by Marion Nestle

Currently browsing posts about: PepsiCo

Aug 22 2013

Soda advertising: Bavaria

In the Munich subway, Marienplatz station, Coca-Cola ads feature bottles with common German (?) names on the labels, in this case Kevin, Tobias, and Sandra.


At the entrance to the tour of the salt mine in Berchtesgaden (definitely worth the visit), Coke (foreground) and Pepsi (far background) sponsor separate outdoor cafes.


Jul 31 2013

Court turns down NYC 16-ounce soda cap; city will appeal

The  NY State Supreme Court, Appellate Division, has turned down the Bloomberg administration’s appeal (New York Statewide Coalition of Hispanic Chambers of Commerce v New York City Dept. of Health & Mental Hygiene).

The court’s decision in this case begins on page 22:

Like Supreme Court, we conclude that in promulgating this regulation the Board of Health failed to act within the bounds of its lawfully delegated authority. Accordingly, we declare the regulation to be invalid, as violative of the principle of separation of powers.

…we find particularly probative the regulation’s exemptions, which evince a compromise of social and economic concerns, as well as private interests. As indicated, the regulatory scheme is not an all encompassing regulation. It does not apply to all FSEs [food service establishments]. Nor does it apply to all sugary beverages. The Board of Health’s explanations for these exemptions do not convince us that the limitations are based solely on health-related concerns (pages 17, 18 of the decision).

OK.  So the city should have made the rule apply to all food service places and all sugary beverages.  Live and learn.

Mayor Bloomberg says the city will appeal:

Since New York City’s ground-breaking limit on the portion size of sugary beverages was prevented from going into effect on March 12th, more than 2,000 New Yorkers have died from the effects of diabetes. Also during that time, the American Medical Association determined that obesity is a disease and the New England Journal of Medicine released a study showing the deadly, and irreversible, health impacts of obesity and Type 2 diabetes – both of which are disproportionately linked to sugary drink consumption. Today’s decision is a temporary setback, and we plan to appeal this decision as we continue the fight against the obesity epidemic.”

The American Beverage Association is pleased.  It’s headline: “Hey New York – Your Beverage Is Still Your Choice!”

We are pleased that the lower court’s decision was upheld.  With this ruling behind us, we look forward to collaborating with city leaders on solutions that will have a meaningful and lasting impact on the people of New York City.

Even if the city loses the final appeal, the 16-ounce soda cap is the writing on the wall for soda companies.

Sales of full-sugar sodas have been falling for years and getting worse for both Coca-Cola and Pepsi.

Cutting down on the portion sizes of sugary drinks is still a really good idea.

Here’s what the news media say about it:

Jun 5 2013

Coke as a broker of peace and conflict

Coca-Cola as a peace broker

I don’t know what to make of Coca-Cola’s recent marketing strategies, as reported in the Washington  Post.   The ad,

“Small World Machines” starts with a relatively straightforward premise: India and Pakistan do not get along so well. It ends with the promise of peace: “Togetherness, humanity, this is what we all want, more and more exchange,” a woman, either Indian or Pakistani, narrates as the music swells. Sounds great. How do we get there? By buying Coke, of course.

The idea is to have two vending machines, one in Lahore and one in New Delhi, each with views of the other.  To buy a Coke, buyers have to cooperate.  Here are photos showing how it works.  And here’s how Coke explains it, with video and slides. 

As the Post explains, this may not be as far-fetched as it seems.

Sharing tasks and short-term, low-risk social interactions are classic conflict resolution tactics, including as a part of the civilian-to-civilian interactions sometimes termed “track two diplomacy.”  Indo-Pakistani tensions could use all the help they can get.

But the Post concludes with an update: 

Deputy foreign editor Karin Brulliard, a former Pakistan bureau chief, alerts me that, per the Wall Street Journal, Pepsi dominates the soda market there. Maybe that’s what’s been holding back peace?

This is not the first time that Coke markets its products as the key to world peace.  Those of you who are old enough might recall the “I’d like to teach the world to sing” video from 1990.

Coca-Cola as a conflict promoter

Who at Coke got the clever idea of producing personalized bottles with 150 popular names—in Israel, of all places?

Oops.  Forgot the 1.5 million Arabs who live there.

