New Food, Beverage Initiative to Focus Kids' Ads on Healthy Choices; Revised Guidelines Strengthen CARU's Guidance to Food Advertisers

Industry Pledge Program, Key Guidelines Revisions Follow Extensive Review

14 November 2006

The Council of Better Business Bureaus (CBBB) and the National Advertising Review Council (NARC) today announced two significant developments in the self-regulation of advertising directed to children under 12:

First is the establishment of the Children’s Food and Beverage Advertising Initiative (Initiative), a voluntary self-regulation program with 10 of the largest food and beverage companies as charter participants. The Initiative is designed to shift the mix of advertising messaging to children to encourage healthier dietary choices and healthy lifestyles. Charter participants are Cadbury Schweppes USA; Campbell Soup Company; The Coca-Cola Company; General Mills, Inc.; The Hershey Company; Kellogg Company; Kraft Foods Inc.; McDonald’s; PepsiCo, Inc. and Unilever. It is estimated that these companies account for more than two-thirds of children’s food and beverage television advertising expenditures.

Second is the approval of significant revisions to the Self-Regulatory Guidelines for Children’s Advertising. The revised Guidelines strengthen the ability of the CBBB’s Children’s Advertising Review Unit (CARU), which monitors all advertising directed to children under 12, to provide guidance and oversight to all industry sectors.

Both the Initiative and the revisions to the Guidelines evolved from the in-depth review of the Guidelines undertaken by NARC and led by Joan Z. (Jodie) Bernstein, a former director of the Federal Trade Commission’s Bureau of Consumer Protection.

“These are important developments. The Initiative represents an innovative effort to promote healthier dietary choices and lifestyles to children. I commend these 10 companies for coming together in a meaningful new program that will have strong oversight,” Ms. Bernstein said. “In addition, the revised Guidelines will assist CARU to continue to hold all advertising to children under 12 to high standards. Together, these efforts are a great step forward.”

Under the terms of the Initiative, participating companies commit to:

• Devote at least half their advertising directed to children on television, radio, print and Internet to promote healthier dietary choices and/or to messages that encourage good nutrition or healthy lifestyles.
• Limit products shown in interactive games to healthier dietary choices, or incorporate healthy lifestyle messages into the games.
• Not advertise food or beverage products in elementary schools.
• Not engage in food and beverage product placement in editorial and entertainment content.
• Reduce the use of third-party licensed characters in advertising that does not meet the Initiative’s product or messaging criteria.

Each participating company will submit to the CBBB a commitment, tailored to the company’s product portfolio, that complies with the principles of the Initiative. Company commitments that identify better-for-you dietary choices must be consistent with established scientific and/or government standards. The CBBB expects the program to be up and running within the next six to nine months.

“Self-regulation works best when backed by strong and effective accountability,” said Steven J. Cole, CBBB President and CEO. “We will closely monitor adherence to the participant commitments. This program is an excellent example of how voluntary self-regulation and the BBB advance marketplace trust.”

C. Lee Peeler, Executive Vice President, Advertising Self-Regulation, CBBB, and President and CEO, NARC, will lead the Initiative. The Initiative will be further supported by experts in nutrition and media research. Program staff will monitor companies’ compliance with their commitments and will maintain a publicly accessible Website that details their findings.

"We hope the experience we gain implementing the Initiative will provide a basis for enhancing the program and expanding it to other companies across the food and beverage industry,” said NARC Board Chairman Nancy Wiese, an Association of National Advertisers Board member and the Vice President, Worldwide Brand Marketing/Advertising at Xerox. “We also plan to coordinate this effort with the Ad Council’s Coalition for Healthy Children, which is simultaneously developing a consistent set of good nutrition and healthy lifestyle messages.”

The Guidelines Review process brought together more than 40 leading children’s advertisers across industry sectors – broad participation that demonstrates the children’s advertising industry’s strong support for self-regulation. The revised CARU Guidelines have been expanded to:

• Provide new authorization for CARU to take action on advertising targeted to children that is “unfair,” in addition to advertising that is misleading.
• Specifically address “blurring,” or advertising that obscures the line between editorial content and advertising messages. A new provision, which applies across all media, prohibits advertising that “blurs the distinction between advertising and program/editorial content in ways that would be misleading to children.”
• Specifically address the use of commercial messages in interactive games, sometimes referred to as advergaming. The revised Guidelines require that “if an advertiser integrates a commercial message into the content of a game or activity, then the advertiser should make clear, in a manner that will be easily understood by the targeted audience, that it is an advertisement.”

