by Marion Nestle

Search results: Coca Cola

Dec 14 2011

Update on marketing to kids

I subscribe to The Lancet, and always enjoy reading its editor’s weekly Offline column.  In October, editor Richard Horton wrote about how  government obesity policy needs to be based firmly on scientific evidence.

And what is that evidence?

On this question, the evidence is utterly clear.  Thanks to the work of the best scientific minds in obesity research, the most reliable evidence shows that the government’s plan should include taxes on unhealthy foods and beverages, front-of-pack traffic-light nutrition labeling, reductions of junk food and drink advertising to children, and school-based programmes to reduce television viewing and sugar-sweetened beverage consumption (Lancet, 2011;378:1451).

If you care about public health evidence, that’s what it shows.  But doing these things goes against the business interests of food companies and they are doing everything they can to oppose such science-based measures.

In the U.S., the Sunlight Foundation has just released a report detailing the amounts of money food companies have spent on lobbying to block federal attempts to set nutritional standards for marketing foods to children (see previous posts).

Big companies such as Nestle, Kellogg, Viacom, McDonalds, General Mills, and Time Warner have indicated on official reports that they have lobbied on the controversial proposed guidelines; all together such companies have reported spending more than $37 million on lobbying this year.

The Sunlight report lists reported lobbying expenses (for example, Coca-Cola $4.7 million, General Mills $660,000).  It also points out that

…Over all public relations were handled by Anita Dunn, formerly communications director at the Obama White House, at the firm SKDKnickerbocker Consulting.

Anita Dunn is of special interest because of her previous position at the White House.  Now she’s working for the not-so-loyal opposition.  Marian Burros reported on this switch for Politico:

Dunn, who served as White House communications director, is a senior partner at SKDKnickerbocker Consulting, which is handling public relations for the food industry’s campaign. Switching sides isn’t uncommon in the incestuous world of Washington consulting and lobbying, and the food industry coalition seeking to scuttle the voluntary guidelines argues that they are actually enforceable regulations in disguise that could lead to billions in lost sales.

Dr. Horton’s comments in Lancet imply that the British government isn’t doing much better.

As for the European Union (EU),  Food Chemical News reported on December 8 that major food companies— McDonald’s, Burger King, Coca-Cola, Danone, Kellogg, Mars, Nestlé, PepsiCo, Procter & Gamble and Unilever, as well as the European Snacks Associations—have just pledged to promote only healthful products on their websites aimed at children under age 12.

By “healthful,” they mean products that meet “better-for-you” criteria.  Food Chemical News cites a study suggesting that European children now see 79% less advertising of really bad junk foods on kids’ TV than they did in 2005, and 29% less across all TV programs.

The study did not say whether sales of those products were down too. If not, this could explain the willingness of companies to extend the voluntary restriction to websites aimed at very young children.

All of this would be much simpler for parents if governments paid attention to the research.  If they did, they would:

  • Tax unhealthy foods and beverages
  • Require traffic-light front-of-pack labels
  • Stop junk food and drink advertising to children
  • Institute programs to reduce television viewing
  • Institute programs to reduce sugar-sweetened beverage consumption

Taken together, these might actually make some progress in reducing childhood obesity.

Dec 12 2011

Food companies expand sales in emerging markets

Publicly traded companies cannot simply make a profit.  They must grow profits and report growth to Wall Street every 90 days.  This requirement is tough on all corporations, but especially tough on those selling food.  People can only eat so much.

To expand sales, food companies desperately seek new markets.  Last week, The Guardian and the Wall Street Journal described how food corporations are marketing processed foods to the poorest inhabitants of developing countries.

According to The Guardian,

Nestlé is using a floating supermarket to take its products to remote communities in the Amazon. Unilever has a small army of door-to-door vendors selling to low-income villages in India and west and east Africa. The brewer SABMiller has developed cheap beers in some African countries as part of a “price ladder” to its premium lager brands, and, as a leading Coca-Cola bottler and distributor, is aiming to double fizzy drinks sales in South African townships.

Last year 39% of acquisition deals by consumer goods companies were in emerging markets, compared with just 1% in 2008, according to the Grocer’s OC&C Global 50 league table.

The Wall Street Journal follows a salesman in South Africa who is “digging for his gold” in poor neighborhoods:

While Nestlé’s usual sales staff focus on filling shelves of big supermarkets, Mr. Mugwambane and 80 other salespeople like him hunt for tiny shops across South Africa that will buy such Nestlé products as baby food and nondairy creamers, often in single-serving packages that appeal to Africa’s price-sensitive customers.

…Nestlé says it expects 45% of its sales to come from emerging markets by 2020, up from roughly 30% now.

From the standpoint of food companies, says The Guardian, this is about “finding innovative ways to give isolated people the kind of choices the rich have enjoyed for years and are providing valuable jobs and incomes to some of the most marginalised.”

