The Sweeter Side of Big Food: Real Change or “Greenwashing?”

Unhealthy snacks are not only a ubiquitous feature in markets across the country (usually at the checkout section where customers make last minute purchases), but also fill vending machines in hotels, office buildings, gas stations and even hospitals. It seems these products continue to be highly popular and particularly profitable despite a growing number of voices warning about the negative health effects of ultra processed foods (UPFs).

The industry faces potential regulatory challenges, particularly regarding UPFs, which are increasingly linked to health issues such as obesity and metabolic syndrome. While the debate over the role of UPFs in the diet is ongoing, dietary guidelines in several countries now recommend reducing their consumption. One of the stated goals of the “Make America Healthy Again” (MAHA) movement is to improve the quality of the American diet, including removal of UPFs from our food supply. The success of this movement in a climate of hostility for any regulation in the production and processing of our food will need to be seen.

However, despite increasing number of the health warnings, major companies the world of packaged foods are betting big on high-calorie products.

Mars, known for its chocolate products such as Snickers and M&Ms, recently announced a massive $36 billion acquisition of Kellanova, the maker of Pringles and Pop-Tarts. This move isn’t isolated. Smucker’s, known for jams and peanut butters, completed a $6 billion acquisition of Hostess Brands, famous for Twinkies and Ho-Hos, just last November.

These acquisitions highlight the lucrative nature of the packaged food industry, one of the major sources of excessive sugar entering our food supply. The ten most valuable packaged-food and soft-drink companies in the West boast a combined market capitalization of around $1 trillion. With an operating margin of 17% last year—far surpassing the typical 2-4% for grocers—these firms continue to thrive even amid rising inflation, showing a 5% growth in sales on average.

However, this industry isn’t without its challenges, with some good news for the health of the American consumer. There’s growing concern over the health impacts of the products being offered, especially as weight-loss drugs become more accessible and affordable. These drugs, such as Wegovy, Ozempic and Zepbound, have shown potential to significantly reduce cravings for high-calorie foods. Research indicates that individuals on these medications tend to cut their grocery spending by 11% on average, with a more substantial reduction in snack and confectionery purchases.

“Companies have been proactive in catering to health-conscious consumers.”

In response to these health challenges, the food industry has shown “resilience” and adaptability. Companies have been proactive in catering to health-conscious consumers. For instance, Coca-Cola launched Diet Coke back in 1982 and has since introduced various sugar-free alternatives. The trend towards reduced sugar options is evident, as Mintel reports a 2% annual increase in health-conscious snack launches from 2015 to 2020. However, while these new products have a lower sugar content than traditional snacks, the replacement of sugar by non-nutritive sweeteners doesn’t necessarily create a healthier product as studies in patients with type 2 diabetes have clearly shown.

Moreover, companies like Nestlé are gearing up for a future where low-calorie, high-nutrient foods become the norm. Nestlé plans to launch a new frozen-food brand, Vital Pursuit, specifically targeting users of weight-loss drugs. This brand will focus on providing meals that are not only low in calories but also rich in essential nutrients.

As the food industry navigates these changing tides, it remains to be seen how it will adapt to the growing health consciousness among consumers and potential new regulations. The ability of these large corporations to swiftly develop and market new, healthier products could be key to maintaining their dominance in the market. However, a significant shift away from heavily processed foods will require more than just minor recipe adjustments, posing a real test to the adaptability and resilience of Big Food.

“Similar strategies were pursued by the tobacco industry for years…”

The question remains: are the new offerings of more health-conscious products just a clever way of “greenwashing” the major suppliers of the UPFs in our food supply, representing a very small percentage of their overall profits from the continued sales of sugary and unhealthy foods? Similar strategies were pursued by the tobacco industry for years, promoting menthol flavored filter cigarettes and other “healthy” tobacco products.

I personally have experienced this strategy during my visit to one of the biggest producer of breakfast cereals and snacks several years ago. I was invited to talk about the benefits of dietary fiber and polyphenols and spent the first half of my visit meeting with company scientists and executives who seemed genuinely interested in developing new healthy substitutes for the company’s bestselling, but unhealthy products. The surprise came at the end of my visit, when I was invited to a big meeting of company people from around the world in which the chief executives of the company showed statistics and boasted about the continued profitability of some of their unhealthiest products.

Ultimately, it is the consumer who has to make the healthy choices every day to stay clear of the addictive sugary snacks, drinks and power bars. Maintaining the addiction by simply switching to artificially sweetened products, or a lifelong consumption of anti-obesity drugs is not a healthy or a long term solution. Major educational and awareness campaigns targeted at children and adolescents about the hidden dangers of UPFs including snacks, power bars and sugary drinks may be most promising first step.