Lloyds TSB became the latest UK bank to launch an Islamic current account, aimed at Britain’s 2 million Muslims. The account complies with Islamic law (Shariah), which prohibits both the payment and the receipt of interest. The funds held by Lloyds TSB on all Islamic current accounts will also be held in accordance with Islamic law. Contact Emile Abu-Shakra, Lloyds TSB 020 7356 1878 ( http://www.lloydstsb.com)
CAP IN HAND
Debt on our Doorstep, a debt charity, is calling for interest charged by doorstep lenders to be capped so consumers can avoid paying unnecessarily high rates. The calls are being made in its response to a Competition Commission inquiry into the home lending sector, following a complaint from the Office of Fair Trading, which is concerned that competition among lenders is restricted. Contact ( http://www.debt-on-our-doorstep.com)
BETTER WAY
The financial services industry should abolish the payment of upfront commission, the Association of British Insurers said in its proposals to reform the way in which financial advice is paid for. Financial Advice: How should we pay for it? suggests that rather than paying a lump sum to an advisor at the point of sale, customers should pay ‘trail commission’, where the advisor is paid over time depending on the provision of follow-up advice. Contact Alan Leaman, ABI 020 7216 7440 ( http://www.abi.org.uk)
FAIR PLAY
The Co-op launched a new website ( http://www.co-opfairtrade.co.uk) to coincide with Fairtrade Fortnight, which took place from March 1 to 13. The website shows how the social premium on fairtrade goods is spent and the benefits it brings to growers and their families, featuring some of their stories. During the fortnight, Co-op also reduced the price of all its own-label and branded fairtrade products by a fifth to encourage more people to try them. Contact Michelle Vernon, Co-op 0161 827 5290 ( http://www.co-op.co.uk)
GATHERING PACE
Sales of fair trade products grew by more than 50% in the UK last year according to figures released by the Fairtrade Foundation. In total consumers spent £140m on goods with the fairtrade logo last year. Coffee is the top selling product but bananas, chocolate and tea have also seen increased sales along with newer products such as flowers, wine and cooking oils. Contact Fairtrade Foundation 020 7405 5942 ( http://www.fairtrade.org.uk)
SPARKLING CLEAN
Oxfam America, EARTHWORKS and Global Witness are calling on jewellers to provide consumers with meaningful guarantees that the jewellery they buy is not tarnished with human rights abuses, environmental destruction or conflict. The groups are calling on the World Jewellery Confederation (CIBJO) to ensure that any steps it takes result in meaningful changes on the ground for communities currently suffering the impacts of dirty gold mining and the conflict diamond trade. Contact Alex Yearsley, Global Witness 07773 812 901 ( http://www.globalwitness.org)
PRICE FREEZE WARMS
EDF brands London Energy, Seeboard Energy and SWEB Energy are offering a price freeze to customers on low incomes who spend more than a tenth of their household income on energy. The offer suspends any price changes until at least March 31, 2006. The initiative is in line with recent calls from the DTI, Ofgem and Energywatch for the industry to introduce a social tariff to fight fuel poverty. Meanwhile, Debt and disconnection: gas and electricity supply companies and their domestic customers published by the Commons Trade & Industry Committee on February 10, recommends that disconnections of fuel supplies should not be allowed if energy suppliers fail to provide improved support to poorer customers. Contact Andrew Brown, EDF 020 752 2268 ( http://www.edf.co.uk); DTI 020 7215 5000 ( http://www.dti.gov.uk)
Fair, not square
The Day Chocolate Company launched a press campaign, coinciding with Fairtrade Fortnight, designed to challenge consumers’ assumptions about Fairtrade products. The campaign features fashion photographs of three women from within the Ghanaian farming community that supplies Divine chocolate’s cocoa, coupled with suggestive slogans. The company is trying to make its product a mainstream rather than niche product, and to present the brand as ‘fairtrade with attitude.’ Contact Charlotte Borger, The Day Chocolate Company 020 7378 6550 ( http://www.divinechocolate.com)
DROP THE DEBT
EDF Energy and Scottish Power are leaders in helping consumers avoid fuel debt and disconnection, finds a report commissioned by Energywatch, a consumer watchdog, and Ofgem, the energy regulator. The report monitored the suppliers’ progress against guidelines to prevent debt and disconnection. Its overall message is that suppliers must improve their communication channels with consumers especially the more vulnerable. It recommends that all suppliers:
l set targets to measure performance and effectiveness of their debt prevention strategies
l work hard to improve communication as consumers feel suppliers are difficult to contact and that they do not understand their circumstances
l make greater efforts to advise consumers on budgeting and energy efficiency measures.
