Book review: Soda Politics: Marlon Nestle
ALL OF us are aware of the harm caused by the consumption of tobacco; the games played by these companies and their lobbyists are well-documented. Perhaps less known is the soda business, which refers to the colas that are consumed quite liberally by all of us. Marion Nestle, a professor in health and nutrition, puts before us facts about colas, with the story surrounding how Pepsi and Coke operate. The revelations are shocking and will make one think harder, not only about how these companies work, but also the way in which a camouflage is created. In fact, what holds for sodas also holds for several other products that we consume. If we extend this story to a wide array of products, the picture is quite scary.
Colas are known to have excessive calories from sugar, which contributes to dental problems, as well as obesity, besides being one of the major causes of Type 2 diabetes. While consciousness is growing about their ill effects, their consumption is still very high across the world.
The product as such is very rudimentary, with a very low cost of production. The main raw materials are just water and sugar. Yet these companies end up making a huge profit. In particular, they have targeted children, and while several countries have put restrictions on sale near schools for children below the age of 12 years, it does not really work. Further, they have targeted lower-income groups, which are primarily the Hispanics and coloured sections in the US, where it is popular. The economics of pricing ensures that large bottles and cans sell cheaper than smaller ones, so that people end up drinking more. They have also spread out to developing countries, with China and India being two targets, where the population and consumption is high.
Nestle, in her book, exposes all the techniques used by these companies to maintain their image. They sponsor sports events, which ensure that the consumption is even higher than the sponsorship money. Next, they contribute substantially to educational institutions, but also ensure that they have only their cola available. Most managements fall for this, as the money is attractive and helps to cover overheads.
Further, they do a lot of good work in terms of social good, which is done mainly to maintain their image as being companies that care for society—never mind that they have been responsible for guzzling water. While their product per se does not use that much water, the sugar usage, which is 10 spoons per can of 10 ounces of the drink, is based on sugarcane, which, in turn, requires a lot of water during cultivation. Starting from cane-growing to the content, bottles and packaging, it has been estimated that half litre of the drink can use 170-310 litres of water, which is mindboggling. And to ensure that they are on the right side of the government, they are large contributors to all political parties, which just reinforces their clout.
The author also points out that while there has been a lot of criticism of the ill effects of drinking colas, both Coke and Pepsi have commissioned and influenced studies that are equivocal on the use of these drinks and say that reasonable consumption is safe. But these limits are never specified. It is not surprising to find reputed medical experts placed in important positions who serve as conduits for their advocacy. Also, health experts are taken on board and made known to the community, as the assumption is that if these professionals are involved, the product has to be safe. Similarly, they have had several management experts and critics write on all the good they have done for society, which camouflages the harm caused by these drinks.
The soda, or rather the cola industry, involves a long value chain in the production process, which goes beyond the company. The syrup producer is critical, as is the bottler, distributor and retailer. These layers add to the cost and are big industries on their own in various countries, and have to be taken along by the industry. Colas have been priced strategically higher than water, which is also sold by these companies, to ensure that one drinks more soda and less water. Higher sales hence add to the profits of the entire value chain.
Nestle, interestingly, traces their marketing strategy, which provides clues to all FMCG companies on what they should do to make customers addicted to their products. The first is advertising, without which the product cannot remain high in the customer’s mind. The second is to have a strategy that appeals to human desire, where the image is more important than the product. Third, the product has to be ubiquitous and should be available everywhere, so that after the first two goals are achieved, it becomes a household name. Fourth, all methods should be used for marketing, like supermarkets, mass retailers, drugstores, vending machines, etc. Fifth is the really important use of music and sports celebrities for endorsements. In India, we have witnessed the use of film stars, who probably are better known than music personalities. Sixth, the product has to be cheap. In India, as colas are still considered to be an expensive drink, we have seen smaller bottles being sold or larger ones at an economical rate to attract customers. Last, it is made attractive to all communities. To give an example, these companies support the LGBT community to gain a share of their wallet.
This book is quite interesting even while being controversial, as it exposes the games played by these companies. One can assume that all the criticisms are true, as they are based on a lot of evidence of what goes on in the background. Or else, the author could run the risk of libel, given the power that these companies wield. The reader will certainly think twice before bringing these drinks home; this reviewer has actually given up colas after reading this book.
