NEW YORK (CNN/Money) -
Kraft Foods said Tuesday it was moving to fight obesity by limiting the size of single-serving packages, halting in-school marketing and adding details about nutrition on its products.
The nation's biggest processed food producer, maker of Nabisco cookies, Oscar Mayer meats and Kraft cheeses, said the steps will also include measures "to improve existing products and provide alternative choices."
"Just as obesity has many causes, it can be solved only if all sectors of society do their part to help," co-CEO Betsy Holden said in a statement. "Kraft is committed to product choices and marketing practices that will help encourage healthy lifestyles and make it easier to eat and live better."
Some Wall Street analysts said Kraft (KFT: Research, Estimates) was taking a "proactive" step in the face of lawsuits targeting the company's products. Last month a lawsuit seeking to ban Oreo cookies in California was withdrawn after provoking criticism from some legal experts for clogging the nation's courts.
Kraft said the company has paid attention to such matters.
"If these measures also discourage unfair litigation, that's just fine with us," Kraft Foods North America spokesman Michael Mudd said.
Mudd said the company was setting a size limit on packages meant to be consumed by one person, such as candy bars, beverages and vendor packs of Oreo cookies.
"Some of the guidelines for setting the limit will be total calories," he said. "For products that are above these levels, we will reduce the portion size. [For] products that are at the level set, or below it, we will increase the portion size."
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Courtesy: Kraft |
Kraft got spun off from Philip Morris Cos., now Altria Group (MO: Research, Estimates), in 2001. Altria owns tobacco marketer Philip Morris, the world's biggest cigarette maker, and a stake in brewer SABMiller PLC. Altria, which has been hit with a slew of suits related to smoking and marketing cigarettes to youth, still owns 84 percent of Kraft.
"Kraft is learning from its parent company about litigation matters and it’s trying to be proactive," said Amy Greene, an analyst with Avondale Partners. "Kraft is also an industry behemoth and it knows that it’s better to set the course than to be forced to follow it."
But Kraft's announcement drew praise from the American Dietetic Association.
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Courtesy: Kraft |
"I think Kraft’s move should be applauded, especially in today’s climate (with) much concern over childhood obesity," said Julie Walsh, a registered dietician and spokeswoman for the association.
Added Walsh, "Many of Kraft’s products are convenient foods for busy parents. Parents want to feel good about what they're giving their kids to eat. But Americans also like fat and sugary foods. So Kraft has a challenge ahead of itself by trying to get consumers to buy its healthier food that might not necessarily taste the same."
The company said it expects to complete the latest development of food standards for the company by the end of 2003, and will begin implementing them in 2004.
Details about the pricing were not immediately available.
Avondale's Greene does not own shares of Kraft and her firm does not have an investment banking relationship with the company.
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