Alas, the campaign has caused a huge controversy in the Mideast.

Recall: All this is about selling Coke internationally.  Americans aren’t buying it so much anymore, so overseas it goes.

May 31 2013

Annals of public relations: the food industry vs. obesity

Yesterday was a blitz day for food industry public relations.

PR #1.  Coca-Cola placed a full-page ad in the New York Times: “Beating obesity will take all of us.”

Coke’s promises [with my comments]:

  • Offer low- or no-calorie drinks in every market [but focus advertising on the sugary ones].
  • Provide transparent nutrition information, listing calories on the front of all packages [but per serving, not total for the big ones]
  • Help get people moving [divert attention from the caloric effects of sodas]
  • Market responsibly, including no advertising to children under 12 anywhere in the world [I will believe it when I see it]

“Obesity won’t be solved overnight,” Coke says, but we know that when people come together around shared solutions, good things happen.” 

Like drinking less Coke? 

PR #2.  The food industry’s Healthy Weight Commitment Foundation issued a press release to say that its member companies have more than met their stated goal of reducing 1.5 trillion calories in the marketplace in the United States.   Indra Nooyi, HWCF Chair, Chairman and CEO of PepsiCo, said:

Our industry has an important role to play in helping people lead healthy lives and our actions are having a positive impact…We see continued opportunities to give consumers the choices they’re looking for and to work collaboratively with the public and non-profit sectors on initiatives that enable continued progress.

Really?  Where are the data?  On what basis does the group make this claim?  The press release says that the Robert Wood Johnson Foundation is doing a study but the results won’t be released until the fall.

Hence: Public relations.  As I noted in a previous post on this promise in 2010.

What are we to make of all this?  Is this a great step forward or a crass food industry publicity stunt?*  History suggests the latter possibility.  Food companies have gotten great press from announcing changes to their products without doing anything, and every promise helps stave off regulation.

Oops.  Forgot.  

Addition:  I forgot to post the accompanying report from the Hudson Institute about how low-calorie beverages are driving all the sales growth for soda companies, at least in the US.

Jan 25 2013

Soda industry exploits NAACP and Hispanic Federation in soda cap lawsuit

Who knew that Wednesday’s New York State Supreme Court hearing on the lawsuit filed against New York City’s cap on sodas larger than 16 ounces would turn out to be a debate about race relations?

Let’s be clear.  This lawsuit is about only one thing and one thing only: to protect the profits of Big Soda—mainly, Coca-Cola and PepsiCo.  The lawsuit is funded by their trade association, the American Beverage Association (ABA), at what must be astronomical expense.

But to shift attention away from profit as a motive, the ABA enlisted two organizations of underrepresented groups—the NAACP and Hispanic Federation—to file an amicus brief on behalf of the soda companies.  The brief argues that the soda cap discriminates against citizens and small-business owners in African-American and Hispanic communities.  But it neglects to mention  that both “friends of the court” received funding from soda companies.

The financial arrangements between Big Soda and such groups demand further examination. Fortunately, we have Michael Grynbaum at the New York Times, who explains that:

The obesity rate for African-Americans in New York City is higher than the city average, and city health department officials say minority neighborhoods would be among the key beneficiaries of a rule that would limit the sale of super-size, calorie-laden beverages.

But the N.A.A.C.P. has close ties to big soft-drink companies, particularly Coca-Cola, whose longtime Atlanta law firm, King & Spalding, wrote the amicus brief filed by the civil rights group in support of a lawsuit aimed at blocking Mr. Bloomberg’s soda rules…Coca-Cola has also donated tens of thousands of dollars to a health education program, Project HELP, developed by the National Association for the Advancement of Colored People. The brief describes that program, but not the financial contributions of the beverage company. The brief was filed jointly with another organization, the Hispanic Federation, whose former president, Lillian Rodríguez López, recently took a job at Coca-Cola.

Soda companies have a long history of targeting their marketing efforts to Blacks and Hispanics, as shown in at least one book (and described in one of its reviews).

Last fall, the East Bay Express exposed how the soda industry exploited race issues and used them to divide and conquer in defeating the Measure N soda tax initiative in Richmond, California.