The revised Guidelines also strengthen CARU’s guidance to food advertisers in a number of areas, such as clarifying that children’s food advertising should not depict over-consumption or discourage or disparage healthy lifestyle or healthy dietary choices.

Additionally, Ms. Wiese said, “the Guidelines review process has identified areas that require continued review. The NARC Board has requested further discussion of the issues of product placement in children’s programming and the advertising of telephone services to children.”

To access a copy of the revised CARU Self-Regulatory Guidelines for Children’s Advertising, please visit www.CARU.org

About the CBBB
Founded in 1970, the CBBB is the national organization for the Better Business Bureau system. The BBB system is dedicated to fostering trust between businesses and consumers in both the traditional and online marketplace. The first BBB was founded in 1912 – today, the BBB system is comprised of 129 local Better Business Bureaus (BBBs) across the US and Canada, and serves millions of consumers, nearly 400,000 small and medium business members, and hundreds of national and multi-national corporations based in North America. The BBB system has grown to become the most trusted name and recognized advocate for promoting ethical business and advertising practices, providing more than 90 million instances of service to consumers and businesses in 2005. For more information on the BBB system, visit www.bbb.org.

About NARC
The National Advertising Review Council (NARC) was formed in 1971 by the CBBB, the Association of National Advertisers, Inc. (ANA), the American Association of Advertising Agencies, Inc. (AAAA), and the American Advertising Federation, Inc. (AAF). Its purpose is to foster truth and accuracy in national advertising through voluntary self-regulation. NARC is the body that establishes the policies and procedures for the CBBB’s National Advertising Division (NAD) and Children’s Advertising Review Unit (CARU), as well as for the National Advertising Review Board (NARB).NAD and CARU are the investigative arms of the advertising industry’s voluntary self-regulation program. Their casework results from competitive challenges from other advertisers, and also from self-monitoring traditional and new media. The National Advertising Review Board (NARB), the appeals body, is a peer group from which ad-hoc panels are selected to adjudicate those cases that are not resolved at the NAD/CARU level. This unique, self-regulatory system is funded entirely by the business community; CARU is financed by the children’s advertising industry, while NAD/NARC/NARB’s sole source of funding is derived from membership fees paid to the CBBB. For more information about advertising self regulation, please visit www.narcpartners.org.

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22 September 2006

Frito-Lay has officially kicked off its nationwide rollout of Lay's with 100% Pure Sunflower Oil with the improved snack now hitting store shelves in 36 states in the Eastern half of the country. The rollout is planned to reach the rest of the country later this year

The nationwide rollout of Lay's with 100% Pure Sunflower Oil follows its regional debut in the Northeast earlier this year. The move to sunflower oil will reduce saturated fat by more than 50% when compared to other classic style potato chips and ultimately will eliminate nearly 60 million pounds of saturated fat from the American diet each year without sacrificing taste. The move to sunflower oil will also increase the mono- and polyunsaturated fats, commonly known as "good fats." These fats have been scientifically proved to help reduce the risk of coronary heart disease when they replace saturated and trans fat in the diet. Lay's continues to have 0 grams of trans fat, as with all of Frito-Lay's portfolio of snack chips.

"The nationwide rollout of Lay's with 100% Pure Sunflower Oil is a tremendous move for our consumers, our customers and our business that will truly help Frito-Lay accelerate its health and wellness efforts," says Charlie Veraza, vice president -- Potato Chip Marketing. "Lay's is already the No. 1 snack brand in the U.S., but our research shows we could broaden Lay's appeal even more by making Lay's even healthier. By moving to 100% pure sunflower oil, we've made Lay's even better and addressed consumers' health concerns, while still providing the same great taste. This is truly transformational for our business and right for the consumer."

