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Archive for the ‘Feet to the Fire’ Category
Pepsi’s “Live for Now” campaign is the Joe Camel of soda marketing to youth
Wednesday, January 9th, 2013
[Adapted from Richard A. Daynard’s presentation to the 2013 Annual Meeting of the Association of American Law Schools’ Agriculture and Food Law section, January 5, 2013.]
Soda consumption is a major contributor to adolescent obesity.1 Fortunately, soda consumption has been declining recently,2 presumably as a result of adverse media attention and policy initiatives like the ban on most sugar-sweetened beverages in schools.
PepsiCo has decided to do something about that, and has designed its “Live for Now” campaign in an effort to reverse the decline in teenage soda consumption. The campaign takes advantage of known adolescent vulnerabilities which result from the facts that the inhibitory structures of their brains are not fully developed, hormonal changes further reduce inhibitions while lowering self-esteem, and their psychosocial development focuses on identity formation and social acceptance.3 As a result they tend to be impulsive, thrill-seeking, and “now”-oriented. While they may rationally balance perceived risks and benefits, doing so does not necessarily inure to their best long-term interests.
Pepsi’s Live for Now campaign, like the infamous Joe Camel campaign used by R.J. Reynolds, is designed to prey upon these adolescent vulnerabilities in an effort to reverse declining consumption trends as well as to market a particular product.
Unlike cigarette advertisers, Pepsi is free to take its campaign to the airwaves. It will do so in a big way when it will sponsor the Superbowl Halftime Show featuring Beyoncé, who recently entered into a $50 million endorsement deal with PepsiCo.
The Federal Trade Commission could bring an enforcement action under its unfairness jurisdiction, and state attorneys general and private attorneys could seek injunctive relief under state consumer protection laws.
But little is likely to happen unless public outrage is focused on this campaign, and unless regulators and judges learn more about the biological and developmental underpinnings of faulty adolescent decision-making.
References:
1. Ludwig DS, Peterson KE, Gortmaker SL. Relation between consumption of sugar-sweetened drinks and childhood obesity: a prospective, observational analysis. Lancet 2001; 357: 505–508.
2. Strom, S. (2012). “Soda Makers Scramble to Fill Void as Sales Drop.” The New York Times, May 15, 2012.
3. Pechman, Cornelia, Linda Levine, Sandra Loughlin, and Frances Leslie (2005), “Impulsive and Self-Conscious: Adolescents’ Vulnerability to Advertising and Promotion,” Journal of Public Policy & Marketing, 24 (Fall), 202-221.
Research assistance by Brendan Burke and Cara Wilking
Support for this research was provided, in part, by the National Cancer Institute (2R01CA087571).
Nestlé’s nutritional advice recommends avoiding Kraft Lunchables, but Nestlé puts its candy in Lunchables anyway
Thursday, September 6th, 2012
This week, as millions of American children return to classrooms and lunchrooms, moms and dads are trying to sort out which pre-made food products are conducive to learning and a healthy diet and which are flashy, sophisticated packages of junk food.
Nestlé, which deems itself “the world’s leading nutrition, health and wellness company” has teamed up with Kraft Foods to sell three of its candy brands (Nestlé, Crunch, Nerds, and Kit Kat) in Kraft’s Lunchables. Nestle candy is included in “Lunchables with Juice” varieties containing “Light Bologna and American Cracker Stacker,” “Pizza with Pepperoni made with Pork, Chicken and Beef,” and “Nachos, Cheese Dip and Salsa.” A picture of Nestlé candy is featured prominently on Lunchables product packaging:
Lunchables with Nestle Crunch Bar
The inclusion of Nestlé candy in these products is perplexing because Nestlé maintains a health and nutrition-focused website for parents called NestleFamily.com where it proffers tips for packing healthy school lunches by Dr. Christine Wood. A look at four of Nestlé’s healthy lunch tips reveals that Kraft Lunchables products with Nestlé candy fall short.
