Currently browsing posts about: Food-marketing

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.

Here are some of the latest reports on how food marketing influences eating patterns and obesity.

American University’s Kogod School of Business publishes a business magazine, Kogod Now.  It latest CoverStory takes a tough look at at how targeted marketing of foods and beverages contributes to the obesity crisis, especially among minority children and adolescents.

Cornell University’s Pierre Chandon and Brian Wansink ask the question, “is food marketing making us fat?”  Their review of the research leads them to conclude that a “small steps” approach ought to help reverse obesity.   Recent analyses, however, suggest that reversing overweight is likely to take a lot more than small steps, but it’s worth reading what they have to say about marketing practices.

Two reports from Canada indicate that industry self regulation has little effect on actual food industry marketing practices.  Instead, banning the marketing of junk foods, as has been accomplished in Quebec, works somewhat better.

The American Academy of Pediatrics takes a look at how television watching affects obesity in children.  If kids watch a lot of TV–and they have a TV set in their bedrooms—they are at high risk of becoming obese.  The obvious conclusion?  Get rid of the TV!

It is heartening that so much of the research on obesity these days focuses on changing the food marketing environment.  Now if policymakers would just pay some attention!

Thanks to a reader, Sam Boutelle, I have now been introduced to the Cool School Café.  This is a company that markets special deals on processed food products to school food service directors:

Cool School Cafe® Manufacturer Alliance (CSCMA), founded in 1995, is an industry leader in School Foodservice marketing. CSCMA is a unique resource for you, SFS Directors and purchase decision-makers, to learn about food manufacturers serving the industry plus have the opportunity to earn valuable marketing support for their meal program.

The way this works is that your school joins the program, and CSCMA lets you know about manufacturers’ special offers.  You buy the stuff and get points for everything you buy.  You redeem the points for free stuff.  Clever, no?

And what kinds of products are targeting schools?  Try this, for example:

I’ll bet you never would have guessed that something like this could be a health food!  Zero grams trans fat!  Only 35% sugar by weight!

Let’s hear it for nutritionism in action.  All a company has to do to get its products into schools is to get them to meet USDA’s standards for nutrients.

You think USDA should change from nutrient-based to food-based standards?  Here’s all the evidence you need.

In an article about fast food marketing, the Los Angeles Times explains as clearly as could be why Dietary Guidelines matter so much.  The article is titled “Eat less, U.S. says as fast-food chains super-size their offerings.”

Why would fast food chains want to offer hot dogs, hamburgers, and burritos ranging from 800 t0 1,600 calories each?  How’s this for a candid answer:

The bottom line is we’re in the business of making money, and we make money off of what we sell,” said Beth Mansfield, spokeswoman for CKE Restaurants Inc., which owns the Carl’s Jr. and Hardee’s chains. “If we wanted to listen to the food police and sell nuts and berries and tofu burgers, we wouldn’t make any money and we’d be out of business.

You want to help people stay healthy?  That makes you food police.

If you care about public health, you can expect to be called names.  But that shouldn’t stop you from trying to create a healthier food system.

And thanks to Sheila Viswanathan of the GoodGuide for sending the article.

Eat them like junk food! That’s the slogan of the new, over-the-top advertising campaign for “baby” carrots. I put “baby” in quotes because they aren’t.

I hate to be the one to break this to you but baby carrots are plain old ordinary adult carrots, cut and scraped into baby-size pieces.

Mind you, I’m a nutritionist and we do love carrots. And the CDC says only about one-quarter of Americans eat three servings of vegetables a day.

But $25 million to sell them on the basis of sex (I’m not kidding) or, violence (sigh)?

Well, at least they aren’t marketing these to kids.  For that, we have to go back a few years to the Sponge Bob “baby” carrots of 2006 or so (see below).  I haven’t seen those packages lately.  Guess that idea didn’t work.

Will this new campaign work any better?

[Thanks to Michael Bulger for sending the links.]

