Currently browsing posts about: Food-industry-regulation

Worried about the potential personal and economic costs of obesity?  Never mind.  It’s time to view obesity as a business opportunity.

As the press release for a new research report from Bank of America Merrill Lynch, Globesity—The Global Fight Against Obesity, points out:

Increasing efforts to tackle obesity over the coming decades will form an important new investment theme for fund managers…Global obesity is a mega-investment theme for the next 25 years and beyond…The report…identifies that efforts to reduce obesity is a “megatrend” with a shelf-life of 25 to 50 years…BofA Merrill Lynch analysts across several sectors have collaborated to identify the sectors and companies developing long-term solutions.

Given the worldwide increase in obesity, its high prospective costs, and the ever-present threat of government regulation, the report identifies more than 50 global stocks that provide investment opportunities for fighting “globesity.”  These fall into four categories:

• Pharmaceuticals and Health Care: companies taking advantage of the FDA’s increased support for obesity drug development; tackling related medical conditions and needs including diabetes, kidney failure, hip and knee implants; making equipment such as patient lifts, bigger beds and wider ambulance doors.
• Food: companies accessing the $663 billion “health and wellness” market and reformulating portfolios to respond to increasing pressure such as “fat taxes” to reduce sugar and fat levels.
• Commercial Weight Loss, Diet Management and Nutrition: companies pursuing dieting, nutrition and behavioral change—a $4 billion market in the U.S. and growing globally.
• Sports Apparel and Equipment: “This is the longer-term play, but we believe that promoting physical activity will become a key priority for more government health policies.”

Well, that’s one way to look at it.  Public health, anyone?  

The third part of the PLoS Medicine series on Big Food (which I co-edited with David Stuckler) is now out.  Happy Fourth of July!

Here’s the entire PLoS collection of papers on this topic:

Editorial: PLoS Medicine Series on Big Food: The Food Industry Is Ripe for Scrutiny, The PLoS Medicine Editors, PLoS Medicine: Published 19 Jun 2012 | info:doi/10.1371/journal.pmed.1001246

Essay: Big Food, Food Systems, and Global Health, David Stuckler, Marion Nestle, PLoS Medicine: Published 19 Jun 2012 | info:doi/10.1371/journal.pmed.1001242

Essay: The Impact of Transnational “Big Food” Companies on the South: A View from Brazil, Carlos A. Monteiro, Geoffrey Cannon, PLoS Medicine: Published 03 Jul 2012 | info:doi/10.1371/journal.pmed.1001252

Perspective: Thinking Forward: The Quicksand of Appeasing the Food Industry, Kelly D. Brownell, PLoS Medicine: Published 03 Jul 2012 | info:doi/10.1371/journal.pmed.1001254

Policy Forum: Soda and Tobacco Industry Corporate Social Responsibility Campaigns: How Do They Compare?, Lori Dorfman, Andrew Cheyne, Lissy C. Friedman, Asiya Wadud, Mark Gottlieb, PLoS Medicine: Published 19 Jun 2012 | info:doi/10.1371/journal.pmed.1001241

Policy Forum: Manufacturing Epidemics: The Role of Global Producers in Increased Consumption of Unhealthy Commodities Including Processed Foods, Alcohol, and Tobacco, David Stuckler, Martin McKee, Shah Ebrahim, Sanjay Basu, PLoS Medicine: Published 26 Jun 2012 | info:doi/10.1371/journal.pmed.1001235

Policy Forum: “Big Food,” the Consumer Food Environment, Health, and the Policy Response in South Africa, Ehimario U. Igumbor, David Sanders, Thandi R. Puoane, Lungiswa Tsolekile, Cassandra Schwarz, Christopher Purdy, Rina Swart, Solange Durão, Corinna Hawkes, PLoS Medicine: Published 03 Jul 2012 | info:doi/10.1371/journal.pmed.1001253

Pepsi is about to put 8,700 of its worldwide employees out of work.   This might make you think the company is in trouble.

Let’s have some fun with the numbers reported by Reuters in today’s New York Times. 

Pepsi reports increases in:

• Annual dividends: 4%
• Expenditures on advertising: an additional $500 million
• Expenditures on display racks: an additional $100 million
• Fourth quarter profits: from $1.37 billion a year ago to $1.42 billion
• Earnings per share: from 85 cents a year ago to 89 cents
• Revenues: up 11% to $20.2 billion

Let’s get the logic straight here:

• PepsiCo made $1.42 billion in profits last quarter.
• The company’s revenues, profits, and returns to investors are increasing.
• QED: it is adding 8,700 out-of-work people to an already depressed job economy.