Baby food and nondairy creamers?

Maybe selling items like these brings jobs to some people, but it also brings nutrient-poor diets, obesity, and the resulting chronic diseases to those populations.

The ultimate costs will be high.

Oct 19 2011

Consumer groups complain to FTC about PepsiCo’s digital marketing to kids

This morning, the Center for Digital Democracy announced that consumer groups have filed a complaint (and see the appendices) with the Federal Trade Commission against PepsiCo.

Why?  Because of the ways PepsiCo uses digital marketing techniques to push its products to children and adolescents.

These include:

  • Disguising marketing as video games, concerts, and other “immersive” experiences
  • Claiming to protect teen privacy while collecting a wide range of personal information
  • Using viral techniques that violate FTC guidelines

The report points to Pepsi’s Hotel 626 video game as a particularly egregious example.

Also this morning, Public Health Law & Policy released a comprehensive report on the kinds of digital marketing tactics that are now used routinely by fast food, snack food, and soft drink companies. The report identifies specific marketing campaigns from PepsiCo, McDonald’s, and others that exploit kids’ use of digital media.

I can’t wait to see what the FTC does with this.

In the meantime, here’s Michele Simon’s enlightening report on what it’s like to play Hotel 626.

And Lori Dorfman of the Berkeley Media Studies Group sends these case studies on digital marketing to kids:

 

Oct 6 2011

More–a lot more–on food marketing to kids

Video: Today, the Oakland-based Prevention Institute released it’s new 2- minute, everything-you-need-to- know video: We’re Not Buying It: Stop Junk Food Marketing to Kids.  Use it!

Commentary: David Britt and Lori Dorfman have a terrific editorial in The Hill today on why everyone needs to support the government’s proposed voluntary nutrition standards for food marketing to kids.

Newsletter: And I’ve only just discovered the UK-based International Association for the Study of Obesity (IASO)’s weekly news briefing on articles and events in  food marketing to children.

Here is just a sample from last week and this week.  I’ve mentioned some of these in previous posts but it’s great to have them collected in one place:

UK: BBC radio programme on marketing junk food to kids

US: consumer laws can be invoked to protect children from junk food marketing

US: Toys turn healthy foods into ‘happy meals’  for more  click here

India: Ban ki-moon calls upon kids’ processed food makers to act with integrity

US: Packaging gets US high schoolers to pick carrots over cookies

UK: Government rejects calls for ban on junk-food advertising

UK: Alcohol giant set to ‘target children’ through Facebook

Fight about the role of soft drinks at the ADA

Australia: Hungry Jacks to put broccoli on fast food menu

Coca-Cola to invest $3bn in Russia, 2012-2015

Australia: food federation accuses consumer group of promoting unhealthy foods – and uses traffic light criteria to back their argument

US ‘spends $ billions subsidising junk food products’  to view full report Click here

Scientists support the administration’s Inter-Agency Working Group on food marketed to children Click here to view

Some 75 health and marketing experts from the nation’s universities call on President Obama not to abandon the Federal Trade Commission-led nutrition guidelines that would recommend strict limits for marketing foods to children. Click here to view details

 

Jul 26 2011

Thanks to emerging markets, U.S. food companies grow profits

The second quarter financial results are in and food companies are doing great, thanks to sales in developing countries. For example:

McDonald’s: Meatandpoultry.com reports (July 22) a 15% increase in income “boosted by strong sales throughout the world.”  Total revenue for the quarter was $6.9 billion, up 16% from $5.9 billion during the same quarter last year.

PepsiCo: Food Navigator reports an increase in net income to $1.88 billion up 18% from $1.6 billion last year. Despite “challenging conditions in the North American beverage market”… worldwide beverage and snacks businesses accounted for growth along with the acquisition of Russian dairy and juice company Wimm-Bill-Dann.  Sales in emerging markets increased 4% in beverages and 9% in snacks:  “We continue to enjoy robust top-line growth in key emerging markets,” said PepsiCo chairman and CEO Indra Nooyi.

Coca-Cola: Although its North American sales were sluggish, sales increased “due to growth in emerging markets such as China, Russia and Mexico.”  Income rose 18% to $2.8 billion from $2.4 billion last year.  Sales rose 6% in Latin America, 5% in Europe, 7% in Eurasia and Africa, and 7 in the Pacific region.   Growth in China ws 24%, in Russia 17%, and in Mexico 7%.  In contrast, North American volume recorded a growth of a measly 1%.

Americans are turning away from these products.  We already have plenty of obesity.  Now it’s time to export it.

Jul 18 2011

HuffPo mystery solved and no harm done

The mysterious ghostwriting episode I discussed earlier today (see below) is now explained.  Apologies to the Huffington Post.

