A tale of two epidemics

The figures don’t lie: more than a billion people are estimated to be overweight, almost one in six people currently occupying this planet. The World Health Organisation also estimates that around 43 million children under five are overweight.

"All you have to do is walk around today in any public place - an airport, movie theatre, or a shopping mall to see that we have an obesity epidemic," says the CEO of Kraft Foods, Irene Rosenthal. "Obesity is one of the leading causes of preventable disease and death globally, second only to smoking." 

And nor is this issue solely the preserve of first world countries. "Take India, for example. It's well known that the country has a hunger problem. In fact, about 220 million Indians are undernourished. But at the same time, about 155 million Indians are obese - that's more than the populations of Germany and the UK combined. And unfortunately the number is growing. So obesity is truly a global problem."

Rosenfeld, who was recently voted by Forbes as the second most powerful women in the world, says we currently face a critical paradoxical challenge: "For the first time in history, we're battling epidemics around the world related to both obesity and hunger - feast and famine - at the very same time".

Given Kraft Foods' broad portfolio and extensive global footprint, it's clear the food giant is deeply engaged in both of these issues. "We sell products in 170 countries; in fact, almost 60 percent of our revenue comes from outside the US. Our products range from indulgences such as chocolate, to healthy snacks like wholegrain crackers and cheese, and those that offer essential vitamins and minerals like fortified biscuits and powdered beverages.

What might be less clear is how Kraft Foods is going about this issue to ensure that they "make a lasting, positive change in the lives of millions of people affected by these two epidemics". 

The key, says Rosenfeld, is to address both the immediate needs and the root causes of obesity and hunger. "We are organising our efforts around the three P's: products, partnerships and policies. Within that framework, we are actively fighting both feast and famine."

When it comes to the former, Rosenfeld says one of the biggest challenges facing her organisation is that while consumers say they want to eat healthier, it's difficult for them to translate that intent into action.

"The fact is that people are unwilling to compromise on taste: they simply won't eat foods they don't like in order to be healthy. And they find it especially difficult to give up their favourite foods. So, Kraft Foods' health and wellness product strategy is grounded in two principles: firstly, we're helping people to eat healthier not with radical behaviour change, but by making small changes that add up over time."

Rosenthal quotes Dr Jim Hill, chair of the first World Health Organisation Consultation on Obesity who stated that those engaged in the food and beverage industry should aim to help people make one or two smarter food choices that will reduce their energy intake by 50-100 calories daily. "Dr Hill suggests that these small changes in diet, along with exercise, can stop gradual weight gain. And stopping weight gain is a first step in reversing the obesity epidemic."

Kraft Foods' second principle is to ensure that the healthier products they develop for their consumers still taste delicious. To this end, since 2005, the company has reformulated or launched more than 5000 products globally to make it easier for people to make smarter food choices.

"These include products with fewer calories, like our 100-calorie packs, or CapriSun beverages, where a recent reformulation eliminated over 100 billion calories annually. Or Jell-O-Mousse Temptations, a new product with only 60 calories which is, in fact, growing faster than our regular version."

Also on the roster of lower-fat products are those with more whole grain, including the first whole grain biscuit in China, as well as lower-sodium products. "We've committed to reduce sodium in our North American products by an average of 10 percent by the end of 2010. We've also taken steps like adding fruit to some of our Lunchables products, many of which now include whole grain buns, lean meats, reduce-fat cheeses, fat-free mayo and sugar-free Jell-O. Our aim is to make these products better for you, but still tasting delicious, which is a real testament to the strength of our R&D capabilities and talent."

Indeed, Rosenfeld estimates around 30 percent of Kraft Foods' products now fall into the 'better choices' basket and, over time, she expects that percentage to grow as more people sample and migrate to these products.

The message, she says, is clear. "We believe that our greatest strength lies in our range of offerings, and in our ability to provide choices to our consumers. Indeed, there is room in a healthy diet for all our products, so our goal is to provide a wider range of offerings to enable people to make healthier, more balanced choices to meet their unique nutritional needs."

Running in tandem with product development is Kraft Foods' range of partnerships aimed at educating consumers about healthy eating and the importance of physical activity. Over the past 25 years, the company has supported programmes in nearly 50 countries, including the Health4Schools campaign in the UK. "This is an award-winning programme designed to engage students in the elements of healthy lifestyle by promoting gardening, cooking and active play. Since 2004, we've launched the programme in 100 schools in Gloucestershire, reaching about 25,000 students and inspiring the adults in their lives, as well. Recently, we announced that we will be making a similar investment over the next three years in Birmingham, which of course is the home of Cadbury's historic Bournville factory."

In Latin America, Kraft Foods has partnered with the National Latino Children's Institute to launch Salsa, Sabor y Salud in 2002, a free, bilingual programme that targets childhood obesity in the US Latino community. "This programme engages the whole family in healthier food choices and increasing their physical activity," says Rosenthal.

