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FEDERAL TRADE COMMISSION
A Review of Food Marketing
to Children and Adolescents
Follow-Up Report
Federal Trade Commission
December 2012
A Review of Food Marketing to
Children and Adolescents
Follow-Up Report
December 2012
Federal Trade Commission
Jon Leibowitz, Chairman
J. Thomas Rosch, Commissioner
Edith Ramirez, Commissioner
Julie Brill, Commissioner
Maureen Ohlhausen, Commissioner
Report Contributors
Bureau of Consumer Protection
Sarah Botha, Staff Attorney, Division of Advertising Practices
Keith Fentonmiller, Staff Attorney, Division of Advertising Practices
Carol Jennings, Staff Attorney, Division of Advertising Practices
Mary Johnson, Staff Attorney, Division of Advertising Practices
Michelle K. Rusk, Staff Attorney, Division of Advertising Practices
Kial Young, Staff Attorney, Division of Advertising Practices
Heather Hippsley, Assistant Director, Division of Advertising Practices
Mary Koelbel Engle, Associate Director, Division of Advertising Practices
Bureau of Economics
Pauline M. Ippolito, Deputy Director, Bureau of Economics
David Givens, Economist, Division of Consumer Protection
Paul Rothstein, Economist, Division of Consumer Protection
Christopher H. Wheeler, Economist, Division of Consumer Protection
Research Assistants
Michelle Y. Kambara, Bureau of Economics
Susie Liu, Bureau of Economics
Mariel Woods, Bureau of Consumer Protection, Division of Advertising Practices
ii
Contents
List of Tables....................................................................................................................................v
List of Figures............................................................................................................................... vii
Executive Summary................................................................................................................. ES-1
I.
Introduction..............................................................................................................................1
II. Expenditures for Marketing Food to Youth..........................................................................5
A Introduction........................................................................................................................5
B. Expenditures Analyzed by Food Category.........................................................................7
C. Expenditures Analyzed by Promotional Activity Groups..................................................9
1. Traditional Measured Media: Television, Radio, and Print......................................12
2. New Media: Websites, Internet, Word-of-Mouth, and Viral Marketing...................15
3. Packaging and In-Store Marketing............................................................................17
4. Premiums...................................................................................................................17
5. Other Traditional Promotional Activities: Product Placements, Movie Theater,
Video, and Video Game Advertising, Character or Cross-Promotional License
Fees, Athletic Sponsorships, Celebrity Endorsement Fees, Events, and
Philanthropic Marketing Expenditures......................................................................20
6. In-School Marketing.................................................................................................23
7. Use of Cross-Promotions and Celebrity Endorsements............................................24
III. Nutritional Profile Of Foods Marketed To Youth...............................................................27
A. Introduction .....................................................................................................................27
1. Methodology for Computing Nutritional Averages...................................................28
2. Scope of Nutrition Analysis......................................................................................29
3. Average Nutritional Content for All Foods, Excluding Quick-Service
Restaurant Foods.......................................................................................................30
B. Nutritional Profile by Food Category...............................................................................31
1. Breakfast Cereals.......................................................................................................31
2. Drinks........................................................................................................................36
3. Dairy Products...........................................................................................................41
4. Snacks........................................................................................................................44
5. Prepared Foods..........................................................................................................47
6. Candy and Frozen Desserts.......................................................................................50
7. Quick-Service Restaurant Foods...............................................................................50
C. Impact of CFBAI Program...............................................................................................56
IV. Food Marketing Activities Directed To Youth.....................................................................61
A. Introduction......................................................................................................................61
B. How Companies Market Foods and Beverages................................................................61
1. Cross-Promotions......................................................................................................61
2. Other Marketing Activities........................................................................................69
iii
C. Market Research on Youth Audiences..............................................................................84
1. Brand Awareness and General Advertising Appeal...................................................85
2. Specific Marketing and Promotional Techniques......................................................86
3. Other Consumer Research.........................................................................................89
4. Research Targeting Sub-Populations.........................................................................90
D. Marketing by Gender, Race, Ethnicity, or Income Level.................................................90
V. Assessment Of Food Company Initiatives ..........................................................................93
A. Developments Since the 2008 Report..............................................................................93
1. Children’s Food and Beverage Advertising Initiative...............................................93
2. “Better for You” and Reformulated Food Products...................................................96
3. Healthy Lifestyle Initiatives by Food Companies.....................................................96
4. Media and Entertainment Company Initiatives.......................................................100
5. Competitive Foods and Beverages in Schools: The Alliance for a Healthier
Generation School Beverage and Competitive Food Guidelines............................101
6. Other Initiatives.......................................................................................................102
B. Trends in Youth Food and Beverage Consumption Compared to Trends in Food
Marketing Directed to Youth..........................................................................................103
1. Fruit and Vegetables................................................................................................104
2. Dairy Products.........................................................................................................106
3. Breakfast Cereal......................................................................................................106
4. Beverages................................................................................................................106
5. Restaurant Foods.....................................................................................................110
6. Consumption Differences by BMI Level................................................................112
VI. Conclusion............................................................................................................................115
Endnotes......................................................................................................................................116
Appendices
Data and Research Methods.................................................................................... Appendix A
Federal Trade Commission Order to File Special Report........................................ Appendix B
Expenditure and Nutrition Tables............................................................................ Appendix C
Analysis of Online and Mobile Marketing..............................................................Appendix D
iv
List of Tables
Table II.1:
Total Youth-Directed Marketing Expenditures for Reported Brands and
Percent of Total Marketing Expenditures, By Food Category (2006 vs 2009)..........7
Table II.2:
Reported Child- and Teen-Directed Marketing Expenditures and Overlap
(2006 vs 2009)............................................................................................................8
Table II.3:
Reported Child- and Teen-Directed Television Expenditures (2009)......................12
Table II.4:
Reported Child- and Teen-Directed New Media Expenditures (2009)....................16
Table II.5:
Reported Child- and Teen-Directed In-Store and Packaging/Labeling
Expenditures (2009).................................................................................................17
Table II.6:
Reported Child- and Teen-Directed Premiums Expenditures (2009).......................18
Table II.7:
Reported Child- and Teen-Directed Other Traditional Promotions
Expenditures (2009).................................................................................................21
Table II.8:
Reported Child-Directed Marketing Expenditures for Cross-Promotions (2009)...24
Table II.9:
Reported Teen-Directed Marketing Expenditures for Cross-Promotions (2009).....25
Table III.1: Number of Products Advertised to Youth in 2006 and 2009 Combined, in
Various Product Categories......................................................................................27
Table III.2: List of Key Nutrients Analyzed................................................................................28
Table III.3: Average Nutritional Characteristics of All Foods (Except Restaurant Foods)
Marketed to Children and Teens, All Marketing, 2006 and 2009............................30
Table III.4: Average Nutritional Characteristics of Breakfast Cereals Marketed to
Children and Teens, All Marketing, 2006 and 2009.................................................32
Table III.5: Average Nutritional Characteristics of Cereals Marketed to Children and
Teens, 2009: Traditional Measured Media and New Media.....................................35
Table III.6: Average Nutritional Characteristics of Drinks Marketed to Children and
Teens, All Marketing, 2006 and 2009......................................................................37
Table III.7: Average Nutritional Characteristics of Drinks Marketed to Children and
Teens In-School, 2006 and 2009..............................................................................38
Table III.8: Average Nutritional Characteristics of Carbonated Beverages Marketed to
Teens 12-17, 2006 and 2009: Traditional Measured Media and New Media..........40
Table III.9: Average Nutritional Characteristics of Dairy Drinks Marketed to Children
and Teens, All Marketing, 2006 and 2009................................................................41
Table III.10: Average Nutritional Characteristics of Yogurt (6 oz) Marketed to Children
and Teens, All Marketing, 2006 and 2009................................................................43
Table III.11: Average Nutritional Characteristics of Snack Foods Marketed to Children
and Teens, All Marketing, 2006 and 2009................................................................45
v
Table III.12: Average Nutritional Characteristics of Snack Foods Marketed to
Children 2-11: Traditional Measured Media and New Media, 2006 and 2009.......46
Table III.13: Average Nutritional Characteristics of Snack Foods Marketed to Children
and Teens, With and Without Cross-Promotions, 2006 and 2009............................47
Table III.14: Average Nutritional Characteristics of Prepared Foods Marketed to
Children and Teens, All Marketing, 2006 and 2009.................................................48
Table III.15: Average Nutritional Characteristics of Candy and Frozen Desserts
Marketed to Children and Teens, All Marketing, 2006 and 2009............................50
Table III.16: Average Nutritional Characteristics of Restaurant Foods Marketed to
Children and Teens on Television by the Fixed Panel of QSRs, 2006 and 2009.....52
Table III.17: Average Nutritional Characteristics of Restaurant Meals and Main Dishes
Marketed to Children 2-11 on Television by the Fixed Panel of QSRs, 2006
and 2009...................................................................................................................53
Table III.18: Average Nutritional Characteristics of Restaurant Foods Marketed to
Children and Teens on Television, Fixed Panel vs. All QSRs, 2009........................55
Table III.19: Average Nutritional Characteristics of All Foods (Except Restaurant Foods)
Covered by Children’s Food & Beverage Advertising Initiative (CFBAI),
Marketed to Children 2-11, 2006 and 2009..............................................................56
Table III.20: Assessment of 2009 Marketing Against 2014 CFBAI Uniform Nutrition
Criteria, TV Advertising to Children 2-11................................................................59
Table V.1:
Average Daily Total Intake of Calories and Nutrients by Children, Teens,
and Overweight/Obese Youth.................................................................................104
Table V.2:
Average Daily Intake of Calories and Select Nutrients from QSRs by
Children 2-11 Who Ate at QSRs............................................................................110
Table V.3:
Average Daily Intake of Calories and Select Nutrients from QSRs by Teens
12‑17 Who Ate at QSRs.........................................................................................110
Table V.4:
Average Daily Intake of Calories and Select Nutrients from QSRs by
Overweight or Obese Youth 2-17 Who Ate at QSRs..............................................111
vi
List of Figures
Figure II.1:
Reported Child- and Teen-Directed Marketing Expenditures and
Overlap (2006)..........................................................................................................5
Figure II.2:
Reported Child- and Teen-Directed Marketing Expenditures and
Overlap (2009)..........................................................................................................5
Figure II.3:
Child- and Teen-Directed Marketing Expenditures, Ranked by Youth
Expenditures (2009)..................................................................................................8
Figure II.4:
Percentage Change in Reported Child-Directed, Teen-Directed, and All
Ages Marketing Expenditures for Reported Products from 2006 to 2009,
Adjusted for Inflation................................................................................................9
Figure II.5:
Reported Total Youth-Directed Marketing Expenditures by Promotional
Activity Group, Adjusted for Inflation (2006 vs 2009)...........................................10
Figure II.6:
Food Category Share of Total Youth-Directed Expenditures for Each
Promotional Activity Group (2009)........................................................................10
Figure II.7:
Percentage Change in Reported Child-Directed Marketing Expenditures
from 2006 to 2009, by Promotional Activity Group, Adjusted for Inflation..........11
Figure II.8:
Percentage Change in Reported Teen-Directed Marketing Expenditures
from 2006 to 2009, by Promotional Activity Group, Adjusted for Inflation..........12
Figure II.9:
Percentage Change in Reported Child- and Teen-Directed TV
Expenditures from 2006 to 2009, Adjusted for Inflation........................................13
Figure II.10: Food Ad Expenditures on Top 30 Broadcast TV Shows Viewed by
Children 2-11 (2009)...............................................................................................14
Figure II.11: Food Ad Expenditures on Top 30 Broadcast TV Shows Viewed by
Teens 12‑17 (2009).................................................................................................15
Figure II.12: Percentage Change in Reported Child- and Teen-Directed New Media
Expenditures from 2006 to 2009, Adjusted for Inflation........................................16
Figure II.13: Percentage Change in Reported Child- and Teen-Directed In-Store and
Packaging/Labeling Expenditures from 2006 to 2009, Adjusted for Inflation.......18
Figure II.14: Percentage Change in Reported Child- and Teen-Directed Premiums
Expenditures from 2006 to 2009, Adjusted for Inflation........................................19
Figure II.15: Child Visits to QSRs for Kids’ Meals with Toys and Other Menu Items
(2005-2009).............................................................................................................19
Figure II.16: Percent of Children Visiting QSRs Who Purchased Kids’ Meals with Toys
(2005-2009).............................................................................................................20
Figure II.17: Percentage Change in Child- and Teen-Directed Other Traditional
Promotions Expenditures from 2006 to 2009, Adjusted for Inflation.....................21
vii
Figure II.18: Reported Child-Directed Marketing Expenditures and Portion Using
Cross-Promotions....................................................................................................25
Figure III.1: Sugar Content of Breakfast Cereal Marketed to Children 2-11
(2006 vs 2009)........................................................................................................33
Figure III.2: Sodium Content of Breakfast Cereal Marketed to Children 2-11
(2006 vs 2009)........................................................................................................34
Figure III.3: Whole Grain Content of Breakfast Cereal Marketed to Children 2-11
(2006 vs 2009)........................................................................................................34
Figure III.3a: Average Sugar and Whole Grain Content of Breakfast Cereal Marketed to
Children and Teens (2009)......................................................................................35
Figure III.4: Calorie Content of Drinks Marketed to Children 2-11 (2006 vs 2009)..................38
Figure III.5: Total Sugar Content of Drinks Marketed to Children 2-11 (2006 vs 2009)...........39
Figure III.6: Sodium Content of Drinks Marketed to Children 2-11 (2006 vs 2009).................39
Figure III.7: Sugar Content of Dairy Drinks Marketed to Children 2-11 (2006 vs 2009)..........42
Figure III.8: Sugar Content of Yogurt Marketed to Children 2-11 (2006 vs 2009).....................44
Figure III.9: Sodium Content of Prepared Foods Marketed to Children 2-11 (2006 vs 2009)...49
Figure III.10: Percentage of Child-Directed Television Advertising Expenditures for
QSR Kids’ Meals and All Other QSR Meals that Met Select Nutrition
Thresholds (2006 vs 2009)......................................................................................54
Figure V.1:
Trend in Fruits & Vegetables Consumption (2000-2009).....................................105
Figure V.2:
Change in Fruits & Vegetables Consumption from 2006 to 2009,
by Location...........................................................................................................105
Figure V.3:
Trend in Dairy Products Consumption (2000-2009)............................................107
Figure V.4:
Trend in Breakfast Cereal Consumption (2000-2009)..........................................107
Figure V.5:
Trend in Fruit Juice & Non‑Carbonated Beverage Consumption (2000-2009)....108
Figure V.6:
Trend in Carbonated Beverage Consumption (2000-2009)..................................108
Figure V.7:
Change in Beverage Consumption from 2006 to 2009, by Location...................109
Figure V.8:
Percent of QSR Kids’ Meals with Toys that Included Select Food Items
(2005-2009)...........................................................................................................111
Figure V.9:
Percent of Meals Purchased off QSR Dollar or 99-Cent Menu that
Included Select Food Items (2005-2009)..............................................................113
viii
Executive Summary
Executive Summary
A. Background and Overview
This report is a follow-up to the Federal Trade Commission’s 2008 report: Marketing Food
to Children and Adolescents: A Review of Industry Expenditures, Activities, and Self- Regulation. The 2008 report was requested by Congress and prompted by concerns about dramatic
increases in the rate of childhood obesity. It examined the state of food and beverage marketing
to children as of 2006, at the early development of industry self-regulatory initiatives to improve
the nutritional profile of foods marketed to children. Using data obtained through compulsory
process orders to 44 major food and beverage marketers, the Commission found that the food industry spent $2.1 billion marketing food to youth in 2006. The Commission documented which
categories of foods and beverages were most heavily marketed to children and teens, as well as
which marketing techniques were used. The Commission also assessed early self-regulatory efforts to promote more nutritious foods and made specific recommendations for further action by
the food industry and media. In particular, the Commission conducted a detailed assessment of
the Children’s Food and Beverage Advertising Initiative (CFBAI), a significant self-regulatory
program launched by the Council of Better Business Bureaus in 2006. Because self-regulation
was still at its nascence, the Commission committed to prepare a follow-up report assessing
industry progress.
The 2006 data from the first report serve as a baseline for measuring the impact of industry
efforts. The current report compares 2006 data to 2009 data from the 44 original companies and
four additional companies. Total spending on food marketing to youth dropped 19.5% in 2009,
to $1.79 billion. Spending on youth-directed television advertising fell 19.5%, while spending on new media, such as online and viral marketing, increased 50%. The overall picture of
how marketers reach children, however, did not significantly change. Companies continue to
use a wide variety of techniques to reach young people, and marketing campaigns are heavily
integrated, combining traditional media, Internet, digital marketing, packaging, and often using
cross-promotions with popular movies or TV characters across all of these. Those techniques are
highly effective. Consumer research submitted by the reporting companies confirms the “pester
power” phenomenon – child-directed marketing and promotional activities drive children’s food
requests. Children, in turn, play an important role in which products their parents purchase at the
store, and which restaurants they frequent.
