Beverage companies and marketing to kids: PepsiCo's case

Marketing to kids and ethics: dichotomy or duo? In PepsiCo, it seems that the two concepts are not antithetical, indeed they coexist successfully. In 2015, PepsiCo was honoured with the World’s Most Ethical Company title in the food and beverages field by Ethisphere, together with Kellogg’s, Ingredion Incorporated, the Hershey Company and the Italian brand illycaffé. 

Beverage companies: PepsiCo's case

Their marketing philosophy is based on transparency, and on their website they claim:

«More and more, consumers want and expect clear product nutrition information that allows them to make dietary decisions to meet their individual and family nutritional needs.Providing that information is our goal and, in many geographic markets, our nutrition labelling practices go beyond local requirements, with additional information to support consumer choice».

On its packaging, PepsiCo provides the key nutrition information – calorie count and key nutrients - its customers need in order to make aware dietary choices. 

Moreover, PepsiCo has a special commitment towards children: the company ensures that

«only products that meet our strict science-based nutrition criteria are advertised to any audience made up of more than 35 percent children under the age of 12». 

The products advertised, as said, respect the PepsiCo’s Global Nutrition Criteria for Advertising to Children. Moreover, PepsiCo promotes healthy eating habits among children, directing sales to schools focusing on water, juice, milk and low-calorie beverages. In 2013, PepsiCo implemented a policy according to which the company refused to buy advertising in programs addressing for more than the 35% children under the age of 12. 

On the contrary, the report Sugary Drinks FACTS 2014, released by the Yale Rudd Centre for Food Policy & Obesity in 2014, claims that beverages companies have still a log way to go to improve the responsibility of their marketing practices – especially when addressing kids. Jennifer Harris, Yale Rudd Center’s director of marketing initiatives and lead author of the report, commented:

«Despite promises by major beverage companies to be part of the solution in addressing childhood obesity, our report shows that companies continue to market their unhealthy products directly to children and teens. They have also rapidly expanded marketing in social and mobile media that are popular with young people, but much more difficult for parents to monitor.» 

Beverage companies and marketing to kids: Sugary Drinks FACTS 

The report shows some improvements: children between 6 and 11 years old viewed fewer TV ads (-39%) in 2013 than in 2010, sugary drinks advertising on website primarily visited by young people declined by 72% and Coca-Cola Co., Dr Pepper Snapple Group and PepsiCo provide more nutritional information on their packaging and on their websites. 

On the other hand, the report found out that preschoolers saw 39% more ads for PepsiCo's sugary drinks in 2013 than in 2010 (25% for kids between 6 and 11 years old). These data are in contrast with PepsiCo's ethical statement, and a representative of the company defined the findings 'misleading' and claimed: 

«the truth is that PepsiCo is, and will continue to be, a responsible marketer, particularly when it comes to children.»

The American Beverage Association – an industry trade group – object that the researchers of Sugary Drinks FACTS 2014 report do «not adequately differentiate between marketing to children, who are widely viewed as a special audience needing particular care, and marketing to teens and general audiences.» 

In conclusion, the food and beverage industry is a field in which irresponsible marketing practices targeting children are really popular. It is positive that companies are trying to eradicate these unethical techniques from their marketing strategy, but more efforts are required in order to protect children from unhealthy eating - and drinking - habits. Anyway, we cannot deny that companies like PepsiCo are striving to redefine their marketing conduct towards children, in order to act more responsibly and with a focus on their wellness, even if the attention towards children's health should be more and more enhanced.