The first tip: “Pack 100% juice boxes.”
- Nestlé candy is included in three varieties of Lunchables that contain either Capri Sun juice drink pouches sweetened with high fructose corn syrup and juice concentrate or a 30-calorie Capri Sun flavored water sweetened with sucralose and high fructose corn syrup.
Tip two: “Try to limit the frequency of using processed luncheon meats because of the nitrates in them. (Nitrates are preservatives found in many cooked and cured meats and should be given sparingly to young children.)”
- Nestlé candy is included in Lunchables that contain processed meats. Those meats are: Pepperoni Slices (PEPPERONI MADE WITH PORK, CHICKEN AND BEEF–BHA, BHT AND CITRIC ACID ADDED TO HELP PROTECT FLAVOR: PORK, MECHANICALLY SEPARATED CHICKEN, BEEF, SALT, CONTAINS 2% OR LESS OF PORK STOCK, SPICES, DEXTROSE, LACTIC ACID STARTER CULTURE, OLEORESIN OF PAPRIKA, FLAVORING, SODIUM ASCORBATE, SODIUM NITRITE, BHA, BHT, CITRIC ACID) and; “Light Bologna”( BOLOGNA MADE WITH CHICKEN & PORK: MECHANICALLY SEPARATED CHICKEN, WATER, PORK, CORN SYRUP, MODIFIED FOOD STARCH, CONTAINS LESS THAN 2% OF SALT, POTASSIUM LACTATE, SODIUM PHOSPHATES, SODIUM DIACETATE, SODIUM ASCORBATE, FLAVOR, SODIUM NITRITE, EXTRACTIVES OF PAPRIKA, POTASSIUM PHOSPHATE, SUGAR, POTASSIUM CHLORIDE).
Tip three: “Your kids will be more interested in healthy eating if they get involved in the preparation.”
- Assembled in a factory far away from home, kids could not be less involved in the preparation of Lunchables.
Tip four: Use fresh fruits and vegetables.
- Lunchables with Light Bologna and American Cracker Stacker contains no fruits or vegetables other than the fruit juice concentrate contained in the Capri Sun juice pouch. The other two Lunchables lines with Nestlé candy include salsa or pizza sauce. Neither these nor the other lines of Lunchables feature fresh produce.
NestleFamily.com says “Packing a healthy lunch for your kids can be a challenge!” It sure can. Especially when food manufacturers talk healthy foods and walk junk.
PHAI joins the Center for Digital Democracy and others in complaint to FTC over children’s websites’ “Tell-A-Friend” tactics
Wednesday, August 22nd, 2012
Today the Public Health Advocacy Institute at Northeastern University School of Law in Boston has joined a coalition of children’s, health, privacy and consumer advocacy organizations in a complaint to the U.S. Federal Trade Commission against several children’s websites for violations of the Children’s Online Privacy Protection Act (COPPA). The offending children’s websites use a “Tell-A-Friend” feature to induce children to provide e-mail addresses of their peers. The websites involved include McDonald’s HappyMeal.com, General Mills’ ReesesPuffs.com and TrixWorld.com, Doctor’s Associates’ SubwayKids.com, Viacom’s Nick.com, and Turner Broadcasting’s CartoonNetwork.com.
The Tell-A-Friend tactic uses a game or other child-targeted activity as a way to engage children in an immersive marketing experience and then directs users to share the activity with friends by entering multiple e-mail addresses. Those children will receive an e-mail that may or may not appear to be from their friend urging them to go to a child-targeted marketing website. This viral marketing tactic creates and reinforces brand awareness providing value to the advertiser. All of this occurs without prompts for any parental consent and, in McDonald’s case, may involve distributing a photograph of the child taken by webcam to recipients of the e-mail message.
