Responsible food advertising:A proportionate response to

obesity

January 2006

Overview

1. Food advertising does not cause obesity2. Advertising bans don’t work3. The causes of obesity: food advertising

in context4. Industry is responding: some of our

initiatives5. Recommendations for policy-making6. Conclusions

I. Food advertising does not cause obesity

No evidence of an impact of food advertising on obesity

• Many studies but no consensus on the nature and extent of the impact of food advertising on children

• Three largest studies: Hastings and Ofcom reviews (UK, 2003 and 2004); IOM report (US, 2005)Only a small impact on children’s eating

behaviour and no evidence of impact on children’s weight/health

The “modest effect” of food advertising

• Banning food advertising to children would not reduce childhood obesityOfcom 2004, UK, Childhood Obesity: Food

advertising in context:• “Academic research shows ‘modest direct effects’ of

television advertising on food preference, consumption and behaviour.”

• “There is insufficient evidence to show that TV advertising has a larger, indirect effect on children’s food choices.”

• “A total ban on such advertising would be both ineffective and disproportionate in its wider impact.”

The “modest effect” of food advertising

• German Consumer Protection Ministry, April 2005 study on food advertising to children:– Food advertising rarely targets children

directly– Violations of self-regulatory rules are rare

Any advertising ban would be inappropriate

The empirical evidence

• Food advertising in decline in mature markets - but obesity keeps rising

• No correlation between obesity levels and food advertising volume

• No impact of marketing restrictions on obesity

Food and drink advertising in decline- UK

£100

£200

£300

£400

£500

£600

£700

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Expenditure in Millions of 1994 £s

Source: Nielsen Media Research

Years

Ann

ual E

xpen

ditu

res

in M

illio

ns

Estimated Inflation – Adjusted Expenditures: Food, Drink and Restaurant Advertising

Food and drink advertising stable: Germany

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Food Drink (excluding alcoholic drinks) Fast-food restaurants

Years

An

nu

al E

xpe

nd

iture

s in

€ 0

00

(co

nst

an

t 2

00

0

pric

es)

Source: AC Nielsen Media Research

15231599 1637

17171779 1822

1756

1597 16091644

Note: At ratecard

Germany TV Media Expenditure (Inflation–Adjusted) : Food and Restaurant Advertising

0

200

400

600

800

1,000

1,200

1,400

1999 2000 2001 2002 2003 2004

Food Drink (excluding alcoholic drinks) Fast-food restaurants

Food and Restaurant Advertising stable: Italy

Source: Ad Quest Millennium

Years

An

nu

al E

xpe

nd

iture

s in

€

mill

ion

(c

on

sta

nt

20

00

pric

es)

11411196

Note: Discounted NMR weightings

11701150

12011155

TV Media Expenditure (Inflation–Adjusted):

While advertising declines, obesity rises - UK

0

2

4

6

8

10

12

14

16

18

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0

500

1000

1500

2000

2500

3000

Prevalence of obesity in children aged 2- 10

Estimated no. food and restaurantcommercials viewed per child aged 4-15

Childhood obesity & food advertising in the UK: An inversely proportional trend

Sources:

-Nielsen Media Research

-UK Office for National Statistics, March 2004

While advertising declines, obesity rises - USA

Obesity keeps rising despite falling ad spend (USA) – Federal Trade Commission data, 2005

While advertising declines, obesity rises - USA

• Food advertising is in significant decline:

• The US Federal Trade Commission (2005) concludes that:

Between 1977 and 2004, food ads are down on national TV shows:

• By 34% on kids’ shows• By 50% on family shows

While advertising declines, obesity rises - USA

Meanwhile, childhood obesity has quadrupled:

Source: US Centres for Disease Control, 2005

II. Advertising bans don’t work

Advertising bans are not public health measures

• A few countries/provinces (Sweden, Norway*, Quebec) have banned TV advertising to children on ‘ethical grounds’.

