Navigating the trade press: What are the food and beverage industries discussing?
Monday, January 01, 2007Our public conversation about food and beverage policy is influenced by many sources, including industry stakeholders. We mapped the food, beverage, and advertising trade press, a rich source of information on the industries that, to a large degree, determine what Americans eat.Introduction
Public health advocates are often at a disadvantage when facing corporate heavyweights from the alcohol, tobacco, food, and firearm industries simply because they are not privy to the same information about products, consumers, marketing and advertising, and other forces that drive the industry. Tobacco control advocates learned this first, and created some of the earliest electronic advocacy tools as mechanisms for sharing information about the industry; now they mine the tobacco industry documents for insights into corporate strategies. Alcohol control advocates have benefited from the Marin Institute's unparalleled alcohol industry and policy database which makes accessible articles from the industry's own literature — expensive and exclusive, but highly informative publications like Beer Insights and Issues, along with more popular periodicals like Advertising Age. For violence prevention advocates, the Violence Policy Center watchdogs the firearms industry, sends out electronic alerts, and guides advocates to the key publications they should watch to stay informed, such as American Rifleman magazine. Public health advocates working to prevent obesity need the same understanding of the food, beverage, and advertising1 literatures as their colleagues have built for tobacco, alcohol, and firearms. This report takes the first step on a similar path for obesity by determining which are the few "must read" periodicals from the food, beverage, and advertising industries. We have identified and assessed the key industry periodicals, including standard advertising industry magazines such as AdWeek and Advertising Age, the Marketplace section of the Wall Street Journal, and other more specialized journals from the food and beverage industries such as Beverage World and Food Processing.Methods
To identify and assess the trade press, we first compiled a list of periodicals from the bibliographies of recent books on food in the United States.2 We augmented this list with literature available in the Haas Business and Economics and the Bioscience libraries at UC Berkeley, the UC Davis and San Jose State University libraries, and other academic and on-line sources. We were especially interested in identifying sources that routinely discuss the introduction of new products, promotions, and other issues of potential interest for public health advocates and for journalists covering these industries. The result is an annotated bibliography listing those publications, with a description of the kinds of information in each. This report summarizes highlights from the bibliography and explains how regular monitoring of the industry literature might aid advocacy efforts to prevent and reduce obesity.How to use this information
This report emphasizes several periodicals from the bibliography that, in our opinion, provide insight into how the food industry thinks — at least how it thinks in public. If advocates regularly review these sources, they will be on top of the issues that head the food and beverage industries' agenda. Below we describe these sources, how often they appear, where to find them, and what to expect when you peruse them. The food and beverage industries are complex and broad in scope. The number of products itself is dizzying, and the business and science associated with food cultivation and production, including agriculture, marketing, transportation, cooling, manufacturing, processing, storing, freezing, flavoring, coloring, distribution, hospitality, and consumer research, characterize a field with innumerable sub-categories and specializations, all of which have their own publications and concerns. What we have compiled here is a broad survey of this literature. The bibliography of more than 200 titles from the food, beverage, and advertising industries is available to download at http://bmsg.org/wp-content/uploads/2007/01/bmsg_appendix_food_industry_sources_0-1.xls. The spreadsheet includes the titles, publishers and Internet addresses of the listed publications in addition to descriptions of content. Many food products or special aspects of the industry have their own trade associations, such as the National Cattlemen's Beef Association or the Sugar Association, and their Web sites and electronic publications provide a wealth of information for their members. The most current and comprehensive sources of information across sectors of the food and beverage industries are typically Web-based and may require membership and/or subscriptions for access to the full on-line content. The Grocery Manufacturers of America and the Food Institute are the most prominent of these broad-spectrum Web sites, and are included in the bibliography. Advocates can use the information in the bibliography, and the assessments in this summary report, to identify which periodicals they want to monitor. Advocates may act proactively or reactively to what they find in the industry literature. By keeping abreast of the industries' discussions, advocates can- Identify emerging issues of concern to the food, beverage, and advertising industries;
- Learn about new marketing and promotion before the campaigns are released to the general public;
- Learn how the industry is reacting to public health efforts to reduce and prevent obesity; and
- Anticipate food and beverage industry arguments and counter-arguments to public health proposals.
