food marketing to children
TRANSCRIPT
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Food Marketing to Children, Childhood Obesity
and the Role of Self Regulation
Maureen Enright, Assistant Director
Childrens Food & Beverage Advertising Initiative
Linda Eatherton, Director of Ketchums Global Food & Nutrition Practice
Pamela Von Lehmden, Director of Ketchum Youth Marketing
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A GLOBAL LANDSCAPEA GLOBAL LANDSCAPE
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The New Yorker 2003
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Factors Shaping ConsumptionFactors Shaping Consumption
Individual &
Developmental
Factors
Family
&
Home
School
&
Peers
Neighborhood&
Community
Marketing
Product, Place,
Price, Promotion
Culture &
Values
Economic Factors
Public Policies
Production,
Distribution, Promotion
Genetics &
Biology
Health
Outcomes for
Children and YouthPhysicalActivity
Diet
Source: IOM
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Landscape Scan:Landscape Scan:
Who is Looking at Food MarketingWho is Looking at Food Marketing
� Media
� White House
� Government agencies
� Dietary Guidelines Advisory Committee
� Academics/Advocacy Groups
� Investors� Parents
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Childhood Obesity in the MediaChildhood Obesity in the Media
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Presidential Proclamation Making SeptemberPresidential Proclamation Making September
National Childhood Obesity Awareness MonthNational Childhood Obesity Awareness Month
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� 2.7: F&B, media and entertainmentindustries should adopt
± uniform nutrition standards, AND
± uniform definitions of what constitutesmarketing
� 2.8: F&B and entertainmentindustries should create on-air adlabeling to distinguish healthy andunhealthy foods
� 2.9: If voluntary efforts fail, FCCshould consider revising rules foradvertising during kidsprogramming
White House Task ForceWhite House Task Force
Report RecommendationsReport Recommendations
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FTCFTC
� Food Marketing Subpoenas
± Issued to 48 companies on Aug. 23
± Responses are due Dec. 1
� New report Summer 2011
± Update on marketing expenditures to kids and
teens ± Evaluation of how self regulation is working
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FTCs 2008 ReportFTCs 2008 Report
� FTC finds $1.6 billion spenton marketing to youth in2006
� Recommends all companiesthat market food to childrenadopt meaningful nutrition-based standards for thatmarketing
± A useful first step would beto join the CBBB Initiative.
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Interagency Group on FoodInteragency Group on Food
Marketing to Children/HR 1105 Marketing to Children/HR 1105
� Agencies: FTC, FDA, CDC, & USDA
� Task: Develop nutrition standards ± For food marketing targeting children < 17, OR
±
When food represents a significant component of the diets of children� Tentative Proposed Standards: Extreme!
± Virtually no processed foods (and NO confections) can meet standards
� Standards in Report to Congress: No legal effect ± Can expect tremendous pressure to adopt voluntarily
�
Timing: David Vladick, BCP Director, FTC says on9
/23
/10 ± Federal Register Notice may be out by end of year
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The Voluntary IWG StandardsThe Voluntary IWG Standards
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FCC Notice of InquiryFCC Notice of Inquiry
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Dietary Guidelines Advisory Committee:Dietary Guidelines Advisory Committee:
An Urgent Need to Focus on ChildrenAn Urgent Need to Focus on Children
� Areas targeting childhood
obesity prevention that
should be addressed include
± Develop and enforce effectivepolicies regarding marketing
of food and beverage
products to children.
Pages B3,6-7.
