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Cereal giant Kellogg will raise the nutritional value of cereals and snacks it markets to New Zealand children.
The move follows the lead of its head office in the US, which announced it was changing the way it markets food to children following a threatened lawsuit by lobbyists for children's interests.
The Centre for Science in the Public Interest and Campaign for Commercial-Free Childhood said it would now not proceed with action.
The world's largest cereal maker will now promote only products that meet certain nutritional standards, in a move seen by many as attempting to fend off litigation threats in the US by parents and nutrition advocacy groups worried about child obesity.
The company said it would not promote foods in ads that reached audiences at least half of whom are under age 12, unless a single serving met these standards:
* No more than 200 calories.
* No trans fat and no more than 2g saturated fat.
* No more than 230mg of sodium.
* No more than 12g sugar, not counting sugar from fruit, dairy and vegetables.
The company said around half of the products it marketed to children did not meet the criteria.