The No on Measure N workers’ paychecks were signed by political consultant Barnes Mosher Whitehurst Lauter & Partners (BMWL), which had been hired by the American Beverage Association….By the time that Big Soda had arrived, the issue of race was already a factor in the campaign. Some opponents of the tax had alleged that it was racist, arguing that it would unfairly harm low-income residents in the city. And the No on Measure N campaign…nurtured that sentiment. Indeed, there is evidence that the beverage association helped keep race at the forefront of the campaign as part of a strategy that exploited Richmond’s existing tensions.

…the beverage industry discovered a winning formula in Richmond last year that it might be able to replicate elsewhere…And if that were to happen, it could drive a wedge through traditional Democratic constituencies in many communities, with blacks and Latinos opposing their longtime political allies — progressives and environmentalists — just like they did in Richmond.

Is a cap on soda sizes discriminatory?  Quite the contrary.

Public health measures like this are about removing health disparities and giving everyone equal access to good nutrition and health.  This makes public health—and initiatives like the soda cap—democratic, inclusive, and anything but elitist.

But I can’t think of anything more elitist, less inclusive, and more undemocratic than suing New York City over the soda cap.

In funding this suit, the soda industry has made it clear that it will go to any lengths at any cost to protect its profitability—even to the point of dragging along with it the very groups that would most benefit from the initiative.

If the American Beverage Association and its corporate members really cared about Black and Hispanic groups, it would stop target marketing,  stop marketing to children, and stop pretending that sugar-sweetened beverages are an important part of active, healthy lifestyles.  It certainly would stop wasting these groups’ time and credibility on anti-public health lawsuits.

Jan 18 2013

Should sugar-sweetened beverages be regulated? NEJM readers vote yes.

As part of an interactive case study and point-counterpoint on regulation of sugar-sweetened beverages, the New England Journal of Medicine (NEJM) conducted a poll of its U.S. and international readers.  The poll elicited responses from 1290 readers from 75 countries.

Overall, 68% of respondents favored government regulation.

High as this percentage is, the average is much lower than percentages from most countries as a result of one outlier—the United States.

Only 58% of U.S. voters in the poll favored regulation.  Everywhere else in the world, the percent in favor averaged 84%.

These results reminded me of change-in-sales figures from a few years ago:

Americans have reduced soft drink consumption, causing soda companies to focus their marketing efforts overseas.  Trends like these explain Coca-Cola’s new obesity ad campaign and Pepsi’s $50 million deal with Beyoncé. 

In America these days, 58% is an impressive majority.  NEJM readers are likely to be physicians, scientists, and health and health policy professionals. I suspect we will be hearing more about this idea.  Stay tuned for this one too.

Dec 20 2012

Beyoncé’s Pepsi deal: Implications for Let’s Move!

In response to my post a couple of days ago about Beyoncé’s Pepsi deal, a reader asks:

How do you think the White House should respond to this deal.? Beyoncé’s song is featured on White House website and a Let’s Move! t-shirt she designed is given to kids at official events.  Will kids make the connection?  Can all that dancing overcome the effects of eating too much?

Let me deal with these one at a time.  First, the problem this poses to Let’s Move!  People concerned about the role of sugary sodas in childhood obesity are appalled by Beyoncé’s deal with Pepsi, so much so that the Center for Science in the Public Interest has organized a campaign to call on her to reconsider.   Unless she does reconsider and withdraws from the deal, her continued involvement with Let’s Move! raises exactly the questions you ask.

Beyoncé has just put Let’s Move! in a painfully awkward conflict of interest.  On the one hand, Let’s Move! promotes healthy diet and activity patterns to reverse childhood obesity.  On the other, its celebrity spokesperson is now going to be pushing Pepsi.  Beyoncé’s image will now appear on Pepsi cans—I hope not wearing her Let’s Move! tee shirt.

What the Beyoncé deal points out is the hazard of partnerships and alliances between public health groups and food companies.

In April 2011, the Washington Post reported that “A White House spokesman said that the first lady and her team weren’t involved in the making of the clip but that Beyonce is “a great example of how people can get involved with ‘Let’s Move!’ and bring this message to more and more young people.”

