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Why is the Soda Lobby Happy?

by: Jill Richardson

Wed Mar 24, 2010 at 15:50:32 PM PDT


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The American Beverage Association (i.e. the soda lobby) seems awfully happy about the school lunch bill in the Senate. Should we be worried? They began last year by spending a mere $200,000 in lobbying in the first quarter. They increased to $1,330,000 in the second quarter, $7,550,000 in the third quarter, and $11,010,000 in the fourth quarter. (Additionally, they began in the first quarter with their own lobbyists plus the help of two outside lobbying firms, added two new lobbying firms in the second quarter, and another one in the third quarter.) They've also testified at Congressional hearings on school lunch.

I realize that much of their spending is related to defeating a soda tax, but some of it is for school lunch and child nutrition programs too. They are scared shitless that Congress will ban vending machines from schools (a great idea!). Thus, they are promoting their own, voluntary, "self-regulation:"

The beverage industry is committed to the health and wellness of its consumers, including America's schoolchildren. Just this month, we announced the remarkable results of the final progress report on the implementation of our School Beverage Guidelines. The report shows that, when it comes to beverages, it's a whole new day in America's schools. In fact, we've removed full-calorie soft drinks and slashed beverage calories available in schools by 88 percent!

They don't mind cutting the calories because the same companies that sell soda (and diet soda) also sell water, juice, and sports drinks. So long as schools have vending machines with ANYTHING in them, these companies make money. Removing the calories doesn't harm the bottom line, but removing the vending machines does.

What I want to know is: what's in the Senate bill that the ABA likes so much? I've emailed the Center for Science in the Public Interest to see if they know anything. Also, I've included more on the ABA's lobbying below.

Jill Richardson :: Why is the Soda Lobby Happy?
American Beverage Association Lobbying Spending in 2009
In each quarter, I've listed what they spent with each lobbying firm they contracted with, as well as what they spent on their own in-house lobbying (i.e. paying ABA employees to lobby).

First quarter 2009:
In-house lobbying: $140,000
Bockorny Group: $50,000
Patton Boggs: Under $10,000
Total: $200,000

Second quarter 2009:
In-house lobbying: $1,200,000
Bockorny Group: $50,000
Heather Podesta + Partners: $40,000
O'Neill and Associates: $30,000
Patton Boggs: $10,000
Total: $1,330,000

Third quarter 2009:
In-house lobbying: $7,330,000
Bockorny Group: $90,000
Heather Podesta + Partners: $80,000
O'Neill and Associates: $10,000
Patton Boggs: $10,000
Thompson Smitch Consulting Group: $30,000
Total: $7,550,000

Fourth quarter 2009:
In-house lobbying: $10,800,000
Bockorny Group: $90,000
Heather Podesta + Partners: $80,000
Patton Boggs: $10,000
Thompson Smitch Consulting Group: $30,000
Total: $11,010,000

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You're the best, Jill (4.00 / 3)
We need more people like you if they're spending millions a year lobbying Congress.

Vote for yourself at www.ni4d.us!

off-topic question (4.00 / 3)
Jill, what is your take on the chain restaurant calorie/nutritional labeling requirement that was part of the health insurance reform bill Obama just signed? Is that mostly a good thing, or is it a pretend good thing with lots of loopholes written in?

One problem is it supercedes local rules... (4.00 / 2)
It's a weak bare-bones thing - 'calories on menu boards, other information available by request.'

Two strikes against it - the National Restaurant Association praised its passage.  And here's a fantastic quote from an International Franchise Association lobbyist -

"While the IFA lobbied strongly in opposition to the health care reform package, the one bright spot of the bill is that the federal government will for the first time take the lead regulatory role in how restaurants provide nutrition information to their customers."

It was also based on the weak industry-backed "LEAN Act" that popped up in Congress last year after states and cities started passing laws of their own, and as the 'compromise' to a stronger menu labeling bill (MEAL) that was also introduced in Congress around the same time.  I wrote something about both here last year, can't seem to find it right now though.

French said the new menu labeling law mirrors the federal regulation for packaged food and gives flexibility in the manner that information is provided. The provision, which was based on the IFA-endorsed Labeling Education and Nutrition (LEAN) Act, also offers liability protection for restaurants, recognizing the variation in the nutritional content of food that is hand prepared.

In Politicalese, I'd call this provision "Corporate Regulatory Relief".

The local preemption also specifically pretty much kills any chance we'll ever have again (or for at least a generation) to get anything better.  We saw the same thing happen here last year when Multnomah County passed a menu labeling bill, and then the Oregon State Leg passed a weaker overriding bill with NRA and ORA support.  It seems like stricter existing regulations like NYC's will be grandfathered in, but even NYC's current menu labeling laws were really supposed to be just a starting point.

As for loopholes -

Under the new legislation, restaurants will be required to display calorie information for standard menu items as well as calories for each serving of food at a salad bar or a buffet line. The chains will not have to post calorie information for daily specials and limited-time items.

What's the definition of "limited-time" item?  And what about fast food restaurants that have official "secret" menus or menu items (In-N-Out Burger in California, amongst others)?

"The essence of the independent mind lies not in what it thinks, but in how it thinks." - Christopher Hitchens


[ Parent ]
WOW - can you post this as a diary? (4.00 / 2)
I was meaning to do that but hadn't gotten to it yet. And this is really a great write-up.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
Sure... (4.00 / 1)
I'll rewrite it in a bit, add some stuff and try to have it up for late tonight or first thing tomorrow morning.

I'll try to finish it before bed tonight, since my next two days are largely taken up by multiple doctors appointments.  Bah...

"The essence of the independent mind lies not in what it thinks, but in how it thinks." - Christopher Hitchens


[ Parent ]
outside lobbyists (4.00 / 1)
Wow, the in-house lobbying is the really big money bucket. I wonder what special services each outside lobby firm provides for its pittance.

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