Showing posts with label pepsico. Show all posts
Showing posts with label pepsico. Show all posts

Saturday, September 19, 2026

17605: On Exposing Ugliness Of PepsiCo Pageantry.

 

More About Advertising published a lengthy perspective titled, “Ad agency pitch theatre is not a sport, but a beauty contest,” providing a probing analysis of PepsiCo global media duties shifting from Omnicom to Publicis Groupe.

The title poses two inherent flaws.

First, the PepsiCo business was awarded sans pitch. To play off the content concept, a winner was crowned without having to appear in the swimsuit competition—or any other pageant event. Indeed, it’s unclear how the decision was made, rendering the entire affair suspicious and potentially scandalous.

Second, the opinion piece was illustrated by the AI-generated image depicted above. A more accurate cartoon would have presented three Old White Guys, an Asian man, and a White woman. It’s an exclusive—and not very pretty—spectacle.

Monday, September 14, 2026

17600: More Dizzying Dispatches From The Cola Wars.

 

Advertising Age reported WPP is primed to win The Coca-Cola Company global media, data, and technology review.

Although as previously noted by this blog, the “victory” is mostly the result of Publicis Groupe nabbing PepsiCo global media duties. That is, the single White operating company claims the Coke prize by virtue of a prime contender dropping out.

According to Ad Age, WPP will not participate in the upcoming review for Coke North America media chores—although the trade publication previously identified the global flaming dumpster as a participant—which are being phased out of Publicis Groupe, who took the business from WPP last year.

The dizzying antics are likely driving people to drink. But not drink Coke or Pepsi products.

WPP is set to win Coca-Cola’s global agency review

By Ewan Larkin and Brian Bonilla

WPP is set to win Coca-Cola Co.’s global media, data and technology review and will not participate in the food and beverage giant’s forthcoming North America media pitch, according to people familiar with the matter.

The decision comes nearly five years after Coca-Cola hired WPP for creative, media, data and marketing technology across its 200 or so brands, setting up a bespoke unit called Open X. In early 2025, WPP lost its grip on a significant chunk of that business when Coca-Cola Co. hired Publicis Groupe for its North America media account. WPP continues to handle Coca-Cola’s global creative and PR.

WPP’s retention was expected by many after Publicis Groupe, which it had been competing against for the business, agreed to take over global media duties for PepsiCo. The French holding company’s decision prompted Coca-Cola to launch a review of its media account in North America, where Publicis is the incumbent, Ad Age first reported this week.

Coca-Cola and WPP declined to comment.

Coca-Cola has also been in discussions with Omnicom and Dentsu about the North America media business. Dentsu already works with the company in Japan and Korea, which were excluded from the global review.

PepsiCo last week announced it had moved its global media to Publicis from Omnicom without a formal pitch, relocating one of the industry’s most coveted accounts. PepsiCo spent $1.7 billion on global net media in 2025, according to COMvergence, making it a significant account for Omnicom to lose. Omnicom “remains a critical strategic partner across many of our marketing drivers, from creative to sports and PR,” PepsiCo stated.

Sunday, September 13, 2026

17599: On Adland Analysts Seeing Industry Shifts And Shits.

MediaPost presented more common sense posing as color commentary on the stunning PepsiCo media shift.

A spotlighted analyst provided obvious insights such as:

“…[O]ne can reasonably assume that pricing was a major factor.”

“…[M]arketers are focused on price and performance over transparency and control.” 

“…[T]he loss could have more significant repercussions as it may lead to either more aggressive efforts with non-transparent trading activities, more significant investments in new capabilities or both.”  

“…[M]any hundreds of people at Omnicom [are] likely to be laid off.”

Sorry, but delivering duh as expert opinion warrants layoffs at consultancies and analyst firms.

Analyst Sees Industry Shifts In The Wake Of PepsiCo’s Media Move

By Steve McClellan

Omnicom’s stock remains down about 6% since news broke last week that one of its biggest clients—PepsiCo—abruptly shifted its entire media account to Publicis Groupe without a formal review. Omnicom ran the account for 20-plus years. 

