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Marketing Food to Children and Adolescents - Federal Trade ...

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Assessment of <strong>Food</strong> Company Health Initiatives <strong>and</strong> Recommendations<br />

the choices may include no- or low-calorie beverages such as diet soft drinks, flavored water, <strong>and</strong><br />

some sports drinks. 137 Notably, full-calorie soft drinks do not comply with the Guidelines <strong>and</strong><br />

may not be sold. For foods, specific requirements apply <strong>to</strong> fruits <strong>and</strong> vegetables, cheese, eggs,<br />

soups, snacks, <strong>and</strong> all other competitive food products. 138 Products in each category must meet<br />

restrictions on calories, fat, sugar, <strong>and</strong> sodium, among others. 139 The specific limitations on foods<br />

<strong>and</strong> beverages are set forth in Appendix F.<br />

Among the companies <strong>and</strong> other entities signing on <strong>to</strong> the School Beverage Guidelines<br />

are The Coca-Cola Company, PepsiCo, Inc., Cadbury Schweppes Americas Beverages,<br />

The American Beverage Association, <strong>and</strong> numerous dairy processors <strong>and</strong> associations. 140<br />

Competitive <strong>Food</strong>s Guidelines participants include Campbell Soup Company, The Dannon<br />

Company, Inc., Dole <strong>Food</strong> Company, Kraft <strong>Food</strong>s Global, Inc., Masterfoods USA (a division<br />

of Mars, Inc.), PepsiCo, Inc., Stemilt Growers, the Snack <strong>Food</strong> Association, <strong>and</strong> others. 141 A<br />

number of these entities provided responses <strong>to</strong> the FTC’s Special Order 142 <strong>and</strong> five are also<br />

participants in the CBBB’s <strong>Children</strong>’s Advertising Initiative. 143 Overall, the signa<strong>to</strong>ries <strong>to</strong> the<br />

Alliance Guidelines represent a significant portion of the market for competitive foods <strong>and</strong><br />

beverages offered in schools.<br />

The distribution <strong>and</strong> sale of competitive food <strong>and</strong> beverage products in schools typically is<br />

h<strong>and</strong>led by distribu<strong>to</strong>rs, not the food <strong>and</strong> beverage companies themselves. Accordingly, Alliance<br />

participants may not have direct control over what products are placed in vending machines<br />

or otherwise offered for sale on school grounds. Recognizing this limitation, the Memor<strong>and</strong>a<br />

of Underst<strong>and</strong>ing require signa<strong>to</strong>ries <strong>to</strong> encourage adoption of the Guidelines by distribu<strong>to</strong>rs<br />

<strong>and</strong> others in the distribution chain. 144 Thus, one participating company reports that it “works<br />

proactively” with its distribu<strong>to</strong>rs <strong>to</strong> ensure compliance with the Guidelines. In addition, the<br />

beverage companies have worked closely with their bottlers <strong>to</strong> facilitate compliance with the new<br />

Guidelines. 145 The Guidelines require not only changes in the types of beverages sold in schools,<br />

but also changes in the package sizes <strong>and</strong>, in some cases, nutritional content. Bottlers reportedly<br />

have spent millions of dollars on compliance efforts, including retrofitting vending machines <strong>and</strong><br />

repackaging <strong>and</strong> reformulating products. 146<br />

Moreover, individual schools or school districts play a role in deciding which foods will be<br />

sold <strong>to</strong> students. The Commission is mindful that vending machines <strong>and</strong> other in-school sales<br />

of snacks <strong>and</strong> drinks can generate significant funds <strong>and</strong> other benefits for individual schools <strong>and</strong><br />

school districts, <strong>and</strong> that changes <strong>to</strong> product offerings may affect revenue. 147 The Commission<br />

is confident, however, that, working <strong>to</strong>gether, the interested parties can find workable solutions<br />

that will meet schools’ needs while also providing nutritionally improved competitive foods <strong>and</strong><br />

beverages <strong>to</strong> their students.<br />

73

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