Walt Disney Bans Junk Food Ads On Kids Programmes
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Joining the fight against obesity, Walt Disney media group has declared that it will begin imposing strict new standards for food and beverage advertising on its networks –one of the first major media company to do so.
Hailing the move, First Lady Michelle Obama, a prominent advocate against childhood obesity, praised the “game changer” initiative. Speaking at Disney’s press conference, she added:
Joining the fight against obesity, Walt Disney media group has declared that it will begin imposing strict new standards for food and beverage advertising on its networks –one of the first major media company to do so.
Hailing the move, First Lady Michelle Obama, a prominent advocate against childhood obesity, praised the “game changer” initiative. Speaking at Disney’s press conference, she added:
[quote] This new initiative is truly a game changer for the health of our children. For years, people told us that no matter what we did to get out kids to eat well and exercise, we would never solve our childhood obesity crisis until companies changed the way that they sell our food to our children. We all know the conventional wisdom about that, and today, Disney has turned that conventional wisdom on its head. [/quote]However, Disney’s new rules will not come into effect until 2015, as Disney aims to honour existing advertising contracts and to give advertisers time to comply with the new guidelines.
The success of this campaign will also depend on how Disney defines junk food. Recent studies have shown that almost a third of America’s children are overweight or obese.
Related News: Denmark Imposes World’s First “Fat Tax”
Related News: Sugar is “Toxic” And Must Be Taxed Like Alcohol & Tobacco, Says US Scientists
For a start, advertisers who wish to purchase airtime on any Disney-owned channel will have to comply with federal recommendations on serving sizes, calories, and fat and sugar content. As such, cerals with more than 10 grams of sugar per serving, or a full meal with more than 600 calories, sugary drinks, and high sodium products would be off the air.
Makers of junk food and sugary drinks spend about $1 billion a year on commercials directed at children under 12 years of age.
According to estimates by Kantar Media, Disney’s move would cost the company less than $7.2 million in television ad revenue, or less than a 10th of 1 percent of Disney’s total annual ad sales. The company reported ad revenue of $7.6 billion for its media networks in its last fiscal year, an increase of 8 percent.
CEO Robert Iger acknowledged there might be a short-term dip in advertising revenue, but added that these companies would adjust and create new products “that is nutritious and meets our guidelines.”
He added:
[quote] We can create huge change without having the government step in. [/quote]
Disney’s announcement comes in the wake of another high-profile anti-obesity initiative. Last week, in the first move of its kind by an American city, New York Mayor Michael Bloomberg proposed a sales ban of super-sized sugary drinks in restaurants, delis, cinemas and sports arenas.
Related News: Overweight Workers Cost US Companies $113 Billion in Productivity Losses