According to the latest figures from COMvergence, Pepsi spent an estimated $1.7 billion on media in 2025. Of that total, Publicis had already been handling about $540 million, mostly attributable to the $500 million of spending in the Asia Pacific region.  

Omnicom had about two thirds of the business, including the $780 million U.S. market. 

PepsiCo has not explained specifically what led to the shift. But according to a rundown by analyst and marketing consultant Madison And Wall, “one can reasonably assume that pricing was a major factor.” 

Which isn’t a big surprise, given M&W’s premise that generally, “marketers are focused on price and performance over transparency and control.” 

According to M&W’s analysis, PepsiCo accounted for about 2.4% of Omnicom’s gross revenue last year—or approximately $400 million, which includes creative, media and other services. The lost media assignment probably accounts for under $100 million in gross revenue “unless principal-based trading was already a significant component of the existing relationship.” 

While a nine-figure revenue loss is clearly a blow, Omnicom’s sheer size mitigates it to some extent. It’s a $26-billion-plus revenue company thanks to its acquisition of IPG last year. 

The PepsiCo media loss could be made up for “in many ways,” per M&W. Strategically, the firm added, “the loss could have more significant repercussions as it may lead to either more aggressive efforts with non-transparent trading activities, more significant investments in new capabilities or both.”  

And to the extent that non-transparent activities helped Publicis offer better pricing to PepsiCo, similar tactics are likely to expand industrywide, M&W surmises.  

The firm also believes there’s a high likelihood that WPP will retain its $1.7 billion Coca-Cola media account, currently in review, and likely win back TCC’s $800 million North America business, which shifted to Publicis in 2025.  

The PepsiCo shift will affect jobs with “many hundreds of people at Omnicom likely to be laid off,” says M&W. The good news: Many of those same people will likely migrate to Publicis, along with the PepsiCo business.

Saturday, September 12, 2026

17597: On Omnicom Experiencing PTSD (PepsiCo Termination Shockingly Delivered).

 

Digiday reported on Omnicom conducting a post mortem after being dumped by PepsiCo sans formal review or advance notice.

Expect the final analysis report to succinctly read: WTF.

‘Certainly a disappointment’: Omnicom CFO’s verdict on losing PepsiCo to Publicis

By Seb Joseph

 

Omnicom’s CFO is still trying to get his head around what went wrong. It’s been a little over a week since the holdco lost one of its longest running clients to Publicis. He called the loss “disappointing” and “unfortunate.” Now, he and the rest of the C-suite are doing a post-mortem to figure out why it happened. 

Speaking at the Goldman Sachs’ Communacopia and Technology Conference earlier today, Phil Angelastro gave a sobering take on PepsiCo’s decision to walk away after more than 25 years. 

“The Pepsi situation is an unfortunate one,” he said. “It’s certainly a disappointment from our perspective — you cannot sugarcoat it.” 

The comments all but confirm that this move blindsided Omnicom’s execs. Holdco bosses like Angelastro usually see this kind of switch coming. Sources with knowledge of the matter said his team didn’t, and has spent the past week trying to work out why. Why would PepsiCo after all those years walk away from Omnicom without even giving it the chance to fight for it? Speculation has been rife. Was it because PepsiCo’s CMO had a relationship with Publicis in a previous role? Or maybe the advertiser simply wasn’t impressed with whatever Omnicom was pitching in the wake of the IPG acquisition.

Whatever the reason, Omnicom will want it nailed down fast. 

“We are doing a detailed kind of deconstruction of how it happened and what we should have been doing differently to prevent it from happening,” Angelastro said at the conference. “We are not completed with that process but we are going to learn some lessons from this, and certainly we are going to take them very seriously.”

