Advertising ban for 70 percent of all food: who Özdemir advance hits

For example, a natural yoghurt with 3.5 percent fat is above the limit values ​​and should be advertised just as little as most muesli, cheese or bread. Food and advertising groups say at least 70 percent of all food would be affected by the advertising ban.

The coalition is discussing the draft law in the time before Easter, which is important for confectionery manufacturers. If Özdemir has his way, there will no longer be any advertising for the affected products on television and radio between 6 a.m. and 11 p.m. Haribo, Coca-Cola and Co. would be subject to stricter restrictions than gambling providers or erotic hotlines. You can advertise on TV from 9 p.m. or 10 p.m.

Food manufacturers: Innovations are slowed down

Advertising for food manufacturers is of particular importance. The 195 billion euro market is considered to be saturated, so producers are trying to increase market share by investing heavily in advertising.

Nutella and children’s bar manufacturer Ferrero spent almost 700 million euros on advertising in Germany in 2022. Coca-Cola spent over 130 million euros, Haribo and Milka manufacturer Mondelez each around 110 million, according to data from market researcher Nielsen Media.

Experts warn that if the advertising ban were to come into force, it would distort competition and cement the status quo. A well-known German confectionery producer also says: “Well-known brands like us ultimately benefit from the advertising ban. Young companies with new products, on the other hand, will have a hard time.”

Many food start-ups were frustrated in discussions with the Handelsblatt, but do not want to be mentioned by name. The young companies will soon only be able to advertise their lemonades, bars or snacks to a limited extent.

Observers also fear that innovations will be slowed down. Manufacturer Mars demands that politicians should adjust the WHO limits. Otherwise, producers would have no incentive to market foods with little fat, sugar or salt.

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Carsten Simon, Head of Germany at Mars-Wrigley, says: “We probably wouldn’t have introduced new brands like our ‘Be-Kind’ nut bar in Germany if it was no longer possible to apply to over-14s between 6 a.m. and 11 p.m..” Mars, which according to its own statements has not placed any advertising specifically aimed at children for 15 years, welcomes the planned regulation in principle.

The industry had voluntarily imposed that advertising for foods with a lot of sugar, fat or salt should not give the impression of a balanced diet. From the point of view of Minister Özdemir, the voluntary commitments have failed. On average, children see 15 commercials a day for unhealthy food, says Özdemir and wants to take countermeasures.

Advertising industry: Media fear for billions

This is met with criticism in the advertising industry. “The draft law comes at the wrong time,” says Bernd Nauen, General Manager of the Central Association of the German Advertising Industry (ZAW). In view of the general uncertainties, many companies are saving on advertising anyway.

Manufacturers of food and beverages are among the most important customers in the local advertising industry. According to Nielsen Media, they invested 3.5 billion euros in 2022. This means that they account for a tenth of advertising expenditure – only trade and services are even more important. If, as envisaged in the draft law, 70 percent of the food is no longer advertised, the ZAW expects gross investment in advertising to fall to a mid three-digit million amount.

“The TV broadcasters would feel the greatest impact of an advertising ban,” says Andreas Meffert, Sales Manager Germany at Nielsen Media. Food manufacturers made 80 percent of their investments on television. And almost half of that is confectionery. The entire car industry does not invest that much money in TV advertising.

The association of private media, Vaunet, is therefore watching the impending advertising ban with concern. It is a danger for the diversity of the media offer in Germany. “The demand for independent journalistic offerings and for more investment in high-quality content can never be viewed in isolation from the financial framework.” Large TV broadcasters such as the RTL Group generate 43 percent of their sales through advertising.

It is questionable whether the law will have the desired effect. Because between 6 a.m. and 11 p.m., the proportion of viewers under the age of 14 is less than two percent, according to figures from AGF video research. However, the data also shows that a third of the programs most watched by children are not part of children’s programming, but are an evening sports or entertainment format that is often promoted.

Outdoor advertising within 100 meters of schools, daycare centers or playgrounds would also be affected by Özdemir’s plans. According to association representatives, almost half of the outdoor advertising space could fall under this. Özdemir’s plans also mean restrictions for the print media. The already structurally declining business would suffer another setback.

The ban should also include online platforms such as YouTube or Instagram. Influencers also have to comply with applicable law, says social media expert and consultant Thomas Hutter. “Technically, it’s easy for the digital platforms to block certain content for certain age groups.” Users must state their age when registering.

Legally, however, there are many ambiguities. Lawyers doubt whether the German project is in line with EU law. In addition, providers such as YouTube, Facebook or Twitter are not affected by a German advertising ban because they are not based in Germany, writes the Leipzig media lawyer Marc Liesching in an expert opinion. He created this on behalf of the associations concerned.

Question marks behind the legal implementation – and the effect of the law

Even in this country, according to Liesching, the law stands on feet of clay. It would interfere with media regulation, which according to the State Media Treaty is actually a matter for the federal states. ZAW representative Nauen says: “Even if the law were to come into force, it would not stand a chance in court.”

Özdemir wants to use the regulations to ensure that children eat healthier. According to the minister, eating habits become more established at a young age. 15 percent of three to 17-year-olds are overweight and more susceptible to diseases that would cost billions in health care systems.

Whether an advertising ban achieves this goal is questionable. Proponents and opponents list appropriate statistics for them. The consumer protection organization Foodwatch refers to a study according to which the sale of unhealthy food in countries with binding advertising bans fell by nine percent between 2002 and 2016, while it rose by 14 percent in countries without such regulations.

Advertising and food associations, on the other hand, argue that spending on confectionery advertising in Germany has risen from around 580 million euros in 2005 to almost 840 million euros, but that the proportion of overweight children has remained constant at 15 percent.

Industry representatives like to point to a scene that they believe demonstrates the government’s double standard when it comes to sweets and children. A year ago, Federal Ministers Annalena Baerbock (Greens) and Nancy Faeser (SPD) welcomed refugee children from Ukraine at Frankfurt Airport. They were holding large boxes of Haribo and Nestlé sweets.

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