The Pop-Tarts store in Times Square (see yesterday’s post) is only the loudest example of innovative food marketing to come out recently.  I’ve been collecting more subtle examples:

Using social media (and getting customers to pay for it): For 99 cents to I-tunes, you can buy an app that gives nutritional information for products at Jack-in-the-Box or at McDonald’s.   As Mark Douglas of Culinate explains: “They want $0.99 to tell you what you probably already know… Watch Out!”

Co-opting health professionals: Michele Simon (author of Appetite for Profit) writes on AlterNet about how PepsiCo hires distinguished health professionals and experts to give a company that sells snack foods and soft drinks an aura of health and wellness.

Co-opting professional organizations: Lisa Young (the Portion Teller) points me to a Webinar on August 25 run by the industry-sponsored School Nutrition Foundation and the Milk Processor Education Program on what is surely an urgent issue for sellers of chocolate (sugar-added) milk: “Keep flavored milk from dropping out of school!”

Deflecting attention from diet: Lisa sends another Webinar notice for September 14, this one for “skills & tools to enhance change in physical activity behavior.”  Its sponsor?

The Coca-Cola Company’s Beverage Institute For Health & Wellness is a Continuing Professional Education (CPE) Accredited Provider with the Commission on Dietetic Registration (CDR) – provider number BF001.

Plain, old-fashioned lobbying: Food Safety News has a nifty report on food company lobbying expenditures (huge), mainly on the food safety bill but also on many other bills that might affect labeling or sales of food products.

I reviewed these methods in my book, Food Politics. A revised edition came out in 2007.  Not much change, alas.

Addition: Attracting school kids: Michele Simon sends this Pepsi partnership with Hy-Vee stores in Iowa.  Parents buy five Pepsi products; Pepsi buys backpacks for their kids.

You have to see New York City’s latest tourist attraction: a Pop-Tarts World Store in Times Square.  OK, M&Ms has a fabulous light display.  OK, Hershey’s has an enormous store filled with chocolate tchotchkes.  But Pop-Tarts?   I think it’s weird to turn Times Square into a food court (with tee shirts) but hey, I’m not in the junk food business.

Kellogg must think it’s worth the exorbitant cost of store frontage in the middle of New York City.  According to the account in the New York Times, a Kellogg spokesman said:

Our long-term hope is to strengthen the bonding between the brand and the consumer, and that has great benefits for the brand.

Others explain that “Just a presence in Times Square can help a company…It [is] a way to project an image of growth and maturity.”

I had no idea that bonds between brands and consumers needed strengthening.  It never occurred to me that Times Square projects an image of maturity.

OK, it’s cute that Kellogg named Pop-Tarts after Pop Art, but Pop-Tarts as a tourist destination?

Check it out and let me know!

Update, August 12: Here is Mark Bittman’s review.

Update, August 16: And here is CNN’s take on it (I’m interviewed, briefly).

Mrs. Obama’s campaign to prevent childhood obesity did not mention food marketing to kids.  But check the latest research.

Researchers at UCLA took a careful look at the correlation between watching commercials on TV and childhood obesity (Their paper is in the February 2010 American Journal of Public Health).  Kids who watch commercials on TV are more likely to be obese than kids who watch non-commercial TV.  Commercials, of course, are largely for junk food and kids see a lot of them.  The authors conclude:

steering children away from commercial television may have a meaningful effect in reducing childhood obesity…The existence of many high-quality, enjoyable, and educational programs available on DVD for all ages should make it relatively easy for health educators and care providers to nudge children’s viewing toward less obesogenic television content [my emphasis].

Relatively easy?  They have to be kidding.  Food commercials are ubiquitous in kids’ lives.

For example, Lisa Sutherland and her colleagues at Dartmouth took a look at the prevalence of food brands (mostly junk foods) in movies from 1996 to 2005 (Pediatrics, February 2010).  There are loads of such placements, and movies aimed at younger kids tend to have the most.

As for industry self-regulation, Kelly Brownell and his colleagues at Yale have plenty to say about how it’s not working and what would be needed to make it work (also in the February American Journal of Public Health).

Michelle Obama may not be able to touch this one, but Congress can.  And it should.