is about social justice. Every child should have access to good food.

This campaign reveals real leadership on a desperately important issue. Obama brings diverse groups to this table. She presses government agencies to take action. She exacts promises from Congress to make it easier for kids to eat low-cost meals in schools. She got her husband to create a task force to tackle ways to prevent childhood obesity.

In addition, she is asking professional and business groups to do more to help kids eat better. I’m particularly impressed by her speech to the Grocery Manufacturers Association, which represents the makers of processed foods and beverages.

With masterful tact, Obama nonetheless insisted that the association “entirely rethink the products that you’re offering, the information that you provide about these products, and how you market those products to our children.” We parents, she said, want assurance that food companies will stop “teaching kids that it’s good to have salty, sugary food and snacks every day.”

Yes, she avoids saying anything about soda taxes or other measures that might make it easier for kids and parents to make better food choices, but she is bringing childhood obesity to public attention in a fresh, new way.

Consider what her campaign is up against. Preventing obesity means eating less, often a lot less, of processed fast-food, snacks and sodas. This puts the makers of such foods in an impossible bind. Eating less is not good for business.

Short of going out of business, what can such companies do to help? They can reformulate their products to make them a little healthier. They can stop marketing their products directly to children. But this, too, is bad for business – unless it can be used for public relations.

Indeed, food and beverage companies are falling all over themselves – with much fanfare – to reformulate and to promise to restrict marketing that targets kids.

PepsiCo, the maker of soft drinks and Frito-Lay snacks, says it will stop pushing sales of full-sugar soft drinks to primary and secondary schools worldwide by 2012. The new policy is voluntary, encourages rather than mandates, and assures school districts in the United States and abroad that the company will not tell them what to supply.

It keeps vending machines in schools and allows for continued sales of branded sugary drinks such as Gatorade, juice drinks, and sweetened milk.

Kraft Foods says it will reduce the sodium in its foods by 10 percent, also by 2012. This sounds good, but has a long way to go. Kraft’s Macaroni & Cheese (the SpongeBob package) contains 580 mg sodium per serving and two servings per package. A 10 percent reduction takes 1,160 mg sodium down to 1,050 mg. Salt is 40 percent sodium, so this brings salt down to 2.6 grams – about half a day’s upper limit for adults.

Still, these are steps in the right direction. Are they meaningful? You decide.

In the meantime, the Center for Responsive Politics, a nonprofit research group focused on the effect of money on public policy, says soda companies have increased by ten-fold the amount of money they spend on lobbying – no doubt to counter the threat of soda taxes.

What are we to make of these responses? They raise my favorite philosophical question: “Is a slightly better-for-you processed food necessarily a good choice?”

What would be better for preventing childhood obesity would be to make eating real foods the default. These, as defined by Oakland’s Prevention Institute, are relatively unprocessed foods that contain nothing artificial. And they are produced in ways that are good for farmworkers, farm animals and the environment, and are available and affordable to all.

Getting to that point requires policy as well as voluntary actions. Perhaps I’m reading too much into Obama’s campaign, but that’s how I interpret it. I’m supporting it. How about you?

Or, as USA Today puts it, an 18% increase in the price of soda would be associated with a weight loss of 5 pounds per year.

Perhaps as a result of Michelle Obama’s campaign (see yesterday’s post), companies are falling all over themselves – and with much fanfare – to tweak their products.

GROCERY MANUFACTURERS ASSOCIATION (GMA):  By all reports, GMA members applauded Mrs. Obama’s remarks.  GMA says its member companies are already doing what she asked.

Parke Wilde, a professor at the Tufts School of Nutrition (and food policy blogger), gave a talk at that meeting in a session dismissingly titled,  “The New Foodism.”  His comment:

I enjoyed hearing Michelle Obama’s talk, which was well written and delivered and fairly forceful in places. In my afternoon panel, I said grocery manufacturers would find some threatening themes in books and documentaries promoting local and organic and sustainable food, but that there is also much of substance and value. Then, Susan Borra [Edelman Public Relations] and Sally Squires [Powell Tate Public Relations] in the next session said that grocery manufacturers are frequent subjects of unfair criticism and have nothing to apologize for.

Take that, you new foodists!

MARS must think it knows more than the FDA about how to label food packages.  It is developing its own version of front-of-package labels. It volunteered to put calories on the front of its candies; its multi-pack candies ay 210 calories per serving on the front.  That number, however, remains on the back of the small candy store packs.  Mars’ new labeling plans use the complex scheme used in Europe.  I’m guessing this is a bold attempt to head off what it thinks the FDA might do – traffic lights.

KRAFT announces that it is voluntarily reducing the sodium in its foods by 10% by 2012.  Kraft’s Macaroni & Cheese (SpongeBob package) has 580 mg sodium per serving and there are two servings in one of those small boxes: 1160 in total.  A 10% reduction will bring it down to 1050 mg within two years.  The upper recommended limit for an adult is 2300 mg/day.

