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4 Leach Obesity

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  • Good afternoon. I’m Brock Leach. I’m a member of PepsiCo’s Advisory Board on Health. Prior to that I was Chief Innovation Officer at PepsiCo. . . until I left to become a radical left-wing seminary student at the University of Chicago. I tell people I’m building a career that spans from snack food to the social gospel to salvation, and there’s no causality implied in that sequence. In fact, I was going to title my presentation “Confronting the Obesity Epidemic: The Power of Unholy Partnerships”, but I decided it was best not to add religious strife to a topic that was already controversial enough. I actually mention all this for a reason. The fact is that my work at PepsiCo and my work in community ministry have both been about building bridges to innovative solutions. In my experience the best solutions ALWAYS come about when people of very different backgrounds and perspective can find enough generosity of spirit to work together to solve a common problem– whether it’s developing innovative food products or solving community problems. Personally, I’m convinced that’s the only approach that works-- dualities lead nowhere. I say this knowing full well that bridge-building is really hard work– it’s hard to talk honestly; it’s hard to compromise, it’s really hard to agree on anything when you’re also competing with the people your trying to influence which is true in most industry efforts, it’s always frustrating and it sometimes fails. But it’s the only thing that works. But I hope to leave you with the message that it’s not only possible, but it’s essential if we’re going to solve this particular problem.