In short, he said the holdco isn’t looking for excuses during this analysis. The aim, Angelastro continued, is to do a root cause analysis so that we can improve the business and our processes going forward.” That matters most for holding onto what’s left of the PepsiCo relationship since Omnicom still handles the company’s PR, creative and some sports marketing. 

It could also help the holdco get ahead of other CMOs who might be watching PepsiCo’s move and wondering if they should follow suit. Those clients will want to know what happened and whether it changes anything for them. Needless to say Angelastro has some tough questions in the weeks ahead. 

“We don’t think it’s going to have a significant impact on the business going forward when we get to 2027 and our expectations,” the ad exec said. “There is still quite a bit of time between now and ‘27 and we will be aggressively pursuing new business as we always do.”

His confidence lines up with the numbers, even if the underlying figures come from outside estimates rather than Omnicom’s own disclosures. According to ComVergence, PepsiCo’s core global media spend sits at roughly $1.8 billion. Madison and Wall estimates Omnicom’s actual fee revenue from that business at closer to $100 million, a fraction of the headline figure, against a company running a 21% EBITA margin. That’s an abosrbale hit on the holdco’s bottom line based on the numbers available. The exposure that is harder to model is reputational — more than 25 years with a client, Apple, Renault-Nissan, McDonald’s and several others all running on the same kind of long, unreviewed relationship Omnicom just watched come apart. 

Whether that means Omnicom goes after Coca-Cola’s media business, which is now in play following Publicis’ decision to relinquish its North America media account and back out of contesting the rest of it after the PepsiCo deal remains to be seen. If it is, Angelastro offered scant detail. 

“We value the relationship [with PepsiCo] but certainly there will be a little bit more flexibility in terms of what we pursue in the future.”

Wednesday, September 09, 2026

17594: On The Front Lines Of The Cola Wars.

 

Advertising Age reported obvious news: The Coca-Cola Company is launching a review of its North America media account following incumbent Publicis Groupe nabbing global media duties for PepsiCo.

Or maybe not, as PepsiCo handed its media business to Publicis Groupe sans a formal review.

Ad Age stated potential pitch participants include WPP, Omnicom, and Dentsu.

For WPP, it would be a comeback of sorts, as the global flaming dumpster lost the North America media assignment to Publicis Groupe last year.

Despite losing PepsiCo global media responsibilities, Omnicom is still a “critical strategic partner” for the brand, so there could be potential conflicts picking up Coke media chores.

The scenario poses a unique challenge. As repeatedly noted by this blog, competitions for major chunks of business are typically closed affairs, exclusive privileges available only to a handful of White holding companies.

Yet in this case, the iconic Coca-Cola might have to settle for a lesser choice because the stronger players are unavailable.

Another unique aspect is Publicis Groupe essentially dumped Coke in favor of PepsiCo.

Coca-Cola was once consumed for medicinal purposes. Now it’s just making everyone feel sick.

Coca-Cola to review North America media after Publicis wins PepsiCo

By Ewan Larkin and Brian Bonilla

Coca-Cola Co. is readying a review of its North America media account after incumbent Publicis Groupe agreed to take over global media duties for PepsiCo, according to people familiar with the matter.

The beverage giant is said to be in discussions with WPP, Omnicom and Dentsu, the last of which works with Coca-Cola in Japan and Korea. Publicis won Coca-Cola’s North America media business from WPP, the primary global incumbent, just last year.

Coca-Cola declined to comment for this story.

Publicis had been pitching for Coke’s global media, data and tech business, competing against WPP, but the status of Publicis’ involvement is now unclear following the PepsiCo win. It also wasn’t immediately clear whether WPP, which also handles Coca-Cola’s global creative and PR, will assume those global duties.

Publicis, Dentsu and Omnicom declined to comment. WPP wasn’t immediately available for comment.

PepsiCo last week announced it had moved its global media to Publicis from Omnicom without a formal pitch, relocating one of the industry’s most coveted accounts. PepsiCo spent $1.7 billion on global net media in 2025, according to COMvergence, making it a significant account for Omnicom to lose. Omnicom “remains a critical strategic partner across many of our marketing drivers, from creative to sports and PR,” PepsiCo stated.

