Corn Fakes: The social and economic costs of the removal of micronutrients from Kellogg’s cereals
Since 2013, there is evidence that Kellogg's has been removing key mirconutrients from its breakfast cereals in Mexico. This report makes an economic assessment of the savings to Kelloggs and compares this to the cost to the health, well-being and development of Mexican society. It estimates that Kellogg’s saved $85 million USD over five years from this practice, whilst the minimum cumulative social cost to Mexico for the removal of just three key nutrients will be $250 million USD over five years. This means for every dollar that Kellogg’s saves by de-fortifying cereals it destroys at least three dollars in value to Mexican consumers. The report discusses the implications of this for Mexican society.
This report builds on a previous analysis by the Changing Markets Foundation that exposed the practice of removing micronutrients by the cereal giant Kellogg's. These findings clearly show that this approach is not working in the interests of its investors, consumers or wider society. Is the decision to reduce the micronutrient content a push for short-run cost savings? Is Kellogg’s putting profit over the long-term health of the Mexican population?
Although the costs of malnutrition are not reflected on a company’s balance sheet, Kellogg’s may in fact be undermining its long-term growth potential by damaging the health and productivity of its consumers. The findings presented in this report suggest not only a strong social, economic and moral case for changing course but also a business one. It is time for Kellogg’s to show its commitment to people over profit and stop breaking its breakfast promises.
