Washington, 30 July - Food and beverage companies spent $1.62 billion to market their products to children in 2006, according to a study released by the U.S. Federal Trade Commission Tuesday.
The FTC study was requested by Congress in response to growing concern about childhood obesity in the United States. The study, however, did not look directly at the possible link between food and beverage advertising to kids and childhood obesity.
Estimates by the Institute of Medicine had previously put the marketing amount closer to $10 billion. FTC officials said the discrepancy was likely due to the institute including marketing to children of non-food products, as well as price promotions and coupons that are typically directed at parents.
"We are really hopeful that this can serve as a baseline for measuring future activity," said Lydia Parnes, director of the the FTC's Bureau of Consumer Protection.
Carbonated beverages, restaurant food, and breakfast cereals made up 63 percent, or just over $1 billion, of the total spent on marketing to children.
Roughly $870 million was spent on advertising to children under the age of 12.
For the 44 companies included in the study, advertising to children between the ages of 2 and 17 made up 17 percent of their total marketing expenditures in 2006.
The report also praised an initiative by the Council of Better Business Bureaus aimed at reducing child-directed advertising by food and beverage companies.
According to a council report, also released Tuesday, three companies participating in the voluntary program did not engage in any child-directed advertising and three others only advertised "better for you" products to children.
Coca-Cola Co, Hershey Co, and Mars Inc fulfilled pledges to eliminate all advertising to kids, while Kraft Foods Inc, Campbell Soup Co, and Unilever NV limited all, or virtually all, of their marketing to healthier products.
The six companies implemented their programs between July and December 2007. Fourteen companies total have now joined the program, including the most recent addition, Nestle SA .
The FTC report also offered guidelines for the industry, including recommendations that companies adopt and adhere to "meaningful nutritional standards" and expand the definition of advertising and marketing beyond traditional television and print media. The report also recommends companies stop all in-school promotions of products that don't meet nutritional standards.
"Most large food marketers are beginning to take their self-regulatory obligations seriously, and for that they deserve recognition," said FTC Commissioner Jon Leibowitz in a statement.