excerpts from: FOOD MAKERS GET DEFENSIVE ABOUT GAINS IN U.S. OBESITY
Wall Street Journal [06/13/02]

 Fearing they may be held responsible for the nation's expanding waistline, U.S. food and beverage makers are going on the defensive with obesity.

 Some packaged-food companies are contemplating advertisements that would discourage consumers from overeating their products. A handful are giving exercise equipment to schools and expanding the health-and-wellness information on their Web sites. And others, mindful of tobacco's litigation woes, are mulling legal issues in case they are accused in lawsuits of fomenting a burgeoning national health crisis.

 Some packaged-food companies are contemplating advertisements that would discourage consumers from overeating their products. A handful are giving exercise equipment to schools and expanding the health-and-wellness information on their Web sites. And others, mindful of tobacco's litigation woes, are mulling legal issues in case they are accused in lawsuits of fomenting a burgeoning national health crisis.

 Though U.S. food manufacturers cite a long tradition of supporting health-related causes, their concerns have been escalating since December, when a Surgeon General's report warned that obesity rates in the U.S. had reached epidemic levels and called for a "national plan of action." Indeed, obesity may soon pass tobacco as the leading preventable cause of death; some 300,000 Americans died of obesity-related causes in 2000. Lawmakers are considering a wide range of proposals, including levying taxes on junk food aimed at kids and requiring specific label codes for high-sodium and high-fat foods -- all of which the food-trade groups vigorously oppose.

 Last month, the Grocery Manufacturers of America, the powerful food-trade group whose members ring up annual sales of more than $460 billion, urged a congressional panel not to blame individual foods as the cause of America's weight gain. The Senate panel is considering the Improved Nutrition and Physical Activity Act, which would authorize programs teaching better eating and exercise habits in schools and communities. Such programs "will go a lot further in attacking this obesity problem than making accusations and finger pointing," GMA spokesman Gene Grabowski says.

 But the industry is getting some early legal jabs. A handful of lawsuits have accused food companies, large and small, of deceptive marketing. Sued for billing its french fries as vegetarian, even though they are made with a beef flavoring, McDonald's Corp., recently said it would donate $10 million to Hindu groups and others in the U.S. as a partial settlement. A similar complaint against Yum! Brands Inc.'s Pizza Hut unit, alleges that the company concealed the use of beef products in its "vegetarian" pizzas. A Pizza Hut spokeswoman says the company doesn't market its "Veggie Lover's" pizza as vegetarian. And DeConna Ice Cream Co., owner of Big Daddy Ice Cream, faces a class-action lawsuit in Florida for understating the product's fat-and-calorie content. Attorneys for the company acknowledge the mislabeling, which they say was an unintended "mistake."

 While the current litigation mainly targets companies for allegedly misleading claims, not for selling fattening foods per se, some legal experts see the cases as the DNA for future obesity suits. In a sign of what may lie ahead, Richard Daynard, head of the Tobacco Products Liability Project at Northeastern University Law School, is working with students to develop possible strategies that could be used to bring obesity-related claims against food makers.

 "There are obviously great differences between food and cigarettes," says Mr. Daynard. "But there are some crucial similarities." Among them, he says, are marketing to children and enlisting researchers to dispute claims about the unhealthful properties of certain ingredients. The project was founded to promote litigation against the tobacco industry as a public-health strategy.

  Food makers and their legal teams are generally reluctant to talk about potential lawsuits related to obesity. But many eyes are on Philip Morris Cos., the tobacco giant that owns 84% of Kraft Foods Inc., maker of snack staples such as Oreo cookies, Oscar Mayer hot dogs and Lunchables. As part of the [Image]tobacco industry's legal settlements with [Image] all 50 states, Philip Morris is likely to pay out more than $100 billion over a 25-year period.

   William S. Ohlemeyer, a Philip Morris associate general counsel who oversees litigation, says he's skeptical that suits against food makers could succeed, given the legal and factual hurdles that would have to be overcome. "The courts have shown remarkable hostility to class actions and health-care reimbursement lawsuits" in tobacco cases, something that would probably be the same for food-related claims.

 The facts are also different, he says. "The relationship between cigarette smoking and lung cancer is more direct and easier to prove in a litigation environment than the relationship between eating certain foods or not eating certain foods and obesity," he says. There are lots of "alternative causes," he adds -- such as lack of physical activity and individual physiology -- that combine to produce obesity.

 Even outspoken nutritionist Marion Nestle, author of the book "Food Politics," which claims the food industry and its marketing are much to blame for overconsumption, acknowledges that food isn't addictive as cigarettes are -- a key fact that helped tobacco plaintiffs win cases. A recent report commissioned by the GMA, which speaks on behalf of major food companies, said that a "spare tire" is a "personal problem, not an industry issue." The report, released earlier this year, included results from a survey asking about 1,000 consumers "who is responsible" for obesity. It found that 57% of respondents blamed "individuals themselves," rather than food manufacturers (5%) restaurants (2%) and other causes.

 Nevertheless, food-and-beverage makers aren't sitting idle. Michael Mudd, head of Kraft corporate affairs, now devotes roughly a quarter of his time to the obesity issue -- going on fact-finding missions with public-health experts, and giving talks on the subject both internally and to outside food-industry groups. He says that in the past year, Kraft has greatly expanded its Web site with health and wellness information. "It is in our best interest for people to use our products in a healthful way," Mr. Mudd says.

 As part of a test program, Coca-Cola Co. recently gave middle-school students in Atlanta, Houston and Philadelphia step-counting pedometers to promote competitive exercise games among nonathletic kids. PepsiCo Inc., whose brands include Frito-Lay snacks and Quaker cereals, is teaming up with fitness guru Dr. Kenneth Cooper to form the PepsiCo/Cooper Aerobics Center partnership that will, among other things, work to develop healthier food products. Pepsi also is looking at substitutes for some of the high-fat oils and other ingredients used in its snack products.

 The growing sense of urgency was particularly evident last month when the major U.S. food-industry groups banded together to challenge a preliminary World Health Organization report endorsing taxes on sugar-rich items aimed at kids, stricter marketing rules and specific label codes for high-sodium and high-fat foods. "The Report should not be disseminated in its current form," said the letter, which was addressed to Health and Human Services Secretary Tommy Thompson. "If this were to be done, it would cause significant harm to important segments of the U.S. food industry..."

 In recent months, food-and-beverage marketers also have begun to discuss a raft of so-called social-marketing measures. Among them: airing public-service announcements about health and eating in moderation; and funding new in-school physical-fitness programs.

 Not everyone is likely to greet such efforts with open arms. Some nutritional experts already have voiced skepticism that food makers will be able to play a meaningful role in slimming down America's youth. "Physical activity is important, but it's only half of the equation," says Kelly Brownell, director of Yale University's Center for Eating and Weight Disorders. Adds Margo Wootan, director of nutrition policy at Center for Science in the Public Interest: "Their products contribute to obesity. You just can't exercise enough to eat some of these foods and maintain a normal weight."

 Food companies and their supporters are prepared to challenge detractors. The restaurant industry-backed Center for Consumer Freedom two weeks ago placed a full-page ad in U.S. News & World Report blasting what it calls the "food police." The ad cheekily suggests that these critics must believe Americans are "too stupid" to make their own food choices. "We're seeking to make sure that people have the other side of the issues than those presented by activist groups," says the group's founder, Rick Berman.