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News2015October › Big food groups lose millions in sales when fake health claims are removed › October 2015

Big food groups lose millions in sales when fake health claims are removed

Big food brands can lose millions of dollars in sales in just a few weeks when fake health claims are removed

Big food brands can lose millions of dollars in sales in just a few weeks when fake health claims are removed. Four brands, including Kellogg's and Dannon Activia, saw sales drop by around $12m almost immediately, new analysis has found.

Four brands-which had made false health claims-were analysed, and their sales tracked while the brand was making the health claim, and again afterwards when it had been removed.

Kellogg's Frosted Mini-Wheats-which had claimed could improve children's attentiveness by 20 per cent-saw sales drop by $3.5m in the US, while Dannon Activia yoghurts, which claimed made bowel movements regular, was down $3.82m.

Its other product, DanActive, which said could strengthen the body's defences, lost $400,000 in sales, and Airborne's nutritional supplements, which guaranteed cold-fighting protection, was down $3.63m.

Most of the sales were lost among new customers who had been attracted to the brands by their health claims, said researchers from the University of Chicago.

(Source: SSRN Electronic Journal, 2015; doi: 10.2139/ssrn.2559980)


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