Elaine D. Kolish, Director Children’s Food & Beverage Advertising Initiative

1. Progress In Action: Children’s Food & Beverage Advertising Self RegulationA Report From the BBBFTC/HHS ForumJuly 18,2007 Elaine D. Kolish, Director Children’s Food & Beverage Advertising Initiative Council of Better Business Bureaus

2. The BBB • Nearly a century of service dedicated to advancing trust in the marketplace • 128 Bureaus throughout the United States and Canada • Both consumers and businesses served • Millions of consumers served annually • 400,000 small & medium size business members • Hundreds of multi-national corporate members based in North America

3. Self Regulation In Action • Background on the Children’s Food and Beverage Advertising Initiative • Overview on Initiative Progress • Highlights On Company Pledges • Report on the Children’s Advertising Review Unit (CARU) Program Updates • Next Steps

4. The Initiative’s Origin • Joint FTC/HHS workshop July 2005 • Joint FTC/HHS Report April 2006 • Recommendations for self-regulation • Improve CARU process • Modify self regulation to assist in combating childhood obesity • BBB/National Advertising Review Council undertake comprehensive CARU Guidelines review

5. The Initiative’s Goals • All goals relate to advertising primarily directed to children under 12 (“child-directed” advertising) • Change mix of ads on TV, print, radio & Internet • Promote better-for-you foods or healthy lifestyles • Reduce use of Third Party Licensed Characters in ads • Address advertising in • Editorial/Programming Content (product placement) • Elementary schools • Company-owned websites • Interactive games

6. Highlights on Initiative’s Progress • Pledges from all 11 companies approved • Pledges will have significant effect on ads • Type of products advertised • Number of ads shown by participants • Pledges’ implementation ongoing • Full implementation by end of 2008

7. Changes in Child-Directed Ads • Virtually all child-directed advertising will be tied to nutrition standards • 8 companies: 100% of advertising will be for better-for-you foods • 3 companies: No advertising of traditional candy & snacks, or beverages • 1 company: no ads or ≥ 50% for better-for-you product

8. Basis for Better-For-You Products • Product selection based on nutritionist-developed criteria • Criteria primarily based on government standards and recommendations • FDA standards for “healthy,” “low,” “reduced” • DHHS/USDA 2005 Dietary Guidelines • Overall limits on fats, sodium, sugar • Foods recommended for increased intake • Nutrient shortfalls for children

9. Better-For-You Products • Qualify in one or more ways • Provide needed foods & nutrients • Whole grains, vitamins/minerals, fruits and vegetables • Meet certain nutrient specifications • Contain less calories, fat, sugar or sodium • Provide functional benefit

10. Other Pledge Highlights • Third Party Licensed Characters • Limited to better-for-you products or healthy lifestyle messages in advertising primarily directed to children under 12 • Product Placement • Will not be sought out or paid for in child-directed media • Elementary Schools • Stopping advertising of food & beverages to children • Company-Owned Sites Directed to Children Under 12 • Limited to for better-for-you products/healthy lifestyle messages • Interactive Games Directed to Children Under 12 • Limited to better-for-you products/healthy lifestyle messages

11. Advertising Tied to Nutrition Standards • 100% commitment to better-for-you food advertising to children under 12 • Campbell Soup Company • General Mills • Kellogg Company • Kraft Foods • Mars • McDonald’s USA • PepsiCo • Unilever United States

12. Campbell Soup Company • 100% commitment to advertise better-for-you foods to children under 12 • Soups with less sodium and/or include a full serving of vegetables • Crackers with <35% calories from fat, 10% sat fat, modest sugar (<1g) • Canned Pasta with less sodium, <35% calories from fat & include serving of vegetables, other positive nutrients • Implementation—FY 2007-2008 • No advertising to children under 6; policy formalized in 2006

13. General Mills Inc. • 100% commitment to advertise better-for-you foods to children under 12 • Revised Healthy Dietary Choice nutrition criteria • 175 calories per serving, and either • Meets FDA definition of healthy, or • Includes 1/2 serving of foods targeted for increased consumption and meets sat fat, trans fat & sodium limits • New 12 gram per serving sugar guideline (exclusive of sugars from fruit and dairy) • Implementation—No later than Dec. 31, 2008 • Most advertising will comply during entire period (6/07-12/08) • Foods will meet criteria or will not be advertised • No advertising to children under 6 since 2005

