News from Obesity Week of July 6, 2003/ Vol. 3 No. 27
Hershey May Be Top Target of Obesity Lawsuits: JP Morgan

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