Council of Better Business Bureaus Children s Food and Beverage Advertising Initiative McDonald s USA Support Updated May 2012

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Dwayne Wilkerson
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1 Council of Better Business Bureaus Children s Food and Beverage Advertising Initiative McDonald s USA Support Updated May 2012 Entity Covered by Pledge: McDonald s USA, LLC ( McDonald's ) 1 McDonald s Plaza Oak Brook, IL Name of Person(s) Responsible for Overall Implementation of the Pledge: Neil Golden, Chief Marketing Officer, McDonald s USA Brand/Product Line Covered by Pledge: McDonald s Food and Beverages McDonald s believes that it can play a role in helping our customers achieve a balanced, active lifestyle. McDonald s is pleased to offer a variety of menu options for our customers. To that end, we continually evaluate our menu, looking for ways to serve the products that fit into our customers lives. For example, our expanded menu choice means that we offer hamburgers, chicken, apple slices, fruit and yogurt parfaits, oatmeal, and salads, as well as water, apple juice, milk and orange juice. We also provide information to help our customers achieve their well-being goals. Our website, tray liners, brochures, toll-free number, certain mobile applications and much of our food packaging, including Happy Meal packaging, contain nutrition information about our products. Our Happy Meal packaging often also includes well-being messages and activities. McDonald s is proud of our long heritage of responsible communication with our customers, especially children, and continues to play a leadership role in the development of standards that govern advertising for children and adults. McDonald s is an active member of the Children s Advertising Review Unit ( CARU ) Supporter s Council and participates in the CARU self-regulatory program. In November 2006, McDonald s was a charter member of the Council of Better Business Bureaus ( CBBB ) Children s Food and Beverage Advertising Initiative ( CFBAI ) that was developed by an industry task force whose members included McDonald s and other food companies. McDonald s is pleased to present our support of this initiative. 1

2 McDonald's Pledge: Advertising Messaging. 100% of McDonald's National Advertising 1 primarily directed to children under 12 years old 2 will further the goal of healthy dietary choices by advertising products that represent healthy dietary choices. McDonald's will achieve this objective by only featuring in National Advertising 3 primarily directed to children under 12 years old meals ( Advertised Meals ) that meet the nutritional criteria listed in Appendix A. The Advertised Meals and nutritional information for these meals are set forth in Appendix B. In addition, McDonald's will distribute advertising that prominently includes healthy lifestyle messages designed to appeal to children. By type of media, McDonald's support of the CFBAI will be as follows: Television. All McDonald's National Advertising on television primarily directed to children under 12 years old will feature Advertised Meals or components of those meals. In addition, some of McDonald s National Advertising will promote healthy lifestyle messages. Radio. All McDonald's National Advertising on radio primarily directed to children under 12 years old will feature Advertised Meals. Print. McDonald's generally does not utilize print media in its National Advertising primarily directed to children under 12 years old. Third-Party Internet. All food in McDonald's National Advertising on third party internet sites primarily directed to children under 12 years old will be Advertised Meals or components of those meals. McDonald s - Owned Websites. All food on pages of McDonald's owned websites that are primarily directed to children under 12 years old will be the Advertised Meals or components of those 1 National Advertising shall include any commercial message paid for and approved by McDonald's USA and its affiliates, in television, radio, print, internet, video and computer games, DVDs, cell phones, PDAs or word of mouth advertising that is disseminated to all or a substantial portion of the United States. National advertising does not include point of sale materials (i.e., menus, tray liners, kiosks, signs, food wraps, boxes, bags, packages). 2 Advertising primarily directed to children under 12 years old means: 1) media purchased according to Nielsen standard demographics for audiences under 12 for television and internet and media purchased according to Arbitron standard demographics for audiences under 12 for radio; or 2) media purchased for any program or website where the audience generally consists of 30% or more of children under the age of 12 years. 3 Measured in gross rating points at the time the advertising is purchased, for successive one-year calendar periods beginning January 1,

3 meals. In addition, McDonald's will distribute materials on its websites that include healthy lifestyle messages. Video and Computer Games. All food in McDonald's National Advertising in video and computer games rated Early Childhood or EC, or in video and computer games that are age graded on the label or packaging as being primarily directed to children under 12 years old, will be Advertised Meals or components of those meals. DVDs. All food in McDonald's National Advertising in DVDs of G rated movies that are primarily directed to children under 12 years old, and other DVDs whose content is primarily directed to children under 12 years old, will be Advertised Meals or components of those meals. Cell Phones and PDAs. All National Advertising on cell phones and personal digital assistant devices that is primarily directed to children under 12 years old, will include the Advertised Meals or components of those meals. Word of Mouth Advertising. All word of mouth National Advertising that is primarily directed to children under 12 years old will include the Advertised Meals or components of those meals. * * * * * Use of Licensed Characters. McDonald s will limit its use of third-party licensed characters, celebrities and movie tie-ins in paid advertising primarily directed to children under 12 to the promotion of healthy dietary choices. 4 McDonald s will limit its use of third-party licensed characters, celebrities and movie tie-ins on McDonald s owned websites primarily directed to children under 12 to the promotion of healthy dietary choices or healthy lifestyle messages. McDonald's intends to accomplish this objective by utilizing licensed characters, celebrities and movie tie-ins primarily in conjunction with Advertised Meals or components of those meals. * * * * * Product Placement. McDonald s will not pay for or actively seek to place its food or beverage products in the program/editorial content of any medium primarily directed to children under 12 years old for the purpose of promoting the sale of those products. * * * * * 4 As stated in the CFBAI principles document, this does not apply to the use of licensed characters on packaging, provided the packaging does not appear in advertising directed to children under 12. 3