PEPSICO announced “a voluntary policy to stop sales of full-sugar soft drinks to primary and secondary schools worldwide by 2012.”  In a press statement, the Yale Rudd Center quotes Kelly Brownell saying that “tobacco companies were notorious for counteracting declining sales in the U.S. with exploitation of markets elsewhere, particularly in developing countries:”

it will be important to monitor whether the mere presence of beverage companies in schools increases demand for sugared beverages through branding, even if full-sugar beverages themselves are unavailable…This appears to be a good faith effort from a progressive company and I hope other beverage companies follow their lead…this announcement definitely represents progress [Note: see clarification at end of post].

According to PepsiCo, this new policy brings its international actions in line with what it is already doing in the U.S.  The policy itself is voluntary, uses words like “encourage,” assures schools that the company is not telling them what to do, and won’t be fully implemented until 2010.  It keeps vending machines in schools and still allows for plenty of branded sugary drinks: Gatorade, juice drinks, and sweetened milk for example.

Could any of this have anything to do with Kelly Brownell’s forceful endorsement of soda taxes?

LOBBYING: The Center for Responsive Politics says food companies spent big money on lobbying last year, and notes an enormous increase in the amount spent by the American Beverage Association (soda taxes, anyone?).  For example:

How to view all this?  I see the company promises as useful first steps.  But how about the basic philosophical question we “new foodists” love to ask: “is a better-for-you junk food a good choice?”

OK.  We have the Public Relations.  Now let’s see what these companies really will do.

Addendum: I received a note clarifying Kelly Brownell’s role in the PepsiCo press release from Rebecca Gertsmark Oren,Communications Director,The Rudd Center for Food Policy and Obesity,Yale University:

The Rudd Center did not work with PepsiCo on their initiative to stop sales of full-sugar beverages in schools worldwide, nor did we jointly issue a press release. A statement released by Kelly Brownell in response to PepsiCo’s announcement was simply intended to commend what appears to be a step in the right direction. As Kelly’s statement also mentioned, there is still plenty of work to be done. It’s also worth noting that the Rudd Center does not take funding from industry.

In fact, the Beverage Association is doing a terrific job on reducing soft drink consumption.  Sales of sodas are down by impressive percentages, but so are sales of all drinks sold in school vending machines, as illustrated by this chart from today’s Wall Street Journal.

Source: Wall Street Journal, 3-8-10

This is good news.  The next steps to improve school food?  Here are a few of my favorites:

• Get the vending machines out of schools altogether, those for snacks as well as sodas.
• Get rid of “competitive” foods, those sold in competition with school meals.
• Put some restrictions on the frequency and quantity of foods brought in for birthdays and other celebrations.
• Institute universal school meals.

If kids don’t buy drinks from vending machines, the schools don’t need them, right?

Update March 9.  Thanks to Coca-Cola for sending a copy of the press release and the final progress report summary.

Tomorrow, March 8, The New York Academy of Medicine, the New York State Healthy Eating and Physical Activity Alliance, and the New York State Public Health Association invite you to a symposium:

TAKING ACTION AGAINST OBESITY:
A Sugar-Sweetened Beverage Tax for New York State
Monday, March 8 2010 from 2:00 pm to 3:30 pm
Blue Room, 2nd Floor, Capitol Building, Albany, NY

Speakers include NYS Health Commissioner Dr. Richard Daines, New York City Health Commissioner Dr. Tom Farley, and Dr. Kelly Brownell from the Yale Rudd Center for Food Policy. The event is free.  RSVP to tsanders@malkinross.com

Here’s more than you ever wanted to know about why these taxes are likely to do some good and are worth passing:

• Dr. Daines’ editorial supporting the bill.
• A handy Q and A on the taxes.
• Advertisements from the Alliance for a Healthier New York.
• Talking Points for writing letters.
• More talking points from the New York State Healthy Eating and Physical Activity Alliance.

Convinced?  Want to help?

• Sign the Statement of Support.
• Join Legislative Visits on Wednesday, March 17, in Albany. Contact agarcia@nyam.org to sign up.
• Send a letter to your representatives. Citizen’s Committee for Children has a produced a letter-generator for this purpose.
• Write a postcard using this prototype..

And just for fun, here is testimony from an official of PepsiCola opposing the taxes and a rebuttal from some group (sorry, I don’t know which).

Finally, the Los Angeles Times (February 21) had a terrific graph of the recent sharp increase in lobbying expenditures (in the rebuttal).  Given the mess in Albany, it will be interesting to see how all this goes.  Act now!

• The USDA Secretary’s promise to ask Congress to get junk food out of schools and provide breakfast and lunch to more kids (the New York Times discusses some of the reactions)
• The President’s appointment of a task force on childhood obesity
• The Ad Council’s public service announcements
• USA Today’s neat graphics on rising rates of childhood obesity
• USA Today’s maps of the environment of childhood obesity
• The USDA’s website atlas of the environment of food choice
• The American Beverage Association’s promise to put calories on the front of soft drink packages
• The American Academy of Pediatrics commitment to aid the White House effort
• And the Surgeon General’s Vision that I commented on two days ago

This is big news.  I see much to admire here.  The campaign focuses on kids.  It is sensitive to political realities (it’s called the uncontroversial “Let’s Move,” not the inflammatory “Let’s Eat Less” or “Let’s Eat Better”).  It’s brought a large number of groups on board (the New York Times account emphasizes this point).  It aims to do something useful about school food and food “deserts” (areas without grocery stores).  And it derives directly and explicitly from the White House garden.