An important new element of the current report is the nutritional analysis of foods marketed
to youth. The report examines whether and to what extent the nutritional quality of foods marketed to children and teens has improved with the advent of self-regulatory initiatives. Overall,
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A Review of Food Marketing to Children and Adolescents
there were a number of modest improvements from 2006 to 2009, with more pronounced changes in particular food categories. The Commission is also aware that many food companies have
continued to improve the nutritional profile of their foods, for example, by further reducing the
sugar content of cereals marketed to children and increasing the whole grain content.
Finally, this report examines the progress industry has made in marketing food responsibly
to children and shifting the emphasis of that marketing to more nutritious choices. The food and
beverage industry, and in particular the CFBAI, has made major strides since the early days of
self-regulation in 2006. The industry has expanded the scope of children’s marketing to which
their efforts apply and has strengthened and standardized the nutritional criteria for foods marketing to children. New uniform criteria, developed by the CFBAI and scheduled to take effect
on December 31, 2013, will likely lead to further improvements in the nutritional quality of
foods marketed to children, but could be further strengthened to more closely track key dietary
advice in the 2010 Dietary Guidelines for Americans. In addition, the Alliance for a Healthier
Generation has also succeeded in improving the nutritional quality of foods and beverages sold
in schools. Within the media industry, individual entertainment companies have taken a leadership role in limiting character licensing and other cross-promotions to children and restricting ad
placement during children’s programming to nutritious foods. Despite the commendable progress, this report identifies areas where further efforts could be made by the food and beverage
industry and the media industry to improve the nutritional quality of foods marketed to youth.
B. Dollars Spent on Marketing to Youth
In 2009, the 48 reporting companies spent $1.79 billion on youth marketing, a 19.5% drop in
inflation-adjusted expenditures compared to 2006. Of the $1.79 billion, $1 billion was directed
to children ages 2-11, and $1 billion was directed to teens ages 12-17, with $263 million overlapping the two age groups. For those food and beverage products promoted to children or teens,
the overall expenditures for promotional activities directed to all audiences, including additional
adult-oriented marketing, was $9.65 billion, slightly less than the $9.69 billion spent in 2006.
Therefore, the expenditures directed to those between the ages of 2 and 17 represented 18.5% of
all consumer-directed marketing expenditures for those products, down from 21.6% in 2006.
Quick-service restaurant (QSR) foods, carbonated beverages, and breakfast cereals accounted for $1.29 billion of all youth-directed expenditures, 72% of the total (the same as in 2006).
The reporting QSRs spent $714 million on youth marketing in 2009 (down from $733 million
in 2006), with $583 million directed to children and $183 million directed to teens (including
overlap of the two age groups). The drop in child-directed expenditures for QSR food was due
primarily to reduced premium expenditures, which offset a substantial increase in child-directed
television advertising. The increase in teen-directed expenditures for QSRs stemmed primarily
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Executive Summary
from greater television expenditures as well as modest increases in radio and new media advertising. Carbonated beverage companies reported $395 million in youth-directed expenditures,
about 97% of which were teen-directed. Nearly $82.3 million, or 21%, of carbonated beverage
youth marketing consisted of in-school expenditures, down in absolute and relative amounts
from 2006. Breakfast cereal companies reported $186 million in youth-directed expenditures,
down from the $237 million reported for 2006, but more evenly distributed between children
($173 million) and teens ($103 million, including overlap).
Although food marketers spent 19.5% less on youth-directed television in 2009 ($633 million), television remained the predominant medium to reach youth, accounting for 35% of total
youth-directed marketing expenditures, just as in 2006. Marketers spent $375 million to reach
children via television and $364 million to reach teens, significant drops from 2006. QSRs ($154
million) and breakfast cereals ($102 million) accounted for 68% of the child television expenditures. QSRs accounted for nearly 36%, or $130 million, of the teen television expenditures. All
told, food marketers spent $695 million on traditional measured media (television, radio, and
print) directed to youth, a significant drop from the $848 million spent in 2006.
In contrast, the food companies spent 50% more to reach youth using new media (e.g., online, mobile, and viral marketing), compared to 2006. New media accounted for approximately
7% ($122.5 million) of all reported youth expenditures, up from 4% in 2006. Breakfast cereals
($22 million), QSR foods ($19 million), and snack foods ($10 million) were the top three categories for child-directed new media expenditures. Carbonated beverages ($23 million), candy
and frozen desserts ($12 million), and snack foods ($11 million) were the top three categories
for teens. Appendix D to this report discusses youth exposure to online display advertising, food
company websites (including advergames), and mobile advertising during 2006 and 2009.
The companies reported $393 million to reach youth consumers through premiums, accounting for 22% of all youth-directed expenditures. QSRs accounted for most of the industry’s $377
million on premiums to children ($341 million for QSR child-directed premiums). Total childdirected premium expenditures dropped 28%, due primarily to fewer children visiting QSRs in
2009 and reduced premium costs. The companies reported spending $113 million on in-store
marketing and packaging to reach children and teens, a 46% drop from 2006. They spent 22%
less ($315 million) on other traditional promotions, including product placement, movie, video,
and video game advertising, cross-promotion license fees, athletic and event sponsorship, and
celebrity endorsement fees. Finally, the companies reported in-school marketing expenditures
of $149 million, representing 8.3% of all youth expenditures, a significant drop from the $186
million reported for 2006. Most in-school expenditures were teen-directed, and 93% were for
carbonated ($82.3 million) and non-carbonated ($55.9 million) beverages.
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A Review of Food Marketing to Children and Adolescents
As in 2006, nearly one-third of all youth-directed marketing involved cross-promotion expenditures, such as licensing fees paid for and expenditures associated with implementing marketing campaigns incorporating a licensed character or other cross-promotion. Youth-directed
cross-promotion expenditures went down in 2009 ($584 million versus $666 million in 2006).
Half of all child-directed marketing dollars ($530.7 million) involved cross-promotions, and
QSRs ($428 million) accounted for 81% of that amount. The QSR foods and carbonated beverages categories spent more than half of their respective child-directed expenditures on crosspromotions. The companies spent significantly less on teen-directed cross-promotions ($127
million). The carbonated beverages category ($46 million) spent the most, followed by the
breakfast cereal category ($28 million), and QSRs ($25 million).
C. Nutrition in Marketing to Youth
The 48 reporting companies marketed a total of 625 food and beverage products to youth
in 2006 and 2009 combined. The Commission’s nutritional analysis of these products focuses
on key nutrients and food components identified in the 2010 Dietary Guidelines for Americans
as important elements to either limit (calories, sodium, sugar, saturated fat, trans fat, and calories) or increase (fiber, whole grains, calcium, Vitamin D, and potassium) for a healthy diet. The
Commission also requested information about fruit, vegetable, dairy, and other food groups, but
did not obtain sufficient data to analyze whether the products provide meaningful contributions
of such food groups. All nutrition data are weighted by marketing expenditures to more accurately reflect the overall nutritional quality of foods in youth-directed marketing.
The Commission realizes that many of the reporting companies have continued to reformulate existing products and introduce new products since the 2009 data was collected, with
the result that the overall nutritional profile of the children’s food marketplace has continued to
improve. The Commission commends industry for these efforts. The analysis, in this report,
however, is limited to the two years for which data was collected.
A few general observations about the average nutritional quality of foods marketed to youth
in 2006 and 2009 can be made by aggregating the nutrition data for all products. These general
observations, however, are not always mirrored by trends in a specific product category. The
analysis of all products (excluding QSR foods) shows that, overall, foods marketed to children
were higher in calories and sodium than foods marketed to teens in both 2006 and 2009, but
lower in sugar, largely due to less child-directed marketing of carbonated beverages and candy.
Nutrients to increase, such as fiber, whole grain, calcium, and Vitamin D, were higher in foods
marketed to children than those marketed to teens in both years. There were modest improvements across all key nutrients from 2006 to 2009 for foods marketed to children and improvements in all but sodium and saturated fat content for foods marketed to teens. The nutritional
ES-4
Executive Summary
improvements in foods marketed to youth were due both to reformulation of many of the products that were marketed in both years, as well as to products being introduced or newly advertised to youth in 2009 in place of less nutritious products that were either taken off the market or
no longer advertised.
Cereal: There were small nutritional improvements across the board for cereal marketed to
children and teens from 2006 to 2009, but those changes were generally too small to be nutritionally meaningful in the context of the daily diet. For example, average whole grain content of
cereal marketed to children increased by 1.6 g per serving in 2009, the equivalent of one tenth of
one of the three daily servings of whole grain recommended by the 2010 Dietary Guidelines for
Americans.
There was also a small reduction in average sugar content in children’s cereal marketing (0.9
g per serving), but this included a dramatic shift in 2009 away from marketing of the most sugary cereals. As a result, marketing to children of cereals with 13 g of sugar or more per serving
was eliminated. The percentage of children’s marketing for cereals containing primarily (51% or
more) whole grain also increased in 2009. Marketing of cereals containing mostly refined grain,
however, continued to dominate the youth market in 2009, representing 86% of the children’s
market, and 80% of the teen market. In 2009, only 3% of cereal marketed to children met FDA’s
standard for a “low sodium” claim.
A comparison of cereal marketed to children and teens with marketing of those same cereal
products to all ages reveals that, in 2009, the cereals most heavily marketed to children were
least nutritious. Cereal marketed to children averaged 2 g more sugar per serving and half the
whole grain content of cereal marketed to older audiences. Cereal marketed to children with licensed characters or other cross-promotions had less than half the whole grain of cereal marketed
to children without cross-promotions.
Drinks: There were small but positive changes in the nutritional profile of drinks marketed
to youth (carbonated beverages, non-carbonated beverages, 100% juice, and water). As an example, drinks marketed to both children and teens averaged 20 fewer calories per serving in 2009
than in 2006. Almost all of the sugar in drinks marketed to both children and teens was added
sugar, rather than naturally occurring sugar from fruit or fruit juice. Drinks marketed to children
and teens averaged more than 20 g of added sugar per serving in 2009. At this level, applying
the 2010 Dietary Guidelines for Americans limit for “discretionary calories” from solid fats and
added sugars, one youth-marketed drink provided a third of the total daily limit for discretionary
calories. Water and 100% juice products continued to represent a small percentage of overall
youth drink marketing – 16% of drinks marketed to children and 8% of drinks marketed to teens
in 2009. The data also showed that carbonated beverages marketed to teens averaged 10% more
calories and added sugars in new media than in traditional measured media in 2009.
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A Review of Food Marketing to Children and Adolescents
The most significant improvement came in the context of in-school drink marketing, which
was subject to a self-regulatory program launched in 2006 by the Alliance for a Healthier Generation and the American Beverage Association. In the school setting, average calorie content
of drinks fell more than 30% for both children and teens. Marketing of water and 100% juice
products was also more prominent in the school setting than in other youth drink marketing, representing 35% of in-school drinks marketed to children and 29% to teens in 2009.
Dairy: Analysis of dairy marketing to youth is limited to dairy drinks and yogurt. Spending
on cheese and other dairy product marketing to youth was too small to allow meaningful analysis. Nearly all dairy drink marketing to children and teens in both 2006 and 2009 was for non-fat
and low-fat products that were unflavored (contained no added sugar). The percentage of marketing for dairy drinks with added sugar fell from 19% of children’s dairy drink spending in 2006
to 7% in 2009; for teens, spending on dairy drinks with added sugar fell from 10% in 2006 to 1%
in 2009.
The overall nutritional profile of yogurt product marketing improved for both children and
teens from 2006 to 2009. For example, yogurts marketed to both age groups had approximately
20 fewer calories, half the saturated fat, and an additional 13% of the daily value for calcium per
6-oz serving in 2009. The total sugar content of yogurt products marketed to youth also dropped
by approximately 2 g per 6-oz serving. Despite this drop, more than three quarters of children’s
marketing and more than half of teen marketing in 2009 was for yogurt containing 24 g or more
total sugar per 6-oz serving, with nearly half of that sugar coming from added flavorings.
Snacks: Snacks marketed to both children and teens showed minimal or no improvements
in nutrition from 2006 to 2009. None of the snacks marketed to children in either 2006 or 2009
met the FDA labeling claim standard for “low” calorie. As of 2009, 45% met FDA’s standard
for “low” saturated fat, 43% met the “low” sodium standard, and virtually no snacks marketed
to children met FDA’s standard for a “good source” of fiber or contained more than 50% whole
grain. There was no significant or systematic difference, either positive or negative, between
snack marketing in new media and traditional measured media. This was also true for the comparison of snack marketing with and without cross-promotions.
Prepared foods: Prepared foods is a diverse product category that encompasses individual
foods, entrees, and meals, with portion sizes ranging from less than 100 g to more than 300 g.
Nutritional changes from 2006 to 2009 in this category were mixed. Calories increased by about
16% and sugar by about 50% in children’s prepared food marketing, while saturated fat remained
constant and sodium fell substantially. For teen marketing, calories rose slightly (4%) along with
sugar, while sodium and saturated fat both dropped. There were small to modest improvements
in 2009 for both children and teens in fiber, whole grain, and potassium content. Calcium content was also up slightly for children’s marketing but not for teens.
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Executive Summary
Candy/Frozen Desserts: The primary change in this category was a large reduction in the
number of products marketed and total spending. There was also some nutritional improvement in the category, particularly with respect to children’s marketing, which averaged 30 fewer
calories, 7 g less sugar, and 0.6 g less saturated fat per serving in 2009. In both years, the calorie,
sugar, and saturated fat content for marketing to teens was substantially higher than for children’s
marketing. This was due in part to more marketing of chocolate and ice cream products to teens.
Quick-Service Restaurant Foods: Because QSR companies were permitted to aggregate
data by promotional activity in 2006, it was not possible to retroactively isolate spending for
specific menu items. Nutritional analysis for this category is therefore based mainly on data for
products advertised on television. Five companies reported data for both 2006 and 2009. Four
additional companies were added in 2009.
For the five companies reporting in both years, there was some improvement from 2006 to
2009. In child-directed TV advertising, products averaged 79 fewer calories, 57 mg less sodium,
6 g less sugar, and 0.5 g less saturated fat. In teen-directed TV advertising, improvements were
more modest; products averaged 43 fewer calories, 14 mg less sodium, and 1 g less sugar. The
positive nutritional changes were primarily due to significant marketing of new, generally more
nutritious, meal and menu items. Advertising to children was generally better nutritionally –
with fewer calories, much less sodium, and less saturated fat – than advertising to teens in both
2006 and 2009. Children’s products averaged somewhat higher sugar content, however, possibly from milk and fruit that accompanied children’s meals. When advertising by the four new
reporting companies (that are not CFBAI pledge companies) is factored in, the new company
products have a modest negative effect on average 2009 nutrition levels.
The Commission also compared the nutritional profile of products advertised to children as
“children’s meals” with other meal and main dish items that were also advertised to children in
2009. A much higher percentage of 2009 advertising for “children’s meals” met FDA standards
for “low calorie” (100% of “children’s meals” vs. 7% of other meals and main dishes), “low
sodium” (100% vs. 6%), and “low saturated fat” (64% vs. less than 1%). Because most character licensing and other cross-promotions in QSR advertising are tied to “children’s meals,” this
comparison also serves as a proxy for comparing marketing with and without cross-promotions
and suggests that QSR products marketed with cross-promotion were more nutritious.
Finally, QSR products marketed in new media in 2009 had a better average nutritional
profile than products marketed in traditional measured media, for both children and teens, due
largely to the fact that most online and other new media promotion was for “children’s meals,”
rather than for other meals and main dishes.
CFBAI Program Impact on Nutrition: Companies participating in the CFBAI self-regulatory program accounted for 82% of 2006 spending on children’s food marketing, and 89%
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A Review of Food Marketing to Children and Adolescents
of 2009 spending. The average nutritional profile of CFBAI-member products improved from
2006 to 2009. For both 2006 and 2009, a comparison of the nutritional profile of food marketed
through television advertising (an activity covered by the CFBAI pledges), with the nutritional
profile of foods marketed through packaging and in-store displays (activities not covered by the
pledges), revealed that food advertised on television were better on some nutrients and worse on
others as compared to foods marketed through packaging and in-store displays. A comparison of
foods marketed in 2006 to foods marketed in 2009, however, revealed that there were greater nutritional improvements in food advertised on television as compared to foods marketed through
packaging and in-store displays. For example, food advertised on television had greater reductions in sodium, sugar, and calories than foods marketed through packaging and in-store displays. In addition, foods advertised on television had a slight increase in whole grain from 2006
to 2009, whereas food marketed through packaging and in-store displays had a small decrease in
whole grain.
The Commission also examined how CFBAI-member food advertising from 2009 measured
up to the CFBAI 2014 uniform nutrition criteria. Even though the nutrition profile of children’s
food advertising has likely changed significantly since 2009, there are still observations worth
noting. In particular, the criteria for “nutrients to limit” (calories, saturated fat, sodium, and
sugar) seem to be set at levels that are more challenging to reach than the criteria for nutrition
components to encourage. As of 2009, 64% of CFBAI-member advertising would need reduction in at least one nutrient to limit to meet the 2014 uniform nutrition criteria, while only 20%
would need any increase in nutrition components to encourage. Also of interest in the QSR
category, “children’s meals” marketed by CFBAI members were much closer to meeting the new
criteria for nutrients to limit than were other meals and main dishes, almost all of which were
marketed to children by QSRs that have not joined the CFBAI.
