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Under fire, food giants switch to healthier fare
USA Today/Yahoo! ^ | July 1, 2003 | Bruce Horovitz

Posted on 07/01/2003 10:17:38 AM PDT by B Knotts

Junk food's best consumers are kids -- increasingly obese kids.

So that's not the dinner bell you hear. It's an alarm bell raising Oreo-size goose bumps for the giant makers of now-unfashionable sugary, fatty and calorie-laden foods. All are faced with this new reality: As concern about obesity rises, they're within a few cookie crumbs of becoming the next Big Tobacco for trial lawyers.

''You can't stop tobacco from being unhealthy,'' says Sam Hirsch, an attorney whose obese clients filed lawsuits against McDonald's. ''But you can make food less unhealthy.''

Consumer groups are screaming. Parents are steaming. Lawyers are suing. The obese are stewing. Lawmakers are threatening a ''fat tax.'' And some analysts are giving food stocks the ax.

That's why, faster than you can say ''supersize it,'' the nation's food behemoths are responding:

Analysts say the food giants haven't suddenly become food pyramid angels looking out for the nutritional well-being of America's youth. Rather, they're increasingly concerned about lawsuits, legislation and profits.

''This issue isn't going away,'' says Caroline Levy, consumer group director at UBS, which issued a report warning why many food stocks could be hit hard. ''It puts at risk companies that make unhealthy foods.''

That's most foodmakers.

''The bottom line for the food industry is money,'' says William Sears, author of two books on kids and nutrition. Few products are cheaper to dump into food than sugar, so many foodmakers pour in lots, he says. ''What motivates the food industry and health-minded mothers is worlds apart.''

Not so, says Betsy Holden, co-CEO of Kraft Foods. ''We're a company focused on doing what's right,'' she says. ''As a mother and a former teacher, I believe one of the most important things we can do is to educate people about eating and living better.''

Looking to stay out of court

It's no longer socially acceptable for food giants to blatantly target kids with junky foods. Just about anyone who markets food to kids is rethinking what they make and how they package and promote it.

''Every major foodmaker is terrified about lawsuits,'' says Marion Nestle, nutrition department chair at New York University. ''All big food companies are re-examining their product lines -- and how they market them.''

Big Food senses Big Trouble. Americans will spend just under $1 trillion on food this year, and foodmakers can no longer sit idly hoping the wave of concern is just a temporary case of indigestion cooked up by the media.

Some school lunch programs are eliminating the junkiest foods. Consumer groups are proposing a ''fat tax'' on some junk foods -- and even nutritional ''warnings'' on product packaging. Some legislatures have discussed requiring fast-food makers to post calories and fat on their menu boards. And lawsuits are being filed by folks who accuse the food kingpins of helping make children obese.

Perhaps no one scares the fast-foodies more than John Banzhaf. He's best known for spearheading billion-dollar victories over the tobacco industry and is widely credited for the removal of cigarette commercials from television. Now the professor of public interest at George Washington University is taking aim at food.

As a prelude to a lawsuit, Banzhaf recently sent fast-food executives a letter demanding they display restaurant signs warning that fatty foods are addictive. ''I don't expect they'll do it,'' he says. ''But we have to start somewhere.''

More overweight children

The food giants all know what that means: They must square the foods they target at kids with statistics on how fat the kids are getting. There are twice as many overweight children and three times as many overweight adolescents as in 1980, says the U.S. Centers for Disease Control and Prevention.

Jennifer Beaton only wishes her daughter, Katherine, 10, could drop fatty, salty snacks. Katherine adores Doritos chips and McDonald's fries.

When the Westlake, Ohio, mom noticed Katherine putting on weight, she ceased the weekly Friday afternoon trips to McDonald's for large fries and a soft drink. And she began to remind her daughter how fattening the chips could be. Katherine has lost weight since then, but it hasn't been easy.

''How do you fight with these companies?'' asks Beaton. ''Maybe they just don't realize how frustrated parents are.''

Not everyone, however, blames the food giants.

''It's fun and easy to blame all this on supersized meals and too many vending machines,'' says Robyn Flipse, a registered dietitian and author. ''But one of the most important things a parent can do for a child is to give them a concept of how to eat well.''

Even some parents agree the food buck stops with them.

''The foodmakers are in business to make money -- and to do that, they've got to target kids,'' says Kerrie Mae Mitchell, an Olney, Md., mother of an 11-year-old son. ''A parent's job is to redirect.''

But some food giants -- motivated by the bottom line -- are starting to redirect themselves.

Foodmakers' game plan

* Kraft. The food kingpin is forming a global advisory panel of nutritionists and other outsiders who over the next year will change the way Kraft makes, packages and promotes its food.

A cap -- to be determined -- will be placed on the portion size of all single-serve products. Many products will have calories and fat reduced. Kraft will eliminate all in-school marketing and drop some products -- perhaps sugary cookies -- from school vending machines.

''We're making these commitments because we think it's the right thing to do for the people who use our products -- and the right thing to do for our business,'' says Michael Mudd, senior vice president at Kraft. ''Sometimes, the right thing to do is also the smart thing to do.''

