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Markey Demands McD's, Other Marketers Follow Kellogg's Lead

Congressman Tells Five Food Titans to Implement Kids' Advertising Limits
By Ira Teinowitz
Published: June 19, 2007  Original URL: http://adage.com/print?article_id=117423

WASHINGTON (AdAge.com) -- The chairman of a congressional panel is ratcheting up pressure on McDonald's, Coca-Cola, General Mills, Kraft Foods and PepsiCo, demanding they follow Kellogg's lead and commit to kids' marketing limits -- or else.

As part of a lawsuit settlement last week, Kellogg announced that in any medium that has a large audience of children under age 12, it would market only foods that meet new nutritional criteria. The marketer also went beyond rivals' initiatives, saying it would alter product ingredients to meet minimum health standards or quit advertising them to children.

Investigating impact of ads
Rep. Ed Markey, D-Mass., in letters to five of Kellogg's competitors, told those companies to implement similar limits, and announced new plans for a House hearing on the issue. Mr. Markey, who chairs the telecom panel of the House Energy and Commerce Committee, said his panel's hearing this Friday on the impact of violent and tobacco-smoking images children see on TV will now also look at repercussions of the food ads children view.

The letters ask the companies to respond by June 29.

Mr. Markey cited a report from the National Academy of Sciences Institute of Medicine that said marketing could have an effect on food choices. "I am concerned that the prevalence of advertisements on children's television for junk food, fast food and other foods wholly lacking in nutritional value is one of the root causes of America's childhood obesity epidemic," Mr. Markey wrote in the letters.

"I would like to know whether your company will commit to implementing the same marketing restrictions Kellogg has announced. Such information may inform the subcommittee and the public as to additional steps that may be warranted to safeguard kids from junk-food ads during children's television programming."

An aide to the congressman said the five companies were selected because of their extensive use of marketing to kids. At press time, a witness list for this week's hearing wasn't yet available.

Could bring in FCC
In an April 16 letter to several Federal Communications Commission commissioners, Mr. Markey said the FCC would need to play a more active role in limiting food advertising on kids' shows if marketers don't act voluntarily.

"There is no question that the commission has both the affirmative obligation and the statutory authority to examine whether placing limitations on certain food advertising to children would further the public interest," he wrote then. "If a 'core' educational program tells children to eat healthy foods and exercise, but the advertisements aired during the program encourage them to eat Twinkies and Fruit Loops, the ads have the potential to undercut the educational and informational value of the program."
 

 

Kellogg Move Bodes Ill for Ads to Kids

More Than a Billion Food Marketing Bucks in Limbo as Companies Try to Satisfy the Critics

WASHINGTON (AdAge.com) -- Saturday morning will never be the same again.

Legions of kids who start their weekends with the boob tube and a bowl of sugary cereal won't be seeing Snap, Crackle and Pop. Instead, they'll soon be seeing ads for more-healthful foods -- or none at all. By agreeing to market to kids only the 50% of its brands that meet certain nutritional criteria, Kellogg has kick-started an industry trend expected to throw into play some $1 billion or more in marketing dollars.
Brand Identity
 
Photo Illustration: John Kuczala


Turning up the heat
It's a move that ratchets up pressure on the other 10 marketers in the so-called Children's Food and Beverage Advertising Initiative, which account for more than two-thirds of the food and beverage ads kids see. They are feverishly working to meet or beat a July 18 deadline to announce responsible-marketing pledges of their own at a government kids'-obesity forum.

Titans in the initiative, such as Hershey, McDonald's and General Mills, have already committed to devote at least half their TV, radio, print and internet marketing to kids under 12 to furthering "the goal of promoting healthy dietary choices and healthy lifestyles."

Each marketer will set its own individual standards, so it's impossible to say just how much spending will be affected. But judging by the breadth of the Kellogg plan -- which alone involves more than $200 million -- it's going to be a significant sum, particularly if you're a kid-focused media owner.

Healthy ad diet
Kellogg said it would advertise only foods that fit a particular nutritional profile in any medium that gets more than 50% of its audience from kids under 12. Products that fit the criteria will have no more than 200 calories per serving, no trans fat and no more than 2 grams of saturated fat. There are also limits on sugar. Some 30% of Kellogg's cereals don't meet the standard; oddly, Rice Krispies doesn't (too much sodium) while Frosted Flakes does.

