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Coca-Cola's "Frank Statement" A Slick Move To Stave Off Regulation

This article is more than 10 years old.

with William L Haar

Earlier this month, Coca-Cola unleashed a new PR blitz complete with full-page ads, press events and appearances on TV news programs, all aimed at showing the world that Coke folks are good corporate citizens that care—really care—about the global epidemic of diabetes, obesity and related chronic health problems. Yes, the company seems to be saying, we understand there’s a problem and we’re willing and eager to do our part.

It reminds us of another advertising blitz by an industry whose products were coming under increasing scrutiny. On Jan. 4, 1954, the “Tobacco Research Institute” published a full-page ad in the New York Times and more than 400 other newspapers around the country. It’s title: A Frank Statement to Cigarette Smokers.

In the Frank Statement, the tobacco companies said:

We accept an interest in people's health as a basic responsibility, paramount to every other consideration in our business. 

We believe the products we make are not injurious to health.

...and, incredibly:

We always have and always will cooperate with those whose task it is to safeguard the public health.

Flash forward 60 years and Coca-Cola’s new “Coming Together” initiative expresses similar concern for the public’s well-being and touts its own commitment to promoting “moderation” in consumption and “transparency” in disclosing the calorie content of its products. Yet the company’s plans include no substantive changes to its basic business model of getting more people to drink more sugar, regardless of the health consequences.

Coke’s real agenda is to stave off regulatory changes that would force them to change their current practices. For example, Coke and other soda companies have steadfastly opposed taxes on sugary drinks, including a bill currently in the California legislature that would impose a penny-per-ounce tax on soda. Research from UC-San Francisco suggests that such taxes would reduce consumption by 10 to 15 percent over a decade preventing nearly 100,000 cases of heart disease, 8,000 strokes, and 26,000 deaths. The California legislation, like most proposals, would channel the tax revenue into health programs. Legislatures in Vermont, Texas, Rhode Island, Mississippi, Oregon, Hawaii and Connecticut are considering similar bills.

As consumer advocates increase the pressure on the soda industry through proposed taxes and regulations, Coke’s response is to position themselves as responsible stakeholders. Coke hopes to forestall policies that would have a real impact on their business by embracing voluntary, self-enforced corporate initiatives. This dovetails with the company’s bid to enhance its image by funding exercise and education programs through its Live Positively campaign.

At the same time, Coke is making a concerted effort to coopt and subvert the public health message that soda is bad for health. An analysis released this week examining the link between soda and obesity found that four studies funded by the food and beverage industry found little evidence connecting soda to poor health, while 13 independent studies all found a significant evidence of soda’s harmful effects.

Funding scientists to debunk other scientists is a page out of the tobacco industry’s handbook. So is misrepresenting data using eye-pleasing infographics that, for example, compares overall calorie consumption over a 35-year period to sugar consumption over a cherry-picked eight-year period to give the false impression that soda has added little sugar to the diet since the 1970s.

In its new initiative, Coke claims to be a responsible partner because of its new worldwide commitments. Let’s take a look at those pledges:

1. Offer low- or no-calorie beverage options in every market.

Coke’s principal business is still selling sugary sodas, priced lower and marketed more aggressively than alternatives. Sugary drinks remain the vast majority of the company’s portfolio.

2. Provide transparent nutrition information, featuring calories on the front of all packages.

Front-of-package labeling is a small victory for consumer advocates but listing calories isn’t enough. Numbers on the front of a can don’t compensate for the $2.9 billion Coke spends on marketing each year.

3. Support physical activity programs in every country where Coke does business.

Drinking soda has been linked to diabetes, heart disease, and about 180,000 deaths a year, according to data from Harvard researchers. Physical activity is important but it’s self-serving for Coke to suggest that the problem with their unhealthy products is the exercise habits of their customers.

4. Market responsibly, including no advertising to children under 12 anywhere in the world.

Coca-Cola has long claimed it doesn’t market to children under 12 in the U.S. Yet the average American child sees 200 Coke ads per year on primetime TV—and children of color and adolescents see even more. We can expect this same as Coke’s current campaign goes global.

A Coca-Cola marketing video is explicit about the company’s desire for positive branding. In classic marketing-speak, the company says:

“Our brand stories must show commitment to making the world a better place. So we must partner with the brand teams to build the BVA (Brand Value Architecture) with a clearly positive lens.”

The same video also reveals Coke’s underlying goal:

“We intend to double the size of our business - that's a lot of incremental servings!”

Indeed.

Tomorrow: Allies of Big Tobacco and Big Soda invoke the Nanny state.