KRAFT KAVES! Maker of Oreos to Revamp Products: Cites Obesity

Associated Press -- "Kraft to Revamp Products: Cites Obesity" ^ | July 1, 2003 | Deborah Cohen

[L.N. Smithee]

By Deborah Cohen

CHICAGO (Reuters) - Kraft Foods Inc., the biggest U.S. maker of processed foods, on Tuesday said it would cap portion sizes, eliminate marketing in schools and reformulate some products as the food industry faces increasing legal blame for obesity and unhealthy eating trends.

The maker of Oreo cookies and Velveeta cheese spreads said this year it will develop a range of standards to improve the overall nutritional content of its products and the way it sells them. It will begin making changes to the way it manufactures and markets foods beginning next year.

The cost of the measures, which are sweeping, could not be estimated, according to a spokesman for the company, based in the Chicago suburb of Northfield, Illinois.

Critics are quick to point out that Kraft may be on the defensive at a time of heightened criticism over the role big food companies play in contributing to growing health problems in the United States. No. 1 fast-food chain McDonald's Corp. has already been the target of a highly publicized lawsuit linking its burgers to obesity in children.

"This is sort of a preemptive move to stave off the lawyers and the critics," said Henry Anhalt, an endocrinologist and director of the "Kids Weight Down" program at Maimonides Medical Center in Brooklyn.

"What I think is going on is that the soothsayers are saying that coming down the pike are going to be large lawsuits, class action suits looking at cardiovascular disease, premature death, diabetes, and they're going to turn to the food industry and lay it on their feet," he said.

Still, he applauded Kraft for making changes that he believes will make a difference. Kraft could set standards that other major food companies could follow.

Obesity among adults in the United States has doubled since 1980, and tripled among adolescents, according to the U.S. surgeon general.

Kraft acknowledged that the moves may in part help indemnify the company against potential lawsuits.

"We're making these commitments first and foremost because we think it is the right thing to do for the people who use our products and for our business, but if it also discourages a plaintiff's attorney or unfair legislation, that's fine with us." said Michael Mudd, a Kraft spokesman.

GLOBAL EFFORTS

Kraft said its efforts would be global, focusing on product nutrition, marketing practices, information for consumers and public advocacy. It is forming an advisory council to help develop standards for the company's approach to health issues.

Marketing fatty and sugar-laden foods to children has been a hot-button in the news. Last week, New York City's school system decided to remove candy, soda and sweet snacks from school vending machines.

Last month, the head of the U.S. Food and Drug Administration (news - web sites) said that agency plans to push for expanded nutritional labeling on food products.

Kraft said the changes it will make will include advertising and marketing to children to encourage appropriate eating behaviors and active lifestyles.

The company, which used to promote its products on Channel One, a news channel played in secondary schools, will now cease all in-school marketing.

Other big food industry players are also taking defensive measures. McDonald's in March announced worldwide initiatives to help promote healthy lifestyles and provide consumers with expanded product information. It has also assembled an advisory council.

"This is an ongoing battle," said Keith Patriquin, a buy-side analyst with Loomis Sayles, which holds shares of Kraft and other big food names. "Trial lawyers ... are looking for the next big thing."

Earlier this year, a lawsuit was filed in California seeking to ban Kraft's Oreo cookies. The suit, which drew criticism in legal circles for potentially abusing the U.S. court system, was withdrawn less than two weeks later.

Shares of Kraft, which is majority owned by tobacco giant Altria Group Inc., were off 25 cents at $34.30 in mid-morning New York Stock Exchange (news - web sites) trading. (With reporting by Brad Dorfman in Chicago)

[FreeTheHostages]

Well put. I can't say it's a bad move for Kraft, from a corporate perspective -- they're trying to stay ahead of the insanity curve. Fact is, there ARE changes they could make which would improve nutritional content without harming taste and I believe them when they say that consumer demand -- not wacko lawyers -- is their primary motivation. That's just smart business sense.

