Compliance Global Impact Engagement Solutions Transparency Learning Responsible Marketing: Earning the Right to Engage Julie Howden, Nutrition and Public Affairs Senior Advisor Kellogg Asia

Presentation Roadmap Why is there a need to engage? How do companies engage effectively? Industry Efforts to date Challenges going forward

Obesity is Driving Change Globally

Why is there a need to engage? Rising obesity rates Broad-based and heightened stakeholder focus on obesity Current global environment WHO 2004 Global Platform Regional focus sharpens Calls for action on many fronts Industry alignment around issue and solutions Currently: Significant efforts underway to strengthen and expand self-regulation (e.g., Pledge programs, monitoring, etc.) and globalize commitments

WHO Strategy on Health, Wellness and Physical Activity Reassessment of nutrient composition of products Responsible marketing to support the strategy esp. to children Adequate and understandable product and nutrition information for consumers Promote healthy diets and physical activity in line with strategy and national policy Public and private partnerships to promote healthy diets and physical activity

ICC Framework for Responsible Food and Beverage Marketing Communications, 2006 a global code of practice on food marketing. Key provisions include: –the need for substantiation for claims or health benefits –no encouragement of excess consumption – no representation of snacks as meals – no undermining of healthy lifestyle messages – no undermining of the role of parents.

Company Engagement Engagement Part of the culture and across stakeholder groups Be humble and willing to listen Earn trust Global View Align where possible Explore and explain when and why you cannot Compliance Credible and transparent changes Cultural shifts Solutions Recognize what role a company can (or cannot play) Anticipate the future

Examples Food industry engagement with WFA regionally Organizing via established third parties Stakeholder dialogue Engagement

Introduction of GDAs Pledge programmes Participating in government/NGO sponsored dialogue Examples Solutions 4. Individual corporate food marketing principles (monitored) 5. Best Practice Promotion through adoption by trade bodies, etc 3. Industry-wide self-regulatory codes for food marketing 2. National self-regulatory frameworks 1. National/regional regulatory frameworks

US Pledge Program 14 food and drink companies take voluntary commitments on marketing to children <12 by the end of − Restrict advertising to <12s to products that meet nutritional criteria or cease advertising to this group altogether. − Restrict use of licensed characters to products that meet better-for-you criteria and to websites promoting healthy lifestyles. − Refrain from advertising in elementary schools. − No product placement in movies or other editorial content primarily directed to <12s. Congressman Ed Markey sent letters to Chuck E. Cheese, Nestle, ConAgra, Dannon, and Yum! asking them to join.

Examples Implementation of pledges in the EU, Canada (and moves to do the same in Australia, Asia) GDA roll-out globally (Tesco, Kellogg) Industry coalitions for regional and global issues Global solutions Implementation of pledges Moves towards new regional pledges

In April 2007, Canada’s food and beverage industry announced the launch of the Canadian Children’s Food and Beverage Advertising initiative. Supported by the Canadian Minister of Health, and gathers 16 leading food and drink companies. The Advertising Standards Canada (ASC) released the details of each participants’ commitment for the first year. The commitments cover advertising in print, on television, radio and the Internet. They include: Campbell Company of Canada, General Mills Canada Corp, Kellogg Canada Inc, Kraft Canada Inc, McDonald’s Restaurants of Canada, Nestle Canada, Parmalat Canada Inc. and Weston Bakeries limited will direct 100% of their children’s advertising to healthier dietary choices in accordance with standards that are consistent with scientific and/or government nutrition standards. Cadbury Adams Canada Inc, Coca-Cola Canada, Hershey Canada Inc, Janes Family Foods Ltd. Mars Canada Inc, McCain Foods Canada, PepsiCo Canada, and Unilever Canada will not direct advertising to children under 12. Incorporate only products that meet the children’s advertising initiative criteria for healthier dietary choices in interactive games primarily directed to children under 12 year of age. Restrict the use of their party licensed characters in children’s advertising to products that meet the Children’s Advertising Initiative criteria for healthier dietary choices. Not pay for or seek to place food and beverage products in program/editorial content of any medium primarily directed to children. Not advertise food or beverage products in elementary schools. Canadian Food and Drink Industry Advertising Pledge

EU Pledge Program No advertising of products to children under 12 years, except for products which fulfill specific nutrition criteria based on accepted scientific evidence and/or applicable national and international dietary guidelines. No communication related to products in primary schools, except where specifically requested by, or agreed with, the school administration for educational purposes. For TV, Print and Internet with a minimum of 50% of children under 12 years.

Examples Compliance Expand and strengthen SR Globalize commitments Monitoring, metrics and transparency

“How” We Market to Children Kellogg’s existing Worldwide Marketing Guidelines govern all our marketing Examples : No advertising to pre-school children No encouraging excessive consumption Looking for opportunities to show exercise Accurate representation of nutrition and health benefits TV, radio, print,internet, schools, promotions, product placement. Additional limitations imposed by KGNP

Kellogg Global Nutrient Criteria (KGNC) per serving * Calories ≤ 200 Sat Fat ≤ 2g TFA = 0g (label zero) Sodium ≤ 230mg Sugar ≤ 12.5g (label 12) If current global products that are marketed to children don’t meet KGNC, then by end of 2008 we will: 1.Innovate the product to meet the KGNC, or 2.Stop marketing the product to children *Based on 10% of the daily amount of a 2000-calorie diet as referenced in Institute of Medicine (IOM) Reports “What” We Market to Children

Industry Efforts to Date Alignment on key issues Maximize collective impact Transparency and monitoring Looking to learn

Challenges going forward Obesity is multifactorial Monitoring the environment Predicting future developments –(e.g. nanotechnology; new media) Gaining alignment by ongoing communications with stakeholders Global connectivity and alignment Gaining trust Photo credits: European Commission, Microsoft Clip Art