Tue July 1, 2003 04:40 PM ET
By Deborah Cohen
CHICAGO (Reuters) - Kraft Foods Inc., the No. 1 U.S. maker of processed foods, on Tuesday said it would reformulate many of its products, cease marketing in schools and take other steps to counter a rise in obesity that could trigger a rash of lawsuits against the food industry.
The maker of Oreo cookies and Velveeta cheese spread said it will develop a range of standards this year to improve the overall nutritional content of its foods and the way it sells them. It will begin making the changes, which could take three years, in 2004.
The cost of the sweeping measures could not be estimated, according to a spokesman for the company, based in the Chicago suburb of Northfield, Illinois.
Critics said Kraft may be on the defensive at a time of heightened criticism over the role big food companies play in growing health problems. No. 1 fast-food chain McDonald's Corp. has already been the target of a highly publicized lawsuit, now dismissed, linking its supersized meals to childhood obesity.
"This is sort of a preemptive move to stave off the lawyers and the critics," said Henry Anhalt, an endocrinologist and director of the "Kids Weight Down" program at Maimonides Medical Center in Brooklyn.
"What I think is going on is that the soothsayers are saying that coming down the pike are going to be large lawsuits, class action suits looking at cardiovascular disease, premature death, diabetes, and they're going to turn to the food industry and lay it on their feet," he said.
Kraft acknowledged that the moves, which include capping the portion size on single-serve foods like its Lunchables children's meals, could help indemnify the company against potential lawsuits.
"We're making these commitments first and foremost because we think it is the right thing to do for the people who use our products and for our business, but if it also discourages a plaintiff's attorney or unfair legislation, that's fine with us," said the company spokesman, Michael Mudd.
APPLAUDED BY NUTRITIONISTS
Kraft's campaign was applauded by health professionals, who said the company could set standards for the food industry.
"Reducing portion size will help people lower their overall calorie intake since studies have shown that people tend to eat what is in front of them," said Samantha Heller, a nutritionist with New York University.
Obesity among adults in the United States has doubled since 1980, and tripled among adolescents, according to the U.S. surgeon general. The number of Americans with diabetes, a disease often linked to being overweight, has risen nearly 50 percent from 1990 to 2000, according to Centers for Disease Control and Prevention statistics.
Kraft said its efforts would be global, focusing on product nutrition, marketing, labeling, consumer information and public advocacy. It is forming an advisory council to help develop the standards for its approach to health issues.
Marketing fatty and sugar-laden foods to children has been a hot news topic. Last week, New York City's school system decided to remove candy, soda and sweets from school vending machines. Last month, the head of the U.S. Food and Drug Administration said that agency plans to push for expanded nutritional labeling on foods.
Kraft, the maker of Oscar Mayer hot dogs and Post cereals, will improve its marketing messages to children to encourage appropriate eating behaviors and active lifestyles. Kraft is majority-owned by tobacco giant Altria Group Inc.
Kraft, which used to promote its products on the Channel One news TV station played in secondary schools, will now cease all in-school marketing. It will also develop criteria for food sold in school vending machines.
The Grocery Manufacturers of America, which represents Kraft, General Mills Inc., Kellogg Co. and other U.S. food makers, said Kraft's actions come in response to changing consumer demand. The so-called "better-for-you" segment of the industry is rising 12 percent yearly, it said.
Fast-food restaurants are taking similar measures. McDonald's in March announced worldwide initiatives to help promote healthy lifestyles and provide consumers with expanded product information.
"This is an ongoing battle," said Keith Patriquin, a buy-side analyst with Loomis Sayles, which holds shares of Kraft and other big food names. "Trial lawyers ... are looking for the next big thing." (With reporting by Brad Dorfman in Chicago)
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I just hope they don't fiddle with their Macaroni & Cheese (in the blue box). I can't really eat it anymore, but it's nice to know it's there- it brings back fond memories of my starving student days.
http://www.reuters.com/newsArticle.j...log/GetContent