Hersheys Trip Down Nutrition Lane

1
Hersheys Trip Down Nutrition Lane

• Barry L. Zoumas
• Penn State University
• July 19, 2004
• Juniata College

2
White House Conference

• President Nixon-1970
• Addressed Hunger in America
• Scientific and Political Agenda
• Eliminate malnutrition
• Promote nutrition labeling
• Promote fortification and Engineered Foods
• Begin government nutrition programs

3
SUMMARY OF Nutrition Issues Past 25 Years

• Empty Calorie
• Sugar
• Cholesterol
• Saturated Fat
• Sodium
• Total Fat
• Low Carbohydrate/High Protein

4
Hersheys Dilemma

• Chocolate perceived as bad
• Chocolate was a empty calorie food
• Chocolate was put on every ones bad list
• How should Hershey handle nutrition issue

5
Hershey Does Nutrition Labeling

• Started in 1973
• Hershey debated and decided to do it
• Very controversial inside company
• Plan was to improve empty calorie image
• Very positive consumer response
• Put Hershey in the Nutrition Game

6
Hersheys Nutrition Labeling

• Helped rid products of empty calorie image
• Showed product contained sizable amounts or
  protein, calcium, riboflavin and niacin
• Qualified products for National School Lunch
  Program

7
Times Changed

• Carter Administration Began in Late 70s
• Start of Consumer Activism
• Childrens Advertising became the issue
• Sugar became the culprit
• Dental caries became the governments hook
• Hershey had to defend itself or stop advertising

8
Sugar in the Diet

• First big nutrition Issue to hit
• Americans ate over 100 lbs per year
• Consumer activists united behind sugar
• FTC decided to hold hearings
• Target- Childrens Advertising

9
Industry Response to Sugar ISSUE

• Began extensive research program
• Lobbied Hard for FDA position
• Established Dental Caries Expertise
• Entered in a three year battle with FTC over
  right to advertise

10
Sugar Resolution

• Science became very complicated
• First Amendment Rights
• Reagan elected President
• Eliminated FTC Chairman

11
Sugar Issue Changed Industry

• Era of Nutrition Begin (late 70s)
• What is not in a product is as important as what
  is in it (sugar, salt, saturated fat,
  cholesterol, caffeine)
• Cheerios started the wave with low sugar claims
• Tried to get a competitive advantage over
  Kelloggs (Frosted Flakes)
• Low sugar claims starting to appear on many
  foods.

12
Caffeine and Theobromine Hersheys Next Big Issue

• FDA raised the issue of caffeine safety
• Chocolate contains small amount of caffeine and
  relatively large amount of theobromine
• Coffee Industry started multi-million dollar
  research program on caffeine.
• Hershey had no choice but to do theobromine

13
Hershey and Theobromine

• Dangerous issue for Hershey
• Cost millions of dollars for research
• Muti-generation life time feeding study
• Proved to be safe (cocoa and coffee)
• What happens if it is a problem?
• Alternative research program

14
The Race is On

• Cholesterol became the next issue
• Cholesterol is in chocolate due to milk
• Hershey started research program on whether or
  not chocolate raised cholesterol
• Did human feeding studies to determine the
  effects (Penn State)

15
Cholesterol Era

• Late 70s to early 80s
• FDA wanted cholesterol labeling
• Early Emphasis on Cholesterol Only
• Eggs, milk and red meat consumption hurt
• Pasta was a winner
• Low-Cholesterol Products Began to appear
• Low-cholesterol ads on everything
• Even products that never had it

16
Hershey and Cholesterol

• Feeding chocolate did not raise serum cholesterol
  levels
• Research showed that saturated fat raises
  cholesterol levels- palmitic, lauric and myristic
• Cocoa butter, the saturated fat in chocolate does
  not raise serum cholesterol-stearic

17
Cholesterol and Saturated Fat

• Issue still with us today
• Hershey petitioned the FDA to eliminate stearic
  acid from saturated fat content on nutrition
  label
• Still awaiting FDAs decision

18
Biggest Effect of Saturated Fat Era

• Made consumers aware of different fat
• Surgeon Generals Report villanized fat
• Butter, whole milk and red meat consumption
  declined in 80s and 90s.
• Created market for PUFAs
• Created low-fat milk products
• But had little effect on Hershey

19
Sodium Issue

• Mid-80s, pet project of Dr. Art Hayes
• High Blood Pressure
• Sodium Levels Reduced in Foods
• Food Industry responded
• Low-Sodium products did not sell
• Hershey lowered salt in Reeses products
• Industry still fighting guidelines Responders
  and non-responders

20
Total Fat Issue

• Late 80s to mid 90s
• Reduce Total Fat to 30 from 42 of calories
• Hershey responded with low-fat products
• Complex Carbohydrate emphasized by Dietary
  Pyramid
• Hersheys Sweet Escapes Paradise Lost

21
Total Fat-Industry Response

• Endorsed Issue
• Saw tremendous marketing opportunity
• Fat-Free Food Era
• Consumer backlash soon began
• Fat-Free not Calorie-Free

22
Today Low Carbohydrate Diet Era

• Hershey has jumped on this opportunity with new
  marketing department
• Low-sugar products
• One-gram carbohydrate bars
• Zone Diet

23
Hersheys paradigm Shift

• Over the past 30 years, Hershey has gone from
  playing nutrition defense to nutrition offense.
  Hershey has joined the band wagon and is now
  committed to developing and marketing nutrition
  products It still has not found its niche, but
  it is taking a dual marketing approach of keeping
  its core fun products and developing good for
  you new products.

24
What the Future Holds for Hershey and Others

• Shift to Healthy Foods
• Fun foods to good for you foods (Pepsi)
• Functional Foods and Nutraceuticals
• Big in Europe and Japan
• Emphasis now shifting back to what is in the
  product.
• Chocolate antioxidants
• Obesity Epidemic?
• Marketing restrictions again being talked about
• Programs to increase activityStep programs

25
THANK YOU