Thursday, October 20, 2016

How the soda industry uses philanthropy to sweeten its profits?



Philanthropic Marketing Strategies of Soda Industry!
  • Coca-Cola Company and PepsiCo sponsored at least 96 health organizations in last five years
  • American Diabetes Association and the Juvenile Diabetes Research Foundation –  are top recipients of funding from Soda industry
  • Save the Children, which once supported soda taxes to discourage consumption but dropped the effort in 2010 after receiving more than $5 million from Coca-Cola and Pepsi in 2009.

While in Pakistan, the soda industry has exploited patriotism and cricket fever through music videos to promote a positive image for their brands, in the western world they are lobbying through philanthropic marketing tools.  The purpose of a health organization is to promote awareness about healthy lifestyle and good nutritional choices.  Yet, in this world of cut-throat competition, multinationals are trying to effect the policies of health institutions through sponsoring them with heavy cash.
Sounds like a conspiracy theory?  Yet, a study conducted by the researchers at Boston University  revealed that health institutions in the United States are accepting money publicly from Cola giants.

The study, published in the American Journal of Preventative Medicine, found that the Coca-Cola Company and PepsiCo sponsored at least 96 health organizations in last five years i. between 2011 and 2015. The study also revealed that Coca-Cola and Pepsi spent $6 million and $3 million respectively  in lobbying against 28 public health bills or proposed regulations aimed at reducing soda consumption or improving nutrition during the same five-year period.
And this makes health organizations partners in Cola agenda.  According to the data published by Coca-Cola 83, health-related institutions receive funds from Coke. Contrary to Coca-Cola, Pepsico does  publish the list of its funding recipients so the numbers may be skewed but available data indicates it finances at least 13 organizations.

Surprisingly, despite the positive correlation between diabetes and sugary soda consumption, at least two major diabetes organizations – the American Diabetes Association and the Juvenile Diabetes Research Foundation –  are top recipients of funding from Soda industry.
Multi-billion dollar soda industry is already said to possess the influence over legislative bodies but now they are trying to lobby national health organizations to achieve their commercial targets. While the sugary soda industry in on fire due to it's hazards on public health, it can potentially neutralize legislative opposition with the help of lobbyists inside health organizations.

The study mentions at least one charity organization, Save the Children, which once supported soda taxes to discourage consumption but dropped the effort in 2010 after receiving more than $5 million from Coca-Cola and Pepsi in 2009.
These philanthropic and apparently legal marketing strategies may be responsible for promoting an unhealthy lifestyle, obesity, and other crippling diseases in adults and children alike. Similar corporate philanthropic marketing  tools have been used by alcohol and tobacco industry in the past to silent the voice of public health organizations against the consumption of Soda as a health measure.

While the consumers in the United States are the sole victims mentioned in the report, Europe is no exception. In January, a 14-page research paper published by International Life Sciences Institute (ILSI) Europe claimed that diet drinks could help people lose weight. Not surprisingly, the research at ILSI is found to be funded by Coca-Cola and Pepsico. It reminds me of the commercial slogan used by British traders in India almost one and a half centuries ago, Chai garmi men thandak pohnchati hai.
When it comes to wealth aquisition, multinationals are said to be more powerful than states. They have the power to influence the governments around the world and still keep their positive image through apparent philinthropic activities but their sole purpose is obviously earning profits even at the expense of public health. Though their tactics are different everywhere, they are earning equally glaring profits from the third world. Don't forget their motto, Think Globally Act Locally.

Mediabites Editorial -Tazeen Hasan
Published on Octobar 14, 2016

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