Coke tries to fend off obesity criticism

obesity and coke

Coca-Cola has moved to head off rising concerns that sugary drinks are contributing to an obesity epidemic by adopting clearer calorie-count labels, promoting diet drinks and renewing a pledge not to market to children under 12.

The policy, announced on Wednesday, comes as the world’s largest beverage company and its rivals draw fire from health experts and lawmakers over the high calorie content of their flagship products.

“They need to take this head-on given all the pressure they’re facing, certainly from a regulatory perspective and without a doubt from the consumer perspective,” said Ali Dibadj, analyst at Bernstein, an investment group.

He said soda sales had fallen in the US as consumers, worried about health issues, “self-regulated” their consumption. As a result, beverage companies are expanding in emerging markets, including India and China, to win new business.

Analysts said Coke and rivals were concerned about a crackdown around the world.

Coke tries to fend off obesity criticism – FT.com

The New Normal For Fast Food: Price Cuts and Stagnant Sales

Extra Value Meals

Burger sales are falling at McDonald’s, which on Wednesday reported its fourth monthly global same-store sales decline since October, when sales at restaurants open at least 13 months fell for the first time in nine years.

While not unexpected, the slight decline in April sales does not bode well for the broader fast food industry. Market research firm NPD Group Inc. last month revised its 2013 “traffic” outlook for the fast food sector to decline by 1 percent, compared with an earlier estimate of flat fast food visits.

In April, the global sales decline at McDonald’s was driven by economic weakness in Europe and Avian influenza in China, while the U.S. posted growth of 0.7%, a slight improvement from completely flat sales in March.

Analysts expected a 0.05% decline. McDonald’s credited the national introduction of “Premium McWraps,” an emphasis on cheaper menu items and its breakfast offerings for the slight improvement.

The ongoing softness at McDonald’s, a chain that beat the odds by posting growth throughout most of the recession, may indicate a new normal for the company and for the industry. NPD expects total restaurant industry traffic – of which fast food represents 78% — to be flat through 2013 and 2014.

The New Normal For Fast Food: Price Cuts and Stagnant Sales – Corporate Intelligence – WSJ