Big Food is portrayed as the new Big Tobacco in a sweeping new report that links the industry’s influence to a global obesity epidemic, malnutrition and climate change.
The Lancet Commission on Obesity blamed a growth-focused sector for a system that gorges populations on empty calories while misusing land, energy and other resources. Without naming companies, the report released late on Sunday called for restricting the industry – led by multinationals such as Nestle, McDonald’s and Coca-Cola – from policy-related discussions.
Three years in the making, the report echoed past indictments of sectors such as tobacco, alcohol, energy and firearms for using political clout to shape laws, policy and health guidelines. The 43-member panel pointed to food companies’ lobbying prowess as a reason for nutrition recommendations that sometimes counter to scientific evidence.
“Although food clearly differs from tobacco because it is a necessity to support human life, unhealthy food and beverages are not,” William Dietz, a professor at George Washington University and one of the authors, said in a statement.
“The similarities with Big Tobacco lie in the damage they induce and the behaviours of the corporations that profit from them.”
A group representing the beverage industry said it remained committed to the United Nations’ call to improve public health with measures such offering lower- and no-calorie drinks, smaller packaging and responsible marketing.
It is “unfortunate that the authors of this article take a restrictive and exclusionary approach to broad problems,” the Washington-based International Council of Beverages Associations said in a statement. Coca-Cola said it backed the council’s view. McDonald’s and Nestle representatives declined to comment until they had seen the report.
A separate report this month in the British Medical Journal said that an industry-backed group, the International Life Sciences Institute, gained "unparalleled access" to government officials in China over the past few decades and helped steer nutritional guidelines away from discouraging high-sugar drinks and food. While the impact on obesity cannot be measured, "hard-hitting" dietary recommendations from the World Health Organisation were missing from China's policies, according to the study by Susan Greenhalgh, a Harvard University anthropologist.
The global rate of obesity has almost tripled in the past four decades, with more than a third of the world’s adults now in a weight range that increases risks of heart disease, cancer and other disorders, according to the WHO. Meanwhile, almost half of children under the age of 5 do not get needed nutrients – mostly in low- and middle-income countries – even as average weight increases.
The same unsustainable approach to agriculture and food production that feeds both obesity and malnutrition also propels climate change, the Lancet report's authors said.
“The coexistence of obesity and stunting in the same children in some countries is an urgent warning signal – and both will be exacerbated by climate change” as changing weather patterns complicate food production, they said.
The group called for a treaty that would exclude the food and beverage industry from policy development, similar to the WHO’s global conventions on tobacco. And because food production is one of the largest contributors to climate change, $5 trillion (Dh18 trillion) in US government subsidies that currently flow toward big agriculture companies and fossil fuels should be directed to sustainable farming and transport instead, according to the report.
Taxing red meat to reduce consumption would have benefits across the chain, the panel said, reducing greenhouse gas emissions, opening up more land for sustainable agriculture and potentially leading to healthier diets.
“Their goal is profit; our goal is health,” Mr Dietz said. “Food companies are trying to make the changes in the right direction, but when the choice becomes health versus profits, they choose profits.”
A framework treaty would particularly help smaller governments, who might too easily be “bullied by commercial interests”, said Tim Lobstein, policy director at the World Obesity Federation.
The food and beverage industry, which includes fast-food chains and soft-drink makers, had US lobbying expenditures of $22 million last year, according to the nonprofit Centre for Responsive Politics. The industry has been involved in issues such as nutritional requirements, labelling information and advertising, the organisation says.
Mr Dietz argues that a middle ground exists and calls for alternative business models for the 21st century that combine sustainability and profits. Food and beverage giants have already been shifting toward healthier products and have been cutting fat and sodium levels. Some firms have also committed to reducing plastic packaging and carbon emissions.
The commission acknowledges it is a David versus Goliath battle, and that change will require a social movement at a local and country level before it can reach global scale. Convincing consumers would be the first step.
“The anti-tobacco movement is about trying to put tobacco out of business,” said Corinna Hawkes, a professor at City University of London. “We’re not trying to put the food industry out of business. We want it to exist, but we want it to exist in a different way.”
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Mohammed bin Zayed Majlis
One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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