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$2 Billion for Easter Candy Alone - We have an explosion
of obesity and cancer in this country, and the food industry
has been forewarned--just like the tobacco industry the sugar
industry will soon be the target of class action lawsuits.
With the ever-increasing rates of obesity in the United States,
food companies are being warned that tempting consumers to
gorge on unhealthy foods could lead to lawsuits, increased
regulation and financial consequences.
Several obesity studies have already pointed the finger at
snacks and soft drinks as the main fuel behind the growing
obesity epidemic.
The warning comes just as the United States sold close to
$2 billion worth of Easter candy.
Investment bank JP Morgan issued the warning, saying that
food companies’ share prices could be at risk, especially
from potential litigation similar to what has faced McDonald’s.
Confectionery and soft drink manufacturers could be most
at risk. Recently, the theory that an excessive intake of
carbohydrates, particularly in the form of white sugar and
flour, is a major factor in obesity has begun to gain acceptance.
The theory was introduced to the mainstream through diets
such as the Atkins Diet.
In the United States, where close to 28 percent of men and
34 percent of women are obese, it is estimated that the condition
cost $117 billion in 2000, an amount that is closing in on
the $140 billion costs associated with smoking.
Industry groups such as the Grocery Manufacturers of America
and the National Restaurant Association say that food manufacturers
are not to blame for the obesity epidemic, to which they say
a number of factors contribute.
According to analysts, increased regulations could take the
form of anything from restrictions on advertising to stricter
labeling requirements. There could even be restrictions or
bans on distribution to certain areas, such as schools, hospitals
and government offices.
Financial
Times April 18, 2003
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