“Where there there has been research on the effectiveness of TV advertising bans on food advertising in relation to obesity in other countries, the conclusions are at best both unclear and contested.” (Ofcom, 2004)

Overweight/obesity rates in Sweden are above the European average (IOTF data)

* Norway bans children’s advertising on terrestrial TV before 9pm

Advertising bans have no impact on obesity

levels• Quebec, a good case study:

– Banned advertising to children on Québec (Francophone) TV in 1980

– 86.4% of Quebec children (2-13) are French-speaking– 91.6% of their TV viewing hours are in French-

language programming – Only 7.9% of their TV viewing hours is spent with

English-language programming (which includes some advertising to children from USA).

• Therefore Québecois children are virtually isolated from TV commercials

Overweight and obesity rates, by province, household population aged 2 to 17, Canada excluding territories, 2004

Childhood obesity is not significantly lower in Quebec than the Canadian average:

Advertising bans have no impact on obesity levels

Advertising and obesity levels are unrelated

Source: Based on IOTF obesity figures and Consumers International data on advertising.

No correlation between exposure to food advertising and overweight/obesity:

What effect would a ban have?

• Arnaud Langlois, JP Morgan Equity Research, illustrated at the 1st Annual European Obesity Conference in Brussels on 14-15 June 2005, how a ban on advertising will result in lower sales growth and diminished brand equity:

Worst case scenario: creation of barriers to entry and development of oligopolistic situations.

A knock-on effect on editorial: 94% of revenues from children’s TV advertising in Europe is reinvested in children’s programmes (egta).

Loss of jobs, stifled innovation, reduced consumer choice, etc.

III. The causes of obesity: food advertising in context

Obesity is multi-factorial

• Obesity is a multi-factorial condition and there is no evidence that advertising is a factor:

Imbalance between energy intake and output is fundamental

Advertising is clearly a minor influence on children’s taste preferences, food choices and eating habits

The family food environment is a primary influenceThe child’s own taste preferences, price, familiarity

with the product and peer influence are other major influences.

The modest impact of advertising

• Advertising is a minor influence on children:

Ofcom, UK 2004:– “In the context of the multiplicity of influences on

children’s food preference, consumption and behaviour, it is not surprising that the direct contribution of TV advertising has been found to be modest.”

– “The influence of advertising is small compared to the child’s own taste preferences, price and familiarity. Peer pressure is also a notable influence.”

Energy in versus energy out

• Jebb and Prentice, BMJ, 1995:– “The paradox of increasing obesity in the face of decreasing food

intake can only be explained if levels of energy expenditure have declined faster than energy intake […] In sharp contrast to the suggestion that a secular drift towards high-fat diets has induced people to overeat, there is evidence […] that the British are becoming fatter in spite of consuming less energy than in the 1970s. Even for adjustments for meals eaten outside the home, and for consumption of alcohol, soft drinks and confectionery, average per capita energy intake seems to have declined by 20% since 1970.”

• UK Health Select Committee Report on Obesity, 2005: – "Summing up the energy equation, the Royal College of General

Practitioners suggested that food intake had fallen on average by 750 kcal per day; but activity levels by 800 kcal. Out of this small imbalance has come the wave of obesity."

The importance of physical activity

• WHO Report on Diet, Nutrition and the Prevention of Chronic Diseases, 2003:– “A decrease in energy expenditure through decreased physical activity is

likely to be one of the major factors contributing to the global epidemic of overweight and obesity”

– "A sizeable proportion of deaths in overweight and obese populations are probably a result of low levels of cardio-respiratory fitness rather than obesity per se."

• EU Green Paper on Healthy Diets and Physical Activity, 2005:– “60% of Europeans have no vigorous physical activity in a typical week

and 40% not even moderate physical activity”– “Europe-wide, only about one third of schoolchildren appear to be

meeting recognised physical activity guidelines.”

• UK National Audit Office, 2001:– “Extra physical activity involved in daily living 50 years ago compared

with today was the equivalent to running a marathon a week.”