D. Methods of Promoting Food and Beverages to Youth
Food and beverage companies continued to use a full spectrum of promotional techniques
and formats to market their products to children and teens. As in 2006, youth-directed marketing
campaigns were often fully integrated across a variety of media. Themes from television advertising carried over to packaging and in-store displays, and to the Internet. Packaging promoted
food product websites, where young consumers played advergames featuring the food, entered
contests, received “points” to redeem premiums, and engaged their friends in the campaign
through social networking.
Cross-promotion was a hallmark of marketing food to young people, particularly children.
In 2009, the companies reported more than 120 cross-promotions (up from 80 in 2006) tying
food and beverage products to popular movies, TV programs, cartoon characters, toys, websites,
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Executive Summary
video games, theme parks, and other entertainment venues. Ice Age: Dawn of the Dinosaurs,
the Madagascar movies, and Night at the Museum were prominent in 2009 and were used to
promote QSR meals, cereal, fruit snacks, yogurt, candy, carbonated beverages, and many other
products. Promotions included TV and print ads for the foods featuring movie characters, toy
premiums distributed with QSR children’s meals, movie characters appearing on packaging
along with codes to enter contests online, co-branded websites with games and sweepstakes,
and fruit snacks imprinted with movie images. Nickelodeon and Cartoon Network also licensed
their shows and popular TV characters to promote a wide variety of foods to young people.
SpongeBob episodes, for example, could be viewed on food company websites with cross-links
between Nickelodeon’s SpongeBob website and the food company site. Sesame Street licensed
its characters to food companies but limited licensing to fresh fruits and vegetables. Foods and
beverages were also cross-promoted with amusement parks, popular video games, and children’s
websites such as NeoPets.com.
Television advertising was less prevalent in 2009 but remained a staple of food and beverage
marketing to youth, often featuring company-created spokescharacters or other animation. Some
TV ads featured children or teens engaged in sports or other physical activities. Companies also
continued to use print and radio, though not extensively. Print ads for fruit snacks, crackers, and
lunch kits appeared in Marvel Comics, Nickelodeon Magazine, and SI Kids, as well as a variety
of other “tween” and teen magazines. Radio ads to teens were mainly for carbonated beverages,
sports drinks, and energy drinks.
Internet promotional activities have become an anchor for food marketing, with more than
90% of the reporting companies engaging in online marketing in 2009. Online marketing is far
less costly than TV and other media, and more interactive and engaging. As set out in Appendix D to this report, in 2009, ad-supported, child-oriented websites generated over 2.1 billion
display ad impressions for food products, reflecting little change from the 1.96 billion food ad
impressions detected for 2006. As in 2006, the breakfast cereal category generated most of those
impressions (1 billion), and pre-sweetened cereals tended to be the most advertised food products
on both child- and teen-oriented websites. Child-directed virtual worlds also ran a significant
amount of display advertising for foods. Nine of the top-ten consumer goods advertised on 13 of
the most popular online worlds for children were foods.
Food company websites remained a viable part of integrated marketing campaigns in 2009,
but their popularity did not grow appreciably from 2006. About two million children ages 2-11
(and nearly three million 6-14-year-olds) per month visited at least one of 73 food company websites most likely to attract children during the latter half of 2009. Few individual food company
websites averaged more than 100,000 child visitors per month, the exceptions being Millsberry.
com (284,000), HappyMeal.com (189,000), MyCokeRewards.com (177,000), and McWorld.com
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A Review of Food Marketing to Children and Adolescents
(139,000). Millsberry.com ceased operations in 2011. Further, child visitors spent little time on
company websites, the exceptions being Millsberry.com (45 minutes for children) and Postopia.
com (29 minutes for 6-14-year-olds). Finally, as in 2006, a sizable subset of youth regularly
visited and spent significant time on multiple food company websites each month during 2009.
Through the four months ending December 2009, more than a half million children 2-11, and
nearly 700,000 6-14-year-olds, averaged more than 30 minutes per month on two or more of the
73 food sites examined.
Advergames promoting foods and beverages were a key focus of many child- and teenoriented sites. Advergames often offered multiple levels of play and some incorporated social
networking by allowing players to “invite a friend” to join the game. One game directed the
child to hold a cereal box up to a webcam in order to interact with the game. Other popular
online marketing activities included allowing children to create their own avatar and personalize
their virtual world, creating art work to share with a friend online, joining online “clubs” that offer free or discounted meals on a child’s birthday, and downloading screen savers, “emoticons,”
ring tones, videos, and other items. Teen-directed websites often featured celebrity athletes and
musical artists, sports video games, online concerts, and sweepstakes. In addition to marketing
on their own websites, food and beverage companies also displayed banner ads on sites operated
by Nickelodeon, NeoPets, Cartoon Network, and Disney, as well as on popular game, sports, and
social media sites. Digital marketing to young people on mobile devices also increased with the
proliferation of these devices, using many of the same techniques used on the Internet, such as
games, free downloads, and contests.
Viral marketing and word-of-mouth activities were increasingly used by food marketers to
reach children and especially teens and were often closely integrated with Internet marketing.
Food marketers had their own Facebook and MySpace pages, links to Twitter accounts, dedicated portions of YouTube, and used other popular social media sites. Websites often included
solicitations to “invite a friend” or “share with a friend”; in one case, a site urged advergame
players to enlist friends through Facebook and Skype. Food marketers also used word-of-mouth
techniques – recruiting consumers as “ambassadors” of the brand. Word-of-mouth techniques
were most often directed to teens.
Other traditional forms of marketing, such as product packaging and in-store marketing,
premiums, product placement, and celebrity endorsements, are described in detail in Section IV
of this report.
The Commission also collected consumer research from the companies related to their
youth-directed marketing. One theme that emerged from the research was the important role that
children play in purchasing decisions for food and beverages and how marketing promotes that
“pester power.” Purchase of particular foods or the choice to eat at particular QSRs was often
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Executive Summary
driven by a child’s request. For example, one company’s study found that a child seeing an ad
for a food product or seeing the product on the shelf was a key factor in purchase and that 75%
of the purchasers surveyed bought the product for the first time because their child requested it.
Another study showed that in-store advertising campaigns using child-targeted character-based
themes outperformed those using mom-targeted themes.
Companies also conducted general research on the themes and content that appealed most
to youth, as well as on the appeal of specific promotional techniques. The research supported
the importance of product packaging, and in particular branding, to children and teens, and
confirmed the efficacy of popular characters and celebrities in marketing to children and teens.
Research on how to effectively engage children and teens on the Internet included a study by
one company noting that online marketing activities are a worthy investment because they keep
children engaged with the company and promote brand loyalty. Other research underscored the
importance of frequently updating online content to keep it fresh, and using streaming video and
interactive icons to appeal to teens. Research also confirmed the appeal of social media campaigns on Facebook and Twitter; the appeal of contests, especially those that are simple and offer
instant gratification, such as entering a product code online; and the impact of children’s meal
toys on generating interest in eating at a restaurant. In contrast with research submitted for the
2008 report, companies found that healthy messages in advertising can be appealing to children,
although the research results were mixed. Finally, research on children’s and teens’ media usage
patterns included a study finding a sizable increase in use of social networking sites between the
ages of 11 and 14 (from 18% to 42%).
Fewer than half of the reporting companies reported marketing activities targeted by gender, race, or ethnicity. Examples included: a few child-targeted Spanish-language ads; soda and
energy ads on TV programming with a large African-American teen audience; digital marketing
of carbonated beverages targeted to Hispanic and African-American teens; a QSR-sponsored
town-hall meeting on college admissions for Hispanic teens; and athletic event sponsorship for
Hispanic children and teens. Gender-based marketing included sponsorship of girls or boys
sporting camps and events, and use of licensed characters, such as Disney Princesses, on cereal
boxes and other packaged foods. No companies reported targeted marketing based on income
level, although several companies sponsored athletic events intended to benefit lower income,
inner-city youth.
E. Trends in Youth Food and Beverage Consumption
For this report, the Commission also examined select food consumption data to look for
signs that children and teens are changing their diets as the major food companies shift their
expenditures , their marketing techniques, or the nutrition content of the food marketed to youth.
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A Review of Food Marketing to Children and Adolescents
According to data from CDC’s National Health and Nutrition Examination Survey (NHANES),
over the past decade, children and teens reduced their average daily caloric intake as well as
their consumption of total fat, sodium, and sugar. Over the same period, they ate more fiber and
calcium.
Survey data from The NPD Group reveal that children and teens have increased their fruit
consumption since at least 2005, a shift that may be attributable in part to the food companies’
healthy eating initiatives and increased youth awareness of healthy eating. Contemporaneous
with the increase in youth-targeted dairy marketing, children and teens consumed more dairy
products, especially yogurt. Children ate slightly more cereal in 2009, even though child-directed marketing expenditures dropped substantially from 2006; their consumption of pre-sweetened
cereals remained unchanged. Teen breakfast cereal consumption remained relatively flat between 2006 and 2009, even though the companies increased teen-directed marketing during that
period. Although the companies reduced their youth-directed marketing expenditures for carbonated beverages between 2006 and 2009, there was a slight uptick in youth consumption. Trend
data over ten years, however, reveal that children and teens have sharply reduced their intake of
carbonated beverages, particularly regular (non-diet) soft drinks. In 2009, consistent with shifts
in companies’ marketing policies, children and teens drank the most caloric and sugary drinks
outside of the school setting.
NHANES data show that children and teens who reported eating at QSRs steadily reduced
their average daily intake of QSR-derived calories, total fat, sugar, and sodium between the
2003/2004 and 2009/2010 surveys. The same trend held for overweight and obese youth. These
consumption shifts track the increased marketing of QSR food with fewer calories, sugar, sodium, and saturated fat on child-directed television programs in 2009. Relatedly, NPD data show
that in recent years, the kids’ meals with toys that were purchased for children have included
fewer fries and full-calorie soft drinks and more milk, fruit, and fruit juice.
F. Summary of Industry Progress
1.
The Food and Beverage Industry
Food and beverage companies have taken several positive steps in response to the recommendations set forth in the Commission’s 2008 report, and to First Lady Michelle Obama’s Let’s
Move! campaign. In 2008, for example, the Commission urged all companies to apply meaningful nutrition standards to marketing directed to children and suggested that companies apply
broader indicia of what constitutes “directed to children.” The Commission also suggested that
companies more broadly construe the term “marketing” to cover all techniques used to reach
children and specifically to expand the scope of covered activities in the school setting.
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Executive Summary
The food and beverage industry, especially those companies that participate in the CFBAI,
the Alliance for a Healthier Generation, and other self-regulatory initiatives, have made measurable progress in implementing those recommendations. The CFBAI, for example, has expanded
its membership to include four new participants with the result that all, or nearly all, children’s
marketing in many food categories is now covered by the CFBAI program. The CFBAI has
also continued to closely monitor its members and has reported high rates of compliance with its
program. The Commission notes, however, that some companies have not yet joined the CFBAI
or adopted meaningful nutrition standards of their own. For example, some restaurant chains,
candy companies, and baked good companies with sizable spending on the children’s market do
not participate in CFBAI. In addition, the Commission notes that franchisees, independent distributors, and local bottlers for CFBAI member companies do not always adhere to the member
companies’ pledge commitments.
CFBAI and its members have also made progress on expanding their definition of what constitutes marketing “directed to children.” Many CFBAI members, for example, have expanded
the scope of television and other measured media content covered by their pledges to any content with a 35% or greater audience of children ages 2 to 11. The Commission also commends
CFBAI for expanding its program to require participants to commit that 100% of their childdirected advertising be covered. The Commission notes, however, that CFBAI’s definition of
“directed to children” does not yet incorporate more subjective assessments of appeal to children.
For example, in determining whether a video game or DVD movie is “directed to children,” the
CFBAI considers the “EC” or “G” rating, but does not look at other indicia of the intended audience. Not all movies rated “G” are intended primarily for a child audience; by the same token,
many movies rated “PG” are clearly intended to appeal to children under 12.
The Commission also commends CFBAI for expanding its “core principles” to include
additional marketing techniques and media not previously covered by its program, including
advergames, advertising on video games and movie DVDs, cell phone and other mobile media,
the apps used in those media, and word-of-mouth marketing. Despite the significant expansion
of covered marketing techniques, however, CFBAI does not yet cover certain forms of marketing
that food company research shows to be highly effective in reaching children. Product packaging and in-store promotion, including the use of licensed characters from popular children’s movies and TV shows, are exempt and continue to be used extensively to market to children, both
by CFBAI members and other companies. In addition, although CFBAI continues to prohibit
member companies from paying for or actively seeking to place food and beverage products in
children’s programming, the Commission notes that unsolicited product placement of food and
beverages in child-directed movies continues and that companies do not take a proactive role in
discouraging such placement. The Commission has also observed that product-line advertising,
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A Review of Food Marketing to Children and Adolescents
company-wide brand advertising, and marketing through branded merchandise such as children’s
toys and clothing, are not always clearly limited to product lines or brands that fully meet meaningful nutrition standards. In other instances, advertising of individual products in a product line
does not prominently feature the specific product meeting nutrition standards, so that the advertising appears to also promote product varieties not meeting those standards.
With respect to in-school marketing and sale of foods and beverages, both the CFBAI and
the Alliance for a Healthier Generation have played an important role. At the start of the 20092010 school year, the vast majority of school and school district contracts complied with Alliance
guidelines governing calorie-content and serving size for beverages sold in schools. Notably,
the Alliance for a Healthier Generation’s program encompasses food sales at all school levels,
including high school. In contrast, the CFBAI program on marketing activities in schools is
limited to elementary schools and continues to exempt certain activities, such as “point-of-sale”
displays, fundraisers, and branded educational materials.
The 2008 report also encouraged companies to continue to engage in healthy lifestyle messaging and other outreach efforts to children. Companies reported a number of activities to promote nutrition and exercise, including the food and beverage industry’s formation of the Healthy
Weight Commitment Foundation and the restaurant industry’s launch of the Kids’ LiveWell campaign. Fewer of the initiatives reported for 2009, however, targeted minority populations.
The most notable self-regulatory development since the Commission’s 2008 report involved
strengthening and standardizing the nutrition standards applied to children’s food marketing.
In July 2011, CFBAI released a new set of uniform nutrition criteria to be implemented by all
member companies by December 31, 2013. The Commission commends CFBAI and its member
companies for their leadership in improving the nutritional profile of foods marketed to children.
The CFBAI 2014 uniform nutrition criteria represent significant progress on several aspects of
the nutrition criteria currently used by individual member companies. They are already spurring
improvements in the nutritional profile of foods marketed by CFBAI members and will lead to
further improvements over the next year prior to full implementation.
Although the Commission does not have the expertise to assess specific nutrition criteria, the
Commission notes that the CFBAI 2014 criteria for “nutrition components to encourage” appear
to be less challenging to achieve, requiring significantly less reformulation of foods marketed
to children than the criteria for “nutrients to limit.” Specifically, only 20% of the foods advertised to children in 2009 would require any increase in “nutrition components to encourage” to
meet the 2014 criteria, whereas 64% of foods advertised to children in 2009 would require some
additional reduction in at least one “nutrient to limit.” In many of the food product categories,
CFBAI does not limit its “nutrition components to encourage” to the key food groups and shortfall nutrients identified in the 2010 Dietary Guidelines for Americans, but includes other vitamins
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Executive Summary
and minerals that are not deficient in children’s diets. For example, many of the categories with
grain-based components do not include a requirement for whole grain. Cereal products, thus,
do not need to contain a minimum amount of whole grain or fiber, provided they contain at least
10% of the daily value for Vitamins A or C, or iron. As a result, all cereal advertising to children
in 2009 met the CFBAI 2014 criteria for “nutrition components to encourage,” despite the fact
that 86% of cereal marketed to children in 2009 contained mostly refined grain.
As a general matter, the CFBAI 2014 “nutrients to limit” criteria are set at levels that will
spur further nutritional improvements in foods marketed to children. Within specific product
categories, however, some of these criteria may have little or no impact on the nutritional quality
of foods. As an example, the Commission notes that 99% of cereal marketed to children in 2009
already met the 2014 CFBAI sodium limit. Similarly, 92% of children’s dairy drink marketing
met the 24 g limit for total sugar established by the CFBAI’s 2014 uniform nutrition criteria.
The Commission recognizes that some of the 2014 criteria may reflect practical limitations
on what is feasible given current food manufacturing technology. Other criteria, such as those
relating to sodium and sugar limits or whole grain content, may reflect concerns about palatability and consumer acceptance of reformulated foods. As technology advances and palates adjust,
however, it may be possible for CFBAI to reassess its criteria to further enhance the nutritional
quality of foods marketed to children in keeping with key recommendations of the 2010 Dietary
Guidelines for Americans.
