Kraft Foods Memo Essay

771 Words Aug 22nd, 2013 4 Pages
Kraft Foods Memorandum
Date: February 1, 2005
To: David Smith, CEO
Copy: David Johnson, CEO of North America; Donna King, Investor Relations Director;
Jane Houston, General Counsel; Matt Conrad, Advertising and Marketing Director; Michael Mudd, Obesity Strategy Director
From: Alex Murray, Communication Director
Subject: Advertising campaigns led to increase in child obesity
In response to critic about targeting children under 12 in advertising unhealthy food which lead to the increase of childhood obesity, Kraft announced not to advertise products like Kool-Aid beverages, Oreo and Chips Ahoy cookies to children under 12 last month. We also have formed a lobbying group with General Mills and Kellogg to prevent the
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No public policy is in place to encourage marketers to promote healthy lifestyle to children. If Congress starts to regulate food marketing to children, it can impact our ability to promote products, the cost of marketing will increase significantly as we need to hire more lawyers to screen our advertising in compliance to the law. The public, especially parents, may perceive us as a company that does not care about ethics but maximizing profits.

McDonald’s class-action lawsuit can serve as a benchmark for any similar cases that follows. If Kraft ever get sued because of our advertising practice toward children, the loss can be in multi-million dollars.

We have lost an estimated $75 million profit due to the effort to cut advertising on Kool-Aid, Oreo and Chips Ahoy. We cannot afford the government to regulate how we market to children as much more losses will occur.

Recommendations
Create a YouTube channel to educate children about healthy lifestyle.
Using characters we already have created on different food products to promote short cartoons to teach children how to choose a balance diet, exercise daily and other healthy lifestyle choices. Hire consultants like Dr. Ellen Wartella, who is already involved in our Worldwide Health & Wellness Advisory Council and Institute of Medicine, to give us…