1. Progress In Action: Children’s Food & Beverage Advertising Self Regulation A Report From the BBB FTC/HHS Forum July 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