The Lay's team is supporting the rollout with a 360-degree marketing approach, including:

• New Packaging: The front of the packaging now radiates a bright, attention-grabbing sunflower and lets consumers know they'll enjoy the same great Lay's taste. The new packaging's back panel explains the health benefits of the move to sunflower oil and reminds consumers that Lay's are made with simple ingredients -- just potatoes, sunflower oil and a pinch of salt. (Click hereto see the new packaging.)
• Advertising and Public Relations: Print and a public relations campaign will drive awareness of Lay's with 100% Pure Sunflower Oil later this year, and a powerful TV, online, print, and outdoor campaign will follow in 2007.
• In-Store Merchandising: High-impact displays at point-of-purchase, including tear pads and shelf strips, featuring sunflower imagery will ensure consumers see the benefits of 100% pure sunflower oil and less saturated fat.
• New Lays.com: The Lay's website will be revamped in the coming weeks to also drive awareness of Lay's with 100% Pure Sunflower Oil.
• Consumer Promotions: A national free-standing insert -- a coupon within a newspaper -- featuring a $1-off coupon will launch later this year reaching over 52 million Americans. In addition, sampling will occur in key competitive accounts in the Eastern part of the country.

Stay tuned to PEPline for more information about the nationwide rollout.

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14 September 2006

WASHINGTON, Sept. 14  -- Following yesterday's Institute of Medicine report, which found U.S. efforts to tackle child obesity are increasingly ineffective, today America On the Move Foundation (AOM) is releasing results from a national survey that indicate mothers are key to creating a healthier America. The survey results-to be presented at The First Step Forum: Creating a Healthier America, a Capitol Hill panel discussion hosted by AOM and YMCA of the USA-show seven in 10 kids look to their mothers for information about healthy living.

"The fight against obesity in America begins at home," said Jim Hill, Ph.D., co-founder of AOM and professor of pediatrics and medicine at the University of Colorado Health Sciences Center. "Our research shows that even while kids look to their moms as a key source of health information, more than half of them also worry about their parents' weight. This creates unique motivation -- for both mom and kids -- to make small changes in their lives that will result in active, healthier, happier families."

Today's discussion is part of AOM's September initiative, a national grassroots movement that is the result of the collaboration of a diverse group of partners and stakeholders encouraging Americans to live healthier lives. Panelists will focus on how every facet of the community can, based on the survey results, begin activating solutions to address soaring U.S. obesity rates. Participants include:

• Moderator Abby Ellin, New York Times contributor and author of TeenageWaistland: A Former Fat Kid Weighs in on Living Large, Losing Weight and How Parents Can (and Can't) Help
• Janet Collins, Ph.D., Director, National Center for Chronic Disease Prevention and Health Promotion
• James O. Hill, Ph.D., Chair and Co-founder of AOM
• Neil J. Nicoll, President and Chief Executive Officer of YMCA of the USA
• Marcy Ross, a mother from Hillsdale, NY
• Aaron James Alexander Thomas, III, National Urban League
• Dr. Michelle May, M.D., Founder and Director of Am I Hungry? Multidimensional Weight Management Program
• Charles Kamasaki, National Council of La Raza

"With 60 million adults -- 30 percent of the U.S. population -- and nine million children obese or overweight, increasing physical activity among our children and families today is more important than ever," said Neil J. Nicoll, president and CEO of YMCA of the USA. "For more than 150 years, YMCAs have been helping Americans achieve health of spirit, mind and body. But we are called to do more-and YMCAs are doing more through our YMCA Activate America initiative-and we are excited to have AOM as a valued partner in promoting healthy lifestyles in communities across the country."

More than 1,100 YMCAs nationwide are hosting special activities during America On the Move Week, Sept. 23 to 30. As part of Steptember, AOM at the YMCA seeks to inspire individuals and families to incorporate healthier living activities into their daily routines to get them active and moving, with a goal of encouraging one billion steps during this one designated week.

AOM's national survey, conducted by Harris Interactive(R), polled 1,487 youth, eight to 18 years of age, regarding their attitudes and views on healthy eating and regular physical activity. Results show:

• Our children are worried. A majority of kids (56%) worry a great deal or some about their parents' weight and how it could affect their health. Additionally, more than half of kids eight to 18 years of age think that it is extremely or very important to know how to be a healthy weight (56%) and to get enough physical activity each day to be at healthy weight (51%). Four in ten kids think that it also is extremely or very important to know how to eat healthy and nutritious foods without too many calories from fat or sugar (42%).
• Many kids know what has to be done. When presented with statements about how people lose weight or stay a healthy weight, a majority of kids agree it's important to eat healthy and get regular physical activity (73%).  When asked how important it is for them that their parents have healthy practices, four in ten kids say it is extremely or very important that they and their parents eat healthy and nutritious foods without too many calories from fat or sugar (42% and 40%). Four in ten kids think it is extremely or very important that their parents be a healthy weight (40%), and 36% think it's important that their parents get physical activity on a regular basis.
• Moms are the key. Seven in ten kids get their information about what to do to be healthy from their mom (71%).  Kids also get information about what to do to be healthy from a doctor (54%) teachers or coaches at school (54%), from TV (44%), and from their dad (43%).

