The Lempert Report LIVE
The Lempert Report LIVE
Shedding Light on America's Nutrition Crisis and Solutions
This episode takes you into the heart of a Senate hearing that's ripping the lid off the devastating impact of ultra-processed foods on our children's health. We're exposing the dangerous trajectory of diabetes and obesity rates, and offering a clear, practical guide to navigating the murky waters of food choices with the help of the Nova classification system.
The stakes are high as we confront the ripple effects of dietary decisions on both mental and physical health, stretching from food insecurity in Oklahoma to the contentious minimum wage debate in California's fast-food sector. The episode traverses the complex terrain of living costs, sustainable wages, and the job market's unexpected twists. But it's not all grim – we're also spotlighting a ray of light with the Friendly Bench Program, an innovative solution to the loneliness epidemic. By the end of this journey, you'll have a new perspective on the intimate link between what we eat, how we live, and the collective well-being of our communities.
Welcome to the Lempert Report LIVE. On today's first 2024 broadcast, Bernie Sanders takes on big food. Ultra-processed foods are under fire. How politics is getting in the way of feeding our kids. Food delivery's latest fight. On #FoodN otPh ones, the social connection. On the bullseye. A new twist on the fast food wars, and this time it's not about burgers or chicken. Let's get started.
Phil:So Sally, some news out of Washington. Bernie Sanders posted on Twitter on December 17th. Last week I held a hearing in the Senate Help Committee on the diabetes epidemic and obesity epidemic in America. What is fueling these crises and what must be done to address them? If you missed it, tune in below. I highly suggest that everybody looks at what Sanders is doing, and what happened is some of his remarks Marion Nestle produced in Food Politics, her newsletter, and I just want to read a few of them. And these are the words of Bernie Sanders.
Phil:Why is the number of children in America today who have type 2 diabetes estimated to skyrocket by nearly 700% over the next four decades?
Phil:For decades in my view, again Sanders speaking, we've allowed large corporations in the food and beverage industry to entice children to eat foods and beverages that are loaded up with sugar, salt and saturated fat purposely designed to be overeaten. The situation has gotten so bad that most of what children in America eat today consists of unhealthy ultra-processed foods that doctors have told us lead to a higher risk of type 2 diabetes. And he goes on and on with it. You know I applaud what Sanders is doing. He's working with Senator Cory Booker on this initiative, which is terrific, and basically it's a great start to the new year where we have this kind of attention being put on our diets, ultra-processed foods in particular and in the Washington Post, from their eating lab, which I think they're just doing such a fabulous job on, there's a reporter who wrote look for these nine red flags to identify food that is ultra-processed. So here's a laundry list, Sally, of all the things that we should be avoiding if we want to avoid ultra-processed foods. What do you think?
Sally:Yes, I'm really glad we're talking about this Hearing with Bernie Sanders. Also Senator Bill Cassidy, a Republican from Louisiana, is also on the committee and stated that this is a bipartisan issue. This is something we all want. We want Americans to eat better. We want to tackle this problem of diabetes and obesity. Those alarming statistics were some of the things you mentioned, but other things that they mentioned were 95% of cases of diabetes are type 2 diabetes and that 10% of our population has type 2 diabetes. Right now, one in every five children are obese. Like you said, type 2 diabetes in children is going up.
Sally:Meanwhile, billions of dollars are being spent on marketing these ultra-processed foods. What the issue that he is tackling here is why do we have this problem? Why do we have all these cases of diabetes and obesity? How can we make treatment also available and lower cost to these people? But how do we get a handle on this food marketing?
Sally:In the meantime, as you've mentioned, there are things that consumers can do and what retailers can do to help people learn how to shop and look for those red flags. One of the things that you want to look at is you want to look at how many ingredients there are. If there's more than three ingredients on a food product, then it's probably been processed and maybe ultra-processed. We'll talk about that in a second. But yes, ingredients, think about. My favorite red flag to think about could you make this in your kitchen? Could you make this food product in your kitchen? If you can't, then there's probably a lot of stuff in there that isn't good for your body.