I wasn’t able to watch the press conference but I hear that Will Allen was an invited speaker.  Allen is the charismatic and highly effective head of Growing Power, which runs urban farms in Milwaukee and Chicago.  I’m told he said:

• It’s a social justice issue.
• Every child in this country should have access to good food.
• We have to grow farmers.

Yes!

Before the announcement, Marian Burros wrote in Politico.com about the barriers this effort will face (I’m quoted in her article).   And the Los Angeles Times discussed the enormous and enormously successful lobbying effort undertaken by the soft drink industry against soda taxes.  It predicted that the First Lady would not mention soda taxes when she announced her obesity campaign.  Indeed, she did not.

But she did say:

The truth is our kids didn’t do this to themselves.  Our kids didn’t choose to make food products with tons of fat and sugar and supersize portions, and then to have those foods marketed to them wherever they turn.

So let’s call this campaign a good first step and give it a big round of applause.  I hoping everyone will give it a chance, help move it forward in every way possible, and keep fingers crossed that Mrs. Obama can pull it off.

Would you mind writing a blog post on the new surgeon general’s obesity report? …Is there a food politic element to why this has gone under the radar? …I find it ironic that Michael Pollan’s Food Rules generated substantially more press than a report by the United States Surgeon General.

I’m not surprised.  Pollan’s book is a hot best seller (it’s #1 on Amazon books, and for good reason, in my opinion).   The need to prevent obesity and how to do it is not exactly front-page news.  And the new Surgeon General, Dr. Regina Benjamin, is still relatively unknown as a political force.

But let’s give Dr. Benjamin credit for taking on obesity in one of her first public actions: the release of “Vision for a Healthy and Fit Nation.“   The Vision, which comes with a press release and a fact sheet, recommends these actions to prevent obesity:

1. Reduce consumption of sodas and juices with added sugars.
2. Reduce consumption of energy dense foods that primarily contain added sugars or solid fats.
3. Eat more fruits, vegetables, whole grains, and lean proteins.
4. Control your portions.
5. Drink more water.
6. Choose low-fat or non-fat dairy products.
7. Limit television viewing time and consider keeping televisions out of children’s rooms.
8. Become more physically active throughout the day.
9. Breastfeed exclusively to 6 months.

These are all useful suggestions but we have heard them before.  The real issue is how to achieve them.  Here, the report disappoints.

The first two items should have grabbed attention: targeting soda reduction as as the first line of defense against obesity, and eating less junk food (my translation) as the second.

But Dr. Benjamin assigns parents the responsibility for feeding kids healthfully.  Fine, but what about about public health approaches to reducing soda consumption?  To pick a non-random example, soda  taxes are under intense debate right now.  Does Dr. Benjamin weigh in on such approaches?  Alas, no.  Only on the second-to-last page does she summarize suggestions from the Centers for Disease Control and Promotion (CDC), among them:

• Increase availability of healthy, affordable food and beverage choices in public service venues.
• Improve geographic availability of supermarkets in underserved areas.
• Improve access to fresh fruits and vegetables by providing incentives for the production, distribution, and procurement of foods from local farms.
• Limit advertisements of less-healthy foods and beverages.

I wish the report had focused on such ideas, instead of leaving them to an afterthought and personal responsibility. It’s great that the nation’s doctor cares about obesity but her Vision isn’t nearly as tough or realistic as it needs to be.  For that, we need the CDC or the report on food marketing to kids that the Institute of Medicine produced in 2005.

In 2001, Surgeon General David Satcher released the first government report on preventing obesity.  It got press. If this one didn’t, it could well be because it doesn’t break enough new ground.  Surely, it’s high time we got beyond blaming parents and instead started focusing on the need to create a food environment that makes it easier for parents and everyone else to make better food choices and be more active.

I hear that Michelle Obama will soon announce (tomorrow?) a new program to address childhood obesity.  I’m hoping that her program will take on some of the factors in the food environment that make it so difficult for everyone to eat healthfully.

How would you feel if you had to pay $8.50 a gallon for gasoline?

Then why on Earth would you pay that much for water and high-fructose corn syrup?

That’s how much Coke costs in those new 7.5-ounce, 90-calorie cans.  Calorie-counters may appreciate the small size (90 calories) but dollar-counters beware:  We did a little math and it turns out that Coke in the new can costs between 50- and 140-percent more than Coke in the old 12-ounce cans.  Basically, Coke is charging two or three cents more per ounce for Coke in a smaller can—and this from a company that throws temper tantrums when lawmakers propose a one-cent-per-ounce tax on soda!

I once asked a group of retailing executives why the cost of smaller size containers was so high (surely the containers don’t cost that much.  They said: “if customers want smaller portions they ought to be willing to pay for them.”  Oh.