Importantly, Kraft Foods is also "actively engaged" globally to affect policies that help educate consumers about nutrition. "We were one of the first companies to put full nutrition information on all our packages, even when it was not required by law. We've been a leader in marketing responsibly to children as part of our global commitment to the World Health Organisation and in 2005, we were the first company to take the bold step of setting nutrition criteria for the products we advertise to children. We also do not advertise to children under six; instead we only advertise products to children aged 6-11 that meet specific nutritional standards. We eliminated all in-school advertising and are proud that many in the industry have now followed our lead."

But, she admits, that's only half the battle. "The other side of the feast and famine coin is the global hunger epidemic. The latest UN estimate is that nearly a billion people worldwide are undernourished today. About half of them live in Asia and another quarter are in sub-Saharan Africa. But even in the US, the most affluent nation in the world, one out of every six Americans goes to bed hungry. In developing countries, malnutrition affects one in every three children, a statistic that is particularly troubling because scientific evidence has shown that beyond the age of three, the effects of chronic malnutrition are irreversible."

Like obesity, hunger is a complex issues with many contributing factors. "Poverty, natural disasters, climate change, political unrest, insufficient investment in agriculture an ineffective public policy all play a role. And, like obesity, the social costs of hunger are devastating. To help solve the hunger challenge, we also start with our products."

It is, she says, an exciting opportunity to use Kraft Foods' knowledge and technology to make a difference in improving people's lives. "I'm pleased to say than in developing markets, about 10 percent of our revenue comes from products we call 'affordable nutrition'. These products are fortified with the nutrients that are most lacking in people's diets, are affordable to consumers with limited incomes, have long shelf lives and are easy to ship and carry home."

These products include fortified biscuits like Biskuat in Indonesia and Jai Gai in China, fortified cheeses like Eden, sold in the Philippines, and fortified beverages, like Tang, in Brazil. "These products have small price tags, but they are big businesses for us. For example, and this may surprise you, but Tang alone is a US$800 million brand, growing 30 percent each year."

As is the case with Kraft Foods' efforts to combat obesity, they find it an effective strategy to partner with others in the fight against hunger. "As you know, poverty is a key underlying cause of hunger in many developing markets. Of all the people in the world who don't get enough food, approximately 70 percent work in agriculture. So we're leading the way in improving the livelihoods of more than a million farmers through partnerships that support sustainable agriculture. For example, we're the largest buyer of coffee and cocoa from Rainforest Alliance-certified farms, which we use to make products like Kenco Coffee or Cote D'or chocolate. These farms support biodiversity, reduce pollution and soil erosion and ensure decent wages, housing and education for farm workers."

Rosenfeld, who has worked in the food and beverage industry for 25 years, says her company is also empowering farmer organisations directly through a US$70 million investment in the Cadbury Cocoa partnership. This is aimed at helping farmers to achieve Fairtrade certification, enabling them to receive a guaranteed minimum price for their products. "In just two years, we've obtained Fairtrade certification in many Commonwealth countries for Cadbury Dairy milk, making it the number one Fairtrade chocolate bar in the world. All told, we sell more than 15 coffee and cocoa brands that are either Fairtrade or Rainforest Alliance certified."

But man, or woman, doesn't live on coffee or tea alone, so Kraft Foods is working with other commodities. They are, for example, the world's largest purchaser of cashew nuts. "In West Africa, which supplies about a third of the world's cashews, we've partnered with organisations like the Gates Foundation and together we are investing almost US$100 million over five years to advance sustainable production of cashews and other cash crops, while boosting the incomes of African farmers."

Likewise 'Project Laser Beam', a five-year, multi-million dollar initiative with the World Food Programme which aims to end child malnutrition in developing markets by taking an holistic approach that encompasses food, hygiene and behaviour change. "We're currently testing it in Bangladesh and Indonesia, and we hope to expand it to other countries as we learn more."

Closer to home, Kraft Foods partners with Feeding America, a leading hunger relief organisation. The latest initiative includes funding a fleet of 25 mobile pantries by the end of 2011, which will deliver almost one million kilos of food a year, including fresh produce.

"We are also fortunate to be able to tap into the intellectual capital and passion of some of the best partners anywhere in the world: our employees. Many of them volunteer at food banks and pantries, packing food and distributing meals. Recently, Kraft Foods employees in Dubai set a Guinness World Record by creating the world's longest line of sandwiches - 10,000 of them, end-to-end -, which they then packed into 5,000 food packages and distributed to the hungry. Now that's what I call making a really big difference!"

Rosenfeld is also a keen supporter of Kraft Foods' global activities in advocating for policies that can help combat hunger and malnutrition. "For example, we're working with the Global Food Banking Network to help countries establish policies that encourage business to donate food before it goes bad. And we're part of a broad-based coalition that's supporting the Roadmap to End Hunger, which advocates increasing international food aid and converting food aid donations from commodities to cash."

Solving world hunger feels like a daunting challenge, concludes Rosenfeld. "And it is. But we believe it's doable. By using our technology to create delicious, fortified products, engaging with partners who share our commitment, and advocating for policies to create lasting change, we believe Kraft Foods is truly making a difference in the lives of hungry people around the world. And together, we can help solve the paradox of 'feast and famine'. As we like to say, together we really can 'make a delicious difference' in our communities, in our state, in our countries and in our world."

* This was based on a speech delivered on 18 October 2010