Sally:We want to look at added sugars. We want to look at fake sugars versus real sugars. We want to look at those ingredients, that end in 'ose', fructose being one of the ones we see often on products. There are things that you can do. I also highly encourage retailers to inform their shoppers about the Nova classification system, which is a really great way to explain how processed foods are classified. We start with minimally processed foods, which could mean that your vegetables have been just chopped up or your herbs have been grinded or your nuts have been chopped up. That makes it minimally processed. Then we move into different levels until we get to ultra-processed foods. There are some great examples. I will definitely put this link to the Nova classification system in the comments.
Phil:I think it's just so important and as I'm reading all this and I know the answer, so I'm being very rhetorical here why do we even need these ultra-processed foods? Again, if we look at the column in Washington Post-Eating Lab, ultra-processed foods are formulations of industrial ingredients that are designed by manufacturers to achieve a certain bliss point, which causes us to crave and overeat them. Ultra-processed foods make up a majority of the calories that most people consume. Scientists say they're the driving force between the multiple diet-related illnesses that are shortening our lifespan. If we take a look at the Nova food classification system and everybody uses this as a guide both consumers to your point, retailers every retail dietitian should be reprinting the Nova food classification system, not only posting it in the store, but also make it available, whether it's online or just in a paper form, to all of their shoppers. We have a really serious problem as it relates to diabetes, all these health issues as we've talked about before for many years. The time is going to come where we can't really afford our healthcare system, can't really afford these illnesses that are created by our diets, and the whole thing collapses. We really need to avoid it. Check out the Nova food classification system. You'll post it online in the comments, as well as on Supermarket Guru. com.
Phil:Now here's another story that I'm very angry about. Basically, what we're seeing is that there are states in the nation who have decided that they're opting out of the federal program that gives $40 a month to kids who receive free and reduced cost lunch while school is out for the summer. I just don't get this. I don't understand the politics, because this is a program that was started in 2010 as a test for USDA. It's been so effective that it has become national. It started out with just having 12,500 families. What they found is basically food insecurity has gone away. Number one, that they were eating better from a nutrition standpoint. And now we've got these politics that are involved with Nebraska, with Iowa, with all these states that are playing politics with the health and wellness of our kids. This just doesn't seem fair.
Sally:Yes, it is definitely upsetting to think about how much food insecurity we have in America right now and how much of that affects children. We've all faced a lot more cost in the grocery store over the last year and we've also seen a lot of wages not increasing for people for their jobs as the cost of living is going up, so this is a serious issue. I looked up, Phil, some information about Governor Kim Reynolds from Iowa, who has been very vocal about rejecting this program. Her reasons are that the administrative costs to the state are very, very high. We've also heard the same thing from Oklahoma, who was rejecting the program that the cost to distribute these EBT cards to people is just too much for them. But we also heard Kim Reynolds saying that she was more interested in tackling nutrition, in obesity and those types of issues.
Sally:The point that we're missing here is that this isn't just welfare for people that are too lazy to work or want to use it to buy junk food that makes them overweight and obese. What we are talking about here is a lot of children who depend on breakfast and lunch five days a week while they go to school and when that goes away in the summertime. Their parents are honestly struggling to buy food for them and provide for them for the summer, so this is a hunger issue. Obviously, we do want to get some programs happening, particularly we're just talking about retail dietitians. We want to help people shop on a small budget in a better way. We want to teach them how to buy fruits and vegetables or frozen fruits and vegetables if they can't afford the fresh produce, but how to incorporate some healthy components to your diet on a low budget and not just using that money for these ultra-processed foods that can be relatively inexpensive that we were just talking about.
Phil:Absolutely. Very well said. When we start to Oklahoma you mentioned, Oklahoma is in the bottom 10 as it relates to food insecurity. We need to have the Oklahoma governor not participating in this. Only 36 states and some Indian territories and so on have signed up for this. This is just absurd. Talking about absurd.
