Monday, June 26, 2006
Guilty diversification
Its an incredible trend these days that companies find a niche against themselves. McDonalds started with their "salad and water" substitution to "Big Mac and Coke" menu. Recently on June 19th, Nestle announced that it will buy weight loss outfit Jenny Craig. This trend is not new. For a while now, Coke and Pepsi has been diversifying into healthy products such as bottled water and juices to balance their carbonated portfolio. Nestle owns Lean Cusine.
Recently in May 2006 Bill Clinton brokered an agreement with US beverage industry that they not sell non-diet drinks in schools. There is a similar commitment by beverage industry in Europe.
Did these corporations suddenly turn altruistic?. Or is it pangs of guilt?. The real answer is plain old profits. These products, under the garb of being socially responsible, carry more margins than their traditional fizzy offerings. This thought provoking article explains how and even goes deeper to examine the ecological and social costs as well. A 20 oz. bottled water costs $1 which is $6.40 a gallon!. If you think it should actually be retailing for few cents and infact should cost practically nothing coming out of your taps. And by the way, everytime you eat Nestle chocolates, think about how your money is going towards researching engineered foods
Recently in May 2006 Bill Clinton brokered an agreement with US beverage industry that they not sell non-diet drinks in schools. There is a similar commitment by beverage industry in Europe.
Did these corporations suddenly turn altruistic?. Or is it pangs of guilt?. The real answer is plain old profits. These products, under the garb of being socially responsible, carry more margins than their traditional fizzy offerings. This thought provoking article explains how and even goes deeper to examine the ecological and social costs as well. A 20 oz. bottled water costs $1 which is $6.40 a gallon!. If you think it should actually be retailing for few cents and infact should cost practically nothing coming out of your taps. And by the way, everytime you eat Nestle chocolates, think about how your money is going towards researching engineered foods
# posted by Bala Girisaballa : 12:28 PM
