Nestlé's Chief Executive Officer has launched a baby milk promotion in China
targetting parents in retail outlets. We tell you below how to take action
to stop the company from undermining breastfeeding. Also an update on
Nestlé's Fairtrade product and how this is helping to expose Nestlé
malpractice in the coffee industry and other areas.
Update on Nestlé's Fairtrade product
There have been further developments concerning the Nestle boycott and
Nestle's launch of a Fairtrade coffee last October.
Firstly, the Italian Fairtrade Organisation, Transfair, has issued a
statement saying it would not award a Fairtrade mark to a Nestlé product
while there are ethical concerns about its practices (you can read the
statement via the 'latest news' section of http://www.babymilkaction.org/).
Transfair cites that in 2003 Nestlé closed down a factory in El Salvador
while refusing to negotiate terms with the local trade union. Needless to
say, Nestlé did not mention this in an advertisement published in the Radio
Times in December claiming it is helping coffee farmers in El Salvador. Baby
Milk Action has reported the advertisement to the Advertising Standards
Authority.
Secondly, BBC Radio 5 Live looked into Fairtrade in an hour-long programme
on 1st January, including an interview with Baby Milk Action. While giving
welcome publicity to Fairtrade and the benefits it brings to producers, the
controversy over the award to Nestlé was highlighted, including quoting from
Transfair's statement. You can follow whether Nestlé's use of the Fairtrade
mark to try to divert criticism is a PR coup or a PR disaster on our website
(see 'Latest News').
Campaign for Ethical Marketing
The following Campaign for Ethical Marketing action sheet can be found
on-line with supporting documents and links at
http://www.babymilkaction.org/CEM/cemdec05.html You can also download the
sheet as a pdf document for easy printing.
Nestlé CEO launches blatant violation in China
Background: Nestlé¹s Chief Executive Officer, Peter Brabeck Letmathé, claims
that he personally investigates Oany hint of a violation¹ of the World
Health Organisation marketing requirements. Yet generally he fails to
respond to our reports or a member of staff attempts to justify malpractice.
We believe that Mr. Brabeck has institutionalised violations of the Code and
Resolutions to increase company profits and has taken a conscious decision
to invest in public relations strategies (such as the booklet shown on our
website) to try to divert criticism. Further proof comes as Mr. Brabeck has
personally launched a blatant violation of the Code and Resolutions in
China.
In May 2005 Nestlé was forced to recall its Neslac Gold 3 and Chengchang 1+
formulas in China after the authorities found they had higher than permitted
levels of iodine. Nestlé first resisted the recall. The China Daily
newspaper reported (10 June 2005): "Many believe it reacted with the speed
and alacrity of a sailor drunk on shore leave² and said ³as many many as 87
per cent of consumers said they would stop purchasing Nestlé products,
primarily because of the firm¹s lukewarm response to the milk powder issue
after the problem was found.² China¹s implementation of the Code is weak.
Half of Nestlé¹s sales in China are infant formula and other nutritional
products. Reporting on evidence of aggressive marketing last year China
Daily (21 May 2004) noted: ³The number of babies in China fed exclusively on
breast milk during their first four months of life has declined from around
76% in 1998 to only 64% today.²
In a recent interview with Mr. Brabeck China Daily (17 October 2005):
³Sales growth on the Chinese mainland, Hong Kong and Taiwan slowed to 7.5
per cent last year, held back by the withdrawal of Neslac. Brabeck is
looking to the mainland, the world¹s fastest growing major economy, to stoke
demand as European consumer spending stagnates. The milk-powder cans now
carry a sticker with a OThumbs-up¹ logo to show it¹s produced in line with
iodine standards. Nestlé is giving out samples and stationing doctors in
Beijing supermarket chains to answer customer concerns.²
Article 5.5 of the International Code explicitly prohibits companies from
targetting pregnant women and mothers of infants and young children. UNICEF
has informed Baby Milk Action that young children are defined as up to 3
years of age and the prohibition is absolute (see the website for UNICEF's
letter). Companies cannot use a milk for older babies as an excuse for the
contact. Neslac is the brand name for a range including infant formula.
It is even more futile asking the Chairman to take action to stop Mr.
Brabeck's malpractice as in April, despite the opposition of many investors,
Mr. Brabeck became Chairman as well as CEO. This violates corporate
governance best practice introduced in the wake of the Enron scandal (see
Update 36).
Thanks to people writing letters (see May 2005 action sheet) and pressure
from the boycott, it seems Nestlé may be shifting its ground on Baby Milk
Action¹s proposed independent, expert Tribunal. This will investigate who is
telling the truth about its marketing practices. Senior Policy Advisor,
Beverley Mirando (one of the producers of the above PR brochure) was pressed
by an interviewer on University of East Anglia Livewire student radio on
Nestlé¹s refusal during the Student Union referendum on re-newing support
for the boycott. Ms. Mirando said Nestlé is now prepared to consider taking
part .
Suggested letter to the man who thinks spending a fortune on PR offensives
is better than changing company policy and practice, Peter
Brabeck-Lethmathé, Chief Executive, Nestlé S.A. Avenue Nestlé 55, Vevey
1800, Switzerland.
You can select the text below and copy and paste it into a word-processor or
into the comment page on the Nestlé site. Note Nestlé keeps changing the
address of the comment page. If the link to it is dead go via
http://www.nestle.com/.
---
I am disturbed to read that Nestlé is placing doctors in supermarkets in
China to promote Nestlé Neslac formulas direct to parents. As you know
Article 5.5 of the International Code of Marketing of Breastmilk Substitutes
prohibits seeking: ³direct or indirect contact of any kind with pregnant
women or with mothers of infants and young children.² According to UNICEF¹s
Legal Officer, who advises on interpretation of the the World Health
Assembly measures: ³Any form of contact with mothers of children under the
age of three years is prohibited, irrespective of the motivation behind the
contact.² It appears from media reports that you are closely associated with
this strategy. How can you reconcile your stated commitment to take action
against violations of the Code, when you yourself are responsible?
I call on you to stop the promotions in China immediately and revise your
instructions to staff to bring them into line with the Code and Resolutions.
Your past assurances that Nestlé complies with the marketing standards is
undermined by your refusal to participate in the independent, expert
Tribunal proposed by Baby Milk Action. Your Senior Policy Advisor, Beverley
Mirando, has recently said Nestlé will now consider taking part. Can you
confirm you have changed your policy and will accept Baby Milk Action¹s
invitation?
----
UK government to abandon mothers to baby food companies?
[Deleted due to space limitations on Lactnet.. If you'd like to have the
full text, please email me, [log in to unmask] or
[log in to unmask]]
Visit our website http://www.babymilkaction.org/
***********************************************
To temporarily stop your subscription: set lactnet nomail
To start it again: set lactnet mail (or digest)
To unsubscribe: unsubscribe lactnet
All commands go to [log in to unmask]
The LACTNET mailing list is powered by L-Soft's renowned
LISTSERV(R) list management software together with L-Soft's LSMTP(R)
mailer for lightning fast mail delivery. For more information, go to:
http://www.lsoft.com/LISTSERV-powered.html
|
