LOS ANGELES — Kraft Foods Inc. (KFT) Wednesday said it would stop
advertising products like Oreo cookies and Kool-Aid beverages to children
younger than 12 as it works to deflect criticism that such foods
contribute to childhood obesity.
The move means ads for some of Kraft's best-known snack foods and sugary
cereals will no longer appear during television shows such as cartoons,
which are viewed primarily by children ages 6 to 11.
The change will also affect advertising in radio and print media, Kraft
said.
"We recognize that parents are concerned about the mix of food products
being advertised to younger children," Mark Berlind, Kraft's executive
vice president of global corporate affairs, said in a statement.
Increased media focus on the roughly 15 percent of U.S. children and
adolescents and two-thirds of adults who are overweight has led Kraft in
the last year to remove artery-clogging trans fats from its snack foods,
repackage some in 100-calorie packs, and cease its marketing in schools.
Such moves by Kraft and others in the food industry, which in 2003 saw
McDonald's Corp. (MCD) become the target of a high-profile obesity
lawsuit, help insulate companies from litigation blaming specific foods
for making people, and particularly children, fat, one expert said.
"The whole area of child nutrition is one where you want to be squeaky
clean," said Bob Goldin, executive vice president with food industry
research firm Technomic. "That's where there is concern about liability,
and certainly public scrutiny."
As demand for calorie- and fat-laden products slows, Kraft has
de-emphasized foods like Oreo cookies, which have 53 calories and 2.5
grams of fat each, according to CalorieKing.com (search), which tracks
nutritional information.
As part of that effort, the Northfield, Ill. company also said Wednesday
it was introducing a new food labeling program in the United States that
would feature a "flag" on packaging for products that meet certain
nutritional criteria.
Those criteria include providing protein, calcium, fiber or whole grain at
"nutritionally meaningful levels" and staying within specific limits on
calories, fat, sodium and sugar.
It did not say what those limits were.
Some of the products earnings the "Sensible Solution" flag include Kraft
2-percent milk shredded reduced fat cheese and Post Shredded Wheat
(search) cereal.
Kraft is also developing new products for children that meet the "Sensible
Solution" criteria, spokeswoman Nancy Daigler said.
Kraft rival PepsiCo Inc. (PEP) instituted a similar labeling program last
year on products like Baked Lays potato chips, Diet Pepsi cola, and
Tropicana orange juice. Pepsi said Wednesday it will launch a major retail
promotion of products carrying its "Smart Spot" label next month.
Throughout 2005, Kraft said it will increase advertising in media seen
mainly by children ages 6 to 11 of products that meet the new guidelines,
including sugar-free Kool-Aid beverages and reduced-sugar Fruity Pebbles
Cereal.
In 2006, as existing commitments expire, the company said ads of all
products not meeting the criteria will be phased out completely around the
world in media aimed at children 6 to 11 years old.
Kraft said it will continue to advertise all its products in television,
radio and print media seen mainly by parents and "all-family audiences."
It also said it will continue its existing policy of not advertising in
television, radio and print media with a primary audience under age 6.
The move by Kraft is expected to prompt similar measures by other major
food manufacturers, according to Goldin.
"You get a lot of favorable publicity for it," he said.
Kraft shares were down 12 cents at $34.12 Wednesday on the New York Stock
Exchange. Kraft is majority owned by Altria Group Inc.
