Asia Regional Experience

1. Asia Regional Experience Dr. Arun Gupta 30th Anniversary of the International Code of Marketing of Breastmilk Substitutes Geneva 13th May 2011

2. Overview • What Euromonitor tells us ? • What companies are doing in spite of the World Health Assembly resolutions and National legislations? • What Asia did?

3. Global Packaged Food: Market Opportunities for Baby Food to 2013 September 2008

4. Global Performance Global Baby Food Market Continues to Grow • Baby food global retail value sales will surpass US$31 billion in 2008, a current value increase of 10.5% from the previous year at fixed US$ exchange rates. Source: Euromonitor International

5. Global Performance Toddler Milk Formula Driving Baby Food Market • Toddler milk formula continues to be the best-performing category within the overall global baby food market, and is slated to expand by 17% in retail value in 2008. It will also account for more than 26% of total milk formula value sales in 2008, up from 17% in 2001. • Most of this growth is coming from Asia-Pacific, where sales of toddler milk formula grew by 21% in 2007 to approach US$3 billion (around two thirds of global retail value sales). 2008 will see continued gains for toddler milk formula across the region, with sales nearing US$3.6 billion. • China will again be the star performer in 2008, with overall sales of milk formula rising by 26% to US$3.5 billion and toddler milk growing 31% to US$1.4 billion. • Special baby milk formula continues to be a niche category outside of North America, which will account for 67% of global retail value sales in 2008. • Global retail value sales of prepared baby food will be worth almost US$5.8 billion in 2008. However, the smaller dried (US$3.3 billion) and other baby food (US$1.3 billion) categories are now consistently outperforming it. • Sales of other baby food are concentrated in Western Europe, particularly in Germany, Italy, the UK and Spain. All told, Western Europe accounts for nearly 50% of global retail value. Retail value sales in this category are also growing rapidly in Russia and Poland.

6. Regional Analysis China Excels but Breast Feeding Constrains USA • The US$9.8 billion Asia-Pacific baby food market is dominated by China (US$3.9 billion), where a laissez faire approach to regulation and a recent spike in the birth rate is combining to keep annual value growth at above 25% in 2008. • In Western Europe, retail value growth should hold steady at 5% in 2008, with Ireland and Spain still exhibiting some of the region’s highest growth rates. Toddler milk formula and other baby food remain the best-performing categories. • The rising popularity of breast feeding and a low birth rate will combine to drag North American retail value growth down by a percentage point in 2008, to 5.9%. • Russia, which accounts for roughly half of the Eastern European baby food market, will drive a regional retail value growth rate of 17% in 2008 due to increased affluence and a recovery in the birth rate. Source: Euromonitor International

7. Key Trends and Developments Indian Market Constrained by Regulatory Barriers Source: Euromonitor International • The huge disparity in the retail value of milk formula sales between China and India is mainly due to the significant differences between their official regulatory regimes.

8. Infant formula promotion in India at http://www.hushbabies.com Promotion of formula through discounts Incorrect label Health claims

9. Mead Johnson distributed Gifts to doctors, New Delhi, India 2009

10. Funding research in KEM Pune

11. Government of India letters

12. Government of India letters to stop sponsorships at PGI

13. 14 April 2011

14. One Asia Breastfeeding Partners Forum #7 Vietnam Even on the cover of children’s health book!

15. Promotions in Health Care System The sales promotion girl dress like a nurse What: promotion of Enfagrow A+, Enfakid A+ Who: PT Mead Johnson Indonesia Where: a paeditrician clinic in Jakarta, Indonesia When: April 2010 Violates: Article 6.2. the Code

16. 2. Mother received gift pack from Hospital, Thailand Commercial Hospital Gift Pack With Free Sample Dumex Article 6: Health care system

17. Mother club(0-3 years), Thailand The club activities Child development Nutrition Article 5: The general public and mothers Mead Johnson

18. Labels not in local language Local Afghan pharmacies have most of infant formula imported from neighboring countries(no local language)

19. Section-4A (Obligation to register) Section –5 (labeling violation) Nestle importing and selling products having no registration in Bangladesh and does not have any information in local Bangla language

20. Erecting of bill board in public place near entrance of Zoo, Myanmar

21. ADVERTISEMENT OFFERRING FREE DELIVERY FOR FOLLOW-ON FORMULA – SIMILAC 2 Singapore

22. One Asia Breastfeeding Partners Forum 7 • 15 countries participated • 140 participants

23. Jakarta Declaration • To urgently Develop and/or strengthen legislative, regulatory measures to end promotion of commercial foods for infants and young children, including Ready-to-use Therapeutic Foods, and Ready-to-use Supplementary Foods and Complementary Foods to the public.