2.
Media and Entertainment Companies
The Commission’s 2008 report also contained recommendations for media and entertainment companies, focusing on character-licensing and other cross-promotion with food companies
and on placement of food advertising in children’s media. The Commission commends those
media and entertainment companies that have implemented their own individual initiatives, for
example, by applying nutrition standards for character licensing and for cross-promotions with
media properties. Some major media and entertainment companies, however, still do not apply
any nutrition standards to foods promoted with their popular children’s characters or programs.
As for placement of food advertising in children’s media, in 2008 only Qubo, a children’s programming platform on the Ion network, had formally pledged to limit food advertising to more
nutritious products during its block of children’s shows. The Commission commends Disney
which, in June 2012, became the first major media company to commit to apply nutrition standards for ads placed on programs directed to children. Other companies have yet to follow their
example.
There were many examples of media companies engaging in healthy lifestyle initiatives for
the 2009 reporting year, including some directed to Hispanic families. The Commission com-
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mends those efforts. The Commission encourages similar focus on other populations with high
rates of childhood obesity, including the African-American population.
Finally, the Commission notes that there has been no effort to date by media companies to
work with the CFBAI or participate in a similar industry-wide initiative addressing childhood
obesity. Unlike the food industry, where a substantial majority of those engaging in marketing to
children participate in self-regulation to limit food marketing to nutritious choices, widespread
media industry participation is lacking.
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Introduction
I.
Introduction
Childhood obesity continues to be one of the most serious and costly public health issues
facing the United States. Over the past three decades, rates of obesity have more than doubled
for children ages 2 to 11 and more than tripled for teens ages 12 to 18.1 As a result, 32 percent of
children are now overweight or obese, with 17 percent falling in the obese range.2 While many
factors contribute to these dramatic increases in obesity, children’s poor diets play a significant
role. The top three sources of calories in children’s diets are grain-based desserts, pizza, and
soda/energy/sports drinks.3 Children are consuming too little whole grain, vegetables, fruits,
milk, and healthy oils and falling short on important nutrients like fiber, potassium, Vitamin D,
and calcium.4 At the same time, children consume too many calories from added sugars, solid
fats, and refined grains, and take in too much sodium.5
The Federal Trade Commission recognizes that tackling obesity and improving children’s
diets is a challenging task that requires effort from all segments of society. The Commission
believes that food marketers and the media can play a meaningful role in that effort by applying
their marketing power and creative skills to encourage children to make better food choices and
be more physically active. The Commission is encouraged by the steps that many companies
are already taking and the significant progress that has been made since the Commission, jointly
with the Department of Health and Human Services, held its first workshop on food marketing
and childhood obesity in July 2005.
In 2008, the Commission published its first study of the marketing of foods and beverages to
children and teens.6 Conducted at the request of Congress, that study analyzed data from public
and non-public sources to provide a comprehensive assessment of marketing expenditures and
activities directed toward children (ages 2-11) and teens (ages 12-17) by 44 food and beverage
producers, marketers, and quick-service restaurants (QSRs) in the United States during 2006.
The timing of that study was propitious because the Children’s Food and Beverage Advertising
Initiative (CFBAI) – a major self-regulatory effort to change the nutritional profile of foods and
beverages marketed to children – was launched at the end of 2006. Thus, the 2006 data became
the baseline for measuring the impact of voluntary industry efforts to modify food marketing to
children. At the conclusion of its 2008 report, the Commission made a number of recommendations to the food and beverage industry, as well as media and entertainment companies. The
Commission also committed itself to continued monitoring of food marketing to children and to
conducting a follow-up study in the future to assess the impact of industry self-regulatory efforts.
This report describes the results of the follow-up study. To gather data from three years after
the baseline data collection, in August 2010, the Commission issued an Order to File Special
Report (Special Order) (attached as Appendix B) to 48 food and beverage manufacturers, dis1
A Review of Food Marketing to Children and Adolescents
tributors, and marketers, seeking data regarding marketing expenditures and activities directed
to children and teens in 2009. As explained in Appendix A, Data and Research Methods, most
of the 44 companies that provided the 2006 data received the Special Order for 2009 data. A
few additional companies were also included in the request for 2009 data. The Commission also
expanded the 2009 data request to include nutrition data for those food and beverage products for
which there were marketing expenditures directed to children or teens. Because nutrition data
had not been collected for 2006, the Commission asked the companies included in the prior study
to submit nutrition data for the products marketed in 2006, as well as for those marketed in 2009.
Accordingly, this report compares not only marketing expenditure data from 2006 and 2009, but
also nutrition data weighted by the amount of spending on the promotion of each product.
As in the case of the previous study, the Commission believes that the companies receiving
and responding to the Special Order (hereafter “the companies”) are responsible for a substantial
majority of the expenditures for food marketing to children and teens during the relevant time
frame.7 To protect the confidentiality of the reported information, as required by the FTC Act
and Commission Rules,8 the Commission has reported expenditure and nutrition data only in the
aggregate by food category and by promotional technique. Like the Commission’s first report,
this follow-up report presents a great deal of information not previously collected and not otherwise available to the research community.
The companies provided information about expenditures in 2009 for products in 10 food and
beverage categories: breakfast cereals, snack foods, candy and frozen desserts, dairy products,
baked goods, prepared foods and meals, carbonated beverages, fruit juice and non-carbonated
beverages, fruits and vegetables, and food served in QSRs. The companies were required to submit expenditure information for their marketing activities directed toward children (ages 2-11),
teens (ages 12-17), or both, in each of 18 promotional activity categories: television; radio; print;
company-sponsored websites; other Internet and digital advertising; packaging and labeling;
movie theater, video, and video games; in-store displays; specialty item or premium distribution;
public entertainment events; product placements; character licensing, cross-promotions, and toy
co-branding; sponsorship of sports teams or athletes; word-of-mouth and viral marketing; celebrity endorsements; in-school marketing; advertising in conjunction with philanthropic endeavors;
and other promotional activities. In addition, for any food product marketed to children or teens,
the companies were required to report the total expenditures on marketing of the product to all
audiences through any media. The report discusses these expenditure data in Section II, and
includes comparisons to the data reported for 2006.
Section III of the report sets out a detailed analysis of nutrition data for food and beverages
marketed to children and teens in 2006 and 2009. A key recommendation of the 2008 Report
was that companies work to improve the nutritional profile of products marketed to children and
2
Introduction
teens.9 By comparing 2006 and 2009 nutrition data for foods marketed to youth, the analysis
provides information on the progress the companies made in the three years following the launch
of the CFBAI self-regulatory program and other self-regulatory initiatives. The Commission is
aware that major self-regulatory measures have been taken since 2009, as highlighted in Section
V of the report, that have likely resulted in further nutritional improvements. Section III, nevertheless, provides a useful snapshot of the initial impact of self-regulation on nutrition. The analysis includes specific sections on the product categories most heavily marketed to children and
teens. In some categories, the Commission has also looked at nutrition by marketing technique,
for example, comparing foods marketed with and without cross-promotion, and foods marketed
in traditional measured media to foods marketed in new media. The nutrition data in Section III
are weighted by marketing expenditures for each product. This is a key difference between this
report and other recent assessments that look at nutrition data by product but do not take into account how heavily each product is marketed to children and teens. The Commission believes its
expenditure-weighting approach more accurately reflects the overall nutritional quality of foods
marketed directly to youth.
The Special Order also required the companies to produce samples or descriptions of their
advertising and marketing activities directed to children or teens in all promotional categories,
whether or not expenses were incurred for the promotion. Section IV summarizes this information and affords a comprehensive look at the nature of food and beverage promotions to children,
teens, or both in 2009. In addition, Section IV summarizes key findings from market research
the companies conducted on the impact of marketing directed to youth on purchase decisions.
Section V discusses media company policies and practices on youth-directed food advertising, as well as food company policies on advertising directed to children and teens, participation
in self-regulatory programs, and initiatives to promote healthy eating by young people. Using
survey data from The NPD Group, this section also examines food marketing expenditures in the
context of food consumption trends for children over the last decade. Although the factors that
impact a child’s diet are numerous and manifold, evidence that children and teens are choosing
to eat more or less of certain foods may inform the discussion about where industry should focus
self-regulatory efforts.
Some companies objected to the Special Order’s criteria for determining whether an ad or
promotion is directed to children, teens, or both. These companies contended that the criteria
were overly broad and resulted in the inclusion of expenditures for ads or promotions that were
directed to parents, families, or adults in general.10 The Commission acknowledges that, in some
instances, the data may be over-inclusive, reflecting advertising that reached significant numbers
of children or teens, although not specifically targeted to them. However, in other instances, the
data may be under-inclusive. For example, the expenditures reported by QSRs did not account
3
A Review of Food Marketing to Children and Adolescents
for all of the local advertising expenditures by independently owned franchisees. Moreover, the
companies responding to the Special Order do not represent the entire universe of U.S. companies that engage in food marketing to young people. Nevertheless, the Commission believes that
these data present a reasonably accurate portrayal of the majority of food and beverage marketing directed to children and teens in 2009. Because the definitions and criteria used in the Special Order are nearly identical to those underlying the first report, the Commission can reliably
compare the 2006 and 2009 time periods.
The Commission believes that food industry self-regulation is beginning to bring about
important changes in the marketing of foods to children under 12. The Commission encourages
companies to continue to enhance and expand upon these efforts.
4
Expenditures for Marketing Food to Youth
II. Expenditures for Marketing Food to Youth
A Introduction
In 2006, the reporting companies (44 for that year) spent nearly $2.1 billion to promote food
and beverages to children ages 2-11 and teens ages 12-17 (collectively, “youth”) in the U.S.,
with $1.3 billion directed to children, and about $1 billion directed to teens; approximately $321
million of the expenditures were directed at both children and teens.11 See Figure II.1.
In 2009,12 the 48 reporting
Figure II.1: Reported Child- and Teen-Directed Marketing
companies spent approximately
Expenditures and Overlap (2006)*
Figure II.1: Reported Child- and Teen-Directed Marketing Expenditures and Overlap (2006)*
$1.79 billion on youth marketing,
a 19.5% drop in inflation-adjusted13 expenditures since 2006. Of
the $1.79 billion, $1 billion was
Child 2-11
Teen 12-17
directed to children, $1 billion
$1,080,751,101
$1,332,473,284
was directed to teens, with $263
million overlapping between the
two age groups.14 See Figure II.2.
Overlapping
$321,749,978
The reporting companies
promoted their youth-advertised
Total Youth-Directed Marketing: $2,091,474,408
products to adults or to a general
*The 2006 expenditures are higher than the expenditures reported in the 2008 Report because they
include self-liquidating premiums.
audience, as well as to consumers
under age 18. Overall marketing
expenditures for these prodFigure II.2: Reported Child- and Teen-Directed Marketing
ucts amounted to $9.65 billion,
Expenditures and Overlap (2009)
Figure II.2: Reported Child- and Teen-Directed Marketing Expenditures and Overlap (2009)
slightly less than the $9.69
billion spent in 2006. See
App. C, Table C.1. The $1.79
billion in youth-directed marTeen 12-17
Child 2-11
keting expenditures for these
$1,010,706,362
$1,040,625,275
products represented 18.5% of
all consumer-directed marketOverlapping
ing expenditures, down from
$263,876,914
21.6% in 2006. Quick-service
Total Youth-Directed Marketing: $1,787,454,723
restaurant (QSR) foods, carbonated beverages, and break5
A Review of Food Marketing to Children and Adolescents
fast cereals accounted for $1.29 billion of those expenditures, 72% of the total (the same as in
2006).
The reporting QSRs spent $714 million on youth marketing in 2009, dropping from $733
million in 2006.15 As noted below, most of that drop was due to reduced premium expenditures;
in contrast, traditional measured media expenditures (television, radio, and print) substantially
increased. As in 2006, QSR expenditures were weighted more toward children ($583 million)
than teens ($185 million).
Carbonated beverage companies reported $395 million in youth-directed expenditures, about
97% of which were teen-directed. Breakfast cereal companies reported $186 million in youthdirected marketing expenditures, down considerably from the $237 million reported for 2006.
Compared to 2006, breakfast cereal expenditures were much more balanced between children
($173 million) and teens ($103 million), with considerable overlap ($90 million).
In terms of promotional techniques, television advertising accounted for 35.4%, and, as in
2006, the greatest share, of total youth-directed food and beverage marketing expenditures; although, in inflation-adjusted dollars, food marketers spent 19.5% less on TV in 2009. They spent
an additional $63 million on radio and print advertising.
The reporting companies spent $122.5 million on new media – company websites, Internet,
digital, and word-of-mouth and viral, a 50.5% jump from 2006 expenditures. New media represented 6.9% of all reported youth-directed marketing, up from 3.7% in 2006. The companies
reported spending $113 million on in-store marketing and packaging to reach children and teens,
a 45.5% drop from 2006. These expenditures also dropped as a share of youth-directed expenditures (6.3% versus 9.3% in 2006).
Premium expenditures represented $393 million, or 22%, of all reported youth-directed
expenditures. These expenditures dropped nearly 28% in inflation-adjusted dollars compared to
2006. Data from the companies and the NPD Group suggest that this drop was primarily due to
two factors: restaurants sold fewer kids meals with toys to children, and the costs of these toys
was less in 2009 versus 2006.
The reporting companies spent 22% less in 2009 on the other traditional promotions category, which includes product placement, movie, video, and video game advertising, crosspromotion license fees, athletic and event sponsorship, and celebrity endorsement fees. Companies spent $315 million on these activities, accounting for 17.6% of youth-directed marketing
expenditures. Finally, the companies reported in-school marketing expenditures of $149 million.
These expenditures represented 8.3% of all youth-directed food marketing expenditures, a significant drop from the $186 million reported for 2006.
As in 2006, nearly one-third of all youth-directed marketing involved cross-promotions,
although expenditures were down in absolute dollars ($584 million versus $666 million in 2006).
6
Expenditures for Marketing Food to Youth
Cross-promotion expenditures include not only the licensing fees but also the cost of implementing the cross-promotion across various activity categories, such as television and Internet advertising, premiums, and packaging. Celebrity marketing, which includes both fees paid to celebrity
endorsers and the cost of marketing that used the celebrity, also increased dramatically in absolute dollars (from $26.8 million in 2006 to $99 million in 2009) and accounted for 5.6% of all
youth-directed marketing (up from 1.3% in 2006).
B. Expenditures Analyzed by Food Category
For each product, meal, food, or beverage with youth-directed marketing expenditures
(“reported products”), the companies also reported the total consumer-directed marketing expenditures – i.e., total dollars spent to promote those products to consumers of all ages. Table
II.1 presents total youth-directed expenditures for each food category in 2006 and 2009, which
also are expressed as a percentage of the total marketing expenditures for those products within
that food category. The QSR ($714 million), carbonated beverages ($395 million), and breakfast
cereal ($186 million) categories spent the most on youth-directed food marketing, accounting
for $1.29 billion, or 72%, of the $1.79 billion total. In addition, the proportion of the companies’
marketing budgets for the reported products that was devoted to youth decreased across all food
categories, from 20.9% to 18.5%. The most notable drops were for QSR foods (from 29% to
24.1%), candy and frozen desserts (from 25.8% to 14.8%), baked goods (40.8% to 25.2%), and
fruits and vegetables (24.7% to 12.8%). As of 2009, the breakfast cereal category still had the
highest proportion of youth-directed expenditures relative to total marketing expenditures for the
reported products (25.9%).
Table II.1: Total Youth-Directed Marketing Expenditures for Reported Brands and Percent of Total
Table II.1: Total
Youth-Directed
Marketing Expenditures
for Reported
Brands (2006
and Percent
Total Marketing Expenditures,
Marketing
Expenditures,
By Food
Category
vs of
2009)
By Food Category (2006 vs 2009)
2006
Food Category
Expenditures Meeting
Youth (2-17) Criteria
($1000)
Restaurant Foods
Carbonated Beverages
Breakfast Cereal
Snack Foods
Juice & Non-carbonated Bevs.
Candy/Froz. Desserts
Dairy Products
Prepared Foods & Meals
Baked Goods
Fruits & Vegetables
TOTAL
732,644
526,370
236,553
138,713
146,601
117,694
54,645
64,143
62,549
11,563
2,091,474
2009
Total Marketing % of Total Marketing
Expenditures
Expenditures Meeting
($1000)
Youth (2-17) Criteria
2,529,445
3,132,150
792,042
852,342
1,340,266
456,677
265,887
424,858
153,393
46,769
9,993,829
29.0
16.8
29.9
16.3
10.9
25.8
20.6
15.1
40.8
24.7
20.9
Expenditures Meeting Total Marketing % of Total Marketing
Youth (2-17) Criteria
Expenditures Expenditures Meeting
($1000)
($1000)
Youth (2-17) Criteria
714,298
395,128
186,085
123,285
121,156
79,006
78,457
65,987
16,893
7,160
1,787,455
2,959,566
2,470,781
718,988
802,138
1,029,864
534,651
459,433
547,552
67,127
55,915
9,646,016
24.1
16.0
25.9
15.4
11.8
14.8
17.1
12.1
25.2
12.8
18.5
Note: Youth 2-17 marketing includes all marketing that meets either the Child 2-11 criteria or the Teen 12-17 criteria, without duplication.