ALL OF us are aware of the harm caused by the consumption of tobacco; the games played by these companies and their lobbyists are well-documented. Perhaps less known is the soda business, which refers to the colas that are consumed quite liberally by all of us. Marion Nestle, a professor in health and nutrition, puts before us facts about colas, with the story surrounding how Pepsi and Coke operate. The revelations are shocking and will make one think harder, not only about how these companies work, but also the way in which a camouflage is created. In fact, what holds for sodas also holds for several other products that we consume. If we extend this story to a wide array of products, the picture is quite scary.
Colas are known to have excessive calories from sugar, which contributes to dental problems, as well as obesity, besides being one of the major causes of Type 2 diabetes. While consciousness is growing about their ill effects, their consumption is still very high across the world.
The product as such is very rudimentary, with a very low cost of production. The main raw materials are just water and sugar. Yet these companies end up making a huge profit. In particular, they have targeted children, and while several countries have put restrictions on sale near schools for children below the age of 12 years, it does not really work. Further, they have targeted lower-income groups, which are primarily the Hispanics and coloured sections in the US, where it is popular. The economics of pricing ensures that large bottles and cans sell cheaper than smaller ones, so that people end up drinking more. They have also spread out to developing countries, with China and India being two targets, where the population and consumption is high.
Nestle, in her book, exposes all the techniques used by these companies to maintain their image. They sponsor sports events, which ensure that the consumption is even higher than the sponsorship money. Next, they contribute substantially to educational institutions, but also ensure that they have only their cola available. Most managements fall for this, as the money is attractive and helps to cover overheads.
Further, they do a lot of good work in terms of social good, which is done mainly to maintain their image as being companies that care for society—never mind that they have been responsible for guzzling water. While their product per se does not use that much water, the sugar usage, which is 10 spoons per can of 10 ounces of the drink, is based on sugarcane, which, in turn, requires a lot of water during cultivation. Starting from cane-growing to the content, bottles and packaging, it has been estimated that half litre of the drink can use 170-310 litres of water, which is mindboggling. And to ensure that they are on the right side of the government, they are large contributors to all political parties, which just reinforces their clout.
The author also points out that while there has been a lot of criticism of the ill effects of drinking colas, both Coke and Pepsi have commissioned and influenced studies that are equivocal on the use of these drinks and say that reasonable consumption is safe. But these limits are never specified. It is not surprising to find reputed medical experts placed in important positions who serve as conduits for their advocacy. Also, health experts are taken on board and made known to the community, as the assumption is that if these professionals are involved, the product has to be safe. Similarly, they have had several management experts and critics write on all the good they have done for society, which camouflages the harm caused by these drinks.
The soda, or rather the cola industry, involves a long value chain in the production process, which goes beyond the company. The syrup producer is critical, as is the bottler, distributor and retailer. These layers add to the cost and are big industries on their own in various countries, and have to be taken along by the industry. Colas have been priced strategically higher than water, which is also sold by these companies, to ensure that one drinks more soda and less water. Higher sales hence add to the profits of the entire value chain.
Nestle, interestingly, traces their marketing strategy, which provides clues to all FMCG companies on what they should do to make customers addicted to their products. The first is advertising, without which the product cannot remain high in the customer’s mind. The second is to have a strategy that appeals to human desire, where the image is more important than the product. Third, the product has to be ubiquitous and should be available everywhere, so that after the first two goals are achieved, it becomes a household name. Fourth, all methods should be used for marketing, like supermarkets, mass retailers, drugstores, vending machines, etc. Fifth is the really important use of music and sports celebrities for endorsements. In India, we have witnessed the use of film stars, who probably are better known than music personalities. Sixth, the product has to be cheap. In India, as colas are still considered to be an expensive drink, we have seen smaller bottles being sold or larger ones at an economical rate to attract customers. Last, it is made attractive to all communities. To give an example, these companies support the LGBT community to gain a share of their wallet.
This book is quite interesting even while being controversial, as it exposes the games played by these companies. One can assume that all the criticisms are true, as they are based on a lot of evidence of what goes on in the background. Or else, the author could run the risk of libel, given the power that these companies wield. The reader will certainly think twice before bringing these drinks home; this reviewer has actually given up colas after reading this book.
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