In a statement last week, an Omnicom spokesperson called PepsiCo’s move “one client’s decision in a year in which Omnicom Media has built tremendous momentum [with] leading brands across multiple categories,” pointing to wins with brands including Adidas, Dyson, IBM, Subway and Uber.

“After an extraordinarily long and successful partnership, PepsiCo has decided to move its media business elsewhere. We are proud of the work we have done together over three decades as partners in innovation and impact,” the spokesperson stated last week. “Nothing about yesterday’s decision changes that.”

Sunday, September 06, 2026

17590: On The Exclusive Privileges Of PepsiCo.

This LinkedIn post spotlights numerous Fortune 500 CEOs who leveraged PepsiCo experience to land C-suite roles.

The headline reads: This isn’t a coincidence. It’s a pattern

Okay, but the pattern looks like lots of White men and White women enjoyed advantages at PepsiCo, along with a handful who perhaps benefited from the groundbreaking success of former PepsiCo Chairman and CEO Indra Nooyi…?

Friday, September 04, 2026

17588: Useless Expert Analysis On PepsiCo Media Shift.

 

Advertising Age continued to examine PepsiCo shifting its global media business from Omnicom to Publicis Groupe via color commentary delivered by consultants, analysts, and industry experts.

What exactly qualifies someone to be labeled an industry expert? The ones who’ve worked in Adland are industry failures, no?

A closer look at the professional quips shows insights that could’ve been generated by AI—or any A-hole with minimal awareness of the field.

Appropriately enough, the identified consultants, analysts, and industry experts are White men.

What PepsiCo’s global media shift means for Omnicom

By Ewan Larkin

PepsiCo’s decision to move global media to Publicis Groupe—made without a formal pitch—diminishes one of the industry’s most durable client-agency relationships and takes some of the sheen off the new Omnicom.

Although significantly scaled back, Omnicom’s relationship with PepsiCo isn’t over; the holding company will continue to support creative, PR and sports marketing, the food and beverage company said. Still, Omnicom’s OMD has lost a top-three client with $1.7 billion in global spend last year, according to COMvergence, making it a significant financial loss. In the U.S. alone, OMD has roughly 130 people working on PepsiCo, Ad Age has learned.

Omnicom Media declined to comment on potential layoffs stemming from the account shift.

“PepsiCo had already become increasingly promiscuous on the creative side, regularly working outside Omnicom,” said a former PepsiCo executive speaking on condition of anonymity. “Omnicom tolerated those infidelities because media planning and buying was the far bigger prize. Now that prize is gone—and with it, a partnership that lasted decades.”

Of course, Omnicom could recoup that loss, and it has already notched wins with brands including Adidas, IBM, Subway and Novo Nordisk this year. In a statement, an Omnicom spokesperson called PepsiCo’s move “one client’s decision in a year in which Omnicom Media has built tremendous momentum as leading brands across multiple categories.”

“After an extraordinarily long and successful partnership, PepsiCo has decided to move its media business elsewhere. We are proud of the work we have done together over three decades as partners in innovation and impact,” the spokesperson stated. “Nothing about yesterday’s decision changes that.”

Ultimately, though, the blow extends beyond billings, experts said.

Omnicom’s relationship with PepsiCo has been an outlier in an industry known for client churn, and an especially rare one given the integrated nature and size of the account. As a result, the sudden shift will sting morale and perception just as much as its bottom line. Omnicom executives were officially informed about the media account move on Wednesday morning, according to people familiar with the matter.

“There’s some accounts that your business is built around. They’re almost part of the furniture,” said Brian Wieser, principal at advisory and consulting firm Madison and Wall. “Pepsi is one of those.”

“There can’t be very many billion-dollar-plus accounts that have this kind of tenure,” Wieser added.