Table II.2 lists the reporting companies’ total expenditures for both child- and teen-directed
marketing by food category and indicates the amount of overlapping expenditures (meaning the
marketing met the definition for both child-directed and teen-directed). QSR foods ($583 mil7
A Review of Food Marketing to Children and Adolescents
lion), breakfast cereals ($173 million), and snack foods ($70 million) accounted for 79% of the
$1 billion in child-directed ad expenditures (up from a 71% share in 2006). The top three food
categories with teen-directed marketing expenditures were carbonated beverages ($382 million),
QSR foods ($185 million), and breakfast cereals ($103 million). Those three categories accounted for two-thirds of the teen-directed expenditures.
Table II.2: Reported Child- and Teen-Directed Marketing Expenditures and Overlap (2006 vs 2009)
Table II.2: Reported Child- and Teen- Directed Marketing Expenditures and Overlap (2006 vs 2009)
2006
2009
Expenditures Meeting Expenditures Meeting Overlapping Expenditures Meeting Expenditures Meeting Overlapping
Child 2-11 Criteria
Teen 12-17 Criteria Expenditures
Child 2-11 Criteria
Teen 12-17 Criteria Expenditures
($1000)
($1000)
($1000)
($1000)
($1000)
($1000)
Food Category
Restaurant Foods
Carbonated Beverages
Breakfast Cereal
Snack Foods
Juice & Non-carbonated Bevs.
Candy/Froz. Desserts
Dairy Products
Prepared Foods & Meals
Baked Goods
Fruits & Vegetables
TOTAL
604,771
96,024
228,983
112,607
70,302
60,708
29,602
59,821
61,147
8,510
1,332,473
140,487
507,918
71,266
51,354
108,476
98,998
38,477
17,791
39,649
6,336
1,080,751
12,614
77,571
63,696
25,248
32,177
42,012
13,434
13,468
38,248
3,283
321,750
583,268
42,263
173,000
69,859
43,609
21,612
48,559
48,394
5,705
4,358
1,040,625
185,280
382,284
103,462
85,099
95,214
72,228
39,780
26,016
15,875
5,469
1,010,706
54,250
29,419
90,377
31,673
17,667
14,834
9,882
8,423
4,687
2,667
263,877
Figure II.3 illustrates the information reported in Table II.2. It depicts total marketing
expenditures directed to youth in each food category and the breakout between child- and teendirected expenditures, as well as the overlapping expenditures, for the reported products.
Figure II.3: Child- and Teen-Directed Marketing Expenditures, Ranked
Figure II.3: Child- and Teen-Directed Marketing Expenditures,
by Youth Expenditures
(2009)
Ranked by Youth Expenditures (2009)
750
700
Teens Minus Overlap
650
Child/Teen Overlap
600
Child Minus Overlap
550
Dollars (in millions)
500
450
400
350
300
250
200
150
100
50
0
Restaurant
Foods
Carbonated
Beverages
Breakfast
Cereal
Snack Foods Juice & Non- Candy/Froz. Dairy Products
carbonated
Desserts
Bevs.
Note: The portion of marketing that meets both the child and teen criteria is labeled Child/Teen Overlap.
8
Prepared
Foods &
Meals
Baked Goods
Fruits &
Vegetables
Expenditures for Marketing Food to Youth
Figure II.4 shows the changes in child, teen, and total marketing expenditures for the reported products within each food category between 2006 and 2009. Child-directed expenditures
declined across all food categories (-26%),16 but especially for baked goods (-91%), candy and
frozen desserts (-66%), and carbonated beverages (-59%). By contrast, several food categories
increased their teen-directed marketing expenditures, including QSR foods (+24%), breakfast cereal (+37%), snack foods (+56%), and prepared foods (+38%). All other categories spent less to
reach teens, especially the candy (-31%), carbonated beverages (-29%), and baked goods (-62%)
categories.
Figure II.4: Percentage Change in Reported Child-Directed, Teen-Directed,
and All Ages Marketing Expenditures for Reported Products*
Figure II.4: Percentage Change in Reported Child-Directed, Teen-Directed, and All Ages Marketing
from 2006
to 2009,
Adjusted for Inflation
Expenditures for Reported Products* from 2006 to 2009, Adjusted for Inflation
-9%
Restaurant Foods
10%
-59%
Carbonated Beverages
-29%
-26%
-29%
Breakfast Cereal
-42%
56%
-11%
-42%
Juice & Non-carbonated Bevs.
-28%
-66%
Candy/Froz. Desserts
Child 2-11
Teen 12-17
All Ages
-17%
-31%
10%
Dairy Products
54%
-3%
63%
-24%
Prepared Foods & Meals
Fruits & Vegetables
37%
-15%
Snack Foods
Baked Goods
24%
21%
-91%
38%
-62%
-59%
-52%
-19%
-26%
TOTAL
13%
-12%
-9%
*Reported products were those foods and beverages that the reporting companies marketed to children, teens, or
both. The All Ages data reflect total consumer-directed marketing expenditures only for the reported products.
C. Expenditures Analyzed by Promotional Activity Groups
The Commission’s Special Order sought information about 17 separate promotional activity
categories, as well as a catch-all “other” category.17 For purposes of this report, these categories
have been consolidated into six groups: 1) traditional measured media, consisting of television,
radio, and print advertising; 2) new media, consisting of company-sponsored websites, Internet,
digital, word-of-mouth, and viral marketing; 3) packaging and in-store marketing; 4) premiums;
5) other traditional promotions, consisting of product placements, movie theater, video, and
video game advertising, character or cross-promotion license fees, athletic sponsorships, celeb9
A Review of Food Marketing to Children and Adolescents
rity endorsement fees, events, philanthropic activities tied to branding opportunities, and other
miscellaneous marketing expenditures; and 6) in-school marketing. Figure II.5 shows how the
companies allocated the $1.79 billion in youth-directed food marketing in 2009 across the six
promotional activity groups, compared to 2006. Appendix Tables C.1 and C.2 provide detailed
data on these expenditures within each promotional activity category for each food group and
age category.
Figure II.5: Reported Total Youth-Directed Marketing Expenditures by Promotional
Figure
II.5: Reported
Total
Youth-Directed
Expenditures
Promotional Activity Group,
Activity
Group,
Adjusted
for Marketing
Inflation
(2006 vsby2009)
Adjusted for Inflation (2006 vs 2009)
2006
Traditional Measured Media
$185.5
9%
$848.3
41%
$275.0
13%
New Media
$314.9
18%
In Store and Packaging/ Labeling
2009
$149.0
8%
$695.4
39%
Premiums
Other Traditional Marketing
$76.6
4%
$195.4
9%
$510.5
24%
$392.7
22%
In School
$122.5
7%
$113.0
6%
Note: Dollars are in millions.
Within these six promotional activity groups, Figure II.6 illustrates the percentage of total
youth-directed spending within each group contributed by each food category during 2009. The
figure demonstrates, for example, that carbonated and non-carbonated beverages comprised
Figure II.6: Food Category Share of Total Youth-Directed Expenditures for Each
GroupExpenditures
(2009) for Each Promotional Activity Group (2009)
Figure II.6: FoodPromotional
Category Share of Activity
Total Youth-Directed
12.6%
36.7%
12.5%
17.6%
16.6%
3.4%
9.3%
10.1%
8.1%
0.6%
1.0%
6.6%
6.6%
7.9%
4.7%
3.8%
1.3%
0.6%
16.7%
4.7%
5.6%
18.4%
7.1%
In-Store and Packaging/Labeling ($113.0 Million)
New Media ($122.5 Million)
Traditional Measured Media ($695.4 Million)
30.1%
9.2%
15.6%
22.3%
4.2%
5.8%
0.5%
Restaurant Foods
Breakfast Cereal
Juice & Non-carbonated Bevs.
Dairy Products
Baked Goods
Carbonated Beverages
Snack Foods
Candy/Froz. Desserts
Prepared Foods & Meals
Fruits & Vegetables
Other Traditional Promotions ($314.9 Million)
Premiums ($392.7 Million)
In-School ($149.0 Million)
55.3%
52.6%
87.0%
0.2%
18.2%
6.4%
6.6%
0.0%
0.1%
0.7%
0.4%
0.6%
1.5%
0.2%
3.0%
0.0%
4.0%
37.5%
4.8%
0.6%
0.4%
8.6%
1.9%
3.9%
3.4%
10
0.0%
0.0%
2.2%
0.0%
0.0%
Expenditures for Marketing Food to Youth
nearly 93% of the reported in-school expenditures. The figure also shows that the QSR foods
category accounts for the lion’s share (87%) of premium expenditures. Appendix Table C.3 provides further detail on expenditures within the six promotional activity groups.
Figures II.7 and II.8 illustrate the percentage change in child- and teen-directed expenditures in the six promotional activity groups for each food category in 2006 and 2009. The dollar
amounts underlying these figures can be found at Appendix Table C.3 of this report. Figure
II.7 shows an increase in QSRs’ use of measured media (primarily television) to reach children.
Fruits and vegetables was the only other category that increased child-directed spending in measured media.18 All other food categories showed significant decreases relative to 2006. Except
for the candy and baked goods categories, all food categories increased their new media expenditures, with QSRs and juice and non-carbonated beverage companies demonstrating the biggest
relative jump from 2006. In-school spending directed to children dropped substantially for all
categories.19
Figure II.7: Percentage Change in Reported Child-Directed Marketing
Expenditures from 2006 to 2009, by Promotional Activity Group,
Figure II.7: Percentage Change in Reported Child-Directed Marketing Expenditures
Adjusted forfrom
Inflation
2006 to 2009, by Promotional Activity Group, Adjusted for Inflation
Restaurant Foods
Traditional Measured Media
Carbonated Beverages
New Media
In-Store, Packaging/Labeling
Breakfast Cereal
Premiums
Other Traditional Promotions
Snack Foods
In-School
Juice & Non-carbonated Bevs.
Candy/Froz. Desserts
Dairy Products
Prepared Foods & Meals
Baked Goods
Fruits & Vegetables
-100%
0%
100%
200%
300%
400%
500%
600%
700%
As Figure II.8 shows, breakfast cereal and fruit and vegetable companies substantially
increased expenditures in teen-directed traditional media, relative to 2006, while the carbonated
beverages, juice and non-carbonated beverages, candy and frozen desserts, and baked goods
categories decreased these expenditures. Nearly all categories increased their teen-directed new
media expenditures, with QSRs, fruit and vegetable companies, and prepared food and meal
companies demonstrating the largest relative increases. Expenditures for in-school advertising
directed to teens either remained flat or dropped for all food categories, except baked goods,
11
A Review of Food Marketing to Children and Adolescents
which showed a very slight increase. QSRs dramatically increased their teen-directed in-store
and packaging expenditures (+2,782%), from $200,000 in 2006 to $8.9 million in 2009. Similarly, QSRs (+171%) and snack food companies (+228%) substantially increased expenditures on
teen-directed other traditional promotions.
Figure II.8: Percentage Change in Reported Teen-Directed Marketing Expenditures
from 2006 to 2009, by Promotional Activity Group, Adjusted for
Figure II.8: Percentage Change in Reported Teen-Directed Marketing Expenditures
Inflation
from 2006 to 2009, by Promotional Activity Group, Adjusted for Inflation
2,782%
Restaurant Foods
Traditional Measured Media
Carbonated Beverages
New Media
In-Store, Packaging/Labeling
Breakfast Cereal
Premiums
Other Traditional Promotions
Snack Foods
In-School
Juice & Non-carbonated Bevs.
Candy/Froz. Desserts
Dairy Products
Prepared Foods & Meals
Baked Goods
Fruits & Vegetables
-100%
0%
100%
200%
300%
400%
500%
600%
700%
800%
3,000%
900%
1. Traditional Measured Media: Television, Radio, and Print
Food marketers spent $695 million on traditional measured media (television, radio, and
print) directed to youth, a significant drop from the $848 million spent in 2006. Traditional measured media accounted for 39% of all youth-directed marketing expenditures, compared to 41%
in 2006.20 The bulk of these expenditures was for television advertising. The companies reported youth-directed television expenditures exceeding $632 million, a 19.5% drop from 2006. As
in 2006, television accounted for 35% of all youth-directed marketing expenditures.
a.
Television
The $375 million in child-directed television Table II.3: Reported Child- and Teen-Directed
Television
Expenditures
(2009)(2009)
Table II.3: Reported
Child- and Teen-Directed
Television Expenditures
advertising expenditures21 represents a 22.8%
Child (2-11)
Teen (12-17)
Food Category
Expenditures
Expenditures
drop from 2006. See Table II.3. QSRs ($154
($1000)
($1000)
Restaurant Foods
154,259
129,580
million) and breakfast cereals ($102 million)
Breakfast Cereal
102,032
49,348
Prepared Foods & Meals
31,619
18,513
Dairy Products
30,768
11,896
accounted for 68% of those expenditures. Other
Snack Foods
27,401
33,082
Juice & Non-carbonated Bevs.
12,400
13,496
food categories with child-directed television adCandy/Froz. Desserts
10,720
36,169
Baked Goods
3,945
6,407
Fruits & Vegetables
1,212
3,967
vertising were prepared foods ($32 million), dairy
Carbonated Beverages
710
61,890
TOTAL
12
375,066
364,348
Expenditures for Marketing Food to Youth
products ($31 million),22 and snacks ($27 million). Carbonated beverage companies reported
only $710,000 in child-directed television expenditures, representing .02% of their total television advertising expenditures for the reported products. The QSR foods category bucked the
overall decline in child-directed television advertising, spending 59% more compared to 2006.
See Figure II.9. The fruits and vegetables category also substantially increased its child-directed
television expenditures relative to 2006 (by 33%); however, absolute expenditures remained
small at $3.9 million.
The reporting companies spent $364 million on teen-directed television advertising, down
7.6% from 2006.23 QSRs accounted for nearly 36% of those expenditures, or $130 million,
although this amount comprised barely 8% of the $1.7 billion that QSRs spent on TV advertising
(regardless of age) for the reported meals and products. Carbonated beverage companies spent
$62 million, breakfast cereal companies $49 million, candy and frozen desserts $36 million, and
snack foods $33 million, on teen-directed television advertising. The breakfast cereal, prepared
foods, dairy,24 snack food, and fruits and vegetables categories increased teen-directed television
expenditures compared to 2006, while the other categories declined significantly.
Figure II.9: Percentage Change in Reported Child- and Teen-Directed
TV Figure
Expenditures
to Child2009,
AdjustedTVfor
Inflation
II.9:
Percentagefrom
Change2006
in Reported
and Teen-Directed
Expenditures
from 2006 to 2009, Adjusted for Inflation
59.3%
Restaurant Foods
21.5%
-32.5%
Breakfast Cereal
228.7%
-28.4%
Prepared Foods & Meals
46.8%
79.9%
Dairy Products
Snack Foods
121.3%
Child (2-11)
-62.8%
23.3%
Juice & Non-carbonated Bevs.
-52.1%
-47.9%
Candy/Froz. Desserts
-69.4%
-50.8%
Baked Goods
-89.9%
-71.7%
32.7%
Fruits & Vegetables
Carbonated Beverages
TOTAL
Teen (12-17)
334.3%
-63.8%
-41.0%
-22.8%
-7.6%
Three studies by the Rudd Center for Food Policy and Obesity show trends in children’s and
teen’s exposure to certain categories of food ads on TV between 2004 and 2010 that are largely
consistent with changes in reported expenditures between 2006 and 2009.25
13
A Review of Food Marketing to Children and Adolescents
In addition to collecting child- and teen-directed television expenditure data, the Commission examined food company expenditures on broadcast TV shows most popular with children
and teens in terms of absolute numbers of child or teen viewers. According to data from the
Nielsen Company, only two of the top 30 shows, ranked by number of viewers age 2-11 during the 2008-09 television year, met the 30% children threshold for reporting under the Special
Order’s definition of child-directed.26 None of the top 30 shows for teens, ranked by number
of viewers age 12-17, met the 20% teen threshold for reporting under the Order’s teen-directed
definition.27 Nevertheless, in the past, food companies have acknowledged that ad placements on
some of these shows were part of a marketing strategy to reach children and teens.
Figures II.10 and II.11 illustrate food advertising expenditures on the top 30 broadcast television shows viewed, respectively, by children and teens. The lists overlap substantially. Four
food categories accounted for most of the food advertising on these shows – QSR foods, fruit
juice and non-carbonated beverages, carbonated beverages, and candy and frozen and chilled
desserts. Collectively, these four food categories accounted for $442 million, or nearly 83%, of
the food advertising on the top 30 broadcast shows viewed by children; the same categories accounted for $514 million, or nearly 84%, of the food advertising on the top 30 shows viewed by
teens. QSR advertising accounted for more than half the food advertising expenditures on these
shows (50% on the children’s top 30, and 51% on the teen top 30).
