Positive Approaches to Obesity

Mr. Colin GordonCEOGlanbia Consumer Foods

Tues 23rd September 2008

The Irish Food Industry’s Responseto Obesity

Mr. Colin GordonCEOGlanbia Consumer Foods

Tues 23rd September 2008

Who are Glanbia Consumer Foods?

No 1 Food Company in Ireland

Only company with 7 of Top 100

Most advertised food brand

2 million products per day and growing

75% of population no more than hour and half from production sites

Operates across 7 product categories with total value €800m

Milk, No. 3 No. 14 No. 27 No. 38

Cream, No. 73No. 66 No. 73

More Food brands in Grocery Top 100 than any other supplier

Milk such a key food staple

Base: 781

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

4+ Times a Week 2-3 Times a Week Once a Week Once a Fortnight

Store Visitation

Milk Purchase

Given our scale we take our responsibility very seriously as a key nutrient provider to the Irish population

Milk bought by almost every household over 2 times per week

……. 7 times more than tea

……and it is great value !

114 - 302Other Beverages

103Milk

RSPcent per ltr

Retail Prices

Response of the Food Industry

Industry is responding to the emerging agenda across

NOTF

Regulation

Recipe improvements

Labelling

The Food Industry Agenda

……. But before we start !

Male FemaleSugars 2% 6%Fat 9% 31%Salt 25% 21%

Calories 79% 62%

% choosing right levels ‘allowed’ p/day

1 in 12 heard of “Pixel” Fats!

Advertising Regulation

Broadcasting Bill – an alternative recommendation

Industry & Government agree a Code

Broader than Broadcast

Doesn’t discriminate against indigenous food companies

Product reformulation – salt removal, fat reduction etc

New “better for you” product ranges

Portion Size

GDA’s

In the area of Product choice

To make nutrition labelling understandable and allow consumers make informed choice

Key information on calories, sugar, fat, saturated fat & salt

Involves front of pack messages to enable quick decisions

The one truly Pan European scheme

Irish Uptake approx 50% of branded and 80 -90% of adopting retailers.

In the area of labelling - GDAs

13%

N/A***

45%

N/A***

Superquinn

0%92%80%July 2008 Private Label**

0%88%60%Jan 2008 Private Label**

July 2008 Branded*

Jan 2008 Branded*

49%43%51%

37%43%47%

DunnesTescoSupervalu

* Average shopping basket of branded goods (based on CSO basket)

** Average shopping basket of private label goods (based on CSO basket)

*** Superquinn not surveyed in January 2008

GDA Label Penetration – July 08

The food industry is also supporting the establishment of the Nutrition and Health Foundation (NHF)

The Nutrition & Health Foundation has a multi-stakeholder approach to addressing the health challenges of our nation, by bringing together industry, government, state agencies, internationally recognised scientists, health professionals and other relevant stakeholders.

Supporting the Nutrition & Health Foundation

The EU has established the EU Platform for Diet, Physical Activity and Health in 2005. To date the Platform involves 34 member EU organisations ranging from food industry to consumer protection NGOs.

200 commitments covering labelling; education; physical activitypromotion; advertising and product reformulation

Ireland is at the forefront in working to reduce the levels of obesity in Europe

Initiatives such as the Nutrition and Health Foundation is the first of its kind in Europe.

Irish Industry and Europe

Looking at ourselves….

HealthIndulgence

We have a wide food range covering the full spectrum of consumer needs and wants

No such thing as good or bad products, just good or bad diets

Looking at ourselves….

In last 3 years, we have quadrupled the marketing investment in Better For You products

Our GDA Rollout this year

40%80%

We’ve improved our recipes

• Petit Filous – All ingredients changed to 100% Natural• 10% Sugar Reduction across Petit Filous , Fruit

Yogurt• Addition of fibre into our 0% fat yogurt range

• Salt reduction programme has been in place since 2004.

• FSA Target of 0.6g salt/100g achieved across 85% of products in the Avonmore Soup Range in 2008.

• Calories, fat, sugars have all been reduced across the range by between 27% to 52% .

• Use of clean label ingredients • Launching new recipes in Low Fat range

We’ve launched healthier new products

But Anomalies exist

T R A F F I C L I G H T S Y S T E M F O R V A R I O U S P R O D U C T S

P r o d u c t F a t S a t u r a t e s S u g a r S a l t

Ch e d d a r Ch e e s e R e d R e d G r e e n R e d

Fa r m e r s Ch o ic e

m ix e d v e g . s o u p

A m b e r A m b e r G r e e n A m b e r

F r e s h m i lk A m b e r A m b e r A m b e r G r e e n

L o w - f a t m i lk G r e e n A m b e r A m b e r G r e e n

O r a n g e j u ic e G r e e n G r e e n R e d G r e e n

D ie t Co la G r e e n G r e e n G r e e n G r e e n

Traffic Lights fails to take account of the nutritional positives of dairy

Milk is a Rich source of Protein and an important source of Calcium and other vitamins/minerals in our diet.

A carton of Fresh soup can contain one or two portions of vegetables

A serving of orange juice is equivalent to a serving of fruit and the sugars contained within it are low GI , Low effect on teeth . ie “good Sugars” yet they are tarred with the same brush as carbonated soft drinks.

Likewise, milk contains 4.9% lactose which is a naturally occurring, Low GI “ good” sugar

What about the nutritional positives?

What about unpackaged Food?

50% of food consumed in restaurants or in serve over retail

Looking forward…..

The Food industry accepts its role and responsibility in helping to tackle the Obesity issue

But the Regulation needs to be balanced

The Recommendations from the NOTF need to be implemented in full

This is a societal issue and cannot be the responsibility of one stakeholder