Mark Gottlieb, Executive Director of PHAI, noted that, “COPPA was enacted by Congress to protect children under 13 from divulging any personal information to commercial interests on the Internet without the consent of a parent. By inducing young kids to provide the e-mail addresses of their peers, the companies involved here are certainly violating the spirit of COPPA and, it would appear, the letter of the law as well through these “Tell-A-Friend” practices. This is something that state attorneys general could also investigate under their consumer protection authority because these tactics are unfair and deceptive.”
In addition to the Center for Digital Democracy which has published the complaints on its website, PHAI was joined by the American Academy of Child and Adolescent Psychiatry, Berkeley Media Studies Group, Campaign for Commercial Free Childhood, Center for Media Justice, Center for Science in the Public Interest, Children Now, Consumer Action, Consumer Federation of America, Consumer Watchdog, ChangeLab Solutions, Global Action Project, Media Literacy Project, Privacy Rights Clearinghouse, Public Citizen, and the Rudd Center for Food Policy & Obesity at Yale University.
For Many Living With Limb Loss, “Open Happiness” Doesn’t Ring True
Tuesday, July 24th, 2012
by Cara Wilking, JD
As part of its 2012 Olympic Games marketing blitz, the Coca-Cola Company has assembled a “Coca-Cola 8-pack of Athletes” to “serve as Coca-Cola ‘Ambassadors of Active Living’ to help encourage and inspire people to lead active, balanced lives.”[1] This group includes Jessica Long, a 2012 U.S. Paralympic Swimming Team nominee.[2] Ms. Long was born with fibular hemimelia, a condition of the lower legs, and became a double leg amputee at 18 months old.[3] Ms. Long’s athletic achievements are undeniable and her seamless inclusion in the marketing campaign is in line with equality and dignity for all. The tragic reality of lower limb loss, however, is that the majority of people suffering from non-traumatic lower limb loss are diabetic, and it is not medically appropriate for diabetics to consume sugar-sweetened beverages.
From what has been released of the campaign so far, the “Coca-Cola 8-Pack of Athletes” promotes full-sugar Coca-Cola. Ms. Long is no exception. Her commercial, entitled “Home,” shows her swimming as a child in her grand-parents’ backyard pool and moves through a range of global swim competitions.[4] The commercial ends with Ms. Long drinking from a bottle of full-sugar Coca-Cola. Cans of full-sugar Coca-Cola are shown next to the tagline “Open Happiness” and an announcer says, “Support our athletes with the Cola-Cola Olympic Series Collector’s Cans.” In other words, “Buy Coke!”
If one of the goals of Coca-Cola’s “8-pack of Athletes” campaign is to inspire people, including those suffering from limb loss, to lead active lives, then why does the campaign promote a product diabetics are under doctor’s orders to avoid?
Sugar-sweetened beverages like Coca-Cola are associated with obesity-related diseases including Type 2 Diabetes.[5] The Centers for Disease Control estimates that as many as 1 in 3 U.S. adults could have diabetes by 2050.[6] The links between diabetes and limb loss are stark and tragic:
- Diabetes is the leading cause of non-traumatic lower limb amputation among adults in the United States.[7]
- More than 60% of non-traumatic lower-limb amputates are people with diabetes.[8]
- In 2008, more than 70,000 people with diabetes had a leg or foot amputated [9]
- Diabetes rates for people aged 20 years or older are:
- 7.1% of Whites (non-Hispanic)
- 8.4% of Asian Americans
- 12.6% of African Americans (non-Hispanic)
- 11.8% of Hispanics[10]
- African Americans and Hispanics are almost 3 times as likely as non-Hispanic whites to suffer from lower-limb amputations[11], [12]
- Researchers estimate that the number of people in the United States with diabetes who are living with the loss of a limb will nearly triple by the year 2050.[13]
As inspiring as Ms. Long’s journey is, for many people living with the loss of a limb there is no “happiness” to be found in a can of Coke—a fact the Coca-Cola Company seems to have overlooked.
