Ticked-off firm triggers rethink

By SIMON HENDERY

The Heart Foundation says it will review the fees it charges companies involved in its Pick the Tick healthy food endorsement programme after Sanitarium withdrew Weet-Bix from the scheme.

Sanitarium is removing the foundation's tick logo from Weet-Bix packets, saying it prefers to put the money it has been spending on the endorsement "into areas of greater importance to consumers".

Sanitarium general manager Jeff Courtney said Weet-Bix easily met the eligibility criteria for the tick, but removing it would allow the company to increase its level of communication activity, in particular educating youngsters on the importance of a healthy lifestyle.

"While the tick programme plays an important part in helping New Zealanders make healthier food choices, we believe that the value for Weet-Bix in subscribing to the programme has come to a natural conclusion."

Other Sanitarium products, including Light'n' Tasty and So Good, would remain part of the scheme, which involves about 800 products nationally and generates about $900,000 a year in fees.

The Heart Foundation's medical director, Dr Diana North, said the foundation was disappointed to lose a healthy product with as strong a brand as Weet-Bix.

She said that because of the defection, the foundation would review its pricing structure.

"If it is an issue which is going to be a barrier to the development of the programme then we want to talk with [participating companies] to sort a solution."

The scheme's prices were set up about 10 years ago, and were designed to be self-funding, but not profit-making.

Member food companies are charged 0.5 per cent of gross sales for the first product displaying the tick logo, and 0.25 per cent of sales for subsequent products.

Large producers have been able to negotiate cheaper deals, and North said it was the foundation's move to curb those arrangements and make the pricing structure more transparent - in the process increasing costs for those larger producers - that had prompted Weet-Bix's decision to withdraw.

She said the foundation would also look at pushing the message that the scheme was intended to improve public health, not make money.