14. Kellogg Company • 100% commitment to advertise better-for-you foods to children under 12 • Newly adopted nutrition criteria must be met • ≤ 200 calories per serving • ≤ 2g sat fat, 0 Trans fat • ≤ 230mg sodium (460 for waffles) • ≤ 12g sugars (excluding sugars from fruit and dairy) • Implementation—no later than Dec. 31, 2008 • Foods will meet criteria or will not be advertised • No advertising to children under 6 since 2005

15. Kraft Foods • 100% commitment to advertise better-for-you products to children under 12 • Detailed criteria by product category • Based on Sensible Solution nutrition criteria • Implementation—Completed (2006) • Participating in Initiative to provide greater public transparency and BBB oversight • No advertising to children under 6 under longstanding policy

16. McDonald’s USA, LLC • 100% commitment to advertise better-for you meals to children under 12 • Based on newly established nutrition criteria • ≤ 600 calories, ≤35% of calories from fat, 10% from sat fat, and 35% sugar by weight • Advertising will feature the following Happy Meal • 375 calorie 4 piece Chicken McNuggets Happy Meal with Apple Dippers, Low-fat Caramel Dip, & 1% low-fat white milk • Implementation—January 2008

17. PepsiCo, Inc. • 100% commitment to advertise better-for-you products to children under 12 • Based on Smart Spot nutrition criteria • Specified fat, cholesterol, sodium & sugar limits, and requirements for certain nutrients, or • Functional health or wellness benefit, or • 25% reduction in calories, fats, sugar or sodium • Implementation—January 2008 • No advertising directed to children under 8 since 2006

18. Unilever United States • 100% commitment to advertise better-for-you products to children under 12 • Products must qualify for new “Eat Smart-Drink Smart” logo program • Based on US Dietary and International Guidelines • Benchmarks for 5 key nutrients • Trans fat, sat fat, sodium, sugar and cholesterol • Implementation—Sept. 2007 • No advertising to children under 6 since 2006

19. No Advertising Group • Cadbury Adams will either • No longer advertise Bubblicious gum, or ≥ 50% advertising of product that meets Initiative healthier food criteria • Coca-Cola • Hershey • Mars (traditional candy & snacks)

20. Cadbury Adams USA, LLC • Company will either • Not advertise Bubblicious gum,or • ≥ 50% media impressions for version meeting Initiative’s healthier food criteria • Currently, Bubblicious is only product advertised to children under 12 • Implementation—March 2008 • No advertising to children under 8 since 2004

21. The Coca-Cola Company • No advertising targeted primarily to children under 12 • Implementation—Completed • Publicly committing now to adhere to its longstanding practice in the U.S. to not target ads to children under 12

22. The Hershey Company • No advertising of candy on programs and media primarily directed to children under 12 • Implementation—Completed January 2007 • 2006--400 million media impressions were directed at children under 12

23. Mars • No advertising primarily directed to children under 12 of traditional candy and snack products • Implementation—Completed June 2007 • Better-for-you snacks would be advertised-if at all-to children 9 & older • Products meet specified nutrition criteria

24. The CARU Program • Adopted Guidelines for marketing to children under 12 in 1975 • Monitors child-directed advertising for all products in all mediums • Assesses how products are presented • Truthful, fair, and appropriate

25. CARU Program Enhancements • CARU Advisory Board expanded • Includes more children’s health and nutrition experts • Online complaint form added • Facilitates filing of complaints from the public • CARU resources increased • Initiative resources are additional (2 staff) • Food ad prescreening increased • Based on additional support from GMA

26. CARU Guideline Updates • Revised Guidelines to make scope clearer • Expansive definition of “national advertising” added • Advergaming provision added • Updated guidance on food advertising • Food quantities shown being consumed tied to labeled serving size • No disparagement of healthy foods/lifestyles • Mealtime depictions of foods in framework of a nutritionally balanced meal

27. Next Steps • Monitoring • Companies will submit compliance reports • BBB will independently monitor • Public comments welcomed • Reporting publicly on results & compliance • Conducting program evaluation in 3 years • Recruiting additional participants

28. More Information • Pledges available online • Visit www.cbbb/initiative.org • Comments and inquiries welcomed • Send to kidsinitiative@cbbb.bbb.org