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Responsible Marketing: Earning the Right to Engage

Responsible Marketing: Earning the Right to Engage. Julie Howden, Nutrition and Public Affairs Senior Advisor Kellogg Asia . Transparency. Compliance. Global Impact. Solutions. Engagement. Learning. Presentation Roadmap. Why is there a need to engage?

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Responsible Marketing: Earning the Right to Engage

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  1. Responsible Marketing:Earning the Right to Engage Julie Howden, Nutrition and Public Affairs Senior Advisor Kellogg Asia Transparency Compliance Global Impact Solutions Engagement Learning

  2. Presentation Roadmap • Why is there a need to engage? • How do companies engage effectively? • Industry Efforts to date • Challenges going forward

  3. Obesity is Driving Change Globally

  4. Why is there a need to engage? Current global environment • Rising obesity rates • Broad-based and heightened stakeholder focus on obesity • Calls for action on many fronts • Industry alignment around issue and solutions • WHO 2004 Global Platform • Regional focus sharpens Currently: Significant efforts underway to strengthen and expand self-regulation (e.g., Pledge programs, monitoring, etc.) and globalize commitments

  5. WHO Strategy on Health, Wellness and Physical Activity • Reassessment of nutrient composition of products • Responsible marketing to support the strategy esp. to children • Adequate and understandable product and nutrition information for consumers • Promote healthy diets and physical activity in line with strategy and national policy • Public and private partnerships to promote healthy diets and physical activity

  6. ICC Framework for Responsible Food and Beverage Marketing Communications, 2006 • a global code of practice on food marketing. • Key provisions include: • the need for substantiation for claims or health benefits • no encouragement of excess consumption • no representation of snacks as meals • no undermining of healthy lifestyle messages • no undermining of the role of parents.

  7. Company Engagement • Solutions • Recognize what role a company can (or cannot play) • Anticipate the future Engagement • Part of the culture and across stakeholder groups • Be humble and willing to listen • Earn trust • Compliance • Credible and transparent changes • Cultural shifts • Global View • Align where possible • Explore and explain when and why you cannot

  8. Examples Engagement • Food industry engagement with WFA regionally • Organizing via established third parties • Stakeholder dialogue

  9. Introduction of GDAs Pledge programmes Participating in government/NGO sponsored dialogue Examples Solutions 1. National/regional regulatory frameworks 2. National self-regulatory frameworks 3. Industry-wide self-regulatory codes for food marketing 4. Individual corporate food marketing principles (monitored) 5. Best Practice Promotion through adoption by trade bodies, etc

  10. US Pledge Program 14 food and drink companies take voluntary commitments on marketing to children <12 by the end of 2008. Restrict advertising to <12s to products that meet nutritional criteria or cease advertising to this group altogether. Restrict use of licensed characters to products that meet better-for-you criteria and to websites promoting healthy lifestyles. Refrain from advertising in elementary schools. No product placement in movies or other editorial content primarily directed to <12s. Congressman Ed Markey sent letters to Chuck E. Cheese, Nestle, ConAgra, Dannon, and Yum! asking them to join.

  11. Examples Global solutions • Implementation of pledges in the EU, Canada (and moves to do the same in Australia, Asia) • GDA roll-out globally (Tesco, Kellogg) • Industry coalitions for regional and global issues Implementation of pledges Moves towards new regional pledges

  12. Canadian Food and Drink Industry Advertising Pledge • In April 2007, Canada’s food and beverage industry announced the launch of the Canadian • Children’s Food and Beverage Advertising initiative. Supported by the Canadian Minister of • Health, and gathers 16 leading food and drink companies. • The Advertising Standards Canada (ASC) released the details of each participants’ commitment • for the first year. The commitments cover advertising in print, on television, radio and the • Internet. They include: • Campbell Company of Canada, General Mills Canada Corp, Kellogg Canada Inc, Kraft • Canada Inc, McDonald’s Restaurants of Canada, Nestle Canada, Parmalat Canada Inc. • and Weston Bakeries limited will direct 100% of their children’s advertising to healthier • dietary choices in accordance with standards that are consistent with scientific and/or • government nutrition standards. • Cadbury Adams Canada Inc, Coca-Cola Canada, Hershey Canada Inc, Janes Family Foods • Ltd. Mars Canada Inc, McCain Foods Canada, PepsiCo Canada, and Unilever Canada will • not direct advertising to children under 12. • Incorporate only products that meet the children’s advertising initiative criteria for healthier dietary choices in interactive games primarily directed to children under 12 year of age. • Restrict the use of their party licensed characters in children’s advertising to products that meet the Children’s Advertising Initiative criteria for healthier dietary choices. • Not pay for or seek to place food and beverage products in program/editorial content of any medium primarily directed to children. • Not advertise food or beverage products in elementary schools.

  13. EU Pledge Program No advertising of products to children under 12 years, except for products which fulfill specific nutrition criteria based on accepted scientific evidence and/or applicable national and international dietary guidelines. No communication related to products in primary schools, except where specifically requested by, or agreed with, the school administration for educational purposes. For TV, Print and Internet with a minimum of 50% of children under 12 years.

  14. Examples Compliance • Expand and strengthen SR • Globalize commitments • Monitoring, metrics and transparency

  15. “How” We Market to Children • Kellogg’s existing Worldwide Marketing Guidelines govern all our marketing Examples: • No advertising to pre-school children • No encouraging excessive consumption • Looking for opportunities to show exercise • Accurate representation of nutrition and health benefits • TV, radio, print,internet, schools, promotions, product placement. • Additional limitations imposed by KGNP

  16. “What” We Market to Children Kellogg Global Nutrient Criteria (KGNC) per serving * Calories ≤ 200 Sat Fat ≤ 2g TFA = 0g (label zero) Sodium ≤ 230mg Sugar ≤ 12.5g (label 12) • If current global products that are marketed to children • don’t meet KGNC, then by end of 2008 we will: • Innovate the product to meet the KGNC, or • Stop marketing the product to children *Based on 10% of the daily amount of a 2000-calorie diet as referenced in Institute of Medicine (IOM) Reports

  17. Industry Efforts to Date Alignment on key issues Maximize collective impact Transparency and monitoring Looking to learn

  18. Challenges going forward • Obesity is multifactorial • Monitoring the environment • Predicting future developments • (e.g. nanotechnology; new media) • Gaining alignment by ongoing communications with stakeholders • Global connectivity and alignment • Gaining trust Photo credits: European Commission, Microsoft Clip Art

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