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Lawyers intent
on filing obesity lawsuits against food companies are most likely
to target Hershey, the company many associate with chocolate,
according to a new research report from JP Morgan.
In a 40-page
report entitled "Obesity: The Big Issue," the investment
bank warns that "litigation risks ... should not be underestimated"
for companies producing a high percentage of "not-so-healthy"
foods.
The report
says "not-so-healthy" foods account for 95 percent of
Hershey's production, and 80 percent of the No. 2 company on the
list, Cadbury Schweppes, the British food giant that produces
a wide variety of chocolate bars.
Coca-Cola,
PepsiCo and Kraft are the next three on the Morgan list. Kraft
earlier this week moved to head off obesity lawsuits, announcing
that it would take a variety of steps to fight the growing global
obesity crisis (see Obesity Week story).
"Obesity
is not just a cosmetic issue," the report concluldes. "It
has a major human and financial cost -- US$117-billion in the
United States in 2000, fast approaching the US$140-billion cost
of smoking."
Other
sources: JP Morgan, National Post of Canada
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