Phil:There's a new California law that took effect January 1st that the minimum wage goes up to $20 for fast food restaurants. Those restaurants that have 60 or more locations throughout the nation have to comply with this. As a result, what's happened is two Pizza Hut franchisees have decided to fire their drivers. 1,200 people get fired because being paid $20 an hour doesn't work. Now they're making about $16 an hour, so we're talking about the difference of about $4. What they're doing is they're outsourcing now their delivery to. whether it's Uber Eats or DoorDash, people like that and from a consumer standpoint, you're going to have a service fee, you're going to have to tip probably have to tip more than you would the pizza hut drivers.
Phil:I just don't understand what's going on. Where $20 an hour is not a lot of money in America, especially when we've got rents that have gone up, where we have our food prices that have gone up, the fact that these two franchisees have elected to fire 1,200 delivery people. What this says to me? And again, I'm here in California and, to be honest with you, I don't order from Pizza Hut. But if I did order from Pizza Hut, I would switch. I would switch to Domino's, I would switch to anybody who, but Pizza Hut, for firing these drivers.
Sally:I'm right there with you, Phil, and I do think that this sends a message to consumers about the values of the brand. That is something that consumers are starting to think about. When they choose where they buy their food from or whatever they buy, they are thinking about the values and the ethics of the company. You're talking about $20 an hour, and that's really not a lot of money. I did a little calculating here and I looked up what the average rent for a 1,000 square foot apartment in California is. The average rent is $1,837 a month. If you work 40 hours a week making $20 an hour, then you make $3,200 a month, but your apartment costs $1,837, so you only have $1,363 left over, or $340 a week to spend on your food, your gas, your phone, your utilities, your car insurance.
Phil:That's even before taxes, absolutely Before taxes.
Sally:That's not considering people who have children to support and take care of. It is absurd for us to hear about that. These wages for these workers no one wants those to go up, but the salaries of CEOs have reached historical increases lately. What happens when you have to raise to $20 to pay your drivers means that it has to come out of a CEO salary or it passes along to the customers in higher prices. This is something that I think that these brands, these companies, these CEOs, they really need to think about. The Yum brand CEO made over $17 million last year. What if he only made $10 million?
Phil:Absolutely. I think what we're really approaching is this battle, if you would, between we've seen it with Starbucks. We've interviewed, you know, Starbucks workers who have tried to unionize before. We're really having a problem getting people to work as cashiers in supermarkets because of the low wages. We're having a battle, there's no question about it, and you know the money has to come from somewhere and they can't just keep on putting it off on the shoppers, the consumers and, as we've reported before, you know, in all these earnings calls, these food companies are making record profits but they're not passing it on to either their workers or reducing, you know, prices for us as shoppers. So you know three devastating stories today for us to deal with, but one more on Food Not Phones.
Phil:A new survey that's come out loneliness in America, how the pandemic has deepened an epidemic of loneliness and what we can do about it. The report suggests that 36% of all Americans, including 61% of young adults and 51% of mothers with young children, feel serious loneliness. That leads to depression, anxiety, heart disease, substance abuse, domestic abuse, all of those. And, to be honest with you, in looking at this I found an outreach that I wasn't familiar with. I don't know whether you are familiar with it or not, Sally, but it's called the Friendly Bench Program and basically they provide benches, outdoor seating areas that connect strangers with nature. You know we really need to, as you know we've talked about hundreds of times, we really need to put down our phones during meal times, connect with other people and even beyond meal times, whether we attune with nature, attune with other people. But when we have these epidemics about loneliness, it's a huge problem that we've got to figure out before it's too late.