I received a flurry of messages in response to the post, including an apology from Linda Gibbs, Deputy NYC Mayor for Health and Human Services. She reminds me that we spoke months ago (early May, as it turns out) about my willingness to edit and sign an op-ed about the proposed SNAP ban prepared by her staff that was to be submitted to the New York Times.

I vaguely remember reviewing such a piece and approving its submission.  When I heard that the Times had rejected the piece, I promptly forgot about it.

As far as I can tell from reviewing my sent and deleted messages from Linda Gibbs, none mentioned co-authorship with Geoffrey Canada, and the piece submitted to and published in the Huffington Post does not mention the involvement of the NYC health department.

The press director for Harlem Children’s Zone tells me that the piece was later submitted to two other publications that also turned it down. I was not cc’d on either of those submissions or on the one to the Huffington Post.

Hence my confusion.

For the record, I am happy to have the piece published with my name on it, to be working with the NYC health department and Linda Gibbs, and to be a co-author with Geoffrey Canada, who I very much look forward to meeting one of these days.

And here’s what all the fuss was about:

Does HuffPo use ghostwriters?  “My” piece with Geoffrey Canada!

A colleague congratulated me yesterday on my Huffington Post article—co-authored with Harlem Children’s Zone’s Geoffrey Canada—on SNAP (food stamp) benefits and sodas.

I was amazed to see it.  I don’t recall writing it and I don’t believe I have ever met Mr. Canada, although I would be delighted to do so.  The article does indeed reflect my views but does not read like something I wrote.

So I guess thanks are due to Mr. Canada or to the ghostwriter.  If anyone knows the story behind this, please tell!

Here’s the article:

NYC’s SNAP Sugary Beverage Ban Is the Right Idea

Marion Nestle and Geoffrey Canada

Posted at HuffingtonPost.com: 7/15/11 05:26 PM ET

New York City’s proposal for a two-year pilot to ban the use of food stamps to buy sugar-sweetened beverages is the right idea at the right time. It is a sound approach aimed at minimizing consumption of soda and other beverages stocked with added sugars at a time when we desperately need new interventions to combat the surge of obesity and diet-related disease across the country. A ban would also act as a counterweight to the soda industry’s efforts to solidify its products as part of the typical everyday diet. From our diverse perspectives — informed by a lifetime writing and teaching about food systems and policy, and decades spent helping kids in poverty beat the odds — we join together in a firm belief that this effort must be approved.

Increasingly strong evidence points to sugary drinks as major contributors to obesity and diabetes. The least-fortunate Americans suffer the most, evidenced by health disparities between rich and poor, white and non-white. For example, obesity and Type 2 diabetes are twice as prevalent in New York City’s poorest households as in the wealthiest. And these disparities persist nationwide. Overall, 44 percent of African Americans and 38 percent of Hispanics in the United States are obese, versus 32 percent of whites. Obesity itself increases the risk of diabetes, high blood pressure, cancer, high cholesterol and heart disease, all conditions that disproportionately affect the poor.

New York’s proposal for a two-year pilot project to remove sugar-sweetened beverages from allowable SNAP (Supplemental Nutrition Assistance Program, or food stamp) benefits is based not only on evidence linking these beverages to obesity, but also the fact that sugared drinks have absolutely no nutritional value. Considering that the SNAP program is, both in title and purpose, a nutrition assistance program aimed at combating food insecurity, this in itself is a compelling basis for excluding sugared drinks from the allowable purchases with SNAP dollars. The proposed ban, which would have to be approved by the United States Department of Agriculture (USDA), is in line with the SNAP program’s approach to other non-essential items: the federal government already prohibits use of SNAP benefits for alcoholic beverages, for example. And the WIC (Women, Infants and Children) program, which the USDA also runs, restricts benefits for low-income mothers to only a limited number of nutrient-rich foods.

Some have criticized New York City’s proposal as patronizing to SNAP recipients, but the ban would not stop SNAP recipients from buying sodas. They just wouldn’t be able to use SNAP benefits for them. And, more critically, we must begin to think creatively about mechanisms to change our food environment for the better. The rates of soda consumption in our poorest communities cannot be explained by individual consumer preferences alone, but rather are linked to broader issues of access and affordability of healthy foods in low-income neighborhoods, and to the marketing efforts of soda companies themselves. Four in 10 residents of high-poverty pockets of Harlem, Brooklyn and the South Bronx drink four or more sugary drinks daily, compared with one in 10 Upper West Side residents.*

Certainly, as the 2012 Farm Bill looms, a larger conversation about using federal policy to promote healthful eating is warranted. We should focus on ways to make healthful foods more available to low-income families — for instance, by doubling the value of SNAP benefits when used for fruits and vegetables, or promoting incentives to establish grocery stores and community gardens in inner-city areas. There is no reason that these ideas cannot work in tandem with a policy that eliminates the federal subsidy for soda.