Course, you seriously have to wonder about people -- like me -- that eat a lot of Oreos and care to give a fig about their nutritional content. LOL. But that's no doubt what people SAY they want and what people will in the market respond to. So this is market-driven, not lawyer-driven, change.

[FreeTheHostages]

I LOVE OREOS AND I WOULD NEVER NEVER SUE KRAFT! That's like -- very much like -- biting the hand that feeds me.

[Dane]

This story comes from Reuters and not AP.

Also, I thought that Oreo's were made by Nabisco, not Kraft, which, I believe is part of Phillip Morris, not RJR.

Some things don't add up about your post from Yahoo.

[Dog Gone]

If Kraft's products don't taste as good anymore, they'll lose customers to their competitors. I'm sure the food nazis have thought of that and are targetting them now, too.

[Bluntpoint]

I personally would not vote for a person who did not try to make calorie free cookies mandatory by state action.

[Lady Jag]

This is absolute proof that people never do anything wrong. Cookies make people fat. Cars run over people and guns kill tnem. Everything inert is to blame. Humanity is innocent!

[nina0113]

Did you notice when they changed the filling a while back? It was an IMPROVEMENT, the filling now nibbles off cleanly when you unscrew the chocolate cookie, but it was still a CHANGE, and it worried me.

[Old Professer]

B.S. The only thing less-read than the nutritional label on a bag of cookies is the Owner's manual on a new car.

[Ayn Rand wannabe]

I'm not really partial to Macaroni and Cheese, but you never know...perhaps that is next (they are made by kraft you know). I'm just waiting to hear the government finally tell us what we can and cannot eat. Grrrr....

[stands2reason]

They blame the snacks and not the video games? Kids are fat today cuz the won't run and play outside but instead sit on their butts playing Playstation.

[FairOpinion]

"it would cap portion sizes"

"So the serving size that no one reads on the side of the bag"

----

That's not what they are going to do: they are going to charge now as much for a 6 oz package, as they did for a 12 oz package before. Just watch.

Food companies have been known to use such tricks before, raise the price some, don't change the size of the box, to make you think you are still getting as much, then cut the amount of whatever it's in the box. Just now they are going to claim it's a virtue.

[areafiftyone]

Doesn't Oreo have 1/2 the fat cookies already? I remember seeing them in the store. What else can they do?? NO fat tastes horrible and they have to make up for the taste by putting more sugar in like the Snackwell cookies which are loaded with sugar to make them taste better.

[Williams]

I risk becoming a "liberal" by some people's definition in my old age. These products are loaded with partially hydrogenated oils which are created by an artificial process and which are used because they are cheaper than using real butter, etc. PHO remains in the body and is super linked with cancer and heart disease. There is nothing much "natural" about it. I have heard doctors (hardly fans of lawsuits) on several shows discussing this. Apparently, you could literally stick a needle into a person's rump and draw out the PHO stored there.

[grania]

For pete's sake!! It's a COOKIE. It's suppose to be fattening. I'd bet a 'healthy' cookie tastes awful

Actually things like hydrogenated oils and high fructose corn syrup aren't added to make the cookie taste better; they're added because they cost less money. A cookie that had more natural ingredients would taste better.

[Alberta's Child]

I'll bet this has nothing to do with consumer health, protection from lawsuits, etc. Kraft just wants to generate more money in sales.

If you sell 12 pounds of a product in four 3-pound containers, you'll generate more revenue than if you sell 12 pounds of product in two 6-pound containers.

[Alberta's Child]

LOL. You beat me to it -- see #35.

[Scott from the Left Coast]

Eat those burgers while you still can.

The beef industry has two sets of leftist totalitarian wackos and their lawyers after it:

1. The Fat Police who've gotten the Oreos;

2. The Enviro-wackos who don't like cow farts.

[Bluntpoint]

"Apparently, you could literally stick a needle into a person's rump and draw out the PHO stored there."

Drool!!!!!!

[Chancellor Palpatine]

Two words - New Coke.

[Taxman]

When Oreos become "healthy," I'll quit eating them!

I don't want to eat a "healthy" cookie! I want to eat good tasting cookies, and "fat" Oreos taste good!