4  Leach  Obesity 4 Leach Obesity Presentation Transcript

  • Confronting the Obesity Epidemic: The Power of Unlikely Partnerships Brock H. Leach Member, PepsiCo Blue Ribbon Advisory Board on Health Chief Innovation Officer (Ret) PepsiCo, Inc. October 30, 2007
  • What Role Should Food Companies Play in Addressing the Obesity Epidemic?
    • Wellness is Already the Single Largest Growth Driver in Food.
    • Consumers Increasingly Understand it’s About Inherently Healthy Ingredients.
    • They Desperately Want Healthier Eating to be Easier and More Rewarding.
    • The Companies that get There First Will Win.
    1. Healthier Product Choices: Reformulation, Innovation and Marketing
  • What Role Should Food Companies Play in Addressing the Obesity Epidemic?
    • Wellness is Already the Single Largest Growth Driver in Food.
    • Consumers Increasingly Understand it’s About Inherently Healthy Ingredients.
    • They Desperately Want Healthier Eating to be Easier and More Rewarding.
    • The Companies that get There First Will Win.
    2. Healthier Lifestyle Habits: Creative, Collaborative Partnerships 1. Healthier Product Choices: Reformulation, Innovation and Marketing
    • Requires Comprehensive Environment Change.
    • Requires Individual Lifestyle Education.
    • Requires the Support of a Whole Social Movement.
    • All of those Require Vision, Positive Energy and Multi-Sector Collaboration.
  • PepsiCo Strategy: Concerted Action We’re Focusing Our Efforts at the Intersection of Business Interest and Public Interest . . . Business Interest: Public Interest: Capture Growth Opportunity Promote Real Solutions Making it Easier and More Enjoyable for Mainstream Consumers
    • Healthier Product Choices
    • Healthier Lifestyle Habits
    +
  • PepsiCo Progress Report
    • Better Nutrition Labeling
      • Front of Pack Info
      • Nutrition Panel Improvements
    • Highlight on Pack, Changes in Nutritional Profiles
      • Reduction in fat, saturated fat, sugar & calories
    • Kids Marketing Pledges Being Strengthened around the Globe
      • US, Canada, Australia, EU, UK
    • School Alliances to Promote Health (e.g. Clinton/AHA)
    • Kids Energy Balance Education and Activation around the world (e.g. Vive Saludable)
    • Family Activation (e.g. America On The Move ™)
    • Major New Product Launches in Every Market that meet H&W Criteria
    • Healthier Product Nutrition Standards Established World-Wide
    • Healthier Product Innovation Objectives set for all Managers– e.g. 50%+ Europe.
    • Trans Fat Elimination for savory snacks.
    • New Oils Programs — Canada, Europe, Australia and US
    • More Portion-Controlled Offerings
    • Set “Human Sustainability” Objectives for Reduction in calories, sat fat, sugar, sodium per serving.
    1 Make it Easier to Choose Healthier 3 Promote Healthier Lifestyles 4 Accelerate Healthier Product Development Improve Healthfulness of Existing Products 2 Improve Healthfulness of Existing Products Choices Habits
  • Recent New Product Highlights Reducing Fat Reducing Sugar Adding Positives
  • Frito-Lay and Good-For-You Snack Food
  • Fruit & Veggie Chips Whole Fruit & Whole Veggie Flat Earth Snacks: “Impossibly Good” Fruit & Veggie Servings
  • Red Tomato Ranch Fruit and Veggies in Each Serving Tangy Tomato Ranch Wild Berry Patch
  • Consumer Communication: PepsiCo Smart Spot™ & Kraft Sensible Solution™ Smart Spot ™
  • Smart Spot ™ Makes It Easier to Identify Healthier Choices PepsiCo Nutritional Varieties Health Perception Benefits Indulgent Products with Health Improvements Natural & Organic 0 Trans Fats/Low Sat Fat Diet-Specific Offerings Low-Carb Smart Spot ™ Qualified Products Demonstrable Nutrition Benefits Good- For-You Better- For-You Quaker Oats Tropicana PP Aquafina Propel Baked Lays Diet Pepsi Pepsi Max Gatorade GFY FFY
  • We Launched with National Advertising and Retail Events
  • Smart Spot™ Products are Driving Revenue Growth North American Net Sales* Fun-For-You Smart Spot ™ / Good-For-You Smart Spot ™ / Better-For-You (Reduced) 19% 25% 56% 44% of Net Sales* +6 Points from 2003 Q3 2007 Sales Mix 2010 Sales Mix Goal * Net sales includes all Smart Spot ™ eligible products. Smart Spot™: 50%
  • Smart Spot™ “Good-for-You” Growth Continues at Double Digits +9% +13% +5% +9% GFY N.A. Net Sales Growth vs. YA +12% 2002 2003 2004 2006 2005 2007 Q2 YTD +11%
  • We Started Looking Outside-In Early Forming Critical Partnerships . . . . . . And Broadening Our Understanding Gro Brundlandt, M.D. Antonia Demas, Ph.D. David Heber, M.D., Ph.D. James Hill, Ph.D. Gov. James B. Hunt, Jr. David Kessler, M.D., J.D. Brock Leach, MBA Dean Ornish, M.D. Janet Taylor, M.D. Kristy Woods, M.D. MPH Former Director General, WHO Director, Food Studies Institute Professor of Medicine & Public Health, UCLA Professor of Pediatrics & Medicine, Univ. of CO Former Governor of North Carolina Dean, School of Medicine, Univ. of CA-- SF Former Chief Innovation Officer, PepsiCo Founder, Preventive Medicine Research Institute Pediatric Psychiatry, Harlem Hospital Wake Forest University School of Medicine Blue Ribbon Advisory Board on Health & Wellness YMCA Dr. Kenneth Cooper Dr. Jim Hill Dr. Dean Ornish
  • Marketing Practices Partnerships– U.S. Examples Schools: Clinton Foundation - American Heart Alliance Kids Marketing: PepsiCo Pledge Front-of-Pack Labeling: Keystone Project Elementary & Middle Schools: Water, milk, 100% juice with portion caps High Schools: Water, low or no calorie beverages, 100% juices, light juices, milks, sports beverages Portion caps 50% water or low/no calorie beverages Co-Regulation Self-Regulation Multi-Sector Kids Under 8: No Advertising or Marketing Targeting Children Under 8 Kids 8 to12: Advertising on Smart Spot™ products only. No advertising or marketing in schools. No product placement on kids media. 3 rd party licensed characters, interactive games with Smart Spot products only. Goal: Uniform Front-of-Pack Labeling: Icon or GDA with common nutrition standards. Participants: Retailers, Food Companies, NGO’s, Universities, Federal Agencies. Learning To-Date: Label guidance systems work. Targeted Completion: Mid-2008
  • Multi-Sector Example: Oxford Health Alliance
    • Scientific Intervention Study Building on Learning that Comprehensive Community-Based Intervention can Work.
      • French EPOD, Australian Multinational Study, Tufts, Arkansas,
    • Directly Affecting 2 Million People.
    • Focused on Nutrition, Physical Activity and Reduction in Tobacco Use.
    • Employing Coalition-Building and Education in Schools, Workplaces, Health Centers and Community Centers.
    • Include Healthy Food Choices and Promotion.
    • PepsiCo Foundation Provided $5.2 Million Grant for Implementation and Evaluation.
    PepsiCo Foundation Funding 4 Community-Based Interventions: China, England, India, Mexico
  • For What Should Food Companies be “Held to Account”? 2. Healthier Lifestyle Habits: Creative, Collaborative Partnerships 1. Healthier Product Choices: Reformulation, Innovation and Marketing Leading Food and Beverage Companies are Prepared to be Held to Account for Being Constructive Partners in the Solution
  • Confronting the Obesity Epidemic: The Power of Unlikely Partnerships Brock H. Leach Member, PepsiCo Blue Ribbon Advisory Board on Health Chief Innovation Officer (Ret) PepsiCo, Inc. October 30, 2007