International boycott
against Nestle continues
By Mary Assunta, Third World Network
The international boycott against Nestle is very much alive
since its launch two decades ago. This boycott is still on because
Nestle continues to employ unethical marketing tactics in many
countries.
Nestle is one of the world's largest food manufacturers, with
a turnover of U.S. $42 billion. It controls approximately 40%
of the worldwide market for baby food. It influences UN systems,
food legislation, market trends and company behavior more than
any other food company.
Nestle's persistence in violating the World Health Organization
(WHO)'s International Code of Marketing of Breast-milk Substitutes
was once again revealed in a four-country research commissioned
by the Interagency Group on Breastfeeding Monitoring (IGBM). Entitled
'Cracking the Code', the report reveals the massive scale of company
marketing malpractice.
Initially Nestle dismissed the IGBM report, even before reading
it, and announced on BBC World Service that it would not accept
reproaches from self-appointed groups'. However in the face of
the scandalous findings a week later Nestle changed its tune to,
'We take this report seriously.'
According to the latest Update of Baby Milk Action's Boycott
News, the international boycott is having an important impact
on Nestle, not only in direct economic terms but also in wielding
damage to its corporate image, management morale and management
time the company must spend combating it.
The Update reports that in recent years many companies have
reversed policies as a result of public pressure, to the benefit
of people, the environment and their own image. Nestle however
has only curbed some of its more blatant malpractices.
The Update states that Nestle's latest efforts in countering
the boycott is to advertise itself as a squeaky clean beneficial
force by distorting facts. An advertisement which appeared in
the Oxford Independent claims that even before the introduction
of the WHO Code, '... Nestle marketed infant formula ethically
and responsibly and has done so ever since.'
The Update however cites some examples of Nestle's promotions
in India where there are laws to prevent companies from advertising
infant formula. Nestle has come around this by aggressively promoting
other expensive processed baby food products with idealized pictures
of babies on the tins and in a language locals don't understand.
Such promotions continue to undermine breast feeding.
Nestle is the sole advertiser of baby foods in the Indian
edition of Parenting magazine and its Cerelac advertisements are
found in pharmacies. It even offers cash incentives for local
salespersons to display products. A pharmacist in Jaipur said
that only Nestle representatives are offering payment in return
for a prominent display of baby foods. He receives 200 rupees
each month.
The Update also points out that the advertisement in the Oxford
Independent makes no mention of criminal charges against Nestle
in India or the company's challenge to the Indian law, or its
attempts to undermine strong baby food legislation in the Philippines,
Ghana, Pakistan, Uganda and Europe.
The advertisement mentions Nestle's new Charter on its infant
formula policy in developing countries. However despite its attempts
to whitewash its real practices with a feeble Charter the truth
is Nestle continues to undermine legislation in many countries,
promote its products through health facilities, give gifts to
health workers and has never disciplined its staff for violating
the International Code.
While Nestle's biggest complaint has been over-regulation
and has been actively undermining attempts to bring about strong
baby food legislation in many countries, ironically it is calling
for legislation of a different kind to be strictly enforced.
Nestle wants its corporate brand - the nest - to be protected
and entrenched in the law and strictly enforced by the authorities.
The Update reports that Nestle's Vice President, Peter Brabeck,
made this call for better brand protection and speedy trade deregulation
when addressing government representatives of developing countries
at the October 1996 Global Investment Forum organized by the United
Nations Conference on Trade and Development (UNCTAD).
He said, '... Our corporate brand - the nest - is the seal,
it takes our products out of anonymity which one might find with
other products... The consumers' trust helps us to introduce completely
new concepts...'
For decades Nestle has used 'the nest' to get mothers to 'trust'
in their products which have caused suffering to infants all over
the world. This is indeed a scandalous betrayal of trust, especially
of the poor from developing countries.
In the face of Nestle's continuous irresponsible marketing
practices, the international boycott against the company is still
on in 17 countries. This boycott will continue till Nestle stops
its irresponsible behavior.
Mary Assunta is a media officer with the Consumers' Association
of Penang in Malaysia. This article is based on information from
Boycott News, supplement to Baby Milk Action, Update 20, February/March
1997.
For more information, please contact:
Third World Network
228, Macalister Road, 10400 Penang, Malaysia.
Email: twn@igc.apc.org; twnpen@twn.po.my
Tel: (+604)2293511,2293612 & 2293713;
Fax: (+604)2298106 & 2264505
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