PepsiCo is “a marquee account” for Omnicom, said Ruben Schreurs, CEO of media consultancy Ebiquity, comparing the PepsiCo shift to WPP’s loss of the Coca-Cola North America account to Publicis last year. “It was a very high-profile account, right? Every agency has only a few of those, and PepsiCo was absolutely one of those for Omnicom.”

While hardly a ringing endorsement of the deal, some industry experts stopped short of calling PepsiCo’s decision an indictment of Omnicom’s $8.9 billion acquisition of Interpublic Group of Cos. They said it was too anecdotal to draw any firm conclusions, especially considering that Publicis’ pursuit of the account may have predated the merger.

However, Jay Pattisall, VP and principal analyst at Forrester, said the shift is not a “strong vote of confidence in the integrated proposition Omnicom has been putting together” since acquiring IPG.

“What this suggests is the integration with [IPG data firm] Acxiom is still underway,” Pattisall said. “One particular client loss, although it’s a significant one in size, is not an indictment by any means of the strategy to acquire and integrate Acxiom, but it might suggest that it’s just not complete yet.”

In announcing its appointment of Publicis, PepsiCo emphasized the need to bring together “data, connected identity and technology across markets.”

Both Omnicom and Publicis “position themselves as a leader in media, technology, data—and AI to facilitate it—and Pepsi has chosen the one that it thinks has the superior offer at this stage,” Pattisall added.

An Omnicom spokesperson pointed to “approximately $4 billion in media billings awarded this year through a combination of incremental wins and retentions” as “evidence that its offer is resonating.”

“All of these decisions followed thorough, months-long review processes that included the major holding companies, putting the competing organizations through a rigorous test of their capabilities across data and analytics, AI technologies and transformation," the spokesperson stated.

Contributing: E.J. Schultz and Brian Bonilla

Thursday, September 03, 2026

17587: PepsiCo Takes Cola Wars To Global Scale.

 

Adweek reported PepsiCo handed its global media account to Publicis Groupe sans a formal pitch.

Did Publicis Groupe outdo incumbent Omnicom in terms of Corporate Cultural Collusion? Omnicom has been the standard-bearer for that maneuver—especially with PepsiCo.

The appointment prompted Publicis Groupe to withdraw from a global review for Coca-Cola media, data, and technology—which probably has WPP breathing a sigh of relief, as the single White operating company likely would’ve lost at least some of the Coke business.

Shifting global media duties to Publicis Groupe was not tied at all to the PepsiCo global review for AI transformation. Maybe a competitor in that pitch will persuade PepsiCo its media can be executed via AI, effectively negating the French holding company’s victory.

The entire spectacle underscores how serving global brands are closed affairs, exclusive privileges available only to a handful of White holding companies.

Rarely discussed is the impact on countless drones at White advertising agencies and White media firms whose livelihoods are lost without advance notice.

Far less consideration is given to non-White advertising agencies, even though Pepsi pioneered multicultural marketing through the iconic accomplishments of Eric F. Boyd.

Today’s Cola Wars create casualties on a global scale.

Publicis Lands PepsiCo’s Global Media Business, Withdraws From Coke Pitch

As the CPG unifies its media account under Publicis Groupe, a source told ADWEEK it will withdraw from Coca-Cola’s global media pitch

By Rebecca Stewart

PepsiCo has chosen Publicis Groupe to handle its global media account, the CPG confirmed to ADWEEK.

The appointment will see the French holdco build a new media model underpinned by AI and data, uniting strategy, planning, activation, connected identity, and technology under one roof.

The “One PepsiCo” model will serve the brand’s entire portfolio, including Pepsi, Gatorade, and Lay’s, in more than 200 markets.

Per its latest annual report, PepsiCo spent $5.4 billion on marketing activities in 2025, with $3.4 billion of that total going toward advertising.

According to sources with direct knowledge of the matter, the PepsiCo appointment will prompt Publicis to withdraw from the ongoing pitch for the remainder of Coca-Cola’s global media business. MediaSense is handling that review, which has previously been estimated to be worth around $4 billion.