What are the food, beverage, and advertising industries talking about?
The food, beverage, and advertising literature is so vast, keeping abreast of it all could be a full time job. No advocate has time for that, yet if the food, beverage, and advertising industries' behavior is having an impact on obesity — or public health's efforts to prevent it — then advocates need a way to learn what the industries are doing and what they consider important. To accomplish that goal without becoming overwhelmed, we recommend that public health advocates monitor a few key sources daily, peruse other sources regularly, and become familiar with the specialty journals that relate directly to their issues of concern.Daily news sources: The New York Times and the Wall Street Journal
One of the best and most easily accessible sources of information on the food, beverage, and advertising industries' activities is the Advertising column in the Business section of the New York Times. In many ways, business reporters are interested in the same questions as public health advocates, though for different reasons. Business reporters want to inform readers about whether companies are wise investments ---they report on the potential for new products to capture market share, new marketing campaigns to win customers, consumer reaction, and government regulation. To keep on top of these topics, business reporters monitor the types of literature described in the annotated bibliography we developed in conjunction with this report, and they cultivate and talk with personal sources at food and beverage companies and advertising agencies. The business topics covered on this beat can inform public health advocates as well. The business pages of national newspapers like the New York Times, Wall Street Journal (especially the Marketplace section), Los Angeles Times, and Washington Post, can be an advocate's first screen for news about the food and beverage industries. These daily sources can be quickly scanned because not every day will bring news about food and beverage company actions. In the New York Times, for example, big campaigns are announced (e.g., McDonald's "I'm Lovin' It") and major news stories are discussed (e.g., the flap over KFC's fried-chicken-as-health-food campaign). The day before KFC's campaign launched, the New York Times Advertising column reported the content of the television spots as well as the challenges to the concept of selling fried chicken as a health food.3 Quotes from ad industry executives say the campaign is doomed because it is counterintuitive: "We've all been trained to know that fried foods are a bad idea," says Steve Lawrence, executive from a brand consulting company. The campaign is put in the context of KFC's sagging domestic sales alongside new concerns about obesity. The KFC campaign appears in the New York Times again a few months later when the Advertising column is reporting on how often fast food chains fire their ad agencies.4 The New York Times' Advertising column also explains campaign strategies. In one column in December 2003, the New York Times reported how more and more companies are licensing characters from popular children's shows to associate with new products in the $700 million dry fruit snacks category (gummy fruit snacks).5 The column acknowledges the rising "scope and intensity of the blitz" on "unwitting youth," but the concern is from the perspective of advertisers who worry that the characters will become overexposed and so lose their appeal. Licensing, the column explains, is a mechanism for companies to control the level of exposure. The column also includes basic data on children as a market segment, noting that "in 2004, children under 12 will spend $35 billion of their own money and influence $200 billion in household spending." The column serves the business audience by explaining how licensing works to benefit sales by leveraging the other exposure the character receives ("you're actually hitchhiking on a larger media or food company's campaign"). Even though the Advertising column in this instance is primarily about the value of using cartoon characters to promote gummy fruit snacks to kids, concerns about the broader effects of food marketing seep into the column, including a quote from one source who notes that "kids can't make informed decisions, and up until the age of 6 they don't understand the issue of persuasion or manipulation." At the end, the column reports, responsibility to resist unhealthy snacks rests with parents. The column quotes Sally Lee, editor in chief at Parents magazine: "...parents cannot abdicate responsibility for what comes into their homes." But, parents have their work cut out for them, as the CEO of Brach's Confections reports: "We've been growing double digits for the last 3 years and we expect much the same in 2004." In this instance, the New York Times Advertising column provides an