Only Wall Street would view Pepsi’s bottom line as problematic and its CEO, Indra Nooyi, as in trouble:

Ms. Nooyi has come under pressure from Wall Street for a stagnant stock price and a lagging North American beverage business. She has been criticized for taking her eye off the core business of sodas to expand into healthier products, such as hummus and drinkable oatmeal.

When it comes to Wall Street, forget about jobs and health.  Only one thing counts: meeting those quarterly growth targets.

Advocates for a healthier food system should not expect much help from food corporations.

They will only be able to help if forced to by public pressure and regulation.

Nature, the prestigious science magazine from Great Britain, has just published a commentary with a provocative title–The toxic truth about sugar—and an even more provocative subtitle: Added sweeteners pose dangers to health that justify controlling them like alcohol.

The authors, Robert Lustig, Laura Schmidt and Claire Brindis, are researchers at the University of California medical center in San Francisco (UCSF).

They argue that although tobacco, alcohol and diet are critically important behavioral risk factors in chronic disease, only two of them—tobacco and alcohol—are regulated by governments to protect public health.

Now, they say, it’s time to regulate sugar.  By sugar, they mean sugars plural: sucrose as well as high fructose corn syrup (HFCS).  Both are about half fructose.

Their rationale?

• Consumption of sugars has tripled over the last 50 years.
• Many people consume as much as 500 calories a day from sugars (average per capita availability in the U.S. is about 400 calories a day)
• High intake of fructose-containing sugars induce metabolic syndrome (high blood pressure, insulin resistance), diabetes, and liver damage.
• Sugars have the potential for abuse.
• Sugars have negative effects on society (mediated via obesity).
• Too much of a good thing can be toxic.

Therefore, they argue, societies should intervene and consider the kinds of policies that have proven effective for control of tobacco and alcohol:

• Taxes
• Distribution controls
• Age limits
• Bans from schools
• Licensing requirements
• Zoning ordinances
• Bans on TV commercials
• Labeling added sugars
• Removal of fructose from GRAS status

In a statement that greatly underestimates the situation, they say:

We recognize that societal interven­tion to reduce the supply and demand for sugar faces an uphill political battle against a powerful sugar lobby, and will require active engagement from all stakeholders.

But, they conclude:

These simple measures — which have all been on the battleground of American politics — are now taken for granted as essential tools for our public health and well-being. It’s time to turn our attention to sugar.

What is one to make of this?  Sugar is a delight, nobody is worried about the fructose in fruit or carrots, and diets can be plenty healthy with a little sugar sprinkled here and there.

The issue is quantity.  Sugars are not a problem, or not nearly as much of a problem, for people who balance calorie intake with expenditure.

Scientists can argue endlessly about whether obesity is a cause or an effect of metabolic dysfunction, but most people would be healthier if they ate less sugar.

The bottom line?  As Corinna Hawkes, the author of numerous reports on worldwide food marketing, wrote me this morning, “there are plenty of reasons for people to consume less sugar without having to worry about whether it’s toxic or not!”

In what Obama Foodorama calls “a fundamental shift in the Let’s Move campaign” Michelle Obama announced in a speech last week that she will now focus on getting kids to be more active.

Apparently, she has given up on encouraging food companies to make healthier products and stop marketing junk foods to kids.

This shift is troubling.  Here’s why:

1.  The shift is based on faulty biology.

To lose weight, most people have to eat less whether or not they move more.   For example, it takes about three miles of walking to compensate for the calories in one 20-ounce soda.

Activity is important for health, but to lose or maintain weight, kids also need to eat less.  Sometimes they need to eat much less.  And discouraging them from drinking sugary sodas is a good first step in controlling body weight.

But eating and drinking less are very bad for business.  Food companies do all they can to oppose this advice.

2.  It undercuts healthy eating messages.

On the one hand, Mrs. Obama says that she disagrees with this assumption: “kids don’t like healthy food, so why should we bother trying to feed it to them.”

But her speech implies that kids won’t eat healthfully unless forced to:

I want to emphasize that last point — the importance of really promoting physical activity to our kids…This isn’t forcing them to eat their vegetables. (Laughter.) It’s getting them to go out there and have fun.