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Academics andAcademics and
Interest Group ReportsInterest Group Reports
� Well funded ± RWJF dedicating > $5 million for
research
± National Cancer Institute
± California Endowment
� Numerous studies issued ± Health Affairs
± Rudd Center
± Children Now
± CSPI
� More coming ± Rudd Center
± Others
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CSPI Report Card StudyCSPI Report Card Study
(March 2010)(March 2010)
� CSPI graded the food marketing policiesof 128 food and media companies
� 2/3 did not have a policy and receivedan F
� CFBAI participants overall had highergrades than non-participants
� CSPI recommended that all companies
that market foods to kids join CFBAI
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Investors are WatchingInvestors are Watching
http://www.insightinvestment.com/Responsibility/Engagement/consumer_health_and_obesity.asp
³We need tounderstandcompanies¶
strategies foraddressing obesityand related healthissues, and whetherthey are set to gain
competitiveadvantage fromthose strategies.́
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The Landscape of ChildrensThe Landscape of Childrens
Advertising Is ChangingAdvertising Is Changing
� Before (Pre-CFBAI) Almost anything went regardingwhat was advertised
± CARU Guidelines for how to advertise, but not what to
advertise� Few companies had nutrition standards for child-directed
advertising
� No third party accountability on what was advertised
� Now Science-based nutrition standards govern
participants child-directed ads ± BBB oversight provides transparency and accountability
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CFBAI GoalsCFBAI Goals
� Shift the mix of products advertised primarily to kidsunder 12 (child-directed)
± Fewer calories, and lower in fats, sodium, sugars
± More nutrient dense
� Be part of the solution ± Support efforts of parents, schools
� Bring transparency and accountability to participant
commitments ± BBB review ensures soundness & reasonableness
± BBB monitoring & reporting ensures program integrity
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CFBAI RequirementsCFBAI Requirements
as of January 2010as of January 2010
� 100% advertising of only healthier products, or no advertisingcommitment required
� Advertising coverage ±
Traditional measured media: TV, radio, print, Internet-both3
d partyand company-owned
± Digital & mobile media: ads on cell phones, video games rated EC orlabeled as child-directed, DVDs of child-directed G rated movies andsimilar content
± Word of mouth advertising that is primarily child directed
� No product placement in child-directed content
� No advertising to kids in schools (pre-K through 6th grade)
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New: Definition of Advertising PrimarilyNew: Definition of Advertising Primarily
Directed to Children Under 12 Directed to Children Under 12
� Objective: harmonize definitions of child-directed advertising ± Set threshold of 35% audience 2-11
� More rigorous definitions (30% or 25%) okay
� Results to date: partial harmonization ±
3 participants at 50% moved to 35% ± 1 using an index measure moved to 35%
± 1 using multi-factorial analysis added 35% as factor
� Overall: 15/17 using no more than 35% or include 35% in analysis ± Cadbury using 50% threshold will be under Kraft Foods pledge (35%
definition) by 2012 ± PepsiCo uses multi-factorial approach that includes consideration of
audience demographics
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New:NoNew:No Advertising to PreAdvertising to Pre--SchoolSchool
Age Kids PoliciesAge Kids Policies
� Objective: Have all individually adopt this policy (not a
CFBAI requirement)
±
Previously� 4 companies no advertising to 2-11
� 6 companies separate policies on no advertising to kids 2-5
± Now:15 companies no advertising primarily directed to
kids under 12 or six
� 5 added (or codified) pre-school kid ad policies
� 2 others changed standard to 35% from 50%
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CFBAIs 17 ParticipantsCFBAIs 17 Participants
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Self RegulationSelf Regulation an Important First Stepan Important First Step
Not a Magic BulletNot a Magic Bullet
� Some groups dont favor and want regulation
� Others such as FTC want self regulation to succeed
� Supporters favor changes to CFBAI�
Uniform nutrition standards� Uniform audience definitions
� Cover packaging & POS
� All see greater participation as critical to success of voluntaryefforts
�
Why? BBB oversight ensures transparency and accountabilityof companys policies
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Conclusion: Self Regulation isConclusion: Self Regulation is
Critical and BeneficialCritical and Beneficial
� Food marketing to kids is a hot issue that is here to stay
� IWGs tentative proposed standards (as of 12/15/2009) are so impracticalcannot achieve goal to promote kids health
� Self regulation via an independent third party is necessary and a crediblealternative to government regulation
� CFBAI provides leadership & oversight for industry-led program ± Rigorous, meaningful standards
±
Dynamic and forward looking ± Provides an important non-company insider POV
± Other participants insights on common problems helpful
± Groups efforts have stronger impact than individual efforts
± Enhanced public and government relations
± Join us!
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IMPLICATIONS FOR BRAND IMPLICATIONS FOR BRAND COMMUNICATORSCOMMUNICATORS
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Branding Responsibility:Branding Responsibility:
FiveFive Rules of the RoadRules of the Road
Be ParentApproved
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Branding Responsibility:Branding Responsibility:
FiveFive Rules of the RoadRules of the Road
Yet, with Kid
Appeal
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Branding Responsibility:Branding Responsibility:
FiveFive Rules of the RoadRules of the Road
Act Like CaringCousins
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Branding Responsibility:Branding Responsibility:
FiveFive Rules of the RoadRules of the Road
Show TrackRecord to Trust
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Branding Responsibility:Branding Responsibility:
FiveFive Rules of the RoadRules of the Road
Raise Your Hand-
Before Youre
Asked