KO Coca Cola Company

By Mike Esterl 

Coca-Cola Co. Chairman and Chief Executive Muhtar Kent promised in an op-ed in The Wall Street Journal that the beverage giant will start disclosing all of its financial contributions to health groups and academic researchers after coming under fire for an anti-obesity initiative.

The pledge reflects high concern over potential damage to the company's image following a New York Times article earlier this month detailing a Coke-funded group that suggested Americans were overly fixated on calories while not paying enough attention to exercise.

"I am disappointed that some actions we have taken to fund scientific research and health and well-being programs have served only to create more confusion and mistrust," Mr. Kent said. Coke's efforts to engage the public health community on obesity thus far "is not working," he added in the op-ed published in Thursday's print edition of The Wall Street Journal.

The soda maker has been funding fitness campaigns around the U.S., arguing that a lack of physical activity has contributed to obesity. Public-health critics say the bigger problem is calorie intake and point to sugary beverages like soda in particular. Coke says calorie intake is also important but that it is wrong to single out any single food or drink.

the New York Times article highlighted Coke's financial and logistic support to a new nonprofit organization, Global Energy Balance Network. The website of the group, which is headed by academics, initially didn't disclose funding from Coke. According to the newspaper, the beverage company also gave close to $4 million for various projects to two founding members who are professors at the University of South Carolina and West Virginia University.

The Center for Science in the Public Interest, a public health group and soda-industry critic, on Wednesday called on academics and academic institutions to disclose all grants from Coke and ensure that research on campuses be "unbiased and unbought, impartial and objective."

Mr. Kent said Coke will publish on its website a list of the company's efforts to reduce calories and market responsibly, in addition to health and well-being partnerships and research activities it has funded over the past five years. That list will be updated every six months.

He also said Coke will charter an oversight committee of independent experts for advice and governance on company investments in academic research, in addition to engaging leading experts to explore future opportunities for academic research and health initiatives.

"Our business will continue to evolve and respond to the needs of society--from product innovation to responsible marketing to our sponsorships and partnerships," said Mr. Kent, adding that the company will continue "to provide more choices" to consumers such as smaller package sizes, water and low- or zero-calorie drinks.

Joanna Price, a Coke spokeswoman, said the company hopes to publish the first tranche of disclosures "within weeks" on its website. Historically the company has relied on financial recipients to make the disclosures, she added, although Coke has disclosed funding activities by its foundation.

Initially the disclosures will focus on the U.S., but Mr. Kent said Coke plans to expand the practice globally.

The company also said Sandy Douglas, president of Coca-Cola North America, hopes to visit dozens of health groups and academic institutions over the next two months in a "listening tour."

Write to Mike Esterl at mike.esterl@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 20, 2015 12:21 ET (16:21 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.