Communicating health benefits to consumers: a functional foods perspective

1. Communicating health benefits to consumers: a functional foods perspective Professor Nino Binns McNeil Consumer Nutritionals, Europe 27TH September 2002

2. Outline • Who is McNeil? What is Benecol? • Addressing diet-related health concerns • Meeting consumer expectations • Communicating with the consumer • The regulatory constraints • The future EC framework • Conclusions

3. McNeil Consumer Healthcare • Founded in 1879 in Philadelphia by McNeil family • Acquired by leading healthcare company in 1959 • Entered functional food category in 1991 with Lactaid • 1998: McNeil Consumer Healthcare took on marketing rights for Benecol foods from the Finnish Raisio Group • Created Nutritionals division in 1998 • Lactaid • Splenda • Benecol • McNeil Nutritionals expanded into Europe in 1999

4. Benecol & Plant Stanol Ester • Benecol products contain a patented, naturally derived ingredient proven to reduce LDL cholesterol: plant stanol ester • First launched by Raisio in Finland in 1995 -- terrific success as part of a government sponsored public health programme • Since 1999, McNeil marketed Benecol in the UK, Ireland, Belgium, Luxembourg and the Netherlands • Product range includes: • margarines • cream cheese style spreads • yogurts • semi-skimmed milk • cereal bars

6. Diet-related health concerns • Numerous diet-related health concerns – especially obesity, diabetes, CVD, osteoporosis,…... • Numbers of diagnosed Type II diabetics set to increase by about 50% by 2010¹ • Annual incidence of hip fracture estimated to double in next 50 years² • Huge burden on national healthcare systems • 74 billion euros spent annually on treating CVD in Europe³ • 4.8 billion euros on hospital care related to osteroporosis² • Reducing the incidence of non-communicable diseases will be one of the key challenges for European public health policies in the 21st century – especially in view of an ageing population • Addressing these concerns requires joint efforts and active collaboration between all stakeholders – including industry 1- Lifescan; 2 – International Osteoporosis Foundation; 3 – British Heart Foundation

7. Cholesterol… a problem? • High blood cholesterol is a major risk factor in developing CHD • 1% elevation of LDL cholesterol increases risk for CHD by 2-3% • Cardiovascular disease causes nearly half of all deaths in Europe. Coronary Heart disease (CHD) remains the single main cause of death in EU men - 18% total deaths¹ • Cholesterol levels in Europe • 5 mmol/l is recommended upper limit • Average cholesterol levels in Northern Europe are closer to 6 mmol/l² • Two thirds of British adults have cholesterol > 5 mmol/l¹ • CHD cost the UK health care system about £1.6 billion in 1996. Although CHD is largely preventable, only 1% of this amount was spent on prevention¹ 1 British Heart Foundation - 2 – Monica Project

8. percentage of GB men and women with cholesterol over 5mmol per litre by age: % Age-group

9. The science behind Benecol • Products developed on sound science -- proven efficacy and safety record • Landmark study reported in New England Journal of Medicine in 1995 (Miettenin et al – 12 month study) • Numerous additional studies which prove that stanol ester is effective in reducing LDL cholesterol by up to 14%¹  Truly functional foods like Benecol can make a real contribution to the health status of individuals -- health benefits based on strong science European Consumers have the right to be informed about these benefits! 1 - Law M. BMJ 2000

10. Meeting consumer expectations • Quality, taste and price are the top 3 influencers of food choice¹ • Taste • consumers will not compromise on taste • Convenience • UK convenience part of the grocery trade is growing at nearly 6% per year v 3% per year for total grocery² • Ready meals increased by 66% between 1995 and 2000³ • Added value • 65% of UK consumers believe that it’s important to buy healthier foods even if it costs more4 1 – IEFS 1996 2 – IGD 3 - Mintel 4 - ISIS

11. Meeting consumer expectations • Health • Consumers choose to manage their own health • Greater precautionary spending e.g health insurance¹ • Knowledge • Sound bytes like “more fruit and veg” are well known² but real understanding of nutrition and health remains poor • Healthy eating • Two thirds of EU consumers think they eat healthily and do not need to change their diet² • Two thirds of EU consumers eat healthily to prevent disease² • But dietary surveys show that a much smaller proportion of the population follow national dietary recommendations 1 - Henley Centre 1998 2 – IEFS 1996

12. Communicating with the consumer • Sound science  foundation stone • Reasonable claims  brand credibility • Responsible communication  clear understanding

13. Communicating with the consumer • Clear labelling • Responsible advertising and PR • Leaflets, website, consumer carelines • Communication direct to Health Professionals – especially important at launch and during early period of market establishment • Communication with NGOs • Heart and diabetes associations • Consumer organisations

14. The regulatory constraints • Consumers have a right to be informed if a food product contributes to improved health or reduced risk of disease • Medicinal claims prohibited under EU law -- a basic principle accepted by all Food Labelling Directive prevents claims attributing “to any foodstuff the property of preventing, treating or curing a human disease or referring to such properties” • In absence of clear European regulatory framework - development of self-regulatory systems in EU Member States, e.g. JHCI in the UK, Swedish Nutrition Foundation • Some countries entirely prohibit health claims – for example Denmark

15. The regulatory constraints Consequences: • Impossible to market foods with real, measurable health benefits if those benefits cannot be described • Limitations on claims can present an obstacle to effective communication of nutrition and health information to consumers • Hinders innovation and investment - the development and marketing of new products • Restricts consumer choice and ability to manage their own health  Food manufacturers welcome future harmonisation proposal

16. The future EC framework What should it look like? • Full agreement that all claims should be truthful, not misleading and health claims must be scientifically substantiated • Finding the right balance: allow consumer access to scientifically substantiated information re diet and health without restricting innovation by the industry • Responsibility of food industry to formulate and justify their claim • Avoid cumbersome approval processes for claims based on well established science -- be pragmatic • No “good” vs. “bad” foods -- focus on overall diet

17. The future EC framework • Avoid unnecessary restrictions on freedom of communication (e.g. general prohibitions -- claims re well being/psychological claims) – providing all claims can be substantiated • Legislation providing protection against misleading and false claims already in place -- enforcement is key • Protect research and investment in science for the benefit of consumers • Labelling – not everything can be on the label!

18. To conclude... • Promotion of diet and health = a joint effort: scientists, regulators, health professionals, educators, food industry • Industry’s contribution : • Innovation in product development • Direct communication: packaging, advertising, educational materials, consumer services… • Educational/healthcare programmes, in cooperation with other stakeholders • Legislation should be enabling

19. Thank you for your attention!