The importance of physical activity

Source: KOPS, Germany (International Journal of Obesity 2004-28, 1494-1502 (1497)

Physical activity is a major determinant, regardless of all other factors:

The importance of the family

• The family food environment is a major determinant: Johnson et al., 1991:

• “The primary agent of socialisation, including learning dietary habits, physical activity levels and overall approach to good health, is the family – regardless of nationality”

Dickinson, R., 1997: • “The decision-making structure in families has changed

away from a hierarchical model and towards a ‘democratic unit.’ These numerous factors, and the interaction between them, have impacted the family food environment and young people’s approach to diet and have contributed to a fundamental shift in society’s relationship with food.”

Latest German Research

• Kiel Obesity Prevention Study (KOPS)

• Survey among parents of 5-7 year-old children conducted in all primary schools in Kiel (248,000 inhabitants; northwest Germany)

• 1996-2003 (preliminary results from 2001)

• Bavarian Study (Koletzko et al.)

• Survey among parents of 5-6 year-old children conducted in Bavarian primary schools (6862 children in high, medium and low population density areas)

• Study published in 2004

51.049.0

47.045.0

43.041.0

39.037.0

35.033.0

31.029.0

27.025.0

23.021.0

19.017.0

15.013.0

11.0

300

200

100

0

poor satisfactory good verypoor satisfactory good very goodgood 35% 62% 3% 0%

Num

ber

of

Chi

ldre

n

15 20 25 30 35 40 45 52

300

200

100

0

Dietary Habits:

Distribution of Healthy Eating Index

and

Source: KOPS (International Journal of Obesity 2004-28, 1494-1502 (1499)Beziehung zwischen Beziehung zwischen

dem Ernährungszustand dem Ernährungszustand der Kinder und dem der Kinder und dem Ernährungs-musterindexErnährungs-musterindex

normalgewichtig

30

25

18

15

10

overweight

obese

BM

I [k

g/m

²]

10 15 20 25 30 35 40 45 52

Healthy Eating Index (points)

normal weight

corresponding Distribution of BMI

Dietary Habits and Obesity

Schokolade

0

10

20

30

40

50

60

70

Normal Übergew. Normal Übergew.

0 - 1/Woche > 1/Woche

%

Gezuckerte Getränke

0

10

20

30

40

50

60

70

Normal Übergew. Normal Übergew.

0 - 1/Tag > 1/Tag

%

Normal Obese Normal Obese

0 – 1/Week > 1/Week

Normal Obese Normal Obese

0 – 1/Day > 1/Day

Chocolate Soft Drinks

Source: Koletzko, B. et al., Bundesgesundheitsblatt 47 (3), 227-234

Chocolate and soft drink intake vs. obesity

No apparent correlation:

Source: KOPS, 1998-2001

Socio-Economic Status and Obesity

0

10

20

30

low middle high

socio-economic Status

Pre

va

len

ce

of

Ov

erw

eig

ht/

Ob

es

ity

(%

)

19,611,9

6,0

Insights from latest research

Strong correlation between physical activity and obesity levels.

No apparent correlation between diet composition and obesity – what counts is energy intake.

No correlation between intake of particular foods (e.g. chocolate, soft drinks) and obesity levels.

Socio-economic status is an important determinant.

A review of the evidence

• Conclusions– The determinants of diets and health are many

and complex– Food promotion has only a small impact on

children’s food choices– No correlation between advertising volume and

obesity– No impact of marketing restrictions on obesity

• But we must nonetheless address societal concerns

IV. Industry is responding

Some advertising industry initiatives

Industry is responding• Educational campaigns

promoting healthy lifestyles

• Advertising campaigns encouraging activity

• Programmes promoting increased activity

• Partnerships between industry, government and stakeholders

• Company initiatives: http://www.wfanet.org/news/article_detail.asp?Lib_ID=1669

Investment in advertising standards

• Our vision, advertising standards that:– Function within a regulatory framework– Provide an extra layer of consumer

protection– Adapt to changing societal expectations– Involve non-industry stakeholders– Ensure accountability and transparency– Are enforced effectively