Kraft's highly profitable Lunchables meal kits, which typically contain crackers, processed meat and cheese, fruit punch and candy, have long been criticized by nutritionists.

In response, Kraft recently added the Lunchables Fun Fuel line that the company claims has more nutritious products -- including yogurt (replacing a candy bar) and 100% fruit juice (replacing fruit punch). The new lunch kit replaces the ham, cheese and crackers with such items as chicken and cheese wrapped in pita bread.

And, following a lawsuit over the trans fatty acids in its Oreo cookies, Kraft is on a mission to eliminate -- or greatly reduce -- trans fat in all of its cookies and crackers.

* McDonald's. For McDonald's, the upcoming Happy Meal fruit test may be just the beginning. The test will also give consumers an option to substitute 100% juice for soft drinks. Industry consultants also expect McDonald's to eventually offer fresh vegetables -- such as bagged carrots -- as an option for kids.

''If healthy lifestyles are becoming more important to our customers,'' says CEO Jim Cantalupo, ''we want to play a leadership role.''

But critics wonder: What took so long?

Even as McDonald's recently introduced a much-advertised entrée salad line that targets adults, critics wonder when McDonald's will pump as much promotional money into new, kid-friendly products that also are more nutritious.

''McDonald's has spent billions of dollars to convince kids that somebody at McDonald's loves them,'' says Hirsch, the attorney. ''But the food is downright unhealthy if consumed on a regular basis.''

McDonald's and healthy lifestyles

McDonald's is feeling the pressure. About three months ago, McDonald's named its first-ever corporate vice president of healthy lifestyles. And within the past few months, it overhauled its Web site to include an interactive section dubbed Bag A McMeal. It allows consumers to find out the precise amount of calories, fat and sodium in every meal option available.

''We see in our research that this is becoming more important to consumers,'' says Ken Barun, corporate vice president of healthy lifestyles. ''Moms want to provide healthy options for their kids.''

* Frito-Lay. For a company that has built its snacking empire on chips fried in oil, Frito-Lay would seem to have the toughest nutritional nut to crack.

Perhaps no Frito-Lay product is more kid-targeted than its puffed, orange-colored Cheetos. Earlier this year, the company introduced Reduced Fat Cheetos.

The new line has about half the fat of regular Cheetos and about half the unsaturated fat. Even the sodium was reduced to 210 milligrams per serving from 290.

The company has spent big promotional dollars to convince school cafeteria managers that these new Cheetos are the real nutritional deal. It even sent thousands of videotapes on which PepsiCo CEO Steven Reinemund says the unthinkable: ''Overindulgence in any of our products is not something we encourage or recommend.''

What's behind all this?

''We read the papers,'' says Rocco Papalia, senior vice president of technology at Frito-Lay. He's in charge of all new product development. So, it's no accident that Frito-Lay also plans to eliminate artery-clogging trans fatty acids from all of its products by the end of September. But none of this comes easy -- nor is it easy to sell.

''It's difficult to get kids to eat something they don't want,'' says Papalia. ''It doesn't do any good to reduce calories, fat or sodium on something nobody wants.''

* Kellogg. Even the maker of Froot Loops says it's serious about kids' nutrition. Never mind that two of its newest cereals -- Disney's Mud & Bugs and Tony's Cinnamon Krunchers -- are heavy on sugar.

Earlier this year, Kellogg introduced Froot Loops & Milk Bars, a snack bar with dehydrated milk. ''Too many kids are skipping breakfast,'' says Donna Banks, senior vice president of research, quality and technology at Kellogg. ''This way, they get the nutrition of milk and cereal right inside the bar.''

Kellogg purchased Kashi, an organic cereal line, for $30 million two years ago. Industry executives say Kellogg executives are studying the line to figure out ways to put some of its nutritious elements into future products.

How much sugar is too much? ''We do a lot of consumer testing,'' says Banks. ''We put as little sugar in as we can to make it acceptable.''


TOPICS: Business/Economy; Culture/Society; Extended News
KEYWORDS: blood; fat; food; foodpolice; lawyers; sucking

1 posted on 07/01/2003 10:17:39 AM PDT by B Knotts
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To: B Knotts
They will reduce portion size ... does that mean that they will also reduce the price of the product? I didn't think so.

Food Nazis.

g

2 posted on 07/01/2003 10:35:12 AM PDT by Geezerette (... but young at heart!-)
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To: B Knotts
The future of America: Fat and blaming someöne else
3 posted on 07/01/2003 10:37:36 AM PDT by Oztrich Boy ("To alcohol! The cause of- and solution to- all of life's problems" Homer)
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To: Oztrich Boy
"I'm not fat! I'm just big-boned..."
4 posted on 07/01/2003 10:40:09 AM PDT by B Knotts
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To: B Knotts
Kids are getting too fat! We need a law. Parents can't be expected to guide their children's behaviour, isn't that what the government's for??
I propose banning unhealthy food from being sold or consumed in any public place. Oh, and a "sin tax" too, yeah
5 posted on 07/01/2003 10:42:56 AM PDT by BMiles2112
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To: B Knotts
Whales and dinosaurs are 'big boned'; you're fat, fella.
6 posted on 07/01/2003 10:44:33 AM PDT by Hinoki Cypress (At 53, it's the miles, not the years.)
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To: B Knotts
And, following a lawsuit over the trans fatty acids in its Oreo cookies, Kraft is on a mission to eliminate -- or greatly reduce -- trans fat in all of its cookies and crackers.