Publicis, which already handles Coca-Cola’s media account in the U.S. and Canada, declined to comment.

A new model

Publicis’ appointment as PepsiCo’s exclusive lead global media partner will displace U.S. rival Omnicom, whose OMD network has held the account in key markets, including the U.S. and U.K., for more than two decades.

A PepsiCo spokesperson told ADWEEK that Omnicom will remain a “critical strategic partner” across many creative, sports, and PR briefs. Omnicom declined to comment.

Publicis has previously worked with PepsiCo in markets including China, India, the Philippines, Thailand, Vietnam, Taiwan, South Korea, Indonesia, Hong Kong, Malaysia, and parts of Eastern Europe.

ADWEEK understands there was no pitch for PepsiCo’s media account, and that Publicis was appointed following a media capabilities review.

In a statement, the soda and snack maker said its new media model will help it deliver “more relevant consumer connections” and make “smarter marketing decisions” across paid, earned, and shared media.

PepsiCo is currently running a separate global review focused on broader AI marketing transformation and capabilities.

It was previously reported that Omnicom, Accenture, Deloitte, and Publicis Groupe’s Sapient unit were competing for the AI brief.

Wednesday, August 19, 2026

17572: War Is Hell. Cola Wars Are What The Hell.

 

Advertising Age reported PepsiCo is staging a global review for AI marketing transformation with competitors including Omnicom, Publicis Groupe, Accenture, and Deloitte.

Given Publicis Groupe is pitching for Coca-Cola business, why are they in the review? Back in the day of Cola Wars, The Coca-Cola Company would’ve axed the France-based enterprise upon hearing the White holding company was even thinking about drinking a Pepsi, let alone angling for the rival’s business.

Given Omnicom enjoys a long history with PepsiCo—often nabbing more beverage business via Corporate Cultural Collusion—it’s a wonder the White holding company hasn’t already declared victory.

And WTF does “AI marketing transformation” mean? In this case, probably Anglo Insular marketing transformation.

PepsiCo is conducting an AI marketing transformation review

By Ewan Larkin, Brian Bonilla, and Jon Springer

PepsiCo is running a global review focused on AI marketing transformation, with a mix of high-profile agency groups and consultancies pitching for the assignment, Ad Age has learned.

The review, described by people with knowledge of the technology and platform pitch, focuses on building PepsiCo’s AI capabilities and using technology to make its internal and external marketing operations more effective and efficient.

Among those invited to pitch were Omnicom, which has a long history with PepsiCo; Accenture; Deloitte; and Publicis Groupe, whose Sapient unit is said to be competing for the business, according to people familiar with the matter.

Publicis is currently pitching for Coca-Cola Co.’s global media, data and technology business against fellow incumbent WPP, with a decision expected in the fall.

PepsiCo declined to comment on the review and the participating agencies. Omnicom and Accenture also declined to comment. Publicis and Deloitte could not be immediately reached for comment.

PepsiCo’s tech ambitions

PepsiCo has been laying the groundwork to accelerate use of technology across its business, telling investors that years of investment in data, cloud and other systems had positioned it to step up those efforts.

“We’ve been investing for five years. Our data is in the place that it needs to be. We have the backbone. We have cloud,” Ramon Laguarta, PepsiCo’s CEO, told analysts at the Consumer Analyst Group of New York conference in February.

Among the company’s priorities are automating customer ordering and demand forecasting and using virtual models to improve factories and supply-chain operations, Laguarta said. On the marketing side, Laguarta said PepsiCo is using technology to improve consumer insights, create content and personalize communications.

PepsiCo reported mixed fiscal second-quarter results in July, with international strength offset by weaker-than-expected performance in North America.

Monday, December 23, 2024

16894: Big Food, Big Tobacco, Big Trouble.

 

Advertising Age reported on a lawsuit charging big food companies emulate Big Tobacco; that is, packaged food corporations deliberately make addictive products promoted by marketing campaigns targeting children and minorities.

