4 Leach Obesity
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Transcript of 4 Leach Obesity
Confronting the Obesity
Epidemic:The Power of Unlikely
Partnerships
Brock H. LeachMember, PepsiCo Blue Ribbon Advisory Board on Health
Chief Innovation Officer (Ret)PepsiCo, Inc.
October 30, 2007
206PP001_BL01 09-08-06
What Role Should Food Companies Play in Addressing the Obesity Epidemic?
1) Wellness is Already the Single Largest Growth Driver in Food.
2) Consumers Increasingly Understand it’s About Inherently Healthy Ingredients.
3) They Desperately Want Healthier Eating to be Easier and More Rewarding.
4) The Companies that get There First Will Win.
1. Healthier Product Choices:
Reformulation, Innovation and
Marketing
306PP001_BL01 09-08-06
What Role Should Food Companies Play in Addressing the Obesity Epidemic?
1) Wellness is Already the Single Largest Growth Driver in Food.
2) Consumers Increasingly Understand it’s About Inherently Healthy Ingredients.
3) They Desperately Want Healthier Eating to be Easier and More Rewarding.
4) The Companies that get There First Will Win.
2. Healthier Lifestyle Habits:
Creative, Collaborative Partnerships
1. Healthier Product Choices:
Reformulation, Innovation and
Marketing 1) Requires Comprehensive Environment Change.
2) Requires Individual Lifestyle Education.
3) Requires the Support of a Whole Social Movement.
4) All of those Require Vision, Positive Energy and Multi-Sector Collaboration.
406PP001_BL01 09-08-06
We’re Focusing Our Efforts at the Intersection
of Business Interest and Public Interest . . .
Making it Easier and More Enjoyable for Mainstream Consumers
Business Interest:
Public Interest:
Capture Growth Opportunity
Promote Real Solutions
Healthier Product Choices
HealthierLifestyle Habits
++
PepsiCo Strategy: Concerted Action
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PepsiCo Progress Report
Better Nutrition Labeling
— Front of Pack Info— Nutrition Panel
Improvements
Highlight on Pack, Changes in Nutritional Profiles
— Reduction in fat, saturated fat, sugar & calories
Kids Marketing Pledges Being Strengthened around the Globe
— US, Canada, Australia, EU, UK
School Alliances to Promote Health (e.g. Clinton/AHA)
Kids Energy Balance Education and Activation around the world (e.g. Vive Saludable)
Family Activation (e.g. America On The Move ™)
Major New Product Launches in Every Market that meet H&W Criteria
Healthier Product Nutrition Standards Established World-Wide
Healthier Product Innovation Objectives set for all Managers– e.g. 50%+ Europe.
Trans Fat Elimination for savory snacks.
New Oils Programs — Canada, Europe, Australia and US
More Portion-Controlled Offerings
Set “Human Sustainability” Objectives for Reduction in calories, sat fat, sugar, sodium per serving.
1Make it
Easier to Choose
Healthier
3PromoteHealthierLifestyles
4AccelerateHealthierProduct
Development
AccelerateHealthierProduct
Development
ImproveHealthfulness
of ExistingProducts
2Improve
Healthfulness
of ExistingProducts
ImproveHealthfulne
ssof ExistingProducts
Choices Habits
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Reducing Fat Reducing Sugar
Recent New Product Highlights
Adding Positives
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Frito-Lay and Good-For-You Snack Food
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Fruit & Veggie Chips Whole Fruit & Whole Veggie
Flat Earth Snacks: “Impossibly Good”
Fruit & VeggieServings
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Red Tomato RanchFruit and Veggies in Each Serving
Tangy Tomato Ranch
Wild Berry Patch
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Consumer Communication: PepsiCo Smart Spot™ & Kraft Sensible Solution™
™
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Demonstrable
NutritionBenefits
Good-For-You
Good-For-You
Better-For-YouBetter-For-You
Quaker OatsTropicana PP
AquafinaPropel
Baked LaysDiet PepsiPepsi MaxGatorade
Smart Spot™ Makes It Easier to Identify Healthier Choices
PepsiCo Nutritional Varieties
GFY FFY
HealthPerception
Benefits
Indulgent Products with
Health Improvements
Natural &
Organic
0 TransFats/Low Sat
Fat
Diet-Specific
Offerings
Low-Carb
Smart Spot™Qualified Products
1206PP001_BL01 09-08-06
We Launched with National Advertising and Retail Events
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North American Net Sales*
Fun-For-You
Smart Spot™ /Good-For-You
Smart Spot™ /Better-For-You
(Reduced)
19%25%
56%
Smart Spot™ Products are Driving Revenue Growth
44% of Net Sales*+6 Points from 2003
Q3 2007 Sales Mix 2010 Sales Mix Goal
* Net sales includes all Smart Spot™ eligible products.