Energywatch says that companies use billing as the principal means of communication with consumers, but consumers say that inaccurate and confusing bills are often the reason for their debt. Contact Richard Robinson, EDF 020 7752 2266 ( http://www.edfenergy.com)
HEALTHIER HAPPY MEALS
McDonald’s is encouraging consumers to eat well and take exercise in order to lead healthy lives with an updated slogan, “it’s what i eat and what i do… i’m lovin it”. The company is spending £7.4m in the UK on an advertising campaign to re-position itself as an authority on nutrition. All advertisements for Happy Meals, which are aimed at children, will feature fruit or vegetables. The company is adding five healthier options to its Happy Meals and has created a chart for parents listing the calories, fat, saturated fat, salt and added sugar in 108 potential Happy Meal combinations. Meanwhile, in the US and other major markets, packaging is to feature advice on healthy living. Contact Amanda Pierce, McDonald’s 020 8700 7320 ( http://www.mcdonalds.com)
Bad characters
The use of cartoon characters to sell unhealthy food is boosting Britain’s childhood obesity epidemic, campaigners have said in a report published on February 24. Which? the consumer organisation has described the use of popular cartoon characters on products as “manipulative marketing ploys” that make it more difficult for parents to refuse their children these foods. The organisation is calling on the companies that license film and television cartoon characters to behave more responsibly over the foods they endorse. Contact Which? 0845 307 4000 ( http://www.which.net)
Alcohol awareness
Allied Domecq announced on March 14 that as of April 2005, it is to introduce a sensible drinking message in addition to alcohol unit labelling to all its spirits and fortified wine brands sold in the UK. Under the group’s Beyond Compliance initiative, the new labels will also reiterate the government’s daily recommended number of units for men and women and state how many units of alcohol are in a standard drink. They will also carry contact details of the drinkaware website from where further information and support can be obtained. Contact Stephen Whitehead, Allied Domecq 020 7009 3959 ( http://www.allieddomecq.com)
LIBELLOUS LABELLING
The nutritional information on several food products is “wildly inaccurate” according to a new report, published by consumer magazine, Which? The report looked at 570 nutrients listed on 70 different products and found that just 7% of nutrients matched exactly with what the label said. There is, however, no specific law about how accurate the information on food labels should be. Lacors, the body that advises trading standards officers about enforcing food laws, says that an acceptable margin of error is 20% either side of the amount on the label – nearly a fifth (17%) fell outside the agreed margin of error. Contact Which? 0845 307 4000 ( http://www.which.net)
WHAT’S IN A NAME?
The Advertising Standards Authority has banned an advertisement for McVitie’s low-fat bars that claimed they were “the healthier choice”, after the biscuit giant admitted they contained as much sugar as regular bars. United Biscuits said it had not intended to imply the low fat content of the products meant they were healthy but that because the bars contained natural ingredients they were a healthier choice. Contact United Biscuits 020 8234 5000 ( http://www.unitedbiscuits.com)
SMOKING GUN
The first global tobacco control treaty negotiated under the auspices of the World Health Organisation came into effect on February 27. Signatory countries to the treaty, which include the UK, France and Germany, must incorporate the treaty’s provisions into their national legislation. This includes the use of health warnings on tobacco packaging and the introduction of bans on tobacco advertising, promotion and sponsorship. WHO points out that tobacco is the only legal product that kills half of its regular users. Seven out of ten tobacco-related deaths are projected to occur in the developing world if current trends continue. Contact WHO 00 41 22 791 2222 ( http://www.who.int)
ALCOHOL EDUCATION
SABMiller has provided support to Addaction, a UK drug and alcohol treatment charity, to help develop an education resource pack for schools focusing on alcohol education. SABMiller is funding the evaluation of Know Limits, a resource pack launched in Cornwall in 2002, which is to be market tested in Bristol and Avon. The evaluation will provide the basis for a marketing plan to promote and distribute the pack and incorporate any changes required to make it more user friendly. Contact Elliot Elam, Addaction 020 7251 5860 ( http://www.addaction.org.uk)
Inbrief
PepsiCo has announced that it is to limit its advertising to children in Europe and the United States. It has stopped advertising Cheetos to children under the age of eight and Pepsi to children under twelve in Europe, and has limited portion sizes for snack items sold in US schools. Contact PepsiCo ( http://www.pepsico.com)
UBS, the Swiss financial services group, held a conference in New York in February. The conference aimed to assess the impact of America’s obesity problem on food and drinks companies. Contact Sarah Small, UBS 020 7568 2609 ( http://www.ubs.com)
Yum Brands is offering free gym membership to customers to market itself to consumers who wish to curb their consumption of fatty foods in the New Year.
McDonald’s has hired US entertainment marketing firm Maven Strategies to help the fast-food chain encourage rap artists to integrate the Big Mac sandwich into their songs. According to advertising industry magazine Advertising Age, the fast-food chain has offered to pay rappers $5 (£2.75) every time a song name-checking the Big Mac is played. For the deal, McDonald’s receives approval of the lyrics, but it will ultimately allow artists to decide how the Big Mac is integrated into their sings. Maven has reportedly received several songs for consideration. A McDonald’s spokesperson said the tie-in is part of the company’s two-year-old ‘i’m lovin’ it’ ad campaign, the objective of which is to find “culturally relevant” ways to connect with 18- to 34-year-olds. ( http://www.adage.com)
Editorial Comment
Product placement is hardly a new concept in the world of entertainment. Companies keen to embed products firmly in consumers’ minds have been plugging their goods through various media outlets since the early days of Hollywood. The first ever example was probably Gordon’s gin in 1951’s African Queen. Top Gun, partly funded by the US Navy, sent recruitment soaring. But McDonald’s plan to pay rappers to name-drop their ubiquitous ‘Big Mac’ sandwich into songs takes the concept one step further and arguably jars somewhat with the almost simultaneous launch of its healthy-eating campaign. After all, the statistics are pretty clear: the obesity problem in the US is especially bad in urban, underprivileged neighborhoods, which is exactly where rap music has mass appeal. Admittedly, rap music transcends the ‘urban poor’, but isn’t it about time McDonald’s stopped worrying so much about being “culturally relevant” and instead started doing more about being a responsible advertiser? It’s only when this happens that we will all start lovin’ (SIC) what McDonald’s does.
Corporate Citizenship Briefing, issue no: 81 – April, 2005
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