4 Use of Products in Interactive Games. In any interactive game primarily directed to children under 12 years old where McDonald s food or beverage products are incorporated into the game, the interactive game will incorporate or be accompanied by products representing healthy dietary choices or healthy lifestyle messaging as defined by the CFBAI. * * * * * Advertising in Schools. McDonald s will not advertise its food or beverage products in elementary schools. However, McDonald s provides educators with curriculum materials and activities that address children s well-being. 5 IMPLEMENTATION SCHEDULE: McDonald's commitment with the new uniform nutritional criteria is effective starting March 31, As stated in the CFBAI principles document, this limitation will not apply to displays of food and beverage products, charitable fundraising activities, public service messaging, or items provided to school administrators. 4

5 Appendix A Children s Food and Beverage Initiative Category-Specific Uniform Nutrition Criteria Product Category Nutrients to Limit (NTL) Calories Sat Sodium Fat Total Sugars Nutrition Components To Encourage (NCTE) Notes Meals (entrée and other items including a beverage) % kcal 740 mg 20/15 g (See Notes) 2 servings of F/V/D/WG or 1½ servings of F/V/D/WG and 10% DV of three essential nutrients Meals must meet FDA/USDA definition for meals Sugars from one qualifying milk/milk substitute, or qualifying yogurt/yogurttype product, or qualifying fruit (i.e., without added sugars) or qualifying F/V juice are not counted in the 17 g or 20 g total sugars limits When two qualifying items are present, the sugars from both items are not counted in the total sugars limit, but the limits (to account for all other items) are reduced to 15 g All other NTL criteria for small meals and meals (calorie, sat fat, and sodium limits) must be met Trans fat. The criteria for trans fat is 0 g labeled for all categories. For foods in the meat and dairy categories served as individual foods or as part of composite dishes or meals (e.g., soups, mixed dishes, entrees, meal-type products), naturally occurring trans fats are excluded. Exemptions Sugar-free mints and gum. The following products also are exempt from the nutrient criteria specified above, except as indicated in Notes: Fruit products without added sugars; Vegetable products without added fats and which meet FDA regulations for very low sodium ; Beverages, including bottled waters, that meet FDA regulations for low calorie and very low sodium (diet sodas are excluded from this exemption). Abbreviations and Glossary DV: Daily Value. Essential Nutrients: Those occurring naturally in foods (or that are added to foods to meet standards of identity or to restore nutrients lost in processing), and for which a DV has been established. If fortification is used to meet the criteria, the nutrient must be a DGA 2010 nutrient of concern (calcium, fiber, potassium, vitamin D) or a nutrient that is required to be listed on the Nutrition Facts Panel (iron, vitamins A & C). 5

6 F/V/D/WG: Any combination of fruits, vegetables, non/low-fat dairy, and/or whole grains. LSS: Labeled serving size. NA: Not applicable. NCTE: Nutrient components to encourage are F/V/D/WG or Essential Nutrients. NTL: Nutrients to limit are calories, saturated (sat) fat, trans fat, sodium and total sugars. Qualifying F/V Juice: Any fruit or vegetable juice or blend that contains no added sugars and meets the requirements of Category 1. (See chart below). Qualifying Flavored Milk/Milk Substitute/Yogurt/Yogurt-type Product: These are products that meet the Category 2 criteria for milk/milk substitutes, or yogurt/yogurt-type products. (See chart below). RACC: Reference amount customarily consumed. Serving(s): See USDA Food Group Serving Equivalents. Total Sugars: Include naturally occurring and added sugars Product Category Unit Nutrients to Limit (NTL) Calories Sat Sodium Fat Total Sugars Nutrition Components To Encourage (NCTE) Notes 1. Juices LSS g 140 mg No added sugars 2. Dairy products ½ c F/V juices A serving must contain > 4 fl oz of 100% F/V juice Sugars limited to those naturally occurring in F/V -Milks and milk substitutes 8 fl oz g 200 mg 24 g 1 c dairy For LSS < 8 fl oz, NTL & NCTE to be scaled proportionately Powder/syrup flavorings mixed with 8 fl oz non-fat milk are allowed 25 g total sugars as prepared 6

