Nestlé, the world’s largest consumer packaged food company, rocked the food space in 2018 by leaving the industry’s most

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

Nestlé, the world’s largest consumer packaged food company, rocked the food space in 2018 by leaving the industry’s most

Post by answerhappygod »

Nestlé, the world’s largest consumer packaged food company,
rocked the food space in 2018 by leaving the industry’s most
powerful special interest group in the United States,
the Grocery Manufacturers Association (GMA),
amid disagreements about how to respond to changing consumer
tastes. The GMA is famous as an attack group for large companies
like Kraft and General Mills on US legislative and regulatory
issues, but many major members now oppose some of its positions.
The departure of Nestlé (a conglomerate that owns thousands of
brands) was a major sign that the GMA’s influence (and perhaps the
whole food industry’s influence) on US federal regulation may be
weakening.

GMA’s problems first emerged in 2014 when the US Food and Drug
Administration (FDA) unveiled a plan to start requiring foods to
list “added sugars” on their labels by 2020. The GMA argued that
such changes would only confuse consumers, but some members
publicly disagreed. Mars (one of the largest private global food
companies) argued that it was good for their businesses to embrace
changes that they believed consumers increasingly wanted, and
Coca-Cola bypassed GMA to tell the FDA that the new labels should
be introduced sooner. According to one food marketing expert,
"These companies are realizing that being more progressive is a
good place to be…They get kudos for it."
Since 2016, more and more companies have left GMA. Last year, not
only Nestlé but also Dean Foods (the largest dairy company in the
US) and Campbell (maker of iconic red-and-white cans of soups,
Goldfish crackers, and V8 juices) left, in part because the GMA
found itself being mocked and scorned in the media for fighting
bitterly against mandatory labeling for foods with genetically
modified ingredients, or GMOs. The GMA, backed by scientists,
highlight that there is currently no evidence that GMOs are
unhealthy for consumption, but this has not stopped the rise of a
widespread belief among consumers that they are somehow dangerous.
Observing this, Campbell had already started GMO labeling on their
own, arguing that part of their values would now embrace the idea
that consumers should have more information about their food
(regardless of whether they understand or appreciate what that
information means). Campbell then then surprised the industry by
joining the Plant Based Foods Association (PBFA), a new competitor
to the GMA that represents alternative foods and “all natural”
companies. The PBFA has lately been more effective at negotiating
regulation than GMA, in part by arguing positions that are more
popular with consumers (which make it and its members look good).
Furthermore, PBFA membership dues for large companies like Campbell
are only $25,000, much less than the $317,000 Campbell had been
paying GMA.
Which of the following best
describes the role that the GMA (now the CBA)
fulfills for its member companies?
Group of answer choices
Press relations
Advertising
Investor relations
Personal selling
Lobbying
Development
please explain in 3 sentences (max)
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply