The Food Safety & Standards Act, which will come into force in 2010, will monitor ads that encourage unhealthy lifestyles as well as those for food products that contain high amounts of sugar, fat or salt.
The news echoes a debate seen in many Western markets over the past few years: whether food companies should have greater restrictions imposed upon their marketing, especially to children.
The news echoes a debate seen in many Western markets over the past few years: whether food companies should have greater restrictions imposed upon their marketing, especially to children.
The new rules in India will place scrutiny on the widely used tactic of celebrity endorsements. They will also insist on scientific evidence for ads that claim health benefits. Brands could face investigation by the Food Safety & Standards Authority, with fines for those found guilty, though the code is likely to remain voluntary.
The Indian ad industry has responded positively. “Anything that positively impacts consumers’ lives is a good thing,” said Jishnu Sen, COO of Grey India. “Consumers deserve to know what they are consuming. The problem is assuming that responsible companies are not adhering to the strictest of norms already.”
In markets such as the US and UK, the debate around the marketing of food has become increasingly bitter, with lobby groups noisily criticising high-profile brands. Some of that has come to Asia. A 2008 report by Consumers International titled ‘Junkfood trap’ argued that despite signing international pledges, big MNCs continued to market unhealthy food in Asia when measured against the UK Food Standards Agency criteria. The report also found huge disparity in food marketing regulations in different countries across the region. It concluded that “multinational companies have been able to exploit the lack of controls and regulations on marketing and advertising in developing countries.”
Consumer International researched Coca-Cola, KFC, Kellogg, McDonald’s, Nestlé and PepsiCo across eight countries in the region to reach this conclusion.
A marketer with one MNC who did not want to be named thinks MNCs should not be singled out. “There is a lot of unhealthy food being marketed by local brands in countries like India,” he said. “MNCs have to cater to the tastebuds of a particular market sometimes, but any product offered by a big MNC would have a much better quality than most products being made locally.”
Prateek Srivastava, group president (South) at Ogilvy & Mather India, agreed, arguing that it is a bigger problem if a company violates “the basic norms of manufacturing”, such as not meeting the basic hygiene standards.
“There already is strict regulation against that, but it needs to be ruthlessly enforced. In marketing, there is a growing sensitivity, which is only going to increase with time, regulation or not. The consumer too is getting wiser and smarter all the time.”
Few expect that marketing food to adults will be seriously disrupted in India. However, the issue of marketing to children will remain particularly sensitive. These issues are especially pertinent for Southeast Asia, where obesity levels are climbing faster than any other region in the world.
Governments here have been acting. In 2007 Malaysia banned any form of fast-food ads during children’s TV programmes (including sponsorship). And Indonesia has banned ads for unhealthy foods from children’s media.
Many MNCs, scarred by their experiences in the West, have self-regulation when it comes to marketing to children. For instance, with the exception of water, fruit juices and dairy-based drinks, Coca-Cola will not advertise its beverages in media where children under 12 make up over 50 per cent of the audience.
And as consumers become more health-conscious, many food producers will alter their products accordingly. “They understand what the consumer wants; they want their relationship with the consumer to last a lifetime,” said Sen. “If that relationship is based on lies, it won’t last.”
This article was originally published in 5 November 2009 issue of Media.