Figure II.10: Food Ad Expenditures on Top 30 Broadcast TV Shows
Viewed
by Children
Figure II.10:
Food Ad Expenditures
on Top 302-11*
Broadcast(2009)
TV Shows Viewed by Children 2-11* (2009)
Expenditures (millions of dollars)
300
250
200
125
Top 1-5 Shows
Top 6-30 Shows
150
100
141
50
0
25
28
16
27
36
42
Candy and Frozen &
Chilled Desserts†
Carbonated Beverages
Fruit Juice and NonCarbonated Beverages╩
47
47
Restaurant Food‡
All Other
Source: The Nielsen Company
*Ranking according to 2-11-year-old viewership of broadcast shows with 10 or more telecasts airing between 9/22/08 through
9/20/09.
†Includes gum.
╩Includes coffee.
‡Includes banquet facilities, comedy clubs, dining clubs, dinner theaters, and nightclubs.
14
Expenditures for Marketing Food to Youth
Figure II.11: Food Ad Expenditures on Top 30 Broadcast TV Shows
Viewed
by Teens
12‑17*
(2009)
Figure II.11:
Food Ad Expenditures
on Top
30 Broadcast
TV Shows Viewed by Teens 12-17* (2009)
Expenditures (millions of dollars)
350
300
250
Top 1-5 Shows
Top 6-30 Shows
200
176
150
100
50
0
29
36
26
37
36
Candy & Frozen and
Chilled Desserts†
Carbonated Beverages
Fruit Juice and NonCarbonated Beverages╩
36
137
79
21
Restaurant Food‡
All Other
Source: The Nielsen Company
*Ranking according to 12-17-year-old viewership of broadcast shows with 10 or more telecasts airing between 9/22/08 through
9/20/09.
†Includes gum.
╩Includes coffee.
‡Includes banquet facilities, comedy clubs, dining clubs, dinner theaters, and nightclubs.
b.
Radio and Print
The companies’ spending on radio and print ads was less than 10% of spending on television
advertising. They had $7.2 million in child-directed expenditures for radio and print ads.28 Only
the dairy products ($3 million)29 and QSR foods ($1.2 million) categories spent at least a million
dollars on child-directed print and radio advertising. The companies spent significantly more –
$57.4 million – on teen-directed print and radio advertising. Carbonated beverages ($23.1 million), QSR foods ($14.3 million), and the candy/frozen dessert ($5.2 million) categories led the
way in teen-directed radio advertising, while dairy products ($5.6 million), carbonated beverages
($2.2 million), and juice and non-carbonated beverages ($1.4 million) topped teen-directed print
expenditures.
2. New Media: Websites, Internet, Word-of-Mouth, and Viral Marketing
New media, which includes company-sponsored websites, Internet, digital, word-of-mouth,30
and viral marketing,31 accounted for approximately 7% ($122.5 million) of all reported youthdirected marketing expenditures, up from 4% in 2006, and representing a 50.5% increase in
inflation-adjusted dollars.32 The companies spent $38.8 million on company-sponsored websites,
$74.4 million for advertising on third-party Internet sites and digital marketing, such as mobile
marketing, and $9.3 million on word-of-mouth or viral marketing, up from 4% ($76.6 million) in
2006.
Table II.4 ranks the food categories according to total child-directed new media expenditures. Figure II.12 illustrates the percentage change in child- and teen-directed expenditures in
these promotional categories compared to 2006, adjusted for inflation.
15
A Review of Food Marketing to Children and Adolescents
Table II.4: Reported Child- and Teen-Directed
Three food categories led the way in childNew Media Expenditures (2009)
directed new media expenditures – breakfast ce- Table II.4: Reported Child- and Teen-Directed New Media Expenditures (2009)
Child (2-11)
Teen (12-17)
Food Category
Expenditures
Expenditures
reals ($21.6 million), QSR foods ($19.4 million),
($1000)
($1000)
Breakfast Cereal
21,602
10,792
Restaurant Foods
16,430
8,410
and snack foods ($10 million). The top three
Snack Foods
9,990
11,343
Prepared Foods & Meals
6,310
3,060
food categories using new media to reach teens
Juice & Non-carbonated Bevs.
3,470
8,700
Dairy Products
2,595
4,175
Candy/Froz. Desserts
1,492
11,692
were carbonated beverages ($22.6 million),
Fruits & Vegetables
613
592
Carbonated Beverages
518
22,558
candy and frozen desserts ($11.7 million), and
Baked Goods
280
6,780
TOTAL
63,300
88,101
snack foods ($11.3 million). Breakfast cereals
($15.1 million) accounted for the highest spending on child-directed advertising placed on third-party websites, followed by QSRs ($9 million)
and snack foods ($6.4 million). The carbonated beverages category ($14.5 million) spent the
most on teen-directed ads on third-party sites. QSRs ($6.9 million) and breakfast cereal compa-
nies ($6.5 million) spent the most on company-sponsored websites directed to children, whereas
juice and non-carbonated beverages ($6.2 million) and snack foods ($5.7 million) spent the most
on teen-directed web content.
Compared to 2006, the juice and non-carbonated beverages (+617%), QSR foods (+433%),
and prepared foods (+146%) categories demonstrated the highest relative growth in new media
expenditures directed to children. These categories also represented a much larger proportion of
child-directed new media expenditures in 2009 (41.4% versus 14.5% in 2006). As in 2006, the
absolute amount spent for these three categories ($26.2 million) was overshadowed by traditional
measured media expenditures directed to children ($200 million).
Figure II.12: Percentage Change in Reported Child- and Teen-Directed
New Media Expenditures from 2006 to 2009, Adjusted for
Inflation
Figure II.12: Percentage Change in Reported Child- and Teen -Directed New Media Expenditures
from 2006 to 2009, Adjusted for Inflation
43.1%
10.7%
Breakfast Cereal
433.1%
Restaurant Foods
833.5%
5.0%
28.1%
Snack Foods
145.9%
Prepared Foods & Meals
240.6%
617.2%
Juice & Non-carbonated Bevs.
97.2%
Candy/Froz. Desserts
-23.7%
-57.0%
59.9%
56.0%
Fruits & Vegetables
319.1%
37.5%
3.4%
Carbonated Beverages
Baked Goods
TOTAL
Child (2-11)
Teen (12-17)
25.5%
Dairy Products
-94.5%
39.0%
50.1%
36.8%
16
Expenditures for Marketing Food to Youth
The QSR foods (+833.5%), fruits and vegetables (+319.1%), prepared foods (+240.6%),
and juice and non-carbonated beverages (+97.2%) categories markedly increased expenditures
on teen-directed new media. These food categories accounted for $20.7 million in new media
expenditures directed to teens, up from $5.9 million in 2006. These categories also represented
a much larger proportion of teen-directed new media expenditures in 2009 (23.6% versus 9.9%
in 2006). As in 2006, companies spent far more on traditional media ($184.5 million) to reach
teens with ads for foods in these categories.
Appendix D to this report explores the amount of display advertising for food and beverages
that appeared on child- and teen-oriented websites during 2009, as well as traffic on company
websites that feature branded entertainment and activities, such as advergames, directed to children and teens. There is also a brief discussion on trends in food advertising on mobile devices.
3. Packaging and In-Store Marketing
The companies reportedly spent $113 million on packaging and in-store marketing to reach
the youth audience, a 45.5% drop from 2006 in inflation-adjusted dollars.33 As in 2006, QSRs
led spending in these promotional categories with $27.4 million directed to children, followed by
companies producing snacks ($12.4 million) and breakfast cereals ($10.4 million). The childdirected proportion of all in-store and packaging expenditures for the reported products ranged
from a low of 2% for carbonated beverages to a high of 22% for QSR foods.34
The carbonated beverages category spent the most on packaging and in-store marketing
directed to teens, with $24.2 million in expenditures, a 74.6% drop compared to 2006; the snack
foods category was second in these expenditures at $14.8 million, a 66.1% increase. Fruits and
vegetable companies reported no such expenditures directed to teens.
Table II.5 ranks the food categories in terms
of total costs on packaging and in-store marketing Table II.5: Reported Child- and Teen-Directed
In-Store and Packaging/Labeling
Table II.5: Reported
Child- and Teen-Directed
In-Store and
directed to children ages 2-11. Figure II.13 illusExpenditures
(2009)
Packaging/Labeling Expenditures (2009)
Child (2-11)
Teen (12-17)
trates the percentage change in child- and teenFood Category
Expenditures
Expenditures
($1000)
($1000)
directed expenditures in these promotional categoRestaurant Foods
27,367
8,570
Snack Foods
12,354
14,757
Breakfast Cereal
10,355
8,159
ries compared to 2006, adjusted for inflation.
Dairy Products
5,338
1,868
Candy/Froz. Desserts
Carbonated Beverages
Juice & Non-carbonated Bevs.
Prepared Foods & Meals
Baked Goods
Fruits & Vegetables
TOTAL
4. Premiums
5,190
4,014
3,605
2,250
1,130
722
72,326
8,467
24,172
957
2,970
1,170
0
71,090
The companies reported spending $392.7 million to reach youth consumers through premiums,
accounting for 22% of all reported youth-directed
marketing expenditures.35 As was the case for 2006, some companies explained that a crosspromotional partner, such as a toy or media company, often covered the premium costs, such as
sweepstakes prizes or DVD rebates. Consequently, the true value of youth-directed premiums
17
A Review of Food Marketing to Children and Adolescents
Figure II.13: Percentage
Change
in Reported
Childand
Teen-Directed
In-Store
and
Figure II.13:
Percentage
Change in Reported
Childand
Teen-Directed In-Store
and
Packaging/Labeling
Expenditures
fromfrom
2006
Adjusted
for Inflation
Packaging/Labeling
Expenditures
2006to
to 2009,
2009, Adjusted
for Inflation
17.2%
Restaurant Foods
2782.0%
Snack Foods
-36.2%
Breakfast Cereal
-32.0%
Dairy Products
2,782%
66.1%
12.9%
50.6%
-50.4%
Candy/Froz. Desserts
-58.1%
-4.1%
Carbonated Beverages
-67.5%
-74.6%
Juice & Non-carbonated Bevs.
-66.8%
-90.3%
Prepared Foods & Meals
-39.3%
Baked Goods
-86.4%
-65.1%
Fruits & Vegetables
-79.1%
-100.0%
TOTAL
-35.7%
-49.7%
Child (2-11)
Teen (12-17)
35.5%
likely was substantially higher than the reported Table II.6: Reported Child- and Teen-Directed
Premiums Expenditures (2009)
expenditures.
Table II.6: Reported Child- and Teen-Directed Premiums Expenditures (2009)
Child (2-11)
Teen (12-17)
Table II.6 ranks the food categories in terms
Food Category
Expenditures
Expenditures
($1000)
($1000)
341,086
590
Restaurant Foods
of total costs on premiums directed to children
26,012
25,622
Breakfast Cereal
3,208
5,458
Snack Foods
ages 2-11. Figure II.14 illustrates the percentage
2,635
628
Prepared Foods & Meals
2,379
2,069
Dairy Products
change in child- and teen-directed expenditures
655
141
Juice & Non-carbonated Bevs.
420
1,451
Candy/Froz. Desserts
180
11,642
on premiums compared to 2006, adjusted for
Carbonated Beverages
140
198
Baked Goods
0
0
Fruits & Vegetables
inflation.
TOTAL
376,715
47,798
All but one food and beverage category reported steep declines in child-directed premium expenditures compared to 2006.36 Overall childdirected premium expenditures dropped 29.2%. QSR foods ($341.1 million) accounted for most
of the $376.7 in child-directed premiums.37 This amount represents 94.2% of all QSR premium
expenditures for the reported products, regardless of age, and 59.3% of child-directed premium
expenditures across all food and beverage categories for the reported products.
The decline in QSR premiums was due in part to fewer children visiting QSRs in 2009. In
2009, QSRs sold slightly more than 1 billion children’s meals with toys to children ages 12 and
under (down from 1.2 billion in 2006), accounting for 18% of all child QSR visits, compared
to 19.5% of visits in 2006. See Figures II.15 and II.16. Some QSRs also reported that they had
incurred lower costs for the toys distributed with kids’ meals.
18
Expenditures for Marketing Food to Youth
Figure II.14: Percentage Change in Reported Child- and Teen-Directed Premiums
Figure II.14:
Reported ChildTeen-Directed Premiums Expenditures
Expenditures
fromPercentage
2006 toChange
2009,inAdjusted
forand
Inflation
from 2006 to 2009, Adjusted for Inflation
-28.0%
Restaurant Foods
44.7%
-38.5%
Breakfast Cereal
-4.3%
-26.3%
Snack Foods
82.4%
-37.5%
Prepared Foods & Meals
1.1%
42.5%
Dairy Products
Juice & Non-carbonated Bevs.
5.7%
-46.3%
-28.0%
0.2%
-73.9%
Carbonated Beverages
Fruits & Vegetables
TOTAL
Teen (12-17)
-90.0%
Candy/Froz. Desserts
Baked Goods
Child (2-11)
177.6%
-95.2%
-91.9%
-100.0%
-100.0%
-29.2%
10.9%
Figure II.15: Child Visits to QSRs for Kids’ Meals with Toys and Other Menu Items
(2005-2009)
19
A Review of Food Marketing to Children and Adolescents
Figure II.16: Percent of Children Visiting QSRs Who Purchased Kids’ Meals with
Toys (2005-2009)
Teen-directed premium expenditures in the carbonated beverages (+177.6%), snack foods
(+82.4%), and QSR foods (+44.7%) categories rose significantly from 2006. Still, the $47.8 million in teen-directed premiums across all food and beverage categories was a small proportion of
all teen-directed expenditures (4.9% versus 3.9% in 2006).
5. Other Traditional Promotional Activities: Product Placements, Movie
Theater, Video, and Video Game Advertising, Character or Cross-Promotional License Fees, Athletic Sponsorships, Celebrity Endorsement
Fees, Events, and Philanthropic Marketing Expenditures
The companies reported youth-directed expenditures for various other promotional activities for which expenditures are not systematically tracked by commercial data companies. These
“non-measured” activities included product placements; ads appearing before or within a video
game or preceding a home video or theatrical movie feature; license fees paid to use a third-party
character in advertising or for cross-promotional arrangements; sponsorships of sports teams
and athletes; fees paid for celebrity endorsements; public events; advertising or other product
branding in conjunction with philanthropic endeavors; and other miscellaneous marketing expenditures. Together, these non-measured activities accounted for $314.9 million, or 17.6% of
all reported youth-directed marketing expenditures.38 Of these activities, only event marketing
exceeded 7% of total youth-directed marketing expenditures.
Table II.7 ranks the food categories in terms of total expenditures for other traditional promotions directed to children ages 2-11. Figure II.17 illustrates the percentage change in childand teen-directed expenditures for other traditional promotions compared to 2006, adjusted for
inflation.
20
Expenditures for Marketing Food to Youth
Table II.7: Reported Child- and Teen-Directed
Other traditional promotional activities
Other Traditional Promotions
accounted for 11% of all child-directed expenTable II.7: Reported
Child- and Teen-Directed
Other Traditional Promotions
Expenditures
(2009)
Expenditures (2009)
ditures and 25.5% of all teen-directed expenChild (2-11)
Teen (12-17)
Food Category
Expenditures
Expenditures
($1000)
($1000)
ditures. Only the QSR foods and snack food
36,145
22,530
Restaurant Foods
23,492
165,292
Carbonated Beverages
categories increased expenditures on child-di16,038
19,632
Snack Foods
12,563
9,183
Breakfast Cereal
11,986
18,761
Juice & Non-carbonated Bevs.
rected promotions of this kind. Those two food
5,400
692
Prepared Foods & Meals
3,652
11,575
Dairy Products
categories plus the dairy category showed similar
3,390
8,060
Candy/Froz. Desserts
1,810
910
Fruits & Vegetables
200
1,280
Baked Goods
increases in teen-directed expenditures compared
114,677
257,914
TOTAL
to 2006. In absolute dollars, however, these
expenditures were relatively small.
Figure II.17: Percentage Change in Child- and Teen-Directed Other Traditional Promotions
Figure II.17: Percentage Change in Child- and Teen-Directed Other Traditional Promotions
Expenditures
from 2006 to 2009, Adjusted for Inflation
Expenditures from 2006 to 2009, Adjusted for Inflation
9.5%
Restaurant Foods
170.8%
-37.4%
Carbonated Beverages
3.6%
37.7%
Snack Foods
228.3%
-28.0%
-42.9%
Breakfast Cereal
-27.0%
Juice & Non-carbonated Bevs.
Prepared Foods & Meals
-7.3%
Fruits & Vegetables
Baked Goods
TOTAL
a.
Teen (12-17)
-67.8%
-14.5%
Dairy Products
Candy/Froz. Desserts
Child (2-11)
-21.8%
67.1%
-61.1%
-12.5%
-51.3%
-62.9%
-97.3%
-80.9%
-22.1%
8.6%
Product Placements and Movie Theater, Video, and Video Game
Advertising
The companies reported spending more than $7.4 million on youth-directed product placements, up slightly from 2006. As in 2006, only carbonated beverage companies spent a significant amount on product placements – $6.7 million for teen-directed placements, which comprised 64% of what the carbonated beverage companies spent in total on product placements for
the reported products.