But now this.  The White House has long maintained that food and beverage companies are not going away and that it is obliged to work with them.  Maybe, but on whose terms?  I see Beyoncé’s $50 million partnership with Pepsi as a slap in the face to Let’s Move!  It puts Let’s Move! in the position of promoting Pepsi or asking Beyoncé to withdraw from having anything to do with it.

As for how kids are going to figure this out:  All kids know is that Beyoncé is a gorgeous mega-star, one who is able to perform vigorous dance moves in astonishingly high heels, and that Pepsi helps her do so or at least doesn’t hurt.  Beyoncé is especially a role-model for African-American kids.  Pepsi targets its marketing to African-American kids.  This looks like a serious conflict of interest.

On the balance between diet and activity: How I wish that physical activity alone could reverse obesity.  Physical activity is terrific for health (I’m not sure about those stiletto heels) but it’s rarely enough to reverse obesity on its own.  To lose weight—and, these days, to maintain healthy weight—kids absolutely must eat less and eat better.

Beyoncé has done Michelle Obama no favor by getting involved with Pepsi.  This is a mess, and not one that can be gracefully fixed.

Dec 18 2012

Let’s Ask Marion: Beyoncé’s Bubbly Branding Falls Flat

It’s been awhile since Kerry Trueman posed an “Ask Marion” question, but here’s her latest Q and my A  as posted on Civil Eats.

By  on 
Q. From the moment Beyoncé strapped on those silly stilettos to bounce around in the “Move Your Body” video, she’s been a wobbly spokesperson for Michelle Obama’s “Let’s Move Campaign.” Now she’s signed a $50 million dollar deal with Pepsi, which will presumably entail her exhorting her millions of young fans to baste their bodies in bubbly high fructose corn syrup.

Apparently, she didn’t get the childhood obesity/diabetes epidemic memo. Do celebrities with Beyoncé’s massive influence on young kids have a moral obligation to consider the horrendous impact of excessive soda consumption in our culture when they mull over megabuck branding opportunities?

A.  From my privileged position as a tenured, full-salaried faculty member at NYU, the answer is an unambiguous yes. Beyoncé will now be marketing sugar-sweetened beverages, products increasingly linked to childhood obesity, especially among minority children.

This linkage is not a coincidence. Pepsi and other makers of sugary sodas deliberately and systematically market their products to low-income, minority children.

Beyoncé will now be part of that targeted marketing campaign.

If Beyoncé’s mission is to inspire young people of any color to look gorgeous and rise to the top, as she has done, she is now telling them that the way to get there—and to get rich—is to drink Pepsi. This untrue suggestion is, on its own, unethical.

Pepsi must think that getting this message out, and putting Beyoncé’s photo on its soda cans, is well worth $50 million.

For PepsiCo, $50 million is trivial. According to Advertising Age (June 2012), PepsiCo sold $66.5 billion worth of products in 2011, for a profit of $6.4 billion. Pepsi sales in the U.S. accounted for $22 billion of that.

PepsiCo’s total advertising budget funneled through advertising agencies, and therefore reportable, was $944 million. Of that amount, $196 million was used to market Pepsi alone. The rest went for Gatorade ($105 million), Mountain Dew ($23 million) and PepsiCo’s many other Quaker and Frito-Lay products.

One other relevant point: half of PepsiCo’s annual sales are outside the United States. Like other multinational food companies, it is focusing marketing efforts on emerging economies. This means that Beyoncé will also be pushing sugary drinks on people in developing countries. PepsiCo just spent $72 million to sponsor cricket tournaments in India, for example.

Fifty million dollars seems like an unimaginable amount of money to me. If PepsiCo offered it to me, I would have to turn it down on the grounds of conflict of interest. But this is easy for me to say, because the scenario is so unlikely.

What $50 million means for Beyoncé I cannot know. Some sources estimate her net worth at $300 million. If so, $50 million adds a substantial percentage. And the Pepsi deal will give her phenomenal exposure.

But from where I sit, Beyoncé has crossed an ethical line. She is now pushing soft drinks on the very kids whose health is most at risk. And her partnership with Pepsi will make public health measures to counter obesity even more difficult.

This is a clear win for Pepsi. And a clear loss for public health.

Beyoncé has now become the world’s most prominent spokesperson for poor diets, obesity and its health consequences, and marketing targeted to the most vulnerable populations.


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