SOURCE: Bellwether Report

Bellwether Report

June 18, 2010 08:43 ET

Preemptive Steps to Avoid Reforms

JOHANNESBURG, SOUTH AFRICA--(Marketwire - June 18, 2010) - - If there is one thing most industries fear nowadays with an economy still lingering with its recovery progression it is to give the government a good reason to set in motion drastic reforms. The Obama administration so far has been able to push one historic healthcare reform to law, has managed to get the Republicans working alongside them on a financial reform, is putting BP's chief executive Tony Hayward through an ordeal that has the oil industry's attention, and now has caught the attention of the food and beverage industry regarding the risk to health their products may have on the public. One of the most challenging health issues weighing on the nation's well-being for years now is obesity and the first lady is already working hard to get the attention and collaboration of the food and beverage industry giants the like of Campbell Soup Co. (NYSE: CPB) and Pepsico Inc. (NYSE: PEP), and the support of the general public. 

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In an effort to revamp their image to impress the White House and the American people, large food companies have joined the campaign for less sodium content in food even if in a recent report the FDA stated that it is not planning to regulate the limit of sodium in food. So whether it is good faith or just a preemptive action to avoid tougher regulations from the FDA in the near future, some companies have already started delivering on their promises. Campbell Soup, for instance, has announced at the beginning of this week that it will begin shipping 21 new condensed soups with 25% to 45% less sodium to retail markets throughout the U.S. These new varieties of 21 soups add to over a hundred other delectable soups that have seen their sodium levels go down throughout the industry. Pepsico has also announced that it is looking into ways to reduce sodium in some of its products.

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Acting on goodwill could pay on the long-term for larger players in the industry, as they get to slowly adjust their brand-loyal customers to the new dietary changes expected from the White House at a reasonable pace, and hence avoid sending their profits into salty waters. Register now at to have free access to this report.

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