Compliance

Global Impact

Engagement

Solutions

Transparency

Learning

Responsible Marketing:Earning the Right to Engage

Julie Howden, Nutrition and Public Affairs

Senior Advisor Kellogg Asia

Presentation Roadmap

• Why is there a need to engage?• How do companies engage effectively?• Industry Efforts to date• Challenges going forward

Obesity is Driving Change Globally

Why is there a need to engage?

• Rising obesity rates• Broad-based and heightened stakeholder focus on obesity

Current global environment

• WHO 2004 Global Platform• Regional focus sharpens

• Calls for action on many fronts • Industry alignment around issue and solutions

Currently: Significant efforts underway to strengthen and expand self-regulation (e.g., Pledge programs, monitoring, etc.) and globalize commitments

WHO Strategy on Health, Wellness and Physical Activity

• Reassessment of nutrient composition of products

• Responsible marketing to support the strategy esp. to children

• Adequate and understandable product and nutrition information for consumers

• Promote healthy diets and physical activity in line with strategy and national policy

• Public and private partnerships to promote healthy diets and physical activity

ICC Framework for Responsible Food and Beverage Marketing

Communications, 2006

• a global code of practice on food marketing. • Key provisions include:

– the need for substantiation for claims or health benefits

– no encouragement of excess consumption– no representation of snacks as meals– no undermining of healthy lifestyle messages– no undermining of the role of parents.

Company Engagement

Engagement

Part of the culture and across stakeholder groups

Be humble and willing to listen

Earn trust

Global View

Align where possible

Explore and explain when and why you cannot

Compliance

Credible and transparent changes Cultural shifts

Solutions

Recognize what role a company can (or cannot play)

Anticipate the future

Examples

• Food industry engagement with WFA regionally• Organizing via established third parties• Stakeholder dialogue

Engagement

• Introduction of GDAs• Pledge programmes• Participating in government/NGO sponsored dialogue

Examples

Solutions

4. Individual corporate food marketing principles (monitored)

5. Best Practice Promotion through adoption by trade bodies, etc

3. Industry-wide self-regulatory codes for food marketing

2. National self-regulatory frameworks

1. National/regional regulatory frameworks

US Pledge Program

• 14 food and drink companies take voluntary commitments on marketing to children <12 by the end of 2008.

− Restrict advertising to <12s to products that meet nutritional criteria or cease advertising to this group altogether.

− Restrict use of licensed characters to products that meet better-for-you criteria and to websites promoting healthy lifestyles.

− Refrain from advertising in elementary schools.− No product placement in movies or other editorial content

primarily directed to <12s.

• Congressman Ed Markey sent letters to Chuck E. Cheese, Nestle, ConAgra, Dannon, and Yum! asking them to join.

Examples

• Implementation of pledges in the EU, Canada (and moves to do the same in Australia, Asia)

• GDA roll-out globally (Tesco, Kellogg)• Industry coalitions for regional and global issues

Global solutions

Implementation of pledges

Moves towards new regional pledges

In April 2007, Canada’s food and beverage industry announced the launch of the Canadian Children’s Food and Beverage Advertising initiative. Supported by the Canadian Minister of Health, and gathers 16 leading food and drink companies.

The Advertising Standards Canada (ASC) released the details of each participants’ commitmentfor the first year. The commitments cover advertising in print, on television, radio and the Internet. They include:

Campbell Company of Canada, General Mills Canada Corp, Kellogg Canada Inc, Kraft Canada Inc, McDonald’s Restaurants of Canada, Nestle Canada, Parmalat Canada Inc. and Weston Bakeries limited will direct 100% of their children’s advertising to healthier dietary choices in accordance with standards that are consistent with scientific and/or government nutrition standards.

Cadbury Adams Canada Inc, Coca-Cola Canada, Hershey Canada Inc, Janes Family FoodsLtd. Mars Canada Inc, McCain Foods Canada, PepsiCo Canada, and Unilever Canada will not direct advertising to children under 12.

• Incorporate only products that meet the children’s advertising initiative criteria for healthier dietary choices in interactive games primarily directed to children under 12 year of age.

• Restrict the use of their party licensed characters in children’s advertising to products that meet the Children’s Advertising Initiative criteria for healthier dietary choices.

• Not pay for or seek to place food and beverage products in program/editorial content of any medium primarily directed to children.

• Not advertise food or beverage products in elementary schools.

Canadian Food and Drink Industry Advertising Pledge

EU Pledge Program

• No advertising of products to children under 12 years, except for products which fulfill specific nutrition criteria based on accepted scientific evidence and/or applicable national and international dietary guidelines.

• No communication related to products in primary schools, except where specifically requested by, or agreed with, the school administration for educational purposes.

• For TV, Print and Internet with a minimum of 50% of children under 12 years.

Examples

Compliance

• Expand and strengthen SR

• Globalize commitments

• Monitoring, metrics and transparency

“How” We Market to Children

• Kellogg’s existing Worldwide Marketing Guidelines govern all our marketing

Examples: • No advertising to pre-school children• No encouraging excessive consumption• Looking for opportunities to show exercise• Accurate representation of nutrition and health

benefits• TV, radio, print,internet, schools, promotions,

product placement.• Additional limitations imposed by KGNP

Kellogg Global Nutrient Criteria (KGNC) per serving *

Calories ≤ 200Sat Fat ≤ 2g

TFA = 0g (label zero)Sodium ≤ 230mg

Sugar ≤ 12.5g (label 12)

If current global products that are marketed to children don’t meet KGNC, then by end of 2008 we will:1. Innovate the product to meet the KGNC, or

2. Stop marketing the product to children

*Based on 10% of the daily amount of a 2000-calorie diet as referenced in Institute of Medicine (IOM) Reports

“What” We Market to Children

Industry Efforts to Date

Alignment on key issues

Maximize collective impact

Transparency and monitoring

Looking to learn

Challenges going forward• Obesity is multifactorial• Monitoring the environment • Predicting future developments

– (e.g. nanotechnology; new media)• Gaining alignment by ongoing communications with

stakeholders• Global connectivity and alignment• Gaining trust

Photo credits: European Commission, Microsoft Clip Art