3.  It declares victory, prematurely.

Mrs. Obama says:

Major food manufacturers are cutting sugar, salt and fat from their products. Restaurants are revamping kids’ menus and loading them with healthier, fresher options. Companies like Walgreens, SuperValu, Walmart, Calhoun’s Grocery are committing to build new stores and to sell fresh food in underserved communities all across this country.

Congress passed historic legislation to provide more nutritious school meals to millions of American children. Our schools are growing gardens all over the place. Cities and towns are opening farmers markets. Congregations are holding summer nutrition programs for their kids. Parents are reading those food labels, and they’re rethinking the meals and the snacks that they serve their kids.

So while we still have a long way to go, we have seen so much good progress. We’ve begun to have an impact on how, and what, our kids are eating every single day.  And that is so important. It’s so important.

Really?  I’d say we’ve seen promises from food companies but remarkably little action.

Mrs. Obama’s speech fails to mention what I’m guessing is the real reason for the shift: “Move more” is not politically loaded.  “Eat less” is.

Everyone loves to promote physical activity.  Trying to get the food industry to budge on product formulations and marketing to kids is an uphill battle that confronts intense, highly paid lobbying.

You don’t believe this?  Consider recent examples of food industry opposition to anti-obesity efforts:

• Soda companies successfully defeated efforts to impose taxes on soft drinks.
• Food companies successfully defeated efforts by four federal agencies to set voluntary standards for marketing foods to children.
• Food companies successfully lobbied Congress to pass a law forbidding the USDA from setting standards for school meals regarding potatoes, tomato sauce, and whole grains.  The result?  Pizza tomato sauce now counts as a vegetable serving.
• McDonald’s and  Burger King evaded San Francisco’s new rules restricting toys with kids meals by selling the toys separately for ten cents each.

The political cost of fighting the food industry is surely the reason for the change in Mrs. Obama’s rhetoric.  Now, she agrees that kids won’t eat vegetables unless forced to.

But in March 2010 Mrs. Obama warned Grocery Manufacturers Association:

We need you…to 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….This isn’t about finding creative ways to market products as healthy.

The food industry understood those as fighting words.  It fought back with weapons at its disposal, one of which is to deflect attention from food by focusing on physical activity.   It now has White House endorsement of this deflection.

I’m all for promoting physical activity but the refocusing is a loss, not a win, in the fight against childhood obesity.

I am a member of the editorial board of the Journal of Public Health Policy, which publishes research and commentary on matters that affect international public health.  Dr. Anthony Robbins, one of its editors, and I are calling on authors to submit articles that consider ways to change behavior—not, as is all too common, of individuals but of the food industry.

The journal has published many papers on obesity policies aimed at improving the diet and exercise behavior of individuals.  These may be necessary, but they are not sufficient.  It is now time to deal with the behavior of the food industry.  Food industry profits are

generated by capturing increasingly larger shares of the market and by selling the population more food – and calories –than it needs. In this marketing environment, obesity is collateral damage.

The food industry’s ultimately anti-social behavior – whether conscious or inadvertent – is spreading globally. In higher income countries, it is ubiquitous, whereas in places where people have less disposable income, it is but the camel’s nose under the tent.

Thus, effective strategies to reduce obesity may vary depending on penetration by the industry – and less developed nations may still have more opportunities to avoid obesity, by getting ahead of the curve.

How are countries to do this?

Efforts to control obesity will have to enlist the public to focus on behavior, with a shift from a sole focus on citizens to a new one on the behavior of food corporations…We cannot eliminate the food industry to reverse the obesity epidemic, but we can constrain its anti-social behavior…We encourage authors to reach beyond the kind studies of policies on eating and activity that we receive so frequently.

We have come to believe that research studies concentrating on personal behavior and responsibility as causes of the obesity epidemic do little but offer cover to an industry seeking to downplay its own responsibility.

Instead, we urge authors to submit articles that consider how to understand and change the behavior of the food industry.

As a starting point for thinking about how to approach this topic, we ask: does the industry need to overfeed the population to remain profitable?

Have ideas?  Write them up and submit them to JPHP.  There is no deadline.  The journal will consider submissions whenever they arrive, but sooner is better than later.

Looks like the food industry has just discovered that regulations might be good for business, especially if the rules get passed now while Bush et al.–devotedly against strict regulations–are still in power. Seems to me that regulations do three good things for business: they level the playing field, they instill confidence in consumers, and the are the right thing to do. Here’s what the Wall Street Journal has to say about this new move, and what the New York Times said about it yesterday.