[1] The Coca-Cola Company, Press Release, Coca-Cola Opens Happiness With Its New “8-Pack” of Athletes for London 2012 Olympic Games, May 17, 2011, http://www.thecoca-colacompany.com/dynamic/press_center/2011/05/eight-pack-of-athletes-for-london-2012-olympic-games.html; and The Coca-Cola Company, Move To the Beat of London, http://www.coca-cola.com/theolympics/en-US (last visited June 28, 2012).
[2] Coke 2012 Olympics Commercial: Jessica Long “Home”, YouTube.com, June 19, 2012, CocaCola, http://www.youtube.com/watch?v=jpFrYaL6N2w&feature=plcp (last visited June 27, 2012).
[3] About Jessica, GraceLong.com, http://www.gracelong.com/index.php/about (last visited June 27, 2012).
[4] Coke 2012 Olympics Commercial: Jessica Long “Home”, YouTube.com, June 19, 2012, CocaCola, http://www.youtube.com/watch?v=jpFrYaL6N2w&feature=plcp (last visited June 27, 2012).
[5] Vasanti S. Malik et al, Sugar-Sweetened Beverages, Obesity, Type 2 Diabetes Mellitus, and Cardiovascular Disease Risk, 12 Circulation, 1356-1364 (2010).
[6] U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, Press Release, Number of Americans with Diabetes Projected to Double of Triple by 2050, http://www.cdc.gov/media/pressrel/2010/r101022.html.
[7] U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Diabetes Fact Sheet: National Estimates and General Information on Diabetes and Prediabetes in the United States, 2011, at 1, http://www.diabetes.org/in-my-community/local-offices/miami-florida/assets/files/national-diabetes-fact-sheet.pdf.
[8] U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Diabetes Fact Sheet: National Estimates and General Information on Diabetes and Prediabetes in the United States, 2011, at 8, http://www.diabetes.org/in-my-community/local-offices/miami-florida/assets/files/national-diabetes-fact-sheet.pdf.
[9] U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, Living with Diabetes: Keeping Your Feet Healthy, http://www.cdc.gov/Features/DiabetesFootHealth/.
[10] Diabetes Statistics, American Diabetes Association, http://www.diabetes.org/diabetes-basics/diabetes-statistics/?loc=DropDownDB-stats (last visited June 27, 2012).
[11] Living with Diabetes: African Americans & Complications, American Diabetes Association, http://www.diabetes.org/living-with-diabetes/complications/african-americans-and-complications.html (last visited June 27, 2012).
[12] National Limb Loss Information Center, Minorities, Diabetes and Limb Loss (May 2008), http://www.amputee-coalition.org/fact_sheets/multicultural/all_groups.pdf (citing Robert Preidt, Blacks, Hispanics Hospitalized More Often for Diabetes, Heart Disease, HealthDay: News for Healthier Living, August 15, 2006.
[13] Kathryn Ziegler-Graham et al, Estimating the Prevalence of Limb Loss in the United States: 2005 to 2050, 89 Archives of Physical Medicine and Rehabilitation 422, 424 (March 2008).
Health Groups Ask Federal Trade Commission to Investigate Merck’s Use of “Madagascar 3: Europe’s Most Wanted” Characters to Market Children’s Claritin®
Wednesday, June 20th, 2012
Wednesday, June 20, 2012
FOR IMMEDIATE RELEASE
Contact: Cara Wilking, 617-373-5699
Today, the Public Health Advocacy Institute (PHAI) at Northeastern University School of Law in Boston, joined by 10 other organizations, sent a letter to the U.S. Federal Trade Commission (FTC) asking that it investigate Merck & Co. Inc.’s Madagascar 3-themed marketing campaign for its flagship pediatric allergy medication, Grape-Flavored Chewable Children’s Claritin®.
“Marketing medicine directly to children at all, much less through entertainment tie-ins, is well beyond the pale and is not only inherently unfair, it is downright dangerous,” said Mark Gottlieb, executive director of PHAI.