7 Appendix B The Advertised Meals and the Nutrition Information for each Advertised Meal A. THE ADVERTISED MEALS 1) 4 Piece Chicken McNuggets Happy Meal with kids size fries, Apple Slices and 1% low-fat white milk 2) 4 Piece Chicken McNuggets Happy Meal with kids size fries, Apple Slices and fat-free chocolate milk 3) 4 Piece Chicken McNuggets Happy Meal with kids size fries, Apple Slices and Apple Juice Box 4) Hamburger Happy Meal with kids size fries, Apple Slices and fat-free chocolate milk 5) Hamburger Happy Meal with kids size fries, Apple Slices and Apple Juice Box 7

8 B. EACH ADVERTISED MEAL MEETS THE NUTRITIONAL CRITERIA Product Category Calories Sat Fat Sodium Total Sugars Nutrition Components to Encourage Trans Fat Meals (entrée + other items including a beverage) % kcal 740 mg 20/15 g (See Notes in Appendix A) 2 servings of F/V/D/WG or 1½ servings of F/V/D/WG and 10% DV of three essential nutrients 0 grams labeled excluding naturally occurring 4 pc McNuggets Kids Fries Apple Slices 1% Low Fat Milk % grams after two qualifying exemptions (12 grams in milk and 3 grams in apples) 1 serving of dairy (8 fl. Oz. low-fat milk) and ½ serving of fruit (1/4 cup of apples) and 10% Vitamin A 170 % Vitamin C 35% Calcium 25% Vitamin D 36% Protein Yes 4 pc McNuggets Kids Fries Apple Slices Fat-free Chocolate Milk 440 5% grams after two qualifying exemptions (22 grams from milk and 3 grams from apples) 1 serving of dairy (8 fl. Oz. fat-fat milk) and ½ serving of fruit (1/4 cup of apples) and 10% Vitamin A 160 % Vitamin C 35% Calcium 25% Vitamin D 38% Protein 10% Iron Yes 4 pc McNuggets Kids Fries Apple Slices 100% Apple Juice 400 6% grams after two qualifying exemptions (22 grams from juice and 3 grams from apples) 1½ servings of fruit from juice (6.75 fl. oz.) and ½ serving of fruit (1/4 cup of apples) In addition 260% Vitamin C 15% Calcium 20% Protein Yes Hamburger Kids Fries Apple Slices Fat Free Chocolate Milk 500 7% grams after two qualifying exemptions (22 grams from milk and 3 grams from apples) 1 serving of dairy (8 fl. Oz. fat-fat milk) and ½ serving of fruit (1/4 cup of apples) and 10% Vitamin A 160 % Vitamin C 45% Calcium 25% Vitamin D 44% Protein 13% Dietary Fiber 25% Iron Yes 8

9 Product Category Calories Sat Fat Sodium Total Sugars Nutrition Components to Encourage Trans Fat Meals (entrée + other items including a beverage) % kcal 740 mg 20/15 g (See Notes in Appendix A) 2 servings of F/V/D/WG or 1½ servings of F/V/D/WG and 10% DV of three essential nutrients 0 grams labeled excluding naturally occurring Hamburger Kids Fries Apple Slices 100% Apple Juice 470 8% grams after two qualifying exemptions (22 grams from juice and 3 grams from apples) 1½ servings of fruit from juice (6.75 fl. oz.) and ½ serving of fruit (1/4 cup of apples) In addition 260% Vitamin C 25% Calcium 15% Iron 28% Protein 11% Dietary Fiber Yes 9

10 THE BEVERAGES IN THE ADVERTISED MEALS ARE QUALIFYING ITEMS (i.e., meet the criteria of Category 1 and Category 2 as set forth in Appendix A) Product Category Unit Nutrients to Limit (NTL) Calories Sat Sodium Fat Total Sugars 1. Juices LSS 160 0g 140 mg No added sugars Nutrition Components To Encourage (NCTE) ½ c F/V juices Notes A serving must contain > 4 fl oz of 100% F/V juice Sugars limited to those naturally occurring in F/V 100% Apple Juice 6.75 fl oz 100 0g 15mg Yes Yes Yes 2. Milks and milk substitutes 1% Low Fat Milk Fat-free Chocolate Milk 8 fl oz g 200 mg 24 g 1 c dairy For LSS < 8 fl oz, NTL & NCTE to be scaled proportionately Powder/syrup flavorings mixed with 8 fl oz non-fat milk are allowed 25 g total sugars as prepared Yes g 125mg 12g Yes Yes 130 0g 135mg 22g Yes 10

Council of Better Business Bureaus Children s Food and Beverage Advertising Initiative McDonald s USA Support Updated January 2016

Council of Better Business Bureaus Children s Food and Beverage Advertising Initiative McDonald s USA Support Updated January 2016 Entity Covered by Pledge: McDonald s USA, LLC ( McDonald's ) 1 McDonald