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The Canadian Children's Food and Beverage Advertising Initiative

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The Canadian Children's Food and Beverage Advertising Initiative The Canadian Children’s Food and Beverage Advertising Initiative: 2009 Compliance Report Advertising Standards Canada August 2010 Foreword Advertising Standards Canada (ASC) is pleased to issue the Canadian Children’s Food and Beverage Advertising Initiative: 2009 Compliance Report . This Report documents the excellent level of compliance achieved by participating companies during the second year of the program. The Canadian Children’s Food and Beverage Advertising Initiative (CAI) is an important initiative by 19 of Canada’s leading food and beverage advertisers that is changing the landscape of food and beverage advertising directed to children. Participating companies have committed either to not direct advertising primarily to children under the age of 12, or to shift their advertising to products that are consistent with the principles of sound nutritional guidance. About Advertising Standards Canada Because transparency and accountability are key elements of the CAI, Advertising Standards Canada (ASC) is the ASC, the independent advertising industry self-regulatory body, was asked national independent advertising industry self- to administer the program. ASC has a 50-year track record of successful regulatory body committed to creating and advertising self-regulation, including developing and administering maintaining community confidence in adver - Canada’s rigorous framework for regulating children’s advertising. As the tising. ASC members – leading advertisers, CAI administrator, ASC’s role includes approving and publishing the advertising agencies, media and suppliers to participating companies’ program commitments; annually auditing their the advertising industry – are committed compliance; and publicly reporting on the results. to supporting responsible and effective New requirements were added to the CAI during the past year, and ASC advertising self-regulation. A not-for-profit and the participating companies are committed to ongoing program organization, ASC administers the Canadian enhancement. Code of Advertising Standards , the principal The CAI was announced six months after the launch of a similar instrument of advertising self-regulation in initiative in the United States, administered by the Council of Better Canada, and a national mechanism for Business Bureaus (CBBB). ASC gratefully acknowledges the CBBB and accepting and responding to consumers’ Elaine D. Kolish, the U.S. program’s Vice President and Director, for their complaints about advertising. Complaints are support in the implementation of the Canadian program. adjudicated by independent volunteer coun - ASC invites you to review this Report and to visit cils, comprising senior industry and public www.adstandards.com/childrensinititiave to learn more about the CAI. representatives. ASC reports to the commu - We welcome your feedback. nity on upheld complaints in its online Ad Complaints Reports . Through ASC Clearance Linda J. Nagel Services, ASC provides advertising copy President & CEO review in five regulated categories to ensure Advertising Standards Canada compliance with specific laws, regulations, codes and guidelines. Table of Contents Executive Summary i V. Conclusions and Going Forward 27 I. Report Overview 1 Exhibits 29 Exhibit 1: Participants’ Nutrition Criteria Per II. Background and Developments 2 Serving Size for Products Advertised CAI Original Core Principles 2 Directly to Children Under 12 Years of Age 29 2010 Enhanced Core Principles 3 Exhibit 2: Summary Table of Participants’ Definitions of Advertising Directed III. The Participants’ Commitments 4 Primarily to Children Under 12 Years of Age 30 CAI Nutrition Criteria 4 Defining Advertising Directed Primarily to Appendices 33 Children Under 12 4 Appendix 1: List of Products Advertised by Participants in 2009 33 IV. Evaluation of Participant Compliance 5 Appendix 2: List of Child-Directed Methodology 5 Company-Owned Websites 34 A. Independent Audit 5 Appendix 3: Canadian Children’s Food and B. Participant Compliance Reports 5 Beverage Advertising Initiative Reference Overall Compliance Evaluation 6 Document (April 2007) 35 1. Burger King Restaurants of Canada, Inc. 7 Appendix 4: Revised CAI Core 2. Cadbury Adams Canada Inc. 8 Principles (January 2010) 37 3. Campbell Company of Canada 9 Appendix 5: Examples of Participants’ 2009 4. Coca-Cola Ltd. 10 Healthy Active Living Messaging, 5. Ferrero Canada Ltd. 11 Initiatives and Programs 40 6. General Mills Canada Corporation 12 Appendix 6: Framework for Regulating Children’s 7. Hershey Canada Inc. 13 Advertising in Canada 44 8. Janes Family Foods Ltd. 14 • Overview 44 9. Kellogg Canada Inc. 15 • Excerpts from The Broadcast Code