Stuffed: The Role of the Food Industry in Obesity Prevention.
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Transcript of Stuffed: The Role of the Food Industry in Obesity Prevention.
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Stuffed:The Role of the Food Industryin Obesity Prevention
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Key Messages
• Food industry holds the keys to solving the obesity crisis
• Your work is commendable, but falling short • Things you can do
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You represent the DefendersI am here to try to help you understand:
How the food industry thinks and makes their decisions
How you can motivate and drive them to doing what’s best for the public good
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Obesity Playing FieldPerceived Roles
Perpetrators
Defenders
Victims
Government Advocates Researchers Health Care community
Consumers
Food & Beverage Cos. Restaurants
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Obesity Playing FieldPrimary Motivations
Perpetrators
Defenders
Victims
Sales Market share Profit
Taste Health (for some)
The public health Advocacy
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Obesity Playing FieldPolitical Skews
Perpetrators
Defenders
Victims
CPG – Republican/Independent Rests – Conservative Wing
Varied
Advocates/Researchers - Liberal/Democrat Public Health Community - Varied
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Current Model
Industry• Consumer health per se is not the primary
driver Must make money to survive and flourish Not rewarded by their shareholders just for going healthier Quarterly earnings pressures push short term agendas
• Historically, industry resistant to change, especially restaurants
• Positions have been passive and not proactive “Offer healthy options” “Consumers responsible for themselves”
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Current Model
Defenders• Skeptical of industry’s willingness to change– Perhaps jaded by industry resistance to proposed
changes
• Lack financial arrows in their quiver to educate the public
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Current Model
Defenders• Skeptical of industry’s willingness to change– Perhaps jaded by industry resistance to proposed
changes
• Lack financial arrows in their quiver to educate the public
• Perceived as absolute/draconian – Good vs. bad foods– Bans– Taxation
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The Defenders
Education Not enough $ to counter marketing budgets of large food
corporations Food Pyramid Guidelines difficult to interpret
Emphasis on ingredients not end products Serving sizes still misunderstood Confusing – worst, not best foods at top (apex)
On-package nutritional labeling required by NLEA has not stemmed tide of rising obesity
Programs pushing fruits & vegetables have not increased frequency and consumption in the last decade
So many well-intentioned initiatives, so few victories
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The Defenders
School vending machine initiatives underway to replace/reduce high calorie beverages and snacks
Trans fats banned in select municipalities and California
Calorie counts on restaurant chain menu boards in New York City 80% of consumer experienced “sticker shock”
Recent Initiatives
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Current ModelConsumers• Consumers challenged to change their behavior– Failed diets– Lack of exercise/movement– Stressed (time; mentally; physically)– Convenience Culture– Nutritionally confused– Most lack the discipline to say “No” (1)
• Only a minority plans/is structured enough to follow through• Not an issue of “Should” – they know they should eat better
(1) Source: Myers-Briggs Type Indicator
Don’t Expect to Solve the Problem
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Results: America Still getting fatter
No state recorded an obesity rate of 20% or higher in 1990; today only 1 state (Colorado) boasts an obesity rate under 20%!
Southern tier in more dire straights Obesity rates in every state except Florida and Virginia @ 25% or more The only 3 states with obesity rates exceeding 30% are in the South
Jury still out on newer initiatives
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Implications
Public health and regulatory initiatives are crucial….but alone will not get the job done
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Epicenter of the Problem
WMCs
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So How Do We Address This?
Solving the obesity crisis requires a whole new mindset
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So How Do We Address This?
Industry must make $...RESPONSIBLY
Solving the obesity crisis requires a whole new mindset
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So How Do We Address This?
Industry must make $...RESPONSIBLY
Defenders focus on guidelines not how-to’s; acknowledge corporations must make a profit
Solving the obesity crisis requires a whole new mindset
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So How Do We Address This?
Industry must make $...RESPONSIBLY
Defenders focus on guidelines not how-to’s; acknowledge corporations must make a profit
Consumers passengers; let them eat “healthier” cake
Solving the obesity crisis requires a whole new mindset
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So How Do We Address This?
Help the food industry profit from selling healthier food rather than penalizing them
They NEED to make a profit (NOT optional) They are the best marketers They have the most money They can deliver the products consumers will buy They have the organizational structure to execute
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“If not out of altruism, then do it for greed”- Former NY Gov. Mario Cuomo
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A Modest Approach
Defenders, with industry/associations, identify what the goals are Set overarching Guidelines With timelines or milestones Provisions for non-compliance
Food industry figures out how to solve the problem
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Primary Goal
Focus on reducing calories across company portfoliosOther offenders like fat/sugars reduced by default
Calories
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(Dietary) Energy Policy
Example Guideline: A company’s weighted # of calories per product across its portfolio must be (X) within 5 yearsComparable to Corporate Average Fuel Economy (CAFÉ)
standards (Average 35 mpg by 2020)
Why? Not enough automobile fuel (oil), too much dietary Why? Not enough automobile fuel (oil), too much dietary fuel (calories) fuel (calories)
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Case Examples
Example #1 - School Vending
Alabama has established Guidelines: limit/remove soft drinks and high calorie beverages replace with low/no calorie beverages
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Case Examples
Example #1 - School Vending
Program Status (Nationally)
Beverage calories shipped to schools down 58% Shift to waters, portion-controlled sports drinks and diet drinks
65% of vending machines changed over
79% of schools in compliance with national Guidelines
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Case Examples
Example #1 - School Vending
Why This Works?