21
A Review of Food Marketing to Children and Adolescents
The companies spent $8.9 million on youth-directed advertising preceding or appearing in
video games or preceding movies, reflecting little change from 2006. Only a million dollars of
that total were child-directed. The snack foods category ($3.4 million) reported the largest expenditures on movie theater, video, and video game advertising to reach the teen market, representing 100% of all such expenditures in the snack foods category for the reported products.
b. Character or Cross-Promotional License Fees
Youth-directed expenditures for character or cross-promotional licensing fees were reported
in all food categories, for a total of $80.6 million, up substantially from the $7 million reported
for 2006. These fees comprised 4.5% of all youth-directed marketing expenditures, although
several companies reported that they did not pay fees for many cross-promotional arrangements.
Carbonated beverage companies reported the largest amount of child-directed licensing fees
($20.8 million), followed by the snack foods companies ($12.5 million) and QSRs ($10.4 million). Nearly all of the child-directed licensing fees in the carbonated beverages category were
also categorized as teen-directed and involved corporate brand cross-promotions with theme
parks. The carbonated beverages category also reported the largest amount of teen-directed
licensing fees ($41.4 million), accounting for 51% of all teen-directed licensing fees in 2009.
The Special Order required the companies not only to report license fees, but also to identify
the costs reported in other promotional activity categories associated with implementing the license, such as the cost of television ads or product packaging featuring a licensed character. For
an analysis of the overall costs associated with implementation of licensed cross-promotions, see
Section II.C.7, below.
c. Athletic Sponsorships and Celebrity Endorsement Fees
As in 2006, several food and beverage categories used athletic sponsorships and celebrity
endorsements to reach a youth audience, primarily teens. The Special Order asked the companies to report the fees paid to celebrities to serve as endorsers, which are discussed here. In
addition, companies were required to identify expenditures already reported in other promotional
categories that represented the use of a celebrity endorsement, such as the costs associated with
television ads or an event featuring a celebrity endorser. See Section II.C.7, below, for a discussion of the total costs associated with use of celebrity endorsements.
The companies reported $29.9 million in expenses for youth-directed athletic sponsorships,
representing only 7.6% of total athletic sponsorship expenditures for the reported food products.
They spent an additional $13.6 million on celebrity endorsement fees, mostly teen-directed. The
carbonated beverages category accounted for most of the athletic sponsorship dollars ($25.3 million), nearly all of which were teen-directed. Snack foods led the way for fees paid to celebrities
for product endorsements ($6.2 million), all of which were teen-directed; the carbonated bever22
Expenditures for Marketing Food to Youth
ages category ranked second in such expenditures ($3.5 million) – again, all teen-directed. As
in 2006, QSRs reported relatively small amounts for youth-directed athletic sponsorships ($1.6
million) and celebrity endorsement fees ($2.5 million).
d. Events Marketing
The reporting companies spent more than $130 million on youth-directed events to promote
their food and beverages, a substantial increase from the $99 million spent in 2006, attributable
primarily to the carbonated beverages, QSR foods, and juice and non-carbonated beverages categories. QSRs ($11.3 million) and juice and non-carbonated beverages companies ($8.8 million)
spent the most on child-directed events, whereas carbonated beverages ($79.2 million) and juice
and non-carbonated beverages ($14 million) companies spent the most on teen-directed event
marketing. The carbonated beverages category spent 19.7% of its total youth-directed marketing
budget on event marketing, and the juice and non-carbonated beverages category spent 13.1%.
e.
Philanthropic
All but one of the food and beverage categories engaged in child- or teen-directed advertising or other product branding activities in conjunction with their philanthropic endeavors, totaling $22.7 million, or about 1.3% of all youth-directed expenditures. The Special Order required
the companies to report the costs associated with both monetary and in-kind donations that
were conditioned upon or made in combination with the display of trade names, logos, or other
branded materials, but not the amount of the donation itself. QSRs ($12.3 million) and breakfast
cereal companies ($3.4 million) spent the most on child-directed philanthropic marketing. The
dairy products ($1.8 million),39 carbonated beverages ($1.7 million), juice and non-carbonated
beverages ($1.5 million), and QSR foods ($1.4 million) categories spent the most on teen-directed philanthropic marketing.
6. In-School Marketing
The companies spent nearly $149 million on youth-directed in-school marketing for the
reported products, a significant drop from the $185.5 million reported for 2006.40 The majority of in-school marketing expenses consisted of payments made or items provided to schools
under “competitive” food and beverage contracts, for products sold outside the school meal
program. In-school marketing accounted for 8.3% of overall youth-directed marketing expenditures. About 93% of the $149 million in youth-directed in-school expenditures was reported in
the carbonated beverages ($82.3 million) and juice and non-carbonated beverages ($55.9 million) categories, and the lion’s share of those amounts was teen-directed. Carbonated beverages
($12.7 million), juice and non-carbonated beverages ($10.8 million), and QSRs ($6.8 million)
accounted for most of the $31.3 million in child-directed in-school marketing. The associated activities consisted primarily of vending machine commissions, front displays on vending
23
A Review of Food Marketing to Children and Adolescents
machines, and contracts for exclusive availability within the schools and school districts. For
the reasons explained in the 2008 report, the Commission’s data likely underestimate in-school
marketing expenditures.41
7. Use of Cross-Promotions and Celebrity Endorsements
a. Licensed Cross-Promotions
The companies spent $584 million on youth-directed marketing campaigns that used crosspromotions, a figure that includes both licensing fees paid for and expenditures associated with
implementing marketing campaigns incorporating a licensed character or other cross-promotion.
See Appendix C, Table C.4. These expenditures represented a significant drop from the $666
million spent in 2006. Cross-promotions accounted for one-third of all youth-directed spending,
about the same percentage as in 2006.42
Half of all child-directed marketing dollars ($530.7 million) involved cross-promotions.
QSRs ($428.2 million) accounted for 81% of that amount. See Table II.8. The breakfast cereal
($32.4 million), carbonated beverages ($21.7 million), and snack foods ($20.2 million) categories accounted for most of the other child-directed cross-promotion expenditures. These sums
far exceed the $1.5 million
spent by the fruit and vegetable Table II.8: Reported Child-Directed Marketing Expenditures for
Cross-Promotions
(2009)
Table II.8: Reported
Child-Directed Marketing
Expenditures for Cross-Promotions (2009)
producers to implement childReported Marketing Expenditures for
Total Reported ChildCross-Promotions
directed cross-promotions.
Food Category
Directed Marketing
Expenditures ($1000)
Value ($1000)
Percentage
Cross-promotional expendiRestaurant Foods
583,268
428,247
73.4
Beverages
42,263
21,710
51.4
tures were a substantially larger Carbonated
Breakfast Cereal
173,000
32,440
18.8
Snack Foods
69,859
20,164
28.9
proportion of some food and
Juice & Non-carbonated Bevs.
43,609
3,344
7.7
Candy/Froz. Desserts
21,612
7,630
35.3
Dairy Products
48,559
4,880
10.0
beverage companies’ childPrepared Foods & Meals
48,394
9,840
20.3
Baked Goods
5,705
970
17.0
directed marketing budgets.
Fruits & Vegetables
4,358
1,524
35.0
TOTAL
1,040,625
530,748
51.0
The QSR foods (73.4%) and
carbonated beverages (51.4%)
categories spent more than half of their child-directed expenditures on cross-promotions. QSR
cross-promotions usually involved tie-ins with popular children’s movies, TV programs, and
toy brands. Although there was at least one example of a cross-promotion between carbonated
beverages and a popular children’s movie, most of the cross-promotional dollars involved theme
park advertising.
Compared to 2006, the fruits and vegetables, dairy products, and breakfast cereal categories substantially reduced the proportion of their child-directed marketing dollars devoted to
cross-promotions, whereas the QSR foods, carbonated beverages, and candy and frozen desserts
substantially increased their emphasis on cross-promotions. See Figure II.18.
24
Expenditures for Marketing Food to Youth
Figure II.18: Reported Child-Directed Marketing Expenditures and Portion Using
Cross-Promotions
Figure II.18: Reported
Child-Directed Marketing Expenditures and Portion Using Cross-Promotions
600
Uses Cross-Promotions
500
Dollars (in millions)
No Cross-Promotions
400
300
200
100
0
2006
2009
Restaurant Foods
2006
2009
Carbonated
Beverages
2006
2009
Breakfast Cereal
2006
2009
Snack Foods
2006
2009
Juice & Noncarbonated Bevs.
2006
2009
Candy/Froz.
Desserts
2006
2009
Dairy Products
2006
2009
Prepared Foods
& Meals
2006
2009
Baked Goods
2006
2009
Fruits &
Vegetables
Compared to their efforts to reach children, the companies spent significantly less on teendirected cross-promotions, both in absolute dollars ($127.3 million) and relative to total teendirected marketing expenditures (12.6%). The carbonated beverages category ($45.8 million)
spent the most on teen-directed crossTable II.9: Reported Teen-Directed Marketing
promotions, followed by the breakfast
Expenditures
for Expenditures
Cross-Promotions
Table II.9: Reported
Teen-Directed Marketing
for Cross-Promotions(2009)
(2009)
cereal category ($28.3 million) and QSRs
Reported Marketing for
Total Reported TeenCross-Promotions
Food Category
Directed Marketing
Expenditures
($1000)
Value ($1000)
Percentage
($24.5 million). See Table II.9. None of
Restaurant Foods
185,280
24,485
13.2
Carbonated Beverages
382,284
45,846
12.0
the teen-directed marketing of fruits and
Breakfast Cereal
103,462
28,334
27.4
vegetables involved cross-promotions.
Companies in the breakfast cereal category spent the largest share of their
teen-directed marketing budgets on crosspromotions (27.4%).
Snack Foods
Juice & Non-carbonated Bevs.
Candy/Froz. Desserts
Dairy Products
Prepared Foods & Meals
Baked Goods
Fruits & Vegetables
TOTAL
85,099
95,214
72,228
39,780
26,016
15,875
5,469
1,010,706
15,308
3,904
2,810
3,740
1,411
1,477
0
127,315
18.0
4.1
3.9
9.4
5.4
9.3
0.0
12.6
b. Celebrity Endorsements
The companies were asked to provide both the fees paid to celebrities to serve as endorsers,
as well as the expenditures for marketing campaigns that involved the use of a celebrity endorsement in other promotional categories, such as in television advertising. As shown in Appendix
Table C.4, the companies spent a total of $99.3 million on youth-directed promotions featuring
25
A Review of Food Marketing to Children and Adolescents
celebrity endorsers, representing 5.6% of all youth-directed spending, a substantial increase from
the $26.8 million spent in 2006.43 Nevertheless, implementation of celebrity endorsements represented a much smaller part of youth-directed marketing compared to implementation of character
licenses and other cross-promotions.
The dairy products ($13.9 million),44 prepared foods and meals ($6.9 million), and snack
foods ($3.9 million) categories spent the most on child-directed promotions featuring celebrity
endorsements. Together, these three categories accounted for 88% of child-directed promotions with celebrities. The carbonated beverages ($23.8 million), dairy products ($22.2 million),
and snack foods ($14.4 million) categories spent the most on celebrity endorsements directed
to teens. Those three categories represented 79% of teen-directed promotions using celebrity
endorsements. Appendix Table C.4 contains detailed data on expenditures for each age category
for marketing using celebrity endorsers.
26
Nutritional Profile Of Foods Marketed To Youth
III. Nutritional Profile Of Foods Marketed To
Youth
A. Introduction
The 2008 report did not include a nutritional analysis of the foods marketed to youth in
2006. For the current report, the Commission collected detailed nutrition data for all products
marketed to youth in 2009.45 In addition, companies were asked to submit 2006 nutrition data
for the products included in the 2008 report. With data from both years, the Commission has
been able to analyze whether and to what extent the nutritional profile of food marketed to youth
changed during the early years of self-regulation.
The Commission requested information on the labeled serving size of each food product,
as well as the RACC.46 Companies were then asked for nutrient content by single serving size
(or labeled serving size, if smaller than a standard serving) for several nutrients and ingredients,
most of which were listed on the Nutrition Facts Panel.47 Companies also reported the amount
of key food groups in their products, such as whole grain, fruits and vegetables, and dairy.48 In
some cases, companies did not report information for nutrients and ingredients not listed on the
label and Nutrition Facts Panel, because they claimed the information was not readily available.49
The Commission has reported nutrition data only where it was able to collect the data for all or
nearly all of relevant advertising expenditures in a given food category.50
Companies were asked to identify whether a product reported in 2009 was the same product
as one the company reported in 2006,51 whether a product reported in 2006 was off the market
or no longer advertised to youth in 2009, and whether a product reported in 2009 was new to the
market or newly advertised to youth since 2006. For example, for products for which the Commission received basic nutrition data (excluding
Table III.1: Number of Products Advertised to
QSR foods), a total of 625 products were adverYouth in 2006 and 2009 Combined,
tised to youth in 2006 and 2009 combined. Of
in Various Product Categories
these 625 products, only 189 were advertised to
youth in both years, but these products represent
84.4% of youth-directed marketing expenditures
in 2006, and 81.7% in 2009. As shown in Table
III.1, of the 189 products advertised in both years,
108 were reformulated for one or more nutrients
or food components between 2006 and 2009. For
the 243 products for which companies reported
27
A Review of Food Marketing to Children and Adolescents
youth-directed marketing only in 2006, 80 products were taken off the market prior to 2009,
and 163 were no longer advertised to youth in 2009. For the 193 products for which companies
reported youth-directed marketing only in 2009, 82 products were new to the market since 2006
and 111 products were previously on the market but were newly advertised to youth since 2006.
The Commission has focused its analysis on calories as well as other specific nutrients and
food components that relate to key dietary recommendations set out in the 2010 Dietary Guidelines for Americans (2010 DGA).52 As an example, the analysis looks at the the four nutrients
identified in the 2010 DGA as “shortfall nutrients” (fiber, calcium, Vitamin D, and potassium),
but does not address other vitamins and minerals that are not deficient in children’s diets. In
addition, because the 2010 DGA recommend limiting calories from solid fats and added sugars,
the analysis focuses on saturated fat and trans fat, rather than total fat content, and, to the extent
possible, attempts to break out the added sugar content of foods. Increasing whole grain content,
and decreasing calories and sodium, are
Table III.2: List of Key Nutrients Analyzed
also emphasized in the 2010 DGA and are
therefore featured in the nutrition analysis. The Commission had also intended to
include a discussion of the extent to which
foods marketed to youth provide meaningful contributions of food groups, such as
fruits and vegetables. The data the companies submitted for these food groups,
however, were too incomplete. Table III.2
lists the key food components and nutrients analyzed.
1. Methodology for Computing Nutritional Averages
For each nutrient and food component of interest, the amount reported is an expenditureweighted average of all nutritional information reported in a given category (for example, the
average sodium content in all foods, excluding QSR foods, marketed to children across all media
in 2006 was 185.6 mg per serving; in 2009, it was 171.5 mg per serving). The nutritional averages are derived by weighting the nutritional content of each food product based on the amount
of marketing expenditures for the product. Expenditure weighting allows the nutrient content of
heavily advertised foods to count more than the nutrient content of lightly advertised foods. In
this way, the nutrient levels in this report more accurately depict the overall nutritional profile of
youth-directed marketing.
28
Nutritional Profile Of Foods Marketed To Youth
Expenditure Weighting
To help illustrate expenditure weighting, suppose that just two products
were advertised to youth on television: brownies and apples. Then suppose
that food producers spent $9 advertising brownies and $1 advertising apples.
Assume that the brownie has 10 g of fat and that the apple has 0 g of fat. The
simple average fat content in foods advertised to youth is 5 g (i.e., (10 + 0)/2).
The expenditure-weighted average fat content, however, is 9 g (i.e., ((9 x 10) + (1
x 0))/10) – fully 80% higher than the simple average. The expenditure weighting
more accurately reflects the fact that young people would be nine times more
likely to see a television ad for the high-fat food as for the no-fat food.
2. Scope of Nutrition Analysis
This report examines the overall changes in the average nutritional profile of youth-marketed
foods from 2006 to 2009, for both children and teens across all food categories. As part of that
analysis, the report looks at marketing by CFBAI pledge companies. The report also provides
a more in-depth analysis of food product categories that were most heavily marketed to youth.
Those product categories are breakfast cereals, drinks, dairy products, snacks, prepared foods,
and candy/frozen desserts, and QSRs. Because of limitations in the available nutrition data for
2006, much of the QSR nutrition analysis is based on television advertising only and does not
include other marketing expenditures.
Within each food product category, the report also examines certain nutrient levels in the
context of federal nutrition policy and regulations. For example, the report looks at the extent to
which 2006 and 2009 cereal marketed to youth met the 2010 Dietary Guidelines for Americans
recommendations for whole grain content, or met sodium levels set by FDA for “low sodium”
and “healthy” claims.