According to President-CEO David Mackay, 27% of the company's ad spending in the U.S. is directed toward children under 12. According to Advertising Age estimates, Kellogg spent $765.1 million on total marketing in 2006, so a potential $206 million could be affected. Kellogg said it would no longer spend on kid-directed TV, print, radio and internet for the affected brands and would ditch "website activities directed to children, promotions/premiums, product placement and in-school marketing" for brands that don't meet its criteria.
Brand Identity
 


"Wherever possible, implementation of Kellogg commitments will begin immediately," Kellogg said in a statement. "For example, certain brands will feature better-for-you options in their advertisements. We will be making content enhancements to our child-directed websites, including adding automatic screen-time limits and healthy-lifestyle and nutrition messaging, plus limiting depictions of foods that don't meet our nutrient criteria in interactive activities like games, downloads and wallpaper."

Half Kellogg's products
But even Kellogg isn't sure whether it will be redistributing those ad dollars or not. Mark Baynes, chief marketing officer for North America, said about half of the company's products marketed to kids under 12 don't meet the new nutrition threshold, and it's still not clear which ones can be reformulated to meet the guidelines and still appeal to kids. "The challenge now is: Can we reformulate without too much a trade-off in taste?" he said. "If we can, we will, and [continue] advertising to children in much the same way we do now. If we can't reformulate our product and there is too much of a trade-off, we have to find a new target audience to make the brand relevant or, if we can't, stop advertising it all together."

Though kids' TV programmers are staying cool publicly, the winds of change are buffeting networks such as Viacom's Nickelodeon and Time Warner's Cartoon Network. Kellogg alone spent some $44 million on Nickelodeon advertising last year, according to TNS Media Intelligence (excluding Nick at Nite) and $22 million on Cartoon Network.

The groups that pressured Kellogg into its agreement, the Center for Science in the Public Interest and the Campaign for a Commercial-Free Childhood, also had threatened to sue Nickelodeon, but they've put that on hold. With the Kellogg settlement and an expected flood of similar efforts from other marketers, the groups appear to feel Nick will be punished enough.

Nick will be like "a used Edsel no one is buying," said Steve Gardner, chief litigation officer at CSPI, before hastening to add that kids' food marketers could still advertise on the network -- just with more-healthful products.

Nick 'thrilled'
Cyma Zarghami, president of the Nickelodeon/MTV Networks Kids and Family Group, said, "As a company that's been at the forefront of encouraging our partners to provide more balance in their offerings, we are thrilled that companies like Kellogg are taking initiative to provide us with opportunities to introduce healthier food options to kids." Cartoon Network had no comment.

One thing is crystal clear: Big Food is expected to almost universally step up to meet the challenge of Kellogg. Sen. Tom Harkin has called this the "defining moment in our nation's fight against childhood obesity."

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Contributing: Kevin Brown (AdAge DataCenter), Andrew Hampp


 


How Kellogg's Limits on Kids Advertising Could Shake Up Industry

If Other Marketers Follow Suit, More Than $1 Billion in Spending May Be in Limbo

WASHINGTON (AdAge.com) -- Some $206 million in marketing spending is in limbo now that Kellogg Co. has agreed to severely limit advertising to kids under age 12 -- but the tally could easily soar past $1 billion if other major marketers, as expected, follow suit.
Kellogg said it would advertise only foods that fit a particular nutritional profile in any medium that gets more than 50% of its audience from kids under age 12.
Kellogg said it would advertise only foods that fit a particular nutritional profile in any medium that gets more than 50% of its audience from kids under age 12.


Limits on fat and sugar
Kellogg said it would advertise only foods that fit a particular nutritional profile in any medium that gets more than 50% of its audience from kids under age 12. Products that fit the kids-advertising criteria will have to have no more than 200 calories per serving, no more than zero grams of trans fat and no more than 2 grams of saturated fat. There are also limits on sugar.

Kellogg President-CEO David Mackay said that 27% of Kellogg's ad spending in the U.S. is currently directed to children under age 12. According to Advertising Age estimates, Kellogg spent $765.1 million on total marketing in 2006, so a potential $206 million could be affected. If viewed in strictly measured-media terms, the total affected would be $134 million, as based on TNS Media Intelligence figures. Kellogg's statement cited TV, print, radio and internet ads as well as "website activities directed to children, promotions/premiums, product placement and in-school marketing."

Kellogg, which currently does not advertise to kids under 6, also agreed to limit its use of licensed characters on products aimed at kids under 12 to products that meet minimum nutrition standards. It also agreed not to advertise in schools or use product placement in any medium primarily directed at kids.

Says spending won't drop
The company has indicated its total spending won't drop off, suggesting that the kids' dollars will be redirected elsewhere. But it seems unlikely that a major ad push substituting say, Corn Flakes for Frosted Flakes, makes a lot of sense on kids' TV.

