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Elaine D. Kolish , VP and Director Children’s Food & Beverage Advertising Initiative

The Children’s Food and Beverage Advertising Initiative “Self Regulation Creates Significant, Ongoing Progress in Foods Advertised to Children”. Elaine D. Kolish , VP and Director Children’s Food & Beverage Advertising Initiative Council of Better Business Bureaus

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Elaine D. Kolish , VP and Director Children’s Food & Beverage Advertising Initiative

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  1. The Children’s Food and Beverage Advertising Initiative“Self Regulation Creates Significant, Ongoing Progress in Foods Advertised to Children” Elaine D. Kolish, VP and Director Children’s Food & Beverage Advertising Initiative Council of Better Business Bureaus White House Convening on Food Marketing to Children Sept. 18, 2013 The White House

  2. CFBAI Goals • Respond to IOM/FTC calls for more self regulation • Be part of the solution • Focus on what foods are advertised to children • Use meaningful nutrition standards • Bring transparency & accountability to company commitments • IOM: Shift the emphasis to foods substantially lower in calories, lower in fats, salt, and added sugars, and higher in nutrient content

  3. Self-Regulation Is Dynamic • CFBAI Principles announced Nov. 2006 • Specific commitments announced July 2007 • Groundbreaking steps & many incremental ones • Ongoing, steady improvements in foods • New category-specific uniform nutrition criteria will lead to further improvements

  4. Number of Participants Has Grown (from 10 to 17)~ 80% Food Ads on Kid’s TV 3 No child-directed ads 14 Use nutrition criteria for 100% of child-directed ads or

  5. Today, we welcome our 18th Participant, Ferrero U.S.A. 4 No child-directed ads 14 Use nutrition criteria for 100% of child-directed ads or

  6. CFBAI Requirements Have Evolved Since Nov. 2006 Launch • Raised to 100% (from 50%) commitment for ads for healthier foods or no child-directed ads (Jan. 2010) • Dropped “healthy lifestyle messaging” as compliance option • Harmonized definitions of “child-directed” advertising substantially (Sept. 2010) • Now all use 35% (or smaller %) viewers • Those at 50% moved to 35% • Adopted CFBAI uniform nutrition criteria to replace company-specific criteria (effective Dec. 31, 2013)

  7. Internet Covered Venues Have Expanded Added (as of 2010) Original Video Games Radio MobileMedia Print

  8. CFBAI Monitors and Reports on Company Compliance • CFBAI independently monitors TV, print, radio, mobile, Internet • TV & websites primary venues • Company-owned sites • Those reported as child-directed • Others to verify reporting • Third-party child-directed sites • Large list of where companies advertise, media lists of top kid sites, etc. • CFBAI scrutinizes company-submitted compliance reports • Self assessment is opportunity to detect and correct problems • CFBAI will conduct inquiries into complaints

  9. What’s Changed: Decline in Child-Directed Food Ads* Food Ads Non Food Ads Ads for sedentary entertainment more prevalent. *Results for 1977 & 2004 are from an analysis of shows with 50%+ kids in the audience. See Table 5.3 in FTC’s Bureau of Economics Staff Report, “Children’s Exposure to TV Advertising in 1977 and 2004” (2007). The FTC estimated there was a 9% decline in children’s exposure to food ads across all programming. 2013 results are from CFBAI’s analyses of 27.5 hours of children’s TV.

  10. What’s Changed: Significant Improvements • Numerous improvements • Hundreds of food recipe improvements or foods created to meet nutrition standards • Many foods no longer advertised or discontinued • Reductions in sodium, sugars, fats • Sodium: Pre-CFBAI some foods with > 900 mg sodium; now highest is 750 (most far less: FDA “healthy” levels used by many) • Sugars: Reductions in cereals, yogurts; lower-sugar items sourced • Fats: ≤ 2 grams or ≤ 10% calories sat fat general standards and a number of foods reformulated to lower fats to meet limits • Reductions in and reasonable limits on calories • Calories do not exceed 200, 350, 600 for individual foods, main dishes and meals respectively 10

  11. What’s Changed: Significant Improvements • Increased use of fruit and vegetables • All “small meals” & “meals” include fruit and/or veg as a side dish, component or in a beverage • Many dairy products • Yogurt, dairy drinks, low or fat-free milks • More whole grains usage (5/12 analysis)

