Why Kraft Decided to Ban Some Food Ads to Children

[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison@wsj.com]
Kraft is the nation's biggest food company and has spent about $90 million advertising directly to children every year. But last January, announced it would quit advertising certain products to kids under 12 responding to growing concerns about -- and pending legislation on -- childhood obesity. The move surprised the food industry and put Kraft at odds with competitors. It presented the risk of losing market share and millions of dollars in sales. Yet the strategy seems to be scoring points with policy makers. Democratic Sen. Tom Harkin, of Iowa, has praised Kraft's decision. Kraft was the only food manufacturer on California Gov. Arnold Schwarzenegger's recent "Honor Roll" for its policies to combat obesity. Critics say the policy gives Kraft too much discretion in deciding what's healthy and what isn't. They note the company still reaches young children through cartoon characters on its packaging. And in any case, the company continues marketing all of its products to the 12-and-up crowd. But Kraft is betting the strategy will work. It learned it from its sister company, Philip Morris USA.
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