For Industry Keeps them in schools
Brand awareness & trial Source of high margin sales
Substitute beverage profits comparable to soft drinks
For Schools/Students Source of needed revenues Better for the kids
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Case Examples
Example #1 - School Vending
Minneapolis District Test
# vendors increased from 4 to 16 13 bottled water and/or juice (high traffic areas) 2 sports drinks 1 soft drinks (limited hours)
Different pricing levels Bottled water $ 0.75 Juice/sports drinks $ 1.00 Soft drinks $ 1.25
Result: CSD sales down; total vending profits up $4K
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Case Examples
Example #2 – Controlled Calorie Packs
Early evidence that 100 calorie packs are effective
Center for Human Nutrition at the University of Colorado-Denver:
“People ate 120 calories a day less when eating from 100-calorie packs than when they were given the
regular packages”
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Case Examples
Example #2 – Controlled Calorie Packs
Suggest 100-Calorie packs become de rigueur in snack aisles and school vending machines
Win for manufacturers Higher gross margins per package Sustained visibility in schools
Win for schools/students Less calories per purchase Provides revenue stream to schools
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Case Examples
Example #3a – Restaurant Initiatives
“Zero-sizing”
Beverages highly profitable → reason for supersizing
Price (32 oz.) $ 1.19Cost .36Gross Profit $ 0.83
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Case Examples
Example #3a – Restaurant Initiatives
“Zero-sizing”
Calories not a factor regardless of drink size
Opportunity to retain economics of larger-sizes
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Can This Be Implemented?
Key issue: Self-serve beverage dispensers prevalent in QSRs
Solution: New Dispenser Unit 100+ beverage options Promotional dollars for Zero-sizing Special code to only fill with Coke
Zero or other low calorie drinks
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Case Examples
Example #3b – Restaurant Initiatives
Healthier Beverages for Kids
Issues:
1. Beverage options mostly high in calories Accentuated by “free refill” policies
2. Nutrition often lacking
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Case Examples
Example #3b – Restaurant Initiatives
Healthier Beverages for Kids
Branded product as base + Flavor ingredient(s) + Fruit garnish = New Beverage
½ calories of equivalent beverages
Each contains a nutritional element e.g., Calcium; Vitamin C
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Case Examples
Example #3b – Restaurant Initiatives
Benefits
Premium price yields higher profits for restaurant Company secures more occasions to sell its products Parents pleased about child consuming a healthier
beverage Kids happy about the taste + fun
Healthier Beverages for Kids
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Case Examples
Example #3c – Restaurant Initiatives
Capping Combos
Combo meals a major source of excess calories
Value proposition that trades customer up to additional item purchase(s)
Drinks and fries are highly profitable
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Case Examples
Example #3c – Restaurant Initiatives
Capping Combos
Opportunity to “cap” total calories in a Combo Meal
Example Guideline: Cap the calories at 750 Ensures bundled items don’t become “Weapons of Mass Consumption”
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“Weapons of Mass Consumption”Example
Monster Thickburger® 1420 calsLarge Crispy Curls 480 cals Soft Drink (32 oz.) 388 cals
2288 cals
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Case Examples
Example #3c – Restaurant Initiatives
Capping Combos
Example Little Thick Cheeseburger 470 cals Small Crispy Curls 260 cals Diet Dr. Pepper 0 cals
730 cals
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Case Examples
Example #3c – Restaurant Initiatives
Capping Combos
Example Double Cheeseburger 440 cals Small Fries 230 cals Coca-Cola Zero 0 cals
670 cals
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Will Industry Go For This?
Must show them that not trying to truncate their profitsJust want them to lower the calories for the public good
Must even the playing field – Guidelines must apply to all chains/large players
Don’t get caught up in the details
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What Else Can You Do?
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The Southern Block
Consider forging a Southern BlockSouthern Block to effect change All Top 10 Most Obese states are Southern Southern states > 35% of population Fast food and soft drink sales skew disproportionately to Southern states
As a block, can influence what is sold in restaurants, grocery and convenience stores
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The Way to Win-Win
Set overarching Guidelines to lower obesity rate
Package up win-win ideas for business Show industry how they can still make $
Let the corporations figure it out how to implement
If they don’t do what they agree to do….
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• From HarperCollins/Ecco• Available 1/27/09• Special Southern Obesity Summit rate ([email protected])
For More Information on These Ideas
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Stuffed: The Role of the Food Industry in Obesity Prevention
Thank You