Kraft
{{#badges: Tobaccowiki}} Kraft (Kraft Foods Inc.) is the largest packaged food company in the U.S. It is second to Nestlé in terms of world sales. Altria (formerly Philip Morris) which is finally getting past its second-hand tobacco smoke litigation, spun off Kraft in 2007. Kraft sells in over 155 countries. International business has most of the U.S. brands but also national favorites exist in individual countries. [1] Some of Kraft's many U.S. brands include: General Foods International, Gevalia, Maxwell House, Sanka, Yuban, Country Time, Crystal Light, Kool-Aid, Tang, Oscar Mayer, Louis Rich, DiGiorno, Jack's, South Beach Diet, Tombstone, Velveeta, Boca veggie burgers, Cheez Whiz, Breakstone's sour cream, Shake ‘n Bake, Cool Whip, Jell-O, Post cereals, Chips Ahoy!, Oreo, Ritz, and Fig Newtons. [2]
Contents
Marketing to Children
After "a major government-commissioned study found advertising contributes to childhood obesity" and two bills before Congress "proposed regulation of children's advertising," Kraft, "the nation's biggest food company," knew it "risked being depicted as a corporate villain." So, in January 2005, the company "announced it would quit advertising certain products to kids under 12." [1] The announcement came on the same day that the federal government released its updated 2005 Dietary Guidelines for Americans, likely in an attempt to appear aligned with concept of healthy eating.
The announcement also came two weeks prior to a planned presentation for the Institute of Medicine committee on food marketing to children. Kraft's timing was critical to demonstrating to a prestigious government advisory body that self-regulation was working fine.[3] In September 2005, Kraft CEO Roger Deromedi presented Kraft's modified marketing to children policy (expanded to include websites), which included the launch of several new, "healthier" products such as Whole Grain Chips Ahoy cookies, at the Summit on Health, Nutrition and Obesity organized by California Governor Arnold Schwarzenegger. For this, Kraft earned a spot on Schwarzenegger's honor roll of companies making significant commitments to solving the obesity problem.[4]
While Kraft agreed to not market some of its products to children ages six to eleven, including original Kool-Aid, Oreos, and several Post cereals, other products were aimed specifically at the six to eleven age group, including sugar-free Kool-Aid, Chicken Dunks Lunchables Fun Pack, and 1/2 the Sugar Fruity Pebbles. These products, according to Kraft, offer "beneficial nutrients or a functional benefit," and are thus part of the Sensible Solution labeling program, a Kraft-defined nutritional stamp of approval.[5] Rather than reduce overall advertising expenditures for marketing aimed at kids, Kraft has simply changed the way these funds are allocated.
The media dutifully furthered Kraft's PR efforts. A headline in the Chicago Tribune, for example, read "Kraft Will No Longer Aim Ads for Unhealthy Snacks at Youngsters."[6]
While some criticized Kraft's continued use of cartoons and questioned whether the company should be able to decide "what's healthy and what isn't," policymakers praised Kraft. Kraft's strategy was inspired by "its sister company, Philip Morris." By "taking control of the discussion about marketing to children," Kraft hopes to "avoid Philip Morris's initial mistakes." Kraft's Michael Mudd explained, "If the tobacco industry could go back 20 or 30 years, reform their marketing, disarm their critics, and sacrifice a couple of hundred million in profits, knowing what they know today, don't you think they'd take that deal in a heartbeat?" [2]
Kraft has also created a series of children's websites, such as NabiscoWorld and Postopia, that incorporate ad messages for Oreos, Chips Ahoy, and others into free video games. In 2005, Kraft declared to have only Sensible Solution products on Kraft websites aimed at kids by the end of 2006, though in the meantime, the websites continued to promote non-Sensible Solution products.[7] Even the industry-friendly Children's Advertising Review Unit admonished Kraft's "Pizza and Treatza" game on its Lunchables website for depicting Lunchables as a balanced meal as well as denigrating homemade lunches.[8]
School Policy
While Kraft claims it has "eliminated in-school advertising"[9], Kraft products are still sold in schools, though only ones that meet the Sensible Solutions criteria. The product packaging for the Sensible Solutions line look virtually identical to the non-advertised regular products, too, though Kraft vice president Mark Berlind said that Kraft would change the "look and feel" of its "healthier" products.[10]
Animal testing
According to the Humane Society of the U.S., Kraft does animal testing at the following location:
- Sherburne Pet Food Testing Center, East Hanover, New Jersey. [11]
For links to copies of this facility's USDA reports indicating species, number of animals used and other information visit Stop Animal Experimentation Now, U.S. Department of Agriculture-Animal Plant Health Inspection reports. Each state has a link to biomedical research facilities in that state.
