New Baby Milk Action
publication exposes Nestlé strategy of denials and deception
over baby food marketing
14 April 2005
Nestlés
Chief Executive, Peter Brabeck-Letmathé, misled shareholders
at the company's Annual General Meeting today with a booklet
called Nestlé's Commitment to Africa.
The
strategy of claiming the company abides by the World Health
Assembly's International Code of Marketing of Breastmilk
Substitutes, despite well-documented evidence to the contrary,
is setting the worlds largest food company up for
a public relations disaster reminiscent of his 1999
book of government letters.
Baby Milk Action
is today publishing a pamphlet Nestlé
Public Relations Machine Exposed addressing the bogus
arguments used by the company. The audtiors Nestlé
commissioned to clear it of malpractice used Nestlés
discredited interpretation of the International Code and
subsequent WHA Resolutions and claim to have found only
three minor violations, while evidence gathered by the International
Baby Food Action Network (IBFAN)
in 69 countries shows systematic and institutionalised malpractice
.
Nestlé
has refused to attend a public tribunal proposed by Baby
Milk Action, where both sides and supporting experts would
present their cases before an independent panel.
Dorothée
Haller of Geneva Infant Feeding Action (GIFA) attended Nestlé's
AGM and raised before shareholders the disparity between
Nestlé's Instructions and the World Health Assembly
measures. She questioned why the auditors had cleared Nestlé
when IBFAN's Breaking
the Rules, Stretching the Rules 2005 report documents
systematic malpractice, including in Africa.
|
Nesté's
baby food marketing malpractice and attempts to divert
criticism through denials and deception cause serious
harm to the company's image. Mr. Brabeck's past interventions
(such as in 1999, from when the Marketing Week cover dates)
have generated headlines such as 'Mr.
Nestlé gets angry'.
|
Mike Brady, Campaigns
and Networking Coordinator at Baby Milk Action said:
"Mr. Brabeck
has a track record of shooting himself in the foot with his
aggressive approach to the baby milk issue. If Mr. Brabeck really
believes that the facts are on his side, why did he refuse to
send a company representative to the European
Parliament's Public Hearing into Nestlé in 2000 and
why has Nestlé rejected our proposal for a public tribunal
before an independent panel?"
Until March 2001 Nestlé
refused to even speak in public if Baby Milk Action was in the
room, but due to pressure from a boycott (the best supported consumer
action in the UK, according to Ethical Consumer Magazine) has
been attending debates at universities and schools, all of which
it has lost (click
here). Baby Milk Action has proposed a public tribunal be
held where each side could present its case at length to an independent
panel which could, with the help of expert witnesses, ascertain
who is telling the truth (click
here). Nestlé has repeatedly rejected this suggestion
at debates. Mr. Brabeck is concerned at the strength of the international
boycott and the baby food campaign, which caused him to reverse
the companys policy on labelling of complementary foods
two years ago. Nestlé had been refusing to abide by a 1994
World Health Assembly Resolution, which states complementary
feeding should be fostered from about 6 months, and
continued to label foods for use from 4 months or, in the case
of some infant teas, from 2 weeks of age. UNICEF wrote to Mr.
Brabeck in 1997 calling for him to change company policy (click
here) and the World Health Assembly adopted a further Resolution
in 2001. During national demonstrations in the UK in 2003, Nestlé
announced it was taking the initiative in changing
labels. Monitoring shows this promise is not being kept everywhere.
Nestlé malpractice
came under further scrutiny when the International Baby Food Action
Network (IBFAN)
launched its Breaking the Rules, Stretching the Rules 2004
monitoring report at the House of Commons on 13 May 2004, setting
out evidence from 69 countries (click
here for the report - click
here for a DVD of the launch).
Nestlé was again the worst of the 16 baby food companies
profiled. An Early Day Motion from Lynne Jones MP calling for
action was well supported. In a letter to IBFAN, Nestlé
head office claimed it was not aware of the systematic malpractice
documented in the report and requested information on where its
own advertisements had been published, materials distributed and
free supplies provided. IBFAN sent detailed information to Nestlé
head office last year, but has still not received a reply.
For further information
contact Mike Brady, mikebrady@babymilkaction.org
Tel: 01223 464420
Mobile: 07986 736179
Notes for Editors
-
The Nestlé
boycott has been launched by national groups in 20 countries
on all continents.
-
In
1999 Mr. Brabeck sent a hard-bound 183-page book of letters
to policy makers and critics around the world claiming it
contained official responses from 54 goverments that
verify Nestlé compliance with the International Code
of Marketing of Breastmilk Substitutes. Many of
the letters were clearly not the verifications Mr. Brabeck
claimed and Nestlé soon had to issue apologies when
some of the authors complained
that their letters had been misrepresented and used without
permission (click
here for details). On this occasion, Mr. Brabeck was reacting
to a ruling by the UK Advertisng Standards Authority against
a Nestlé anti-boycott advertisement in which the company
claimed to market infant formula ethically and responsibly.
After a two-year investigation, the ASA upheld all of Baby
Milk Action's complaints about the advertisement (click
here for details of the complaints and here
for the final ruling and here
for the Chief Executive's response).
-
A
company Nestlé paid to conduct an audit in Pakistan,
Emerging Market Economics, damaged its own reputation by clearing
Nestlé after reporting only three minor violations,
exactly the same claim as made in the African audits. EME
used Nestlé discredited interpretation of the WHA marketing
requirements and were forbidden from contacting monitoring
organisations or a Nestlé whistle blower who had documentary
evidence of malpractice, including the bribing of doctors.
Baby Milk Action wrote to Nestlé offering to provide
docuemntary evidence to the auditors and this was not passed
on. Instead the auditors were limited to interviewing doctors
and distributors from a list provided by Nestlé. In
November 2000 the European Parliament conducted a Public Hearing
into Nestlés baby food marketing activities.
This was boycotted by Nestlé, who instead sent Mr.
Sunil Sinha from EME to present the Pakistan audit. This became
embarrassing when UNICEFs Legal Officer, attending as
an expert witness, indicated that Nestlés marketing
instructions, used as the basis of the audit, were much weaker
than the WHA marketing requirements (click
here for details).
-
Nestlé Vice
President, Michael Garrett, presented Nestlé's report
to institutional investors in London on 22 March 2005, where
it was falsely claimed that Nestlé's Instructions are
stronger than the International Code and Resolutions. Click
here for details.
-
The Boston Herald
reported on Mr. Brabecks attitude to corporate social
responsibility on 9 March 2005. See http://business.bostonherald.com/businessNews/view.bg?articleid=72326
"Companies
shouldn't feel obligated to ``give back'' to the community,
because they haven't taken anything away, the Austrian-born
chief of the world's largest food company told local executives
yesterday. In a stunning broadside to corporate citizenship
as Bostonians have come to know it, Peter Brabeck-Letmathe -
head of Nestle S.A. - said companies should only pursue charitable
endeavors with an underlying intention of making money for investors."
|