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Food Industry Under Fire for Marketing Tactics Linked to Child Obesity

Strategic Insights

— 1 min read

A recent report by the US Institute of Medicine (IoM) has revealed a clear link between food industry marketing and child obesity, prompting major manufacturers to reassess their advertising strategies. The landmark study, which was part of a comprehensive investigation into the $10 billion annual food advertising industry, found a significant statistical link between ad viewing and obesity among children. The IoM has recommended that Congress regulate the industry more effectively, citing examples from the UK, Europe, Australia, and New Zealand where similar studies have produced similar conclusions.

Key Takeaways:

  • The US food and beverage advertising industry generates $10 billion annually, with a significant portion of this targeting children.
  • The IoM study found a clear link between marketing and children requesting and eating "high-calorie, low-nutrient products".
  • A strong statistical link was also established between ad viewing and obesity among children, echoing findings from studies in the UK, Europe, Australia, and New Zealand.
  • The IoM recommends that Congress regulate the industry more effectively, including allowing only healthy products to use perky cartoon characters.
  • Many food and beverage companies are already making changes, with Kraft announcing its "sensible solution" strategy in January 2005, which scrapped advertising to children for non-nutritious products.
  • The UK Government has asked Ofcom to investigate food advertising to children, with a focus on the use of celebrities in marketing.
  • Global food giant Unilever claims not to actively market any of its products to children.

Statistics:

  • 155 million children globally are estimated to be obese, according to the International Obesity Task Force.
  • 25 per cent of children across the European Union are estimated to be seriously overweight, with 22 per cent in the UK.
  • Kraft has seen a significant sales increase for products that meet nutritional benchmarks, with products sporting the company's nutrition flag outselling other products by up to four times.
  • Companies that have not moved to healthier options, such as Coca-Cola, are facing declining sales due to consumer preference for water and fruit juice products.

Sources:

  • US Institute of Medicine (IoM)
  • Surgeon General's report on smoking (1964)
  • European Union's Health Commissioner, Markos Kyprianou
  • International Obesity Task Force
  • Kraft Foods
  • Unilever
  • UK Government
  • Ofcom
  • US Grocery Manufacturers' Association (GMA)

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