Tobacco involvement
A 19-page, confidential Philip Morris (PM) memo by PM lobbyist Kathleen Linehan describes PM's efforts to defeat public interest legislation at all levels of government and in the military. Far beyond solely lobbying on tobacco issues, PM works through its food and drink subsidiaries, like Kraft General Foods and Miller Beer to defeat a host of different types of laws aimed at protecting and educating consumers, and benefiting the environment.
Linehan noted that KGF (Kraft General Foods) worked to oppose legislation mandating that milk be labeled as to whether it contains bovine somatotropin (BST), an artificial hormone injected into dairy cows to increase milk production, "because of the precedent this sets for other biotechnologies that may contribute to future food production or processing." She also reveals that PM works through Kraft to fight laws banning the proliferation of non-recyclable packaging (specifically juice boxes and "Capri Sun"-type foil containers, which are made of an unrecyclable composite of paper and aluminum). PM/KGF (which makes a large number of packaged foods like macaroni and cheese, cream cheese, juices and other products) also fight laws mandating the increased recycling of trash, and that PM-drafted legislative bills ("incentive-based alternatives" to mandatory recycling laws) were actually passed in three states--Colorado, Texas and Vermont--by the end of 1994. According to Linehan, PM promotes the view in state and federal legislatures that "recycling is not the answer to solid waste management." [3]
A 1993 PM Corporate Affairs Presentation also indicates that PM mobilizes Kraft employees to create fake "grassroots" efforts to fight laws the company doesn't like, like public smoking restrictions. The 47 page presentation, given by PM Vice President of Corporate Affairs Ellen Merlo to PM suppliers, talks about methods the company uses to defeat clean indoor air laws. Merlo states,
Fortunately, we have good,strong allies we can depend upon when the going gets tough including...the more than 100,000 employees of the various Philip Morris operating companies in the U .S .including Kraft General Foods and Miller Brewing; and you, our major suppliers. [4].
Personnel
Key executives and 2006 pay: [12]
- Irene B. Rosenfeld, Chairman and Chief Executive Officer, $6,430,000
- James P. Dollive, Chief Financial Officer and Executive Vice President, $450,000
- Richard G. Searer, Executive Vice President, $530,000
- Franz-Josef H. Vogelsang, Executive Vice President of Global Supply Chain
Selected board members: [13]
- Ajay Banga, Chairman and Chief Executive Officer, Global Consumer Group, International Citigroup Inc.
- Louis Carey Camilleri, Chairman and Chief Executive Officer, Altria Group, Inc.
- Mark Ketchum, President and Chief Executive Officer, Newell Rubbermaid Inc.
Contact details
Three Lakes Drive
Northfield, IL 60093
Phone: 847-646-2000
Fax: 847-646-6005
Web: http://www.kraft.com
References
- ↑ Kraft Profile, Hoovers, accessed August 2007.
- ↑ U.S. Brands, Kraft, accessed August 2007.
- ↑ Michele Simon, Appetite for Profit: How the Food Industry Undermines Our Health and How to Fight Back, (Nation Books, 2006) pg 124
- ↑ Michele Simon, Appetite for Profit, pg 125
- ↑ Michele Simon, Appetite for Profit pg 126
- ↑ Delroy Alexander, "Kraft will no longer aim ads for unhealthy snacks at youngsters" Chicago Tribune (13 January 2005)- brought to you by AccessMyLibrary.com
- ↑ Michele Simon,Appetite for Profit pg 129-130
- ↑ Michele Simon, Appetite for Profit pg 130
- ↑ Kraft "Advertising Responsibility to Children" (Accessed October 2008)
- ↑ Michele Simon, Appetite for Profit pg 132
- ↑ Humane Society of the United States Animal research facilities information, Kraft Foods North America, accessed December 28, 2008
- ↑ Kraft Key Executives, Yahoo Finance, accessed August 2007.
- ↑ Board of Directors, Kraft, accessed August 2007.
Other SourceWatch resources
External links
- Sarah Ellison, "Why Kraft Decided to Ban Some Food Ads to Children To Head Off Critics: Company Took Cue From Tobacco; Growing Rates of Obesity Clifford's Out, But Dora Stays", Wall Street Journal, October 31, 2005; Page A1.
- Patricia Callahan, Jeremy Manier and Delroy Alexander, "Where there's smoke, there might be food research, too: Documents indicate Kraft, Philip Morris shared expertise on how the brain processes tastes, smells", Chicago Tribune, January 29, 2006.
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