for 10. Kraft Canada Inc. 17 Advertising to Children 45 11. Mars Canada Inc. 19 • Excerpts from the Canadian Code of 12. McCain Foods (Canada) 20 Advertising Standards and 13. McDonald’s Restaurants of Interpretation Guideline #2 48 Canada Limited 21 14. Nestlé Canada Inc. 22 15. Parmalat Canada 23 16. PepsiCo Canada ULC 24 17. Unilever Canada Inc. 25 18. Weston Bakeries Limited 26 THE CANADIAN CHILDREN’S FOOD AND BEVERAGE ADVERTISING INITIATIVE: 2009 COMPLIANCE REPORT – AUGUST 2010 Executive Summary The Canadian Children’s Food and Beverage Advertising Half of the CAI Participants committed to not engage in Initiative: 2009 Compliance Report offers insights into the advertising directed primarily to children under 12 years of continuing progress made by the participating companies age. The other half committed to include only better-for- (Participants) in the Canadian Children’s Food and you products 1 in child-directed advertising 2. Beverage Advertising Initiative (CAI). As Canada’s inde - pendent national advertising industry self-regulatory body, In assessing the compliance of each Participant, ASC’s ASC serves as the CAI program administrator. ASC has methodology consisted of a three-part independent prepared this Report to provide a transparent assessment assessment process, as well as a detailed review of reports of the Participants’ performance in implementing and and documentation submitted by each Participant. meeting their CAI Commitments from January 1 to An in-depth account of ASC’s methodology is outlined in December 31, 2009. Section IV. The Report sets out the CAI key principles and criteria, and PERFORMANCE provides a summary of each Participant’s performance in achieving its Commitment. The Report also discusses Building upon the success of the CAI’s first year, changes to the landscape of children’s advertising in Canada. Participants achieved a very high degree of compliance during 2009. Only one compliance issue was uncovered, The 18 Participants reviewed in this Report are: Burger which was immediately corrected by the involved King Restaurants of Canada, Inc.; Cadbury Adams Canada Participant. Inc.; Campbell Company of Canada; Coca-Cola Ltd.; Ferrero Canada Ltd.; General Mills Canada Corporation; Hershey In addition, ASC’s independent monitoring revealed Canada Inc.; Janes Family Foods Ltd.; Kellogg Canada Inc.; isolated incidents of Participants’ products that were not Kraft Canada Inc.; Mars Canada Inc.; McCain Foods approved under the CAI being advertised in children’s tele - (Canada); McDonald’s Restaurants of Canada Limited; vision programming. These commercials were aired as a Nestlé Canada Inc.; Parmalat Canada; PepsiCo Canada result of “bonusing” provided by the carrying television ULC; Unilever Canada Inc. and Weston Bakeries Limited. stations. Bonus advertising is not purchased or 1 Throughout this report the terms “better-for-you” and “healthier dietary choices” are used interchangeably. 2 In this report “child-directed advertising” is used interchangeably with the phrase “advertising directed primarily to children under 12”. i THE CANADIAN CHILDREN’S FOOD AND BEVERAGE EXECUTIVE ADVERTISING INITIATIVE: SUMMARY 2009 COMPLIANCE REPORT – AUGUST 2010 pre-approved by the advertiser and airs after the execution Collectively, these stations have the highest audience of of planned media schedules without the prior knowledge kids aged 2 to 11 of any broadcaster in Canada. With of the involved Participants. This issue has been Participant consent, Corus provided ASC with Participants’ addressed by the Participants with their media buyers and scheduling information for a two-month period in 2004 the involved media. and for the same period in 2008. The data in these logs was reviewed, analyzed and compared to determine the Throughout the year, Participants took their Commitments nature and scope of aggregate changes and trends in very seriously, communicating and reinforcing their impor - advertising of food and beverages to children. tance to their partners, including advertising agencies and media buying companies The findings revealed that in the 2004 period, 20% of food and beverage commercials on children’s programming THE CHANGING LANDSCAPE were sponsored by companies that were not among the Participants when the CAI commenced. By contrast, in By the end of 2009, the landscape of children’s advertising 2008 less than 5% of food and beverage commercials was significantly different than it was prior to the launch of primarily directed to children under 12 were sponsored by the CAI in April 2007. The notable changes include: companies that were not CAI Participants. • Food and beverage advertising represents less than one-fifth of all child-directed television advertising on In the 2004 period, only 63% of the food and beverage the Canadian channels that broadcast programming
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