Date: February 1, 2005
To: David Smith, CEO
Copy: David Johnson, CEO of North America; Donna King, Investor Relations Director; Jane Houston, General Counsel; Matt Conrad, Advertising and Marketing Director; Michael Mudd, Obesity Strategy Director
From: Alex Murray, Communication Director
Subject: Advertising campaigns led to increase in child obesity
In response to critic about targeting children under 12 in advertising unhealthy food which lead to the increase of childhood obesity, Kraft announced not to advertise products like Kool-Aid beverages, Oreo and Chips Ahoy cookies to children under 12 last month. We also have formed a lobbying group with General Mills and Kellogg to prevent the government from regulating food marketing to children. We need to put the focus back on our customers and communicate with them about our positions toward our advertising targeting young children.
Background
Allegations against Kraft that its advertisements of unhealthy foods to children led to the increase in child obesity in 2003. A Kraft executive publicly commented “We didn’t want to give up the power of marketing to kids”.
Recent advertising campaigns criticisms included: promoting unhealthy foods with fun children’s games, backing out from reducing portion size and commercials encouraged sloppy lifestyle.
McDonald’s was sued because of its children focus advertising which promoted over consumption.
Kraft decided to cut advertising to children, but also formed lobbying group with General Mills and Kellogg to against government regulation on food marketing to children.
Discussion
Dr. Ellen Wartella, Dean of the College of Communication at the University of Texas, was one of the major critics against Kraft’s advertising practice toward children. In addition to the executive using the word “power” when describing our ability to market, it further hurts our Reputation Quotient. We currently ranked 50th. This negatively