"This survey emphasizes the importance of surrounding our children with healthy living habits and messages," said Janet Collins, Ph.D., Director, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention. "If from an early age kids learn how to live active, healthier lives, as adults they will be less at risk for chronic, obesity-related diseases."

PepsiCo and its Smart Spot brands are supporting this effort as the National Presenting Sponsor of AOM and a national sponsor of YMCA Activate America. Today, more than 250 Smart Spot products are available Tropicana(R), Aquafina(R), Gatorade(R), Baked! Lay's(R), Quaker Oats (R) and Diet Pepsi(R) among others. Additional America On the Move Steptember sponsors include the Almond Board of California, LEAN CUISINE(R) and the SPLENDA(R) Brand.

About the Survey
Harris Interactive(R) conducted this survey on behalf of America On the Move Foundation from August 16-24, 2006, via its YouthQuery(SM) online omnibus service among 1,487 U.S. youth 8-18 years of age. Data were weighted to be representative of the total U.S. population of 8-18 year olds on the basis of region, age, gender, level of education, parents' level of education, urbanicity, and race/ethnicity. With a pure probability sample of 1,487 one could say with a ninety-five percent probability that the overall results have a sampling error of +/- three percentage points. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About America On the Move Foundation
America On the Move Foundation (AOM) is a national nonprofit helping individuals, families and communities across our nation make positive changes to improve the health and quality of life. Through its programs and outreach, America On the Move (AOM) initiates and maintains individual, social, and environmental behavior changes that support healthy eating and active living habits in our society. AOM's science-based programs provide the support and tools that help individuals of all ages manage weight effectively through energy balance. For more information about Steptember and other free AOM programs, please visit: http://www.americaonthemove.org.

About YMCA Activate America
The nation's 2,617 YMCAs serve more than 20.2 million people each year, including 9.5 million children, uniting men, women and children of all ages, faiths, backgrounds, abilities and income levels. From urban areas to small towns, YMCAs are a place for people to belong, serving America's children, families and communities for over 150 years by "building healthy spirit, mind and body for all." Visit http://www.ymca.net to find your local YMCA.

YMCA Activate America(TM) is a national initiative that is rallying YMCAs across the country to further enhance their service and support to kids, adults and families who want to live a healthy lifestyle, but struggle to do so. As a part of YMCA Activate America, YMCAs are also deepening their commitment to community wide efforts to promote healthy living and intensifying their collaboration with other community partners to magnify their impact.

About PepsiCo and the Smart Spot Program
PepsiCo, one of the world's largest food and beverage companies, is committed to providing industry leadership in the health and wellness arena. PepsiCo and its Smart Spot products are supporting this effort as a national sponsor of YMCA Activate America and the National Presenting Sponsor of America On the Move. PepsiCo launched the Smart Spot symbol, the first-of- its-kind designation that makes it easier for consumers to identify PepsiCo products that can contribute to healthier lifestyles. Products that feature the Smart Spot symbol meet established nutrition criteria based on authoritative statements from the U.S. Food and Drug Administration and the National Academy of Sciences. The Smart Spot logo appears on more than 250 products across all of PepsiCo's brands including Tropicana(R), Aquafina(R), Gatorade(R), Baked! Lay's(R), Quaker Oats (R) and Diet Pepsi(R) among others.

About Harris Interactive
Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides research-driven insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what could conceivably be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiary Novatris in France and through a global network of independent market research firms. The service bureau, HISB, provides its market research industry clients with mixed-mode data collection, panel development services as well as syndicated and tracking research consultation. More information about Harris Interactive may be obtained at http://www.harrisinteractive.com.

SOURCE America On the Move Foundation

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