Marketing to kids: Nestle, Dannon non-committal could lead to regulations
Lorraine Heller
Food Navigator
October 12, 2007
Nestle and Dannon, two of the
nation's leading food companies, have declined to join
a widespread industry move to limit advertising of
unhealthy foods to children.
This non-committal at a voluntary level could well
lead to the consideration of new regulations,
according to the chairman of the House Subcommittee on
Telecommunications and the Internet Edward Markey.
Nestle and Dannon, which were amongst the last big
firms to announce voluntary measures to restrict their
marketing of 'junk food' to children, were last month
contacted by Chairman Markey.
Other companies to receive letters in Septemeber were
ConAgra, Chuck E Cheese and Yum! Brands. These five
companies were asked to provide guidance on what
measures they plan to implement, and their timelines
for doing so.
The letters followed the establishment of the Council
of Better Business Bureau's (CBBB) Children's Food and
Beverage Advertising Initiative, which was set up last
year as a voluntary self-regulation program for
industry. Participants adopted nutrition standards for
all marketing aimed at children, and also committed to
devote at least half of their kids' advertising to
promote healthier products, good nutrition and healthy
lifestyles.
ConAgra earlier this month responded to Chariman
Markey, announcing that it would join the initiative.
This is now made up of 13 participants: Cadbury
Schweppes, Campbell Soup, Coca-Cola, General Mills,
Hershey, Kellogg, Kraft, McDonald's, PepsiCo,
Unilever, Masterfoods, Burger King, and ConAgra.
Out of the other remaining companies contacted last
month, Chuck E Cheese agreed to join the CBBB
initiative in part, while Yum! Brands declined.
Chairman Markey yesterday published a statement
declaring that Nestle, Dannon and Yum! Brands have
been "slow to act".
"At a time when our country is facing a serious
childhood obesity crisis, the responses from these
companies raises the question of whether voluntary
industry action will be sufficient to combat this
important public health issue," he said.
Indeed, there have long been signs that if the food
industry as a whole fails to adequately step up to the
issue with voluntary measures, it is highly likely
that new regulations will be implemented to enforce
advertising restrictions.
According to American law, the Federal Communications
Commission (FCC) has three major ways it could address
the problem: it could place a ban on all junk food
ads; it could limit the overall advertising minutes
available for advertising to children; or it could
disqualify broadcasters from renewing their licenses
if children's programs are aired with junk food ads.
In June Chairman Markey chaired a hearing in the House
Subcommittee on Telecommunications and the Internet,
during which he said that in the absence of a proper
response from industry, he is prepared to "press the
FCC to put on the books rules that will protect the
children of our country from these unhealthy
messages".
"The fact that Dannon, Nestlé, and Yum! Brands are
unwilling to restrict marketing to kids is
disappointing, given that 13 of their competitors have
found that it is possible to act in a socially
responsible manner without harming their bottom line,"
said Chairman Markey yesterday.
In their response letters, the three companies all
highlighted their individual efforts to provide
healthy options to children. Dannon said it "has not
made at this time a decision as to whether or not it
will join the CBBB initiative", while Nestle stated
"this is a complex issue and, as a global company,
Nestle is currently evaluating our internal children's
advertising standards around the world. This process
will be completed in 2008."

