Big Snack Companies Making Smaller Portions, Adding Warnings To Hold Onto Consumers

SAN FRANCISCO (KCBS) -- Big snack food companies are encouraging consumers to eat less, but the shift in strategy could be more about brand preservation than consumer health.

Mars, the maker of M&M's will put labels on some products including some pasta sauces and macaroni and cheese, suggesting occasional consumption. Oreo's come in thin sizes, and even McDonald's is considering a smaller sized Big Mac.

"They feel that they have to warn because it's politically correct to do so, but I think it's bad for the companies because it's reminding consumers that maybe they shouldn't be eating it. Sometimes you're not sure whether to eat it or not; now, maybe you'll think twice," Michelle Greenwald, Marketing Professor at Columbia Business School told KCBS.

She said companies have figured it's better to encourage limits among consumers rather than lose them altogether to diabetes or heart disease. More than one third of American adults are considered obese.

"They're changing their portfolios. If you look at Pepsi and Coca Cola, they've bought juice companies, or they own juice companies, water companies, and they're really focusing on other beverages in their portfolios," Greenwald said.

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