Coke to Disclose Funds Sent to Health Groups, Researchers
August 20 2015 - 12:40PM
Dow Jones News
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 12:25 ET (16:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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