Hooray! Trans-fat or Partially Hydragenated oils is a hidden killer. Studies have shown that the T-fat bonds plaque to the arteries. In case someone doesn't understand why T-Fat is in 40% of the food products in the first place, it's added to increase shelf life. It makes cookies, candy, crackers, chips and cake crispy.

7 posted on 07/01/2003 10:53:18 AM PDT by Shooter 2.5 (Don't punch holes in the lifeboat)
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To: Oztrich Boy
...beefcaaaake....!!!


8 posted on 07/01/2003 11:14:11 AM PDT by martin gibson
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To: B Knotts
Analysts say the food giants haven't suddenly become food pyramid angels looking out for the nutritional well-being of America's youth.

They'll never get Little Debbie and Moon Pies.

9 posted on 07/01/2003 11:15:32 AM PDT by Mike Darancette (Soddom has left the bunker.)
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To: Shooter 2.5
Trans fat is bad, but as far as I know, it is generally added to keep things moist. It's what we used to call "shortening."
10 posted on 07/01/2003 11:18:35 AM PDT by B Knotts
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To: Shooter 2.5
Trans-fat or Partially Hydragenated oils is a hidden killer.

I brought that up 9 or 10 years ago to my manager at a french fry subsidiary of one of the largest food conglomerations. Amazing I wasn't fired then. It wasn't a point of view they wanted to hear. Come to think of it, I got away with a lot of heresy at that company. Until I left, think they kept me on as sort of a window to the opposition.

11 posted on 07/01/2003 11:27:10 AM PDT by steve86
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To: B Knotts
''How do you fight with these companies?'' asks Beaton.

Try cooking, try providing healthful snacks. McDonald's doesn't MAKE you drive through for a large fries and coke every Friday.

sheesh

12 posted on 07/01/2003 11:43:15 AM PDT by mombonn (Have you prayed for our President yet today?)
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To: B Knotts
They had better not mess with the Wendys triple burger with cheese and bacon.


BUMP

13 posted on 07/01/2003 11:50:18 AM PDT by tm22721 (May the UN rest in peace)
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To: BMiles2112
Better yet, put up scales and weight charts at all fast food places and grocery stores. At check out the cashier can weigh the customer and if the BMI is too high, refuse to sell the outlawed food to them. I can hear it now..."lane 6 needs 1 pound of celery and 1 pound soy bean meal"...then the cashier merely snatches the brownie mix or french fries away and replaces them with the healthy item. Wonder how long it would take for the lawsuits to start based on "they said I was too fat and embarrassed me!"

Fast food joints can have a nice sign outside reading, "You must weigh less than XXX to buy a Whopper." The skinnies could stand outside and offer to make the illicit purchases for a small tip.

14 posted on 07/01/2003 11:59:26 AM PDT by bluesagewoman
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To: bluesagewoman
It sounds like you've got a plan to me! Though they would be taken to court for discrimination against fat people, and the SCOTUS would vote it down 6-3 based on the fact that the weight restriction is too explicit, and would need to be more nebulous, citing some nonsense about critical "mass" and public interest. KFC would be OK, by 5-4, because they only state that your height needs to exceed your weight, and other things, such as shoe size, would be taken into account. I'm one skinny that would be in on that black market.
15 posted on 07/01/2003 12:56:21 PM PDT by BMiles2112
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To: BMiles2112
Uhhh... weight=girth
16 posted on 07/01/2003 12:57:50 PM PDT by BMiles2112
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To: BMiles2112
You'd be in on the black market? How could you? Contributing the the obesity of a fat person? You'd get sued, too. No, better let the bums, alkies, and druggies do that service. After all, they aren't responsible for their own behavior, how could they be responsible for anyone else? Now, that's a good idea!
17 posted on 07/01/2003 1:03:55 PM PDT by bluesagewoman
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To: bluesagewoman
More contributing to the obesity of my wallet. You're right, though. GWB would announce a "War on Beef", and I would be the enemy. A "Pusher", if you will.
18 posted on 07/01/2003 1:14:52 PM PDT by BMiles2112
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To: B Knotts
Lowfat wave two. I'm sure this one will fail just as miserably as wave one. That was a rough couple of years, real hard to find a non-turkey non-lowfat keilbasa. They'll keep this stuff just long enough to get the clowns off their backs then go back to making money.
19 posted on 07/01/2003 1:19:50 PM PDT by discostu (you've got to bleed for the dancer)
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To: martin gibson

These guys will be devastated if they mess with "Kraft Dinner."

20 posted on 07/01/2003 1:23:33 PM PDT by dfwgator
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