Coca-Cola Cuts Financial Ties With Health Group
September 28 2015 - 5:10PM
Dow Jones News
Coca-Cola Co. isn't renewing its financial sponsorship of the
Academy of Nutrition and Dietetics, part of a broader funding
review at Coke after critics accused the beverage giant of trying
to downplay the role of sugary drinks in obesity.
The move also comes after the health group—which represents tens
of thousands of U.S. nutritionists—came under fire in recent years
for accepting millions of dollars from large food and drink
companies.
Coke disclosed last week it spent $118.6 million funding
scientific research and health and fitness programs in the U.S.
since 2010. Recipients spanned dozens of well-known institutions
including the American Academy of Family Physicians, Louisiana
State University and the Boys & Girls Clubs of America.
The disclosures followed a New York Times article last month
detailing a Coke-funded nonprofit that suggested Americans were
overly fixated on calories and not paying enough attention to
exercise. The website of the organization, Global Energy Balance
Network, initially didn't disclose it was funded by Coke.
The Academy of Nutrition and Dietetics has previously disclosed
financial ties to major sponsors including Coke, PepsiCo Inc. and
Unilever PLC. The health group shared the news internally Sunday
that Coke wouldn't renew its sponsorship. Coke gave the academy
$2.6 million over the past eight years for conferences and
programs.
Coke spokeswoman Joanna Price said the company made the decision
early in the summer not to renew the sponsorship for budget reasons
and that it is broadly reviewing its partnerships aimed at
addressing obesity. Sandy Douglas, president of Coca-Cola North
America, will start meeting with health groups in the coming days
as part of what the company has called "a listening tour."
Ms. Price didn't rule out Coke contributing again to the Academy
of Nutrition and Dietetics after its current sponsorship expires
this year. In a departure from past years, Coke won't have an
exhibit at the academy's annual Food & Nutrition Conference
& Expo starting Saturday.
Ryan O'Malley, a spokesman at the academy, confirmed Coke's
sponsorship agreement expires in December and that there are no
renewal plans. He declined to say why Coke was stopping funding,
adding sponsorship agreements "come and go for a variety of
reasons."
Several dietitians formed a group called Dietitians for
Professional Integrity in 2013 to pressure the academy to stop
accepting money from big sponsors like Coke, PepsiCo and Unilever,
arguing the companies sell unhealthy foods and drinks.
"There's a long history of [academy] members being unhappy and
concerned about these types of ties," said Andy Bellatti, strategic
director at Dietitians for Professional Integrity.
PepsiCo said it has a "significant and growing nutrition
business" and that its participation in the Academy of Nutrition
and Dietetics helps the company learn more about health and
wellness issues. Unilever didn't immediately respond to requests
for comment.
Earlier this year Kraft Foods Group Inc. and the Academy of
Nutrition and Dietetics dropped plans to apply the academy's "Kids
Eat Right" logo on Kraft's Singles cheese products after an outcry
from some academy members.
Mr. O'Malley, the academy spokesman, said the academy is
transparent about sponsorships and that companies can play an
important role in promoting health. The academy is "vigilant" every
message to consumers is "backed by sound science and not influenced
by any outside brands or companies," he said.
The spokesman added he's not aware of plans by any other large
companies to not renew their sponsorships with the academy.
Write to Mike Esterl at mike.esterl@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 28, 2015 17:55 ET (21:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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