Smart Spot™:
50%
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Smart Spot™ “Good-for-You” Growth Continuesat Double Digits
+9%
+13%
+5%
+9%
GFY N.A. Net Sales Growth vs. YA
+12%
2002
2003
2004
2006
2005
2007Q2 YTD
+11%
1506PP001_BL01 09-08-06
We Started Looking Outside-In Early
Gro Brundlandt, M.D.
Antonia Demas, Ph.D.
David Heber, M.D., Ph.D.
James Hill, Ph.D.
Gov. James B. Hunt, Jr.
David Kessler, M.D., J.D.
Brock Leach, MBA
Dean Ornish, M.D.
Janet Taylor, M.D.
Kristy Woods, M.D. MPH
Former Director General, WHO
Director, Food Studies Institute
Professor of Medicine & Public Health, UCLA
Professor of Pediatrics & Medicine, Univ. of CO
Former Governor of North Carolina
Dean, School of Medicine, Univ. of CA-- SF
Former Chief Innovation Officer, PepsiCo
Founder, Preventive Medicine Research Institute
Pediatric Psychiatry, Harlem Hospital
Wake Forest University School of Medicine
Blue Ribbon Advisory Board on Health & Wellness
Forming Critical Partnerships . . .
. . . And Broadening Our Understanding
YMCA
Dr. Kenneth Cooper
Dr. Jim Hill
Dr. Dean Ornish
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Marketing Practices Partnerships– U.S. Examples
Schools:
Clinton Foundation - American Heart Alliance
Kids Marketing:
PepsiCo Pledge
Front-of-Pack Labeling:
Keystone ProjectElementary &
Middle Schools:
Water, milk, 100% juice with portion caps
High Schools:
Water, low or no calorie beverages, 100% juices, light juices, milks, sports beverages
Portion caps
50% water or low/no calorie beverages
Co-Regulation
Self-Regulation
Multi-Sector
Kids Under 8:
No Advertising or Marketing Targeting Children Under 8
Kids 8 to12:
Advertising on Smart Spot™ products only.
No advertising or marketing in schools.
No product placement on kids media.
3rd party licensed characters, interactive games with Smart Spot products only.
Goal: Uniform Front-of-Pack Labeling: Icon or GDA with common nutrition standards.
Participants: Retailers, Food Companies, NGO’s, Universities, Federal Agencies.
Learning To-Date: Label guidance systems work.
Targeted Completion:Mid-2008
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Multi-Sector Example: Oxford Health Alliance
Scientific Intervention Study Building on Learning that Comprehensive Community-Based Intervention can Work.— French EPOD, Australian Multinational Study, Tufts, Arkansas,
Directly Affecting 2 Million People.
Focused on Nutrition, Physical Activity and Reduction in Tobacco Use.
Employing Coalition-Building and Education in Schools, Workplaces, Health Centers and Community Centers.
Include Healthy Food Choices and Promotion.
PepsiCo Foundation Provided $5.2 Million Grant for Implementation and Evaluation.
PepsiCo Foundation Funding 4 Community-Based Interventions: China,
England, India, Mexico
1806PP001_BL01 09-08-06
For What Should Food Companies be “Held to Account”?
2. Healthier Lifestyle Habits:
Creative, Collaborative Partnerships
1. Healthier Product Choices:
Reformulation, Innovation and
Marketing
Leading Food and Beverage Companies are Prepared to be
Held to Account for Being Constructive Partners in the
Solution
1906PP001_BL01 09-08-06
Confronting the Obesity
Epidemic:The Power of Unlikely
Partnerships
Brock H. LeachMember, PepsiCo Blue Ribbon Advisory Board on Health
Chief Innovation Officer (Ret)PepsiCo, Inc.
October 30, 2007