  12. What’s Changed: Kids Meals are Improved • Happy Meals now always with apples! • 2011: Burger King Corp. now asking what beverage/side wanted • Advertised choices include milk, 100% juice, apple slices • New oatmeal breakfast meal (with apples and fat-free milk) = total of > 3 servings of F/WG/D (290 calories, 9 grams sugar, 395 mg sodium) • 2012: Burger King Corp. & McDonald’s dropped caramel dipping sauces (45-70 kcal) • More than 770 million bags of apple slices (equals more than 190 million cups of apples) put into kids’ hands, since March 2012 • Meal includes small fries (~ 100 calories) • Buyer selects entrée & beverage (advertised choices are white or choc milk, or apple juice)

  13. Recent studies show that TV dominates kids media use in terms of percentage of kids using and duration of use in a typical day What’s Not Changed: TV Still King with Kids 0-8 Year Olds1 8-10 Year Olds2 Daily Average (HH:MM) 1 Common Sense Media, Zero to Eight: Children’s Media Use in AmericaChildren’s Media Use in America (2011). 2 Kaiser Family Foundation, Generation M2: Media in the Lives of 8-18-Year-Olds (2010).

  14. Food Ads on Nick Programs: July-August 2013* 966 total ads: 230 ads for foods and beverages (24%) 35 foods and beverages * 27.5 hours of shows on weekdays and weekend and different times of day.

  15. Nick Snapshot:CFBAI Participant Foods

  16. Nick Snapshot: Significant Improvements • 79% of foods (19/24) improved or newly created to meet nutrition criteria • 80% of grain-based foods (12/15) contain ≥ 8 grams whole grains

  17. Progress on Whole Grain and Sugar in Kid Cereals, 2007-2013 Whole Grain Increase 14g 13g 13g 12g 12g 12g 11g 11g 8g 8g 8g 8g 8g 8g 07 13 07 13 07 13 07 13 07 13 07 13 07 13 Sugar Reduction 14g 13g 12g 12g 11g 10g 10g 10g 10g 10g 10g 9g 9g 9g 13 13 13 07 07 07 07 07 13 07 13 07 13 13 KEY 2007 Whole Grain Level 2007 Sugar Level 2013 Whole Grain Level 2013 Sugar Level

  18. CFBAI’s Category-Specific Uniform Nutrition Criteria Benefits Overall stronger than company-specific criteria Fill gaps in current participant standards Eliminate foods qualifying solely on “reduced” claim Eliminate foods qualifying solely on 100-calorie packaging Include calorie limits for all categories Include maximums for nutrients to limit (NTL) & minimums for nutrition components to encourage (NCTE) NTL: Limits on saturated fat, trans fat, sodium, total sugars NCTE: Requirements for food groups and/or nutrients (food groups are required in 7 of the 10 categories) Even more transparent/easier to understand White Paper explains science and basis for criteria 18

  19. New Criteria Will Drive Further Improvements • Provides a strong, but reasonable, roadmap for new product development • Incremental changes necessary for consumer acceptance • Many recipes needed changes — when criteria issued ─ if foods to be advertised in 2014 • ~ 1/3 of CFBAI-listedproducts in July 2011 failed • Affected products in pipeline • Some have improved in advance of deadline (e.g., Danimals Smoothies, 25% sugar reduction to 10 from 14 grams) • 20% (5/24) in Nick snapshot still need recipe changes if to be advertised in 2014 • Review planned when 2015 Dietary Guidelines for Americans issued

  20. Positive Government Response to Self Regulation FTC & USDA on CFBAI’s Uniform Nutrition Criteria • FTC: The CFBAI’s criteria represent “substantial progress” & are “considerably stronger than the status quo.”* • USDA: “The new uniform CFBAI nutrition criteria appear to be a step forward in changing the food advertising landscape, while also taking into consideration the feasibility of manufacturers making meaningful changes . . . .” *Congressional Subcommittee Hearing on Food Marketing to Children (Oct. 12, 2011) FTC on Self Regulation Generally (Dec. 2012 FTC Report) • “The food and beverage industry, and in particular the CFBAI, has made major strides since the early days of self-regulation in 2006. The industry has expanded the scope of children’s marketing to which their efforts apply and has strengthened and standardized the nutritional criteria for foods marketing to children. New uniform criteria . . . will likely lead to further improvements in the nutritional quality of foods marketed to children . . . .”

  21. Cartoon Network Aligning Its Nutrition Standards for Licensing with CFBAI Criteria • Update to 2007 nutrition standards • Goes into effect January 2014 • Applies to favorites including • Ben 10 • Powerpuff Girls • Adventure Time • Limited exception for special occasion foods (e.g., birthday cakes)

  22. Self-Regulation is Significantlyand Steadily Improving Child-Directed Food Advertising

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