To promote its June release of the Madagascar 3: Europe’s Most Wanted movie, Dreamworks licensed its Madagascar characters to Grape-Flavored Children’s Claritin®. It also licensed the characters to market other children’s foods including fruit-flavored Airheads candy, General Mills (Betty Crocker) Fruit Snacks, and McDonald’s Happy Meals. The use of the same characters on candy and gummy snacks and Children’s Claritin® creates the impression that the medicine is candy and could lead children to over consume the product at great risk to their health.
The FTC regulates over-the-counter (OTC) drug marketing and has protected children from marketing of vitamin supplements, and by extension OTC drugs, since 1977 when it found the use of Spider-Man to market vitamins to children to be unfair and deceptive (In re Hudson Pharmaceutical Corp., 89 F.T.C. 82 (1977)).
Merck’s campaign utilizes customized Madagascar 3 packaging including “5 Free Stickers.”with Madagascar 3 characters and containing “5 Free Stickers.” Mail-in movie ticket voucher promotions were prominently placed at retail outlets such as Walgreens and downloadable Children’s Claritin® Madagascar-themed activity games further targeted children. Merck also enlisted its “Children’s Claritin® Mom Crew” members to create social media buzz. Mom Crew members held Madagascar-themed viewing parties for children featuring product samples, coupons, DVD’s, popcorn containers and, Madagascar stickers and then featured the children’s parties on their blogs and websites.
Cara Wilking, a PHAI senior staff attorney who authored the letter, added, “the FTC stepped in and stopped this practice a generation ago. Apparently OTC drug-makers like Merck need to be reminded that targeting kids is unfair, deceptive, and unacceptable.”
PHAI, Berkeley Media Studies Group, Campaign for a Commercial-Free Childhood, Center for Digital Democracy, ChangeLab Solutions (formerly Public Health Law & Policy), Corporate Accountability International, Eat Drink Politics, Public Citizen, The Public Good Law Center, Public Health Institute and Prevention Institute request immediate action by the FTC to stop this practice before it becomes widespread.
The Hidden Energy Costs of School Beverage Vending Machines
Thursday, June 7th, 2012
PHAI has produced a FACT SHEET detailing state-by-state electricity costs of traditional cold beverage vending machines. A traditional cold beverage vending machine consumes an estimated 3000 kilowatt hours of electricity per year (kWh/yr). That translates to an average annual energy cost of $313 per machine. Even more energy efficient machines still use between 1200 and 1500 kWh/yr. When multiplied over the total number of machines housed on school property, the electricity cost required to operate cold beverage vending machines amounts to a significant hidden expense for schools that should be subtracted from school beverage vending revenue and taken into consideration when deciding whether or not to renew a beverage vending contract.
- Download the FACT SHEET.
PepsiCo Unfairly and Deceptively Targets Teens with Its “Win from Within” Gatorade Campaign
Tuesday, May 8th, 2012
The Public Health Advocacy Institute has submitted a letter to the Federal Trade Commission (FTC) requesting that it use its authority under Section 5 of the Federal Trade Commission Act to investigate PepsiCo’s current “Win from Within” commercial television advertisement and commercial website for its Gatorade sports drink product featuring Michael Jordan’s performance during game 5 of the 1997 NBA Finals (hereinafter “Jordan Ad”) that he played while suffering from a fever and flu-like symptoms. This game is popularly referred to as the “Flu Game.” The Jordan Ad depicts Mr. Jordan holding a Gatorade cup during the game and asserts that Gatorade was a key to his game-winning performance. Enforcement action is warranted because the Jordan Ad:
- encourages teens to engage in dangerous behavior;
- sequences historical events to falsely enhance the role of Gatorade in Mr. Jordan’s game-winning athletic performance; and
- contains deceptive product imagery.