Where possible, for specific food categories, the report provides a further breakdown of the
nutrition data by marketing technique. Specifically, the report compares the nutritional quality
of food marketing to children and teens in traditional measured media (i.e., television, radio, and
print) with marketing in new media (i.e., company-sponsored websites, Internet, word-of-mouth,
and viral marketing). The comparison of traditional measured media with new media is limited
to the most heavily marketed food categories to children and teens: cereals, QSR foods, carbonated beverages, and snacks.53 The report also compares the nutritional quality of foods marketed
with licensed characters and other cross-promotions to food marketed without such cross-promotions, in two of the most heavily marketed food categories: cereals and snacks. Although
carbonated beverages and QSR foods were also heavily marketed through character licensing
and cross-promotions, the Commission was unable to provide a meaningful analysis for these
categories.54 For the QSR category, however, the report does provide a nutritional comparison
29
A Review of Food Marketing to Children and Adolescents
of advertising for products specifically identified as “children’s meals” with advertising of other
regular menu meals and main dishes to youth. This analysis serves as a close proxy to a comparison of QSR products marketed with and without cross-promotions.55
3. Average Nutritional Content for All Foods, Excluding Quick-Service
Restaurant Foods
Some general observations as to the nutritional content of foods marketed to children and
teens can be made by looking at the aggregated nutritional information for all food categories
and all promotional categories. As shown in Table III.3, the products marketed to children on
average are higher in calories and sodium than those marketed to teens and to all ages, but lower
in sugar, for both 2006 and 2009.56 Based on expenditure data, the lower average sugar content
is likely due to the lower amount of child-directed marketing expenditures for carbonated beverages and, to a lesser extent, candy, as compared to teens and all ages. The table also indicates
that nutrients to increase, such as fiber, whole grain, calcium, and Vitamin D, are higher in foods
marketed to children than those marketed to teens and all ages for both 2006 and 2009.
For child-directed marketing, the overall nutritional profile improved from 2006 to 2009.
Calories and the food components to reduce (sodium, sugar, saturated fat, and trans fat) all decreased, while all of the nutrients to increase showed improvements (namely, fiber, whole grain,
calcium, Vitamin D, and potassium). The changes for marketing directed to teens and to all ages
followed the same pattern, although sodium content for all ages increased and saturated fat levels
stayed fairly constant. Again, the companies reported on marketing to all ages only for those
food products that were also marketed directly to children or teens. Differences between the
Table III.3: Average Nutritional Characteristics of All Foods (Except Restaurant Foods)
Table III.3: Average Nutritional Characteristics of All Foods (Except Restaurant Foods) Marketed to Children and Teens,
Marketed to Children and Teens, All Marketing, 2006 and 2009
All Marketing, 2006 and 2009
2006
2009
Change
2006
2009
Change
Marketing of These Foods
to All Ages1
2006
2009
Change
132.68
185.60
15.60
0.84
0.03
126.48
171.53
13.12
0.67
0.00
-6.20
-14.08
-2.48
-0.18
-0.02
128.97
118.24
24.72
0.70
0.01
115.98
113.19
19.22
0.63
0.02
-12.99
-5.04
-5.51
-0.08
0.00
124.39
134.73
19.93
0.90
0.02
0.27
0.49
0.54
1.96
1.33
2.24
Marketed to Children 2-11
Product Characteristic
2
Calories (kcal/serv)
Sodium (mg/serv)
Sugar (g/serv)
Saturated Fat (g/serv)
Trans Fat (g/serv)
Marketed to Teens 12-17
118.00
137.39
17.06
0.94
0.02
-6.40
2.66
-2.87
0.03
0.00
0.58
0.81
1.73
2.76
2.20
3.58
Vitamin D (% RDI/serv)3
5.20
7.49
0.35
1.09
2.24
2.29
1.99
3.15
0.22
0.79
0.28
1.16
1.94
3.01
0.22
0.47
0.82
1.07
Potassium (mg/serv)3
65.81
97.25
31.43
32.67
52.39
19.72
58.07
98.18
40.11
Spending on All Marketing
($millions)4
$725.3
$455.9
-40.8%
$939.7
$824.9
-17.3%
$7,426.2
$6,683.8
-15.3%
Fiber (g/serv)
0.73
1.08
Whole Grains (g/serv)3
Calcium (% RDI/serv)
2.02
3.24
3.12
5.48
1
Companies were required to report spending for All Ages only for products marketed to children or teens. Nutrition averages for All Ages reflect total spending to all
audiences for the set of products marketed to children or teens.
Nutrition averages are expenditure-weighted and based on the products for which the companies reported basic nutrition data.
3
Data for these nutrients is not available for all products for which we have other nutrition data: Whole grain data is based on 98% of spending in both years; Vitamin D is
based on 65% of spending in 2006 and 72% of spending in 2009; Potassium is based on 75% of spending in 2006 and 82% in 2009.
4
Percentage change in spending is adjusted for inflation.
2
30
Nutritional Profile Of Foods Marketed To Youth
average nutritional profile of foods marketed to all ages, as compared to children and teens, are
due to the fact that some foods were advertised more heavily than others to each age group, and
the exact mix of foods advertised to each age group may differ.
Overall improvements were due to a combination of reformulation of existing products and
the introduction of new products in place of products either taken off the market or no longer
advertised to youth. As shown in Appendix Table C.9b, of the 525 food products advertised to
children in 2006 or 2009, only 146 were advertised in both years, but they represent 74% and
78% of the total marketing expenditures in 2006 and 2009, respectively.57 For products that were
advertised to children in both years, average levels for all nutrients to increase and food components to reduce show improvements. Of these 146 products, 77 were reformulated for at least
one of the mandated label nutrients. Appendix Table C.9b shows the number of products that
were reformulated for each nutrient and the effects of reformulation on average nutrient content.58 Appendix Table C.9b also shows that the child-directed products introduced between 2006
and 2009 had a better average nutrition profile than the products taken off the market between
those two years. The average sugar level, however, between these two categories of products
remained steady. Similarly, existing products that were newly advertised to children by 2009
were generally better than, or comparable to, products that companies had ceased marketing
to children since 2006. Calories, sodium, and saturated fat, however, were higher in the newly
marketed products than in those products no longer advertised to children. Appendix Table C.9b
data for marketing of food products to teens and all ages show similar moderate improvements or
stability in nutrient levels.
B. Nutritional Profile by Food Category
1. Breakfast Cereals
Cereal marketing represented a significant segment of overall food marketing to youth in
both 2006 and 2009. In 2009, cereal marketing ranked second only to spending on QSR food
marketing to children, while for teens it ranked third. Companies submitted nutrition data for
a total of 122 cereal products that were marketed to youth in one or both of the reporting years.
All of these products were marketed by participants in the CFBAI’s self-regulatory program. Of
the 122 cereals, 120 were marketed to children, and 111 were marketed to teens.
Only 47 of the 122 cereals were marketed to youth in both 2006 and 2009, although these
47 cereals represented the vast majority of youth marketing expenditures in the product category
(79% of marketing in 2006 and 89% in 2009). Of the remaining cereals in this category, 43 were
marketed to youth only in 2006 and were either taken off the market prior to 2009 (15 cereals)
or were no longer advertised to youth in 2009 (28 cereals); and 32 were marketed only in 2009
either as new products (15 cereals) or as products newly advertised to youth (17 cereals).
31
A Review of Food Marketing to Children and Adolescents
Table III.4 shows small
but positive changes in
average nutritional data for
cereals from 2006 to 2009,
broken down by marketing
directed to children and to
teens. For cereal marketing to children, calories
fell on average by 1.2 kcal
per serving, sugar content
by 0.9 g, sodium by 4.9
mg, and saturated fat by
Table III.4: Average Nutritional Characteristics of Breakfast
Cereals Marketed to Children and Teens, All Marketing,
Table III.4: Average Nutritional Characteristics of Breakfast Cereals Marketed to Children
2006 and 2009
and Teens, All Marketing, 2006 and 2009
Marketed to Children 2-11
Product Characteristic¹
Marketed to Teens 12-17
2006
2009
Change
2006
2009
Change
Calories (kcal/serv)
Sodium (mg/serv)
Sugar (g/serv)
Saturated Fat (g/serv)
119.31
173.11
11.52
0.25
118.11
168.24
10.58
0.21
-1.19
-4.88
-0.94
-0.04
122.33
172.43
11.24
0.11
120.62
177.59
9.83
0.24
-1.71
5.16
-1.41
0.14
Fiber (g/serv)
Whole Grains (g/serv)
Calcium (% RDI/serv)
Vitamin D (% RDI/serv)²
Potassium (mg/serv)²
1.28
6.23
4.09
9.84
59.77
1.69
7.79
4.30
11.87
55.25
0.42
1.55
0.21
2.03
-4.52
1.33
6.60
4.52
9.92
57.50
1.69
8.53
4.49
13.20
66.48
0.36
1.94
-0.03
3.29
8.97
Spending on All Marketing
($millions)³
$229.0
$172.8
-28.9%
$71.3
$103.3
36.4%
¹ Nutrition averages are expenditure-weighted and based on the products for which the companies reported basic
less than 0.1 g per servnutrition data (100% of products in this category).
Data for these nutrients is not available for all products in the sample: Vitamin D data is based on 94% of
ing, while whole grain rose
spending in 2006 and 99% of spending in 2009; Potassium data is based on 100% of spending in 2006 and 99% in
2009.
by 1.6 g per serving. For
Percentage change in spending is adjusted for inflation.
cereal marketing to teens,
calories fell on average by 1.7 kcal per serving and sugar content by 1.4 g. The average whole
grain content for cereal marketing to teens rose by 1.9 g per serving. The only negative change
was a minor 5.3 mg increase in sodium for cereal marketing to teens.
The average improvements from 2006 to 2009 appear small when considered in the context
of a child’s daily diet and federal nutrition policy. As an example, the 4.9 mg drop in average
sodium content of cereal marketed to children represents less than 0.2 percent of the 2,933 mg
sodium consumed daily by the average child age 6-11.59 In addition, the 1.6 g average increase
in whole grain content represents one tenth of one of the three daily servings of whole grain that
the 2010 DGA recommends.60 However, an analysis of key nutrition characteristics of children’s
cereal marketing in the context of various federal nutrition principles and the industry’s self2
3
regulatory pledges as part of CFBAI provides a more informative picture of the nutritional shifts
from 2006 to 2009.61 For example, the most dramatic nutritional shift from 2006 to 2009 was the
virtual elimination of marketing to children of the most sugary cereals – those with 13 g or more
sugar per serving. Marketing in this category fell from $74 million in 2006 (32% of children’s
cereal marketing in that year) to under $3 million in 2009 (1% of children’s marketing). At
the same time, spending in the 11-12 g category increased from $91 million (40% of children’s
marketing) to $108 million (63% of children’s marketing).62 This shift likely reflects pledges by
some CFBAI participants in 2009 to set a sugar limit of 12 g or less for children’s cereal marketing.63 At the other end of the spectrum, only a small percentage of children’s cereal marketing
in both 2006 and 2009 met the sugar limit established for cereal under the WIC program – 6 g or
32
Nutritional Profile Of Foods Marketed To Youth
less per one-ounce serving.64 In both 2006 and 2009, this low sugar category represented 6% of
children’s cereal marketing. Figure III.1 depicts the sugar content of cereal marketing to children
in 2006 as compared to 2009. The average sugar content of cereal marketing to teens in 2006
and 2009 followed a similar pattern.65
Figure III.1: Sugar Content of Breakfast Cereal Marketed to Children 2-11
Figure III.1: Sugar Content of Breakfast Cereal Marketed
(2006 to
vsChildren
2009) 2-11 (2006 vs 2009)
g/serving
2006
2009
Percentage of Child-Directed
Expenditures in
Breakfast Cereal Category
0-6
6%
6%
7-10
22%
30%
11-12
40%
63%
13+
32%
2%
0
20
40
60
80
100
120
Dollars (in millions)
The distribution of sodium content across children’s cereal marketing looks generally similar
in 2006 and 2009, with the majority of cereal marketing falling within the 150-210 mg/serving
range. In both years, all of the cereal marketing met the qualifying level for sodium established
by FDA for “healthy” claims. At the same time, however, virtually no children’s marketing for
cereals met FDA’s “low sodium” requirements.66 In 2006, $4.1 million, or 1.4% of children’s
cereal marketing, was spent on “low sodium” cereal, increasing slightly to $4.7 million, or 3% of
children’s cereal marketing in 2009. Virtually all cereal marketing in both 2006 and 2009 already met the CFBAI 2014 uniform sodium criteria.67 Based on the nutrition data the companies
reported, 97% of 2006 children’s cereal marketing and 99% of 2009 children’s cereal marketing
met the CFBAI’s 2014 sodium limit. Figure III.2 depicts the sodium content of cereal marketing
to children in 2006 and 2009. The distribution of sodium content for teen cereal marketing was
similar to that for children.68
The key shift from 2006 to 2009 in the whole grain content of cereal marketing to children
was away from marketing cereals that were mostly refined grain, toward cereals meeting the
2010 DGA recommendation of at least 51% whole grain content. Spending on cereals with 50%
or less whole grain fell from $211 million in 2006 to $148 million in 2009, while spending on cereals with 51% or more whole grain rose from $19 million in 2006 to $24 million in 2009. Even
33
A Review of Food Marketing to Children and Adolescents
Figure III.2: Sodium Content of Breakfast Cereal Marketed to Children 2-11
Figure
Sodium Content of Breakfast Cereal Marketed
(2006III.2:
vs 2009)
to Children 2-11 (2006 vs 2009)
mg/serving
2006
Percentage of Child-Directed
Expenditures in
Breakfast Cereal Category
2009
0-85
1%
3%
90-140
10%
21%
150-210
83%
66%
220+
5%
11%
0
25
50
75
100
125
150
175
200
225
Dollars (in millions)
Figure III.3: Whole Grain Content of Breakfast Cereal Marketed to
Figure
III.3: Whole
of Breakfast Cereal Marketed
Children
2-11 Grain
(2006Content
vs 2009)
to Children 2-11 (2006 vs 2009)
Percentage of Child-Directed
Expenditures in
Breakfast Cereal Category
Percent of Weight
2006
2009
0-25%
50%
41%
26-50%
42%
45%
51-75%
5%
9%
76%+
3%
5%
0
20
40
60
80
100
120
140
Dollars (in millions)
with this increase in whole grain content, however, 86% of cereal marketing to children in 2009
was for cereals containing mostly refined grain.
The whole grain content of cereal marketing to teens similarly showed a modest shift toward
more whole grain content. Despite the shift, however, 80% of teen cereal marketing in 2009
continued to be for cereals containing mostly refined grain (compared to 91% in 2006).
The 2009 nutrition data for youth cereals also show that marketing specifically to children
is weighted more heavily toward less nutritious cereals – in particular, the cereals with the most
sugar and least whole grain – than marketing directed to teens or all audiences. The average
34
Nutritional Profile Of Foods Marketed To Youth
whole grain content for youth-directed cereals marketed across all audiences is 14.3 g per serving, nearly double the whole grain content of marketing specifically to children (7.8 g) and to
teens (8.5 g). The average sugar content for cereal marketing across all audiences is 2 g less per
serving than the average sugar content for children’s marketing and 1 g less than for teen marketing.
Figure III.3a: Average Sugar and Whole Grain Content of Breakfast Cereal
Figure III.3a: Average Sugar and Whole Grain Content of Breakfast
Marketed to Children and Teens (2009)
Cereal Marketed to Children and Teens (2009)
10.6
Sugar
9.8
8.6
Child (2-11)
Teen (12-17)
All Ages
7.8
Whole Grain
8.5
14.3
0
2
4
6
8
g/serving
10
12
14
16
There was also some difference in the nutritional profile of cereals marketed to children
with or without cross-promotions (e.g., using licensed characters). Most notably, cereal marketing through cross-promotions averaged significantly less whole grain in both 2006 and 2009. In
2009, the average whole grain content of cereal marketing to children using licensed characters
and other cross-promotions
Table III.5: Average Nutritional Characteristics of Cereals Marketed
was 3.8 g per serving, comto Children and Teens, 2009: Traditional Measured Media
and New Media
pared to 8.7 g per serving
for cereal that did not use
cross-promotions.69 For
other key nutrients and food
components, the nutritional
profile of cereal marketing
with and without crosspromotions was similar.
Finally, the Commission compared the
nutritional characteristics
35
A Review of Food Marketing to Children and Adolescents
of breakfast cereal marketing in traditional measured media to marketing in new media. The
nutritional profile of cereals marketed to children and to teens differed little across these media.
This was true in both 2006 and 2009.
2. Drinks
Except where noted, the nutritional analysis of drink marketing to youth includes all products in the carbonated beverages category, as well as all products in the juice and non-carbonated
beverage category.70 In both 2006 and 2009, spending on carbonated beverages alone (not
including juices and non-carbonated drinks) was higher than any other food category for teen
marketing. Total spending on all drinks (both carbonated and juice/non-carbonated), however,
fell from 2006 to 2009 both for children (a 51% drop) and for teens (a 27% drop).
Companies submitted nutrit
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