• We are in implementing this vision across Europe & worldwide

The purpose of advertising standards

• Advertising codes are not designed as public health measures

• Yet high standards enforced by codes can guarantee responsible advertising, by:– Providing an extra layer of consumer protection– Implementing the detail of the legal framework– Reflecting the views of society and needs of

consumers– Ensuring accountability and transparency

A vision for effective advertising standards

• Advertisers have a vision of effective advertising standards – the 10 principles of the EASA Charter:– Comprehensive coverage of all forms of advertising and all practitioners – Adequate and sustained funding– Comprehensive and effective codes– Broad consultation with interested parties during code development– Due consideration of the involvement of independent, non-governmental lay

persons in the complaint adjudication process.– Efficient and resourced administration of codes and independent, impartial

handling of complaints– Prompt and efficient complaint handling at no cost to the consumer– Provision of advice and training to industry practitioners– Effective sanctions and enforcement, including the publication of decisions,

combined with efficient compliance work and monitoring of codes– Effective awareness of the self-regulatory system by industry and consumers

Currently being implemented across Europe & worldwide

Responsible food advertising standards

• ICC Framework for Responsible Food and Beverage Communications

• Minimum standards for marketers: many national self-regulatory codes go further

• Currently being implemented across Europe & worldwide

Effectiveness of advertising standards

• It is widely recognised that “advertising standards in Europe generally work well in ensuring a high level of consumer protection”

– ('Study on the impact of advertising and teleshopping on minors', INRA / Bird&Bird 2001)

• and that advertising is a “notable exception” to the “often-disappointing practice of self-regulation”

– (Study to identify best practice in the use of soft law and to analyse how this best practice can be made to work for consumers in the European Union, by Lex Fori for the European Commission, 2002.)

Effectiveness of advertising standards

• Further proof in figures on complaints from the public received and dealt with by self-regulatory bodies across the EU. EASA* figures show that in 2004:– 51744 complaints were received across the EU– Of these:

• Only 259 (0.5%) related to advertising to children• Only 717 (1.38%) related to food advertising in

general• Only 40 (0.077%) related to food advertising to

children

* The European Advertising Standards Alliance

Investment in education: Media Smart

• 1 Million children taught in the UK

• Over £3.5 million ($6m) spent

• Launched in Belgium, Germany and the Netherlands (2005) and Sweden and Finland (2006)

• Over 40% of UK primary schools use Media Smart materials

• 12,500 schools by the end of 2006 (50%)

• Endorsed by the European Commission, UK and Dutch Government and charity partners

European Platform on DPAH

• Multi-stakeholder approach, including food industry and advertisers

• Commitment to significant increase in resources

• Voluntary commitments to tackle obesity

• Cross-stakeholder partnerships• Commitment to input into global and

US discussions

European Platform on DPAH

• WFA commitments:– Strengthening advertising standards in

Europe (and worldwide)– Implementing food marketing codes of

conduct across Europe (and worldwide)– Developing media literacy programmes

(Media Smart) across Europe (and worldwide)– Using advertising to promote healthy

lifestyles

Recommendations for policy-making

The industry perspective

The role of marketing

• The consumer is king– Companies cannot market what is not in demand– Consumer demand is changing

• Companies are responding– New products emerging: a boom in ‘healthy

options’– Research, investment and time needed

• The function of marketing– Essential for competition, innovation, choice

A question of proportionality

• We do not question the need for a regulatory framework

• Regulation must not stifle competition and innovation

• Regulation must be proportionate and effective

• Advertising standards effectively complement regulation

• Marketing rules must be part of the wider picture

VI. Conclusions

Conclusions

• We welcome discussions with Government to find proportionate and effective solutions to obesity

• We are committed to working with all stakeholders to stem the rise of obesity

• Changes in consumer behaviour will take time

• Together we can make a difference