Sally:Agreed, Phil, and I love the Friendly Bench idea that that's a great strategy to get people outside, connecting with new people and, like you said, connecting with nature. You know, Forbes did a survey on New Year's resolutions for 2024. And 36% of people said that they want to focus on their mental health. In addition to that, 55% said that they connect their physical health with their mental health. So they want to work on all of that together. And I also found something great that I'll post in the comments for everyone here. Dr Omar Awan is a doctor who is a contributor to Forbes and he talked a lot in his recent column about investing in relationships, spending more time interacting with people and reducing your screen time, and he has some really, really great suggestions. One that's really easy is to decrease your screen time by 30 minutes a day. Just start there and take that 30 minutes to have coffee with a friend or take a walk with a friend, but trying to get away from that screen and connect with your community, connect with other people. We want face-to-face interaction.
Phil:Very important, and especially in the times that we have now very turbulent times, with wars across the globe, politics, you know, making my brain fried. We really need to connect with other people, no question about it. And also, let's not forget, when you go to the supermarket, say a lot of the cashiers, say a lot of Bob the Butcher, Betty the Baker. It's a great source of companionship to really have your supermarket be part of your community. We need to do that, so don't forget, sign up for the initiative Food Not Phones at foodnotphones. com. Use the hashtag #FoodNot Phones in social media and let's, you know, as our New Year's resolution for 2024, all resolve to be nicer to each other and more friendly and have better relationships. Thanks, Sally. On the bullseye. For years, fast food giants have battled their way through burger wars, chicken wars and even French fry wars. But there's a new battle and it's all about beverages, especially coffee beverages. The players are McDonald's, starbucks and Costco. By now you've heard about McDonald's new small format, CosMc's. It's a beverage-focused restaurant that is announced to open in 10 locations this year. One already opened up in Chicago. Mcdonald's says that CosMc's menu is rooted in beverage exploration, with bold and unexpected flavor combinations, vibrant colors and functional boosts, including lemonade and teas, blended beverages and cold coffees, including s'mores cold brew. Seriously, who are they targeting? They say it's inspired by nostalgia and is landing Earthside for us humans to enjoy. Could just be another McPizza in my book. Starbucks launched its new winter menu last week with iced hazelnut, oat, milk, shaken, espresso, pistachio cream, cold brew which is sweetened with vanilla syrup and topped with smooth nutty pistachio cream, cold foam and salted brown butter sprinkles, and then a more simple pistachio latte. Starbucks is also introducing some new sandwiches, probably prompted by the new Cosmex creamy avocado, tomatillo sandwich, spicy queso sandwich and McPops which sort of look like mini cream filled donuts.
Phil:Back to Starbucks. Their new breakfast sandwich, forget the Egg Mcmuffin folks, is the baked, not fried, potato cheddar and chive bakes with cage free eggs, diced potatoes, cheddar, spinach and chives. Or you might choose the chicken, maple butter and egg sandwich. My vote for the winner in this latest battle is actually Costco, who's introducing their Kirkland signature breakfast sandwich which rumors have it is a knock off of Starbucks double smoked bacon breakfast sandwich, which is Applewood smoked bacon, egg cheddar on a spiral butter croissant which retails for $5.45, but at Costco you only pay a $1.99. But here's the key. It only comes so far in a frozen eight pack which retails for $15.99. Of course, unlike in Starbucks, you're going to have to heat it up yourself. By the way, if you're wondering, Costco doesn't sell hot coffee in their food court, just a Cold Brew Mocha Freeze, which I've tried and doesn't compare to those sold at coffee places.
Phil:Bad news Costco, Starbucks is even now pushing in this new year for us to bring our own clean cup for our beverages. They say the process is contactless, which I really don't understand. The smart move is that they're offering a 10 cent discount when you do use your own cup. My question is what happens if you don't bring in a spotless clean cup? Do they then just say go away, not going to give you your coffee? Do they wash the cup? Maybe it's an idea that needs a little bit more thought before they execute it on a national basis. Thanks for joining us and we'll see you back here next week for more on the Lempert Report.
Sally:Be sure to visit www. SupermarketGuru. com for the latest marketing analysis issues and trends, and don't forget to join us back here next Tuesday at 230pm Eastern for more.