"Wherever possible, implementation of Kellogg commitments will begin immediately," Kellogg said. "For example, certain brands will feature better-for-you options in their advertisements. We will be making content enhancements to our child-directed websites, including adding automatic screen-time limits and healthy-lifestyle and nutrition messaging, plus limiting depictions of foods that don't meet our nutrient criteria in interactive activities like games, downloads and wallpaper."

"We're taking these steps to address increasing concerns about marketing to children and further strengthen our commitment to responsible marketing," said Mr. Mackay in a statement. "In addition, we plan to increasingly emphasize products with enhanced nutritional value as well as continuing to find ways to emphasize nutrition and healthy lifestyles in our marketing to children."

'Defining moment'
The impact, however, is expected to reverberate far beyond the $11 billion marketer. "Today's announcement by the Kellogg Company has the potential to be a defining moment in our nation's fight against childhood obesity," said Sen. Tom Harkin, D-Iowa, who has repeatedly criticized food advertising to kids. "I hope that other food companies follow suit."

Responding to pressure from interest groups, 11 of the country's biggest food and fast-food marketers -- Kellogg among them -- have already prepared pledges to comply with a new initiative from the Council of Better Business Bureaus and the National Advertising Review Council to limit the food products advertised to kids.

Under that initiative, the 11 companies that do about two-thirds of the advertising of foods to kids committed to rein in advertising of foods that don't meet a certain nutrition profile. They also agreed to devote half their ads to promote more healthful dietary choices or good nutrition, forgo advertising in elementary schools and reduce the use of license characters for foods that don't meet a certain nutritional profile.

Uncomfortable place
But Kellogg, as part of an agreement to forestall a lawsuit from the Center for Science in the Public Interest and the Campaign for a Commercial Free Childhood, has now gone further -- as have Kraft Foods and Coca-Cola Co. before it. Kellogg's move puts compatriots that haven't made bold steps in the health arena in an uncomfortable place.

CSPI is certainly expecting further cooperation: It said it would temporarily hold off on its promise to sue other food companies and Viacom's Nickelodeon. The group said it first wanted to see what steps other companies take, and major steps "would obviate the need" to go ahead with a suit against Nickelodeon. (Kellogg spent $44 million advertising on Nickelodeon last year, according to TNS Media Intelligence, excluding Nick at Nite.)