Soda companies hate New York City’s proposal, of course. In 2010 Coca-Cola, Pepsi and the American Beverage Association lobbed $22 million at federal officials, according to the House of Representatives’ Office of the Clerk. This lobbying has killed soda tax initiatives and gotten the industry’s sugar-soaked products into schools (though not here in New York City schools, where they cannot be served). Soda companies reach millions more kids through targeted Internet and social media campaigns. As soda sales in the U.S. have declined, they are increasingly marketing their products to children and youth in low-income areas, and they have successfully co-opted health professional groups with partnerships, alliances and grants. As a result of these efforts, they have created an environment in which it is considered normal in many households to drink sugary drinks all day.

In 2010, SNAP benefits went to more than 40 million people at a total cost of more than $68 billion. According to USDA figures for 2009, approximately six percent of this funding — more than four billion dollars a year — is spent on sugar-sweetened beverages. Given this scale, and the potential health impacts of soda consumption, is time for policy makers to rethink the place of these beverages in a federally funded nutrition assistance program. We hope the USDA will approve New York City’s project.

*Alberti P and Noyes P. Sugary Drinks: How Much Do We Consume? New York, NY. New York City Department of Health and Mental Hygiene, 2011.

Follow Marion Nestle on Twitter: www.twitter.com/marionnestle

Update: 11:00 a.m.

Dear Dr. Nestle,

Apologies for your mistaken attribution in the Geoffrey Canada piece published on Friday. We received an email from the communications director of the Harlem Children’s Zone indicating you were to be bylined on this article. The link to the post now goes to a post bylined just by Mr. Canada.

Sincerely,

Claire Fallon, Associate Blog Editor

The Huffington Post

 

Jun 20 2011

More fun with cause marketing

My post last week about KFC, Pepsi, and cause marketing elicited a lively dicussion along with some further examples.

Ken Leebow of “Feed Your Head” sent this one along with a comment: “Don’t pollute the Earth, but your body: Go for it!”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cara Wilking of the Public Health Advocacy Institute (PHAI) sent this one: Give blood, eat a Whopper.  Cara, by the way, has done her own piece on why organizations that care about health should avoid partnerships with soft drink companies.

 

 

 

 

 

 

 

 

 

 

And Lisa Young sent a note about Coca-Cola’s sponsorship of continuing professional education credits for dietitians, for a course about bone health.  On that same site, if you pledge to LivePositively.com, Coke’s Sprite Zero will donate $1 to the American Cancer Society.

For those of you who insist that these kinds of partnerships raise money for Good Causes, please consider whether soft drinks are good for bone health or whether artificial sweeteners are good for cancer prevention.  The answers may not be in, but the questions are worth asking.

Cause marketing, I submit, is much more about the marketing than it is about the cause.

http://www.chicagotribune.com/sports/smack/chi-110604-smack-graphic,0,5581063.graphicCar
May 23 2011

POM Wonderful vs. the FTC: what this is about

On May 24, an administrative law judge will deal with the matter of the Federal Trade Commission’s (FTC) complaints that health claims made for POM Wonderful pomegranate juice are unsubstantiated by science.

To review:  last September, the FTC complained that the company was advertising its juice with unsubstantiated claims like these:

  • Clinical studies prove that POM Juice and POMx prevent, reduce the risk of, and treat heart disease, including by decreasing arterial plaque, lowering blood pressure, and improving blood flow to the heart;
  • Clinical studies prove that POM Juice and POMx prevent, reduce the risk of, and treat prostate cancer, including by prolonging prostate-specific antigen doubling time;
  • Clinical studies prove that POM Juice prevents, reduces the risk of, and treats, erectile dysfunction.

The FTC argues that these claims are false because POM Wonderful’s studies do not prove what the company claims.  The FTC particularly takes exceptions to the company’s advertisements:

If you want to follow the legalities, the FTC provides a handy summary.

According to FoodNavigator.com, this company must be supporting armies of lawyers:

POM is currently embroiled in a complex web of litigation, having itself launched legal action against the FTC alleging it had exceeded its statutory authority by establishing a two-clinical trial standard to back claims.

It has also filed actions against Coca-Cola Minute Maid, PepsiCo Tropicana and Ocean Spray alleging misleading claims about the contents of their pomegranate-containing juice products.

Separately, POM is itself accused of misleading consumers in a class action lodged in a Florida state court.

Leaving this particular company’s legal strategies aside, at issue is whether food health claims need to be backed up by science.   POM says it has the science.   The FTC says it doesn’t.   I will have more to say about that issue in subsequent posts.

In the meantime, it will be interesting to see what happens at the hearing.  Stay tuned.