Ethical Investment Research Services (EIRIS), the socially responsible investment specialists, today released a report on the food and beverage industry’s response to the challenges presented by the growing obesity problem.

Globally, obesity is a major health problem, and while some food companies recently hit the headlines with plans for a voluntary nutrition labelling system, differences remain in the approach of multi-nationals to the health crisis and the associated risks posed to their businesses.

The report Obesity concerns in the food and beverage industry finds that although a number of positive steps have been taken, producers are not yet doing enough to manage their risks.  The report analyses six companies: Cadbury-Schweppes, The Coca-Cola Company, Kraft Foods, McDonald’s, PepsiCo and Unilever.

EIRIS identifies three main non-financial risks for food and beverage producers in relation to the obesity crisis:

• changes in the regulatory environment (including regulations on advertising to children and food labelling)
• litigation
• brand risk and consumer resistance

Of the six companies analysed McDonald’s and Unilever are assessed to have only limited systems in place to manage their social, environmental and ethical risks in relation to obesity.  Cadbury Schweppes, The Coca-Cola Company, Kraft Foods and PepsiCo all achieve an intermediate rating, though the way in which they meet the research indicators varies greatly.

Among examples of good practice are Cadbury Schweppes who have developed a detailed code on responsible marketing and advertising to children. McDonald’s scores lowest on this criterion even though, interestingly, the fast food company is one of only two of the six companies (along with Unilever) who explicitly acknowledge that they have a role to play in addressing childhood obesity.

Report author and EIRIS Research Analyst Heleen Bulckens said: “Our research revealed little evidence of obesity-related improvement targets and key performance indicators from the multi-national food and beverage firms we analysed.  Food and drink producers are waking up to the business risks associated with obesity, but significant challenges remain.”

Copies of the report: Obesity concerns in the food and beverage industry are available free of charge.

For a full copy of the report click here or contact the EIRIS press team

• Scott McAusland, Media and Communications Manager
  +44 (0)20 7840 5703 scott.mcausland@eiris.org
• Stephen Hine, Head of International Relations
  +44 (0)20 7840 5716 stephen.hine@eiris.org

web: www.eiris.org