A Review of Food Marketing to Children and Adolescents

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A Review of Food Marketing to Children and Adolescents FEDERAL TRADE COMMISSION A Review of Food Marketing to Children and Adolescents Follow-Up Report Federal Trade Commission December 2012 A Review of Food Marketing to Children and Adolescents Follow-Up Report December 2012 Federal Trade Commission Jon Leibowitz, Chairman J. Thomas Rosch, Commissioner Edith Ramirez, Commissioner Julie Brill, Commissioner Maureen Ohlhausen, Commissioner Report Contributors Bureau of Consumer Protection Sarah Botha, Staff Attorney, Division of Advertising Practices Keith Fentonmiller, Staff Attorney, Division of Advertising Practices Carol Jennings, Staff Attorney, Division of Advertising Practices Mary Johnson, Staff Attorney, Division of Advertising Practices Michelle K. Rusk, Staff Attorney, Division of Advertising Practices Kial Young, Staff Attorney, Division of Advertising Practices Heather Hippsley, Assistant Director, Division of Advertising Practices Mary Koelbel Engle, Associate Director, Division of Advertising Practices Bureau of Economics Pauline M. Ippolito, Deputy Director, Bureau of Economics David Givens, Economist, Division of Consumer Protection Paul Rothstein, Economist, Division of Consumer Protection Christopher H. Wheeler, Economist, Division of Consumer Protection Research Assistants Michelle Y. Kambara, Bureau of Economics Susie Liu, Bureau of Economics Mariel Woods, Bureau of Consumer Protection, Division of Advertising Practices ii Contents List of Tables ...................................................................................................................................v List of Figures .............................................................................................................................. vii Executive Summary ................................................................................................................ ES-1 I. Introduction .............................................................................................................................1 II. Expenditures for Marketing Food to Youth .........................................................................5 A Introduction .......................................................................................................................5 B. Expenditures Analyzed by Food Category ........................................................................7 C. Expenditures Analyzed by Promotional Activity Groups .................................................9 1. Traditional Measured Media: Television, Radio, and Print .....................................12 2. New Media: Websites, Internet, Word-of-Mouth, and Viral Marketing ..................15 3. Packaging and In-Store Marketing ...........................................................................17 4. Premiums ..................................................................................................................17 5. Other Traditional Promotional Activities: Product Placements, Movie Theater, Video, and Video Game Advertising, Character or Cross-Promotional License Fees, Athletic Sponsorships, Celebrity Endorsement Fees, Events, and Philanthropic Marketing Expenditures .....................................................................20 6. In-School Marketing ................................................................................................23 7. Use of Cross-Promotions and Celebrity Endorsements ...........................................24 III. Nutritional Profile Of Foods Marketed To Youth ..............................................................27 A. Introduction ....................................................................................................................27 1. Methodology for Computing Nutritional Averages ..................................................28 2. Scope of Nutrition Analysis .....................................................................................29 3. Average Nutritional Content for All Foods, Excluding Quick-Service Restaurant Foods ......................................................................................................30 B. Nutritional Profile by Food Category ..............................................................................31 1. Breakfast Cereals ......................................................................................................31 2. Drinks .......................................................................................................................36 3. Dairy Products ..........................................................................................................41 4. Snacks .......................................................................................................................44 5. Prepared Foods .........................................................................................................47 6. Candy and Frozen Desserts ......................................................................................50 7. Quick-Service Restaurant Foods ..............................................................................50 C. Impact of CFBAI Program ..............................................................................................56 IV. Food Marketing Activities Directed To Youth ....................................................................61 A. Introduction .....................................................................................................................61 B. How Companies Market Foods and Beverages ...............................................................61 1. Cross-Promotions .....................................................................................................61 2. Other Marketing Activities .......................................................................................69 iii C. Market Research on Youth Audiences .............................................................................84 1. Brand Awareness and General Advertising Appeal ..................................................85 2. Specific Marketing and Promotional Techniques .....................................................86 3. Other Consumer Research ........................................................................................89 4. Research Targeting Sub-Populations ........................................................................90 D. Marketing by Gender, Race, Ethnicity, or Income Level ................................................90 V. Assessment Of Food Company Initiatives .........................................................................93 A. Developments Since the 2008 Report .............................................................................93 1. Children’s Food and Beverage Advertising Initiative ..............................................93 2. “Better for You” and Reformulated Food Products ..................................................96 3. Healthy Lifestyle Initiatives by Food Companies ....................................................96 4. Media and Entertainment Company Initiatives ......................................................100 5. Competitive Foods and Beverages in Schools: The Alliance for a Healthier Generation School Beverage and Competitive Food Guidelines ...........................101 6. Other Initiatives ......................................................................................................102 B. Trends in Youth Food and Beverage Consumption Compared to Trends in Food Marketing Directed to Youth .........................................................................................103 1. Fruit and Vegetables ...............................................................................................104 2. Dairy Products ........................................................................................................106 3. Breakfast Cereal .....................................................................................................106 4. Beverages ...............................................................................................................106 5. Restaurant Foods ....................................................................................................110 6. Consumption Differences by BMI Level ...............................................................112 VI. Conclusion ...........................................................................................................................115 Endnotes......................................................................................................................................116 Appendices Data and Research Methods ................................................................................... Appendix A Federal Trade Commission Order to File Special Report ....................................... Appendix B Expenditure and Nutrition Tables ........................................................................... Appendix C Analysis of Online and Mobile Marketing .............................................................Appendix D iv List of Tables Table II.1: Total Youth-Directed Marketing Expenditures for Reported Brands and Percent of Total Marketing Expenditures, By Food Category (2006 vs 2009) .........7 Table II.2: Reported Child- and Teen-Directed Marketing Expenditures and Overlap (2006 vs 2009) ...........................................................................................................8 Table II.3: Reported Child- and Teen-Directed Television
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