PepsiCo launched their “Smart Spot” marketing campaign in 2004, which includes labeling “healthy” products as well as exercise campaigns to promote smart lifestyle choices. All products labeled with a “Smart Spot” sign meets nutrition criteria set by the Food and Drug Administration and the National Academy of Science. By 2006, more than 40 percent of PepsiCo’s annual revenues in the United States and Canada came from Smart Spot eligible products, which include Baked Cheetos, Baked Lays, and Diet Pepsi. PepsiCo was also the first to voluntarily restrict advertising to children in its Children’s Food and Beverage Advertising Initiative (CFBAI). They partnered with the Alliance for a Healthier Generation to limit direct advertising to children under 12 to only Smart Spot products.
Developing countries like India and China are seeing the emergence of a middle class that can now purchase inexpensive consumer products. Urban Chinese children are spending more on snacks and play items as well as influencing the spending of their parents (McNeal and Yeh 1997). PepsiCo’s sales figures and profit margins should continue to expand in developing markets because they have already established strong domestic partnerships and a solid infrastructure.
(6) Conclusions Applying a GVC framework to food production and consumption patterns around the world is a valuable tool that researchers can use to understand how the global context influences dietary and health outcomes, including increasing rates of childhood obesity. The GVC perspective incorporates economic and political factors at the global, national, and local levels that have been ignored in much of the previous medical and epidemiological literature on this topic (Glass and McAtee 2006). The severity of the global childhood obesity pandemic calls for innovative research agendas and theoretical approaches that do not discard the macro factors and social contexts that affect consumption patterns and might help to ameliorate this public health crisis.
In this paper we have outlined the essential features of GVC analysis. Researchers employ a series of steps in the investigation phase. First, they identify the stages and key actors involved in the value chain; second, they determine the relevant geography of these economic activities; third, they look at the governance structures that define the inter-firm networks in the chain; and lastly, they determine the institutional arrangements, such as the role of government