Even so, the Campaign for Commercial-Free Childhood isn't entirely happy. "While Kellogg's new policy doesn't go as far as we would like -- we believe all advertising should be targeted to parents, not children -- it is a tacit admission that the advertising practices favored by the food industry have had a powerful influence on children's food choices and have had a negative effect on children's health and well-being," the group said. "For far too long, the food industry has denied that marketing is a factor in children's consumption of unhealthy foods."

~~~
Contributing: Kevin Brown



 


Kellogg to Phase Out Some Food Ads to Children

By ANDREW MARTIN   Published: June 14, 2007
http://www.nytimes.com/2007/06/14/business/14kellogg.html
Froot Loops’ days on Saturday morning television may be numbered.

The Kellogg Company said yesterday that it would phase out advertising its products to children under age 12 unless the foods meet specific nutrition guidelines for calories, sugar, fat and sodium.

Kellogg also announced that it would stop using licensed characters or branded toys to promote foods unless the products meet the nutrition guidelines.

The voluntary changes, which will be put in place over the next year and a half, will apply to about half of the products that Kellogg currently markets to children worldwide, including Froot Loops and Apple Jacks cereals and Pop-Tarts.

Frosted Flakes, for example and Rice Krispies with Real Strawberries will still make the nutritional cut, though regular Rice Krispies will not (too much salt).

The president and chief executive of Kellogg, David Mackay, said that the products that did not meet the guidelines would either be reformulated so that they did, or no longer be advertised to children.

“It is a big change,” Mr. Mackay said. “Where we can make the changes without negatively impacting the taste of the product, we will.”

If the product cannot be reformulated, Mr. Mackey said, the company will either market it to an older audience or stop advertising it.

The policy changes come 16 months after Kellogg and Viacom, the parent company of Nickelodeon, were threatened with a lawsuit over their advertising to children by two advocacy groups, the Center for Science in the Public Interest and the Campaign for a Commercial-Free Childhood, and two Massachusetts parents.

Because of the changes by Kellogg, the groups said that they would not proceed with the lawsuit against the company. Viacom had not negotiated with the groups and was not part of today’s announcement; the groups said that they had not determined if they would proceed with legal action against the broadcaster.

“Kellogg’s position has really evolved over those months from pretty much ‘no way’ to acceptance of some nutrient criteria,” said Michael F. Jacobson, executive director of the Center for Science in the Public Interest. He said he hoped the Kellogg announcement would lead its competitors to adopt even tougher standards for food advertising to children.

Susan Linn, the co-founder of the Campaign for a Commercial-Free Childhood, said that Kellogg’s decision to stop using licensed characters on sugary food was particularly significant. “Until now the industry has absolutely dug in their heels,” Ms. Linn said.

In the last several years, health officials have repeatedly warned that the steady stream of food ads aimed at children is contributing to the number of overweight or obese children, which has soared over the last several decades.

Some countries have banned advertising of nutritionally questionable food to children altogether, and some members of Congress have suggested that federal regulation may be needed in the United States, too. The food industry has promised to bolster its own self-regulation.

Last November, for instance, 10 of the largest food and beverage companies, including McDonald’s, General Mills and Kellogg, vowed that at least half of their advertising directed at children under 12 would promote healthier foods or encourage active lifestyles.

The companies also agreed not to advertise in elementary schools and to reduce the use of licensed characters to promote food. Those companies are expected to complete individual plans for how they will address the guidelines in the next 60 days or so.

But like Kellogg, a few companies have already unveiled tougher standards for advertising to children. Last October, for instance, Walt Disney said that it would allow its characters to be used in food advertising only if the products complied with nutritional standards.

And in 2005, Kraft Foods announced that it would stop advertising products to children under 12 that did not meet specific nutrition guidelines.

Under Kellogg’s new guidelines, food advertised on television, radio, Web sites and in print that have an audience that is 50 percent or more of children under 12 will have to meet the new nutrition standards. Kellogg already had a policy of not aiming advertising at children younger than 6, so the new guidelines apply to children 6 through 11.

Kellogg officials said that about 27 percent of its advertising budget in the United States aims at that age group. They declined to give the dollar value of that budget.

Under the new standards, one serving of food must have no more than 200 calories, no trans fat, no more than 2 grams of saturated fat, no more than 230 milligrams of sodium (except for Eggo frozen waffles) and no more than 12 grams of sugar.

Cocoa Krispies cereal would not qualify because one serving has 14 grams of sugar. But Kellogg could still advertise Frosted Flakes to children because it has 11 grams of sugar. Shrek cereal does not meet the criteria because it has 15 grams of sugar a serving and uses a licensed character.

In a related initiative, Kellogg said it would introduce Nutrition at a Glance labels on the top right corner of cereal boxes this year.

Already introduced in Europe and Australia, the new labels will take information from the Nutrition Facts panel on the side of the boxes, which are mandated by the federal government, and highlight important parts on the front of the box.

The new labels will show consumers the percentage of calories, total fat and sodium in a single serving, based on a 2,000-calorie daily diet, and will also display grams of sugar and nutrients like fiber and calcium.



 

 

Today, as part of a settlement agreement with CCFC and the Center for Science in the Public Interest (CSPI), Kellogg announced major restrictions in the way that they will market food to children. In return CCFC, CSPI and two Massachusetts parents will not proceed with a planned lawsuit against Kellogg. 

The settlement, which is the result of more than a year of negotiations, is an important step in limiting children’s exposure to junk food marketing. We are particularly pleased that Kellogg agreed to end all in-school advertising to children under 12 and to restrict its use of licensed media characters.
 
While Kellogg’s new policy doesn’t go as far as we would like — we believe all advertising should be targeted to parents, not children — it is a tacit admission that the advertising practices favored by the food industry have had a powerful influence on children’s food choices and have had a negative effect on children’s health and well-being.  For far too long, the food industry has denied that marketing is a factor in children’s consumption of unhealthy foods.   
 
Here’s what we agreed on:
 
Foods advertised on media—including TV, radio, print, and third-party websites—that have an audience of 50 percent or more children under age 12 will have to meet Kellogg’s new nutrition standards, which require that one serving of the food has:
• No more than 200 calories;
• No trans fat and no more than 2 grams of saturated fat;
• No more than 230 milligrams of sodium (except for Eggo frozen waffles);
• No more than 12 grams of sugar (excluding sugar from fruit, dairy, and vegetables).
 
In addition, Kellogg will not:
• Advertise to children under 12 in schools and preschools.
• Sponsor product placements for any products in any medium primarily directed at kids
under 12;
• Use licensed characters on mass-media advertising directed primarily to kids under 12, as a basis for a food form, or on the front labels of food packages unless those foods meet the nutrition standards;
• Use branded toys in connection with foods that do not meet the nutrition standards.
 
We hope that other companies will follow suit. We will certainly continue to do everything that we can to ensure that they will. 
 
The Campaign for a Commercial-Free Childhood
www.commercialfreechildhood.org