The “Win from Within” ad series is designed to target teens, and the campaign is intended to deliver sports nutrition information to teens. PepsiCo’s media buys for the Gatorade Jordan Ad also appear to target teens. The average U.S. teen (12-17 years) saw 1.85 of these ads during the first quarter of 2012, 22% more ads than adults saw. More than half of this exposure occurred on teen-targeted cable networks, including Adult Swim, Teen Nick, ABC Family, and MTV.
PepsiCo has put itself in the position of being a messenger of sports nutrition and health information to its core Gatorade product demographic of teens. There is already enormous pressure on teen athletes to win at all costs by practicing during extreme heat and playing through injuries. The Jordan Ad creates the distinct impression that so long as you are drinking Gatorade you should not sit out a game or stay home when you are seriously ill with a fever. This message contravenes the medical recommendations for people suffering from flu-like symptoms and fever and puts teens in danger. The FTC should order PepsiCo to engage in corrective advertising that advises teens to not engage in physical activity when they have the flu or are suffering from a fever, describes the dangers of competing in sports when ill, and clearly states that Gatorade is not intended to be used to enhance the athletic performance of teens who are suffering from the flu or a fever.
FDA Action Needed to Address Diet Coke’s Blatant & Unlawful Use of Heart Health Claims
Thursday, February 9th, 2012
The Public Health Advocacy Institute is asking the FDA to investigate and take enforcement action against The Coca-Cola Company’s unlawful use of heart health claims on cans of Diet Coke. In February of 2010, 2011 and 2012, The Coca-Cola Company has released Diet Coke cans labeled with a large red heart symbol, the National Heart Lung and Blood Institute’s “The Heart Truth” Red Dress logo, and references to women’s heart health. Taken together, the large red heart symbol, the Red Dress logo and references to heart health imply a relationship between consuming a specific food, Diet Coke, and reduced risk for heart disease. The cans pictured below represent the cans in circulation in 2012 (left), 2011 (center) and 2010 (right).
The FDA defines health claims to include “any claim made on the label or in labeling of a food…that expressly or by implication, including ‘third party’ references, written statements (e.g., a brand name including a term such as ‘heart’), symbols (e.g., a heart symbol), or vignettes, characterizes the relationship of any substance to a disease or health-related condition.” 21 CFR § 101.14 (a)(1). In its food labeling guidance the FDA states, “ health claims characterize a relationship between a substance (specific food component or a specific food) and a disease (e.g., lung cancer or heart disease) or health-related condition (e.g., high blood pressure), and are supported by scientific evidence (see 21 CFR 101.1472).” FDA, Guidance for Industry: A Food Labeling Guide (April 2008), http://www.fda.gov. The use of the heart symbol, the phrase “The Heart Truth” and the reference to a national health organization implies that Diet Coke consumption is beneficial to heart health. This claim is not supported by scientific evidence and is not otherwise allowed under FDA regulations.
This type of misbranding is especially damaging to the public because it unequivocally links the product to a desired health outcome through multiple uses of the word “heart” and the use of a heart symbol—expressly the type of symbols, third party references and words the FDA references in its regulations and guidance on health claims for the food industry. The FDA should act immediately to investigate The Coca-Cola Company’s unlawful use of this health claim, issue the appropriate warning letter and take enforcement action as necessary.
General Mills Uses Whole Grain Claims to Distract from Sugar Content
Wednesday, December 14th, 2011
By Cara Wilking, Staff Attorney
Like a good mother, General Mills loves all of her “Big G” cereals the same. Consumers, however, should not. The company has chosen to market all of its Big G cereals as containing “More Whole Grain Than Any Other Ingredient*” (the asterisk takes you to the disclaimer “*as compared to any other single ingredient”). The side panel states “That’s why it’s first on the ingredient list” and tells consumers the USDA suggests looking for foods that list whole grains first. A recent report by the Environmental Working Group found that parents should be especially aware of sugar content when buying breakfast cereals for children.