 

Not sure why the lawsuit is only attacking packaged food manufacturers versus also going after brands like Mickey D’s. After all, it could be argued McNuggets and McRibs are the equivalent of menthol cigarettes.

 

Lawsuit alleges major food makers knowingly used Big Tobacco tactics

 

The makers of Oreo, Pop-Tarts, Slim Jim and other products face a lawsuit over childhood disease

 

By Ally Marotti

 

Packaged food giants face a lawsuit alleging that they knowingly make addictive products that cause illnesses such as type 2 diabetes and target children with those products.

 

Food and beverage marketers named in the lawsuit include Coca-Cola Co., Conagra Brands, General Mills, Kellanova, Kraft Heinz, Mars, Mondelēz International, Nestlé USA, PepsiCo, Post Holdings and WK Kellogg Co.

 

Pennsylvania resident Bryce Martinez filed the lawsuit on Dec. 10 in Philadelphia Common Pleas Court. The lawsuit alleges that Martinez developed type 2 diabetes and non-alcoholic fatty liver disease when he was 16 because he frequently ate the companies’ products.

 

Martinez “is one of many casualties of defendants’ predatory profiteering,” the complaint says. “(He) is now suffering from these devastating diseases, and will continue to suffer for the rest of his life.”

 

The lawsuit comes as the spotlight is turning upon the ingredients in some of the country’s most popular packaged food brands. President-elect Donald Trump’s pick for secretary of health and human services, Robert F. Kennedy Jr., has broadly critiqued processed foods. He has vowed to remove them from school lunch programs and disallow them from being bought with food stamps.

 

Kennedy has specifically discussed the harms of high-fructose corn syrup and processed grains. If his nomination is approved, he will oversee a department that has partial oversight of Americans’ diet through the Food and Drug Administration.

 

The lawsuit filed in Pennsylvania earlier this month targets ultra-processed foods, which it says are “industrially produced edible substances that are imitations of food.” They contain little to no whole food, and have come to dominate the American diet since the 1980s, the lawsuit says. On average, children now derive two-thirds of their energy from ultra-processed foods.

 

The lawsuit points to the rise of type 2 diabetes and fatty liver disease, which “had been largely confined to elderly alcoholics,” in children. It ties the increasing prevalence of such diseases to the 1980s, when tobacco companies bought major U.S. food companies. For example, tobacco company Philip Morris bought Kraft Foods in 1988.

 

The tobacco companies then “used their cigarette playbook to fill our food environment with addictive substances that are aggressively marketed to children and minorities,” according to the lawsuit.

 

The lawsuit alleges that the companies that make ultra-processed foods are “well aware of the harms they are causing and (have) known it for decades. But they continue to inflict massive harm on society in a reckless pursuit of profits.”

 

Representatives from each company did not respond to a request for comment. The exception was Conagra: Its spokesperson declined to comment on pending litigation.

 

The Consumer Brands Association, a trade association that represents many of the country’s packaged food companies, said in a statement that such companies adhere to FDA standards and “deliver safe, affordable and convenient products that consumers depend on every day.”

 

“Americans deserve facts based on sound science in order to make the best choices for their health. There is currently no agreed upon scientific definition of ultra-processed foods,” Sarah Gallo, senior VP of Product Policy, said in a statement. “Attempting to classify foods as unhealthy simply because they are processed, or demonizing food by ignoring its full nutrient content, misleads consumers and exacerbates health disparities.”

 

At its heart, this lawsuit is a product liability case, said R. Mark McCareins, a clinical professor of business law at Northwestern University’s Kellogg School of Management.

“The cost of doing business in the U.S., with our civil justice system, are suits like this,” he said. “The fact that somebody filed a lawsuit does not mean that … the companies did anything wrong, and they are more than free to defend themselves.”

 

In such cases, attorneys typically must prove causation—in this case, did the ultra-processed foods cause the diseases—and that the companies knew about the harm. Typically, expert testimony is vital.