encapsulated version of the very debates public health advocates are confronted with as they educate legislators and the public. The Wall Street Journal's Marketplace section provides a similarly rich daily source of information about the food and beverage industries. Articles range from cover stories about emerging issues or hot topics ["New in School Vending Machines: Yogurt, Soy"6; "Missing Ingredient in the American Diet: Fiber Has Been All but Eliminated From Convenience Products"7; and "Downsize This! After Years of Supersizing, Food Makers Shrink Portions (And Fatten Profit Margins)"8] to company news from a shareholder's perspective ("Coke Sees 12% Increase in Earnings"9; "Chuck E. Cheese Wins in Niche Market"10) to stories about government action and implications ("Regulators Unveil Rules to Protect U.S. Food Supply"11). The Wall Street Journal also has an active advertising column that frequently includes campaign reviews and ad agency action concerning food and beverage companies ("Quiznos Sub Selects Martin Agency"12; "Legendary Swinger Has New Career as Burger Pitchman"13 for a story about Hugh Hefner signing on as a spokesman for Carl's Jr). In its cover stories, the Wall Street Journal explores issues in depth with what journalists call "enterprise reporting" (stories generated by the digging reporters do on their own to unearth important topics, as opposed to reporting generated from news releases). One example is Michael J. McCarthy's pair of stories on fiber's declining presence in U.S. diets and the resulting rise in diverticulitis.14 McCarthy explores an important public health story, touching on the implications for food companies ("processing out fiber...gives packaged foods smoother texture and extends their shelf life"). This set of stories would be a boon to advocates working to bolster the fiber content in American diets. They could send the stories to colleagues or policy makers, respond to the stories with letters to the editor, and, at minimum, contact the reporter and cultivate a relationship so that in the future, when new research or policy on this issue arises, it will be easier to pitch the story. In another story, reporter Ellen Byron reports on new healthier fare making its way into vending machines on high school campuses.15She reports on organic-food companies' desire to capitalize on "the anti-junk-food movement." The pilot programs are testing whether students will buy the higher priced, but more healthful, options. The story encapsulates many of the arguments that surface whenever vending machines in schools are at issue: whether the students will buy the products and whether or how the schools and the companies benefit. The school's principal says, "If we don't sell junk food, these kids are going to buy it elsewhere." Advocates can read these types of stories and become informed about industry tactics and motivations for in-school sales and the arguments of educators against making changes.Major advertising trade magazines: What's hot or not?
While major daily newspapers like the New York Times and Wall Street Journal do a good job covering new launches and big news from the advertising and food and beverage industries, advocates should also read Advertising Age or AdWeek if they want an in-depth look at the issues advertisers are concerned about. Both sources provide news on new product launches, changes at major firms, and the implications of market trends or breaking news on the advertising industry as a whole. What these sources add to the discourse is criticism and reflection about advertising itself, albeit from the perspective of those dedicated to it. They debate, for example, the benefits of advertising ---whether it really works or whether they are pulling the wool over their clients' eyes ---and how the industry should prepare for the imminent death of its cash cow, the 30-second television commercial. They can also help advocates learn to consider advertising campaigns and their effects within the larger realm of marketing and promotion. For example, an article from Advertising Age asks the question of McDonald's "I'm Lovin' It" campaign: did the new ads contribute to recent growth — the best same-store sales in five years (up 8.4%)?16 The well-publicized campaign has extensive reach, news coverage on the business pages of newspapers, and rave reviews from company executives (if not all franchisees), Advertising Age reports. But consider the other factors that likely influenced the sales spike. In order of appearance in the Advertising Agearticle, they are:- new menu items
- better training (1 & 2 are both part of former CEO Jim Cantalupo's "turnaround plan")
- "Monopoly" scratch-off game promotion
- new Premium Salads
- new McGriddles breakfast sandwiches
- fewer new store openings
- longer operating hours
- solid sales from the Dollar Menu
- weak sales from rival Burger King
- positive word-of-mouth.