Federally mandated weight-based cereal serving sizes, and the industry sponsored front-of-package Nutrition Keys labeling scheme has meant that when consumers compare calories most cereals look just about the same. The Big G cereals Wheaties, Kix, Lucky Charms, Cookie Crisp, and Cinnamon Burst Cheerios all have 100 or 110 calories per serving. But sugar content and serving size by volume varies widely. For example, Kix and Cinnamon Burst Cheerios both list 110 calories per serving, but Kix has just 3 grams of sugar per 1 ¼ cup serving while the pre-sweetened Cheerios product has 9 grams of sugar per 1 cup.
General Mills’ use of a uniform campaign for its Big G cereals is designed to make its entire portfolio of products look healthy by distracting attention from sugar content. Its website even features a page about sugar comparing plain Cheerios (1 gram of sugar per serving) to Trix (10 grams of sugar per serving ) that asks: “From a calorie and nutrient standpoint, are both products a good breakfast choice?” The answer: “Yes, they are. In fact, all General Mills cereals are lower calorie, nutrient dense choices.”
Perhaps this campaign is a sign that its sugary cereals are losing market share? If it is, General Mills should put its resources into developing breakfast products that are actually healthy for children instead of trying to prop up sugary cereal sales with claims about whole grain content.
New Big G Cereal Boxes
Big G Cereal Box Side Panel
Lucky Charms Box
The Cost of McDonald’s Happy Meal Toys
Thursday, December 8th, 2011
By Cara Wilking, Staff Attorney
The passage of San Francisco’s Healthy Food Incentives Ordinance and McDonald’s recent decision to “comply” with the law by charging 10 cents in order to be able to include toys with meals that do not meet minimal nutritional criteria has engendered a lot of public debate. The following table summarizes information from a 2005 Massachusetts Appellate Tax Board decision with Happy Meal cost information from the period between 1999 and 2001:
Toy, Food, Condiment & Paper Costs to McDonald’s Restaraunts of Massachusetts (1999-2001) in US Dollars
|
|
Hamburger Happy Meal |
Cheese-burger Happy Meal |
4-piece McNugget Happy Meal |
Happy Meal Toy Only |
| Toy cost |
0.43 |
0.4299 |
0.4299 |
0.43 |
| Food cost |
0.3104 |
0.3561 |
0.4147 |
|
| Condiment cost |
0.0162 |
0.0162 |
0.0476 (average) |
|
| Paper cost |
0.0434 |
0.0340 |
0.049 |
|
| Total cost |
0.8000 |
0.8362 |
0.9412 |
|
| Menu Price |
1.99 |
2.39 |
2.69 |
1.69 |
For the periods covered, McDonald’s reported that it paid its toy supplier 43 cents per toy. The total cost to McDonald’s for the toy and packaging of the Happy Meals was greater than the cost of food for each Happy Meal type. McDonald’s included a toy with every Happy Meal and sold the toys separately for a retail price of $1.69. The company noted that it had a dedicated key on its registers in order to process separate toy sales.
In an issue advertisement run by McDonald’s explaining its 10 cent Happy Meal toy plan, the company wrote: “we feel a responsibility to our customers – including parents…who would like to have the option of purchasing…[a toy] separately for their kids.” In reality, prior to the ordinance all customers, including parents, had the option to purchase a toy separate from a Happy Meal. To comply with the letter and the spirit of San Francisco’s ordinance, McDonald’s could have stopped putting toys in with Happy Meals that did not meet nutritional criteria. Customers wanting to buy a toy separately, including parents, would then be treated as they always have been—rung up using the dedicated register key and charged the retail price of the toy.
The good news is that, as Michele Simon points out, there is an easy legal fix to the 10 cent toy strategy. In the short term, McDonald’s response amounts to an incredible missed opportunity to break away from a business model whereby the inedible portion of its children’s meals cost more to produce than the edible portion. The cost spent on toys could be spent to improve the nutritional profile of its children’s menu. The result could have been less trash in the form of discarded toys, a boon to fruit and vegetable producers all over the United States who supply McDonald’s, and, most importantly, healthier kids.
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