Case Report ISSUES RAISED. Food and Beverage Code 2.1 (a) - Misleading / deceptive DESCRIPTION OF THE ADVERTISEMENT

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1 Case Report 1 Case Number 0151/17 2 Advertiser Nestle Australia Ltd 3 Product Food and Beverages 4 Type of Advertisement / media TV - Pay 5 Date of Determination 12/04/ DETERMINATION Dismissed ISSUES RAISED Food and Beverage Code 2.1 (a) - Misleading / deceptive DESCRIPTION OF THE ADVERTISEMENT The Advertisement is a montage of various people across Australia enjoying their morning cup of NESCAFÉ BLEND 43 coffee ( Advertised Product ). There is also an image of the Advertised Product on a production line in our Gympie factory. A jar is removed from the production line, allowing the viewer a closer look at the Advertised Product. In the versions shown on television, the V/O states: Australians start their mornings with NESCAFÉ BLEND 43, proudly roasted and blended in Australia. It all starts with a NESCAFÉ. In the version on Youtube, the V/O states: Australians start their mornings with NESCAFÉ BLEND 43, proudly roasted and blended by Australians in Gympie, Queensland. It all starts with a NESCAFÉ. In each version, the closing shot includes an image of the Advertised Product with the words on screen Roasted and blended in Australia. THE COMPLAINT A sample of comments which the complainant/s made regarding this advertisement included the following:

2 The add indicates to us, that as true blue Aussie we should drink the coffee blended and Roasted in Australia. BUT that is untrue, as I stated I have a jar which is a product of Singapore. THE ADVERTISER S RESPONSE Comments which the advertiser made in response to the complainant/s regarding this advertisement include the following: I refer to your letter of 23 March 2017 to Nestlé Australia Ltd (Nestlé) advising of a complaint received in relation to a television commercial for Nestlé s NESCAFÉ BLEND 43 coffee (Advertisement). Thank you for giving us the opportunity to comment on the issues raised in the complaint. Codes considered In making its submission, Nestlé has considered: 1. The Food & Beverage Advertising & Marketing Communications Code (Food Code), specifically under section 2.1 which states: Advertising or Marketing Communications for Food or Beverage Products shall be truthful and honest, shall not be or be designed to be misleading or deceptive Section 2 of the AANA Advertiser Code of Ethics (Code of Ethics), as requested. 3. The AANA Code for Advertising and Marketing Communications to Children (Children s Code) and the Australian Food and Grocery Council Responsible Children s Marketing Initiative (RCMI). We wish to state from the outset that Nestlé does not consider the Advertisement to be in breach of the Food Code, Code of Ethics, Children s Code, the RCMI or any other Codes which the ASB administers. The Complaint The Complainant alleges that the Advertisement contains incorrect statements because it states the product is roasted and blended in Australia, but he claims to have a jar which is produced in Singapore and I have seen one which is a product of Greece. The Complainant has not produced any details of the jar with coffee produced in Singapore or product of Greece. Nestlé has considered in detail the Complainant s concerns and respectfully submits that the Advertisement is not inaccurate but is truthful and honest. Versions of Advertisement The Advertisement has different versions, and unfortunately the complainant has not clearly identified which version he is referring to. For the purposes of responding to this complaint, we have considered the most recent 15 sec and 30 sec version shown on television and a 45 sec version that is on Youtube and was specifically referenced by the complainant (as located at The versions differ mainly by the inclusion of different montages of people enjoying the advertised product and also while the television commercials refer to the advertised product being roasted and blended in Australia, the Youtube version is more specific and refers to in Gympie, Queensland. Overview of the Advertisement The Advertisement is a montage of various people across Australia enjoying their morning cup of NESCAFÉ BLEND 43 coffee ( Advertised Product ). There is also an image of the Advertised Product on a production line in our Gympie factory. A jar is removed from the production line, allowing the viewer a closer look at the Advertised Product. In the television commercials, the V/O states: Australians start their mornings with NESCAFÉ BLEND 43, proudly roasted and blended in Australia. It all starts with a NESCAFÉ. In the version on Youtube, the V/O states: Australians start their mornings with NESCAFÉ BLEND 43, proudly roasted and blended by Australians in Gympie, Queensland. It all starts with a NESCAFÉ. In each version, the closing shot includes an image of the Advertised Product with the words on screen Roasted and blended in Australia.

3 Response regarding alleged incorrect statements The manufacture of the Advertised Product uses imported green coffee beans which go through a manufacturing process at Nestlé s factory at Gympie, Queensland. The manufacturing process includes blending, roasting and grinding the coffee beans. Nestlé factory staff at Gympie are rightfully proud of their involvement in the manufacturing of this popular product. In fact, the two people in factory uniform shown towards the end of the Advertisement are both long time employees at the Gympie factory. We confirm that the Advertised Product is roasted and blended only at the factory in Gympie, Queensland. That is, contrary to the assertion by the complainant, the Advertised Product is not produced in Singapore or Greece. While the complainant asserts that he has a jar which is produced in Singapore and I have seen one which is a product of Greece, we respectfully submit that the complainant must be looking at or recollecting other Nescafé coffees. The Advertisement is specifically about the Advertised Product, an image of which appears on 3 separate occasions in each version of the Advertisement. Further, the references to roasted and blended in Gympie, Queensland or in Australia are clearly in context of that specific product. In particular, in each version: 1. The voiceover refers to the specific product ie NESCAFÉ BLEND 43, proudly roasted and blended in Australia or NESCAFÉ BLEND 43, proudly roasted and blended by Australians in Gympie, Queensland (emphasis added). During these voiceovers, one of the scenes shown is an image of the Advertised Product on a production line. A jar is removed from the production line such that viewers get to see the front of the coffee jar which clearly bears the name NESCAFÉ BLEND The prominent super Roasted and blended in Australia appears on screen with an image of the Advertised Product. 3. There is a further image of the Advertised Product in the Advertisement, prior to both the voiceover and super. There are no other Nescafé coffee products shown in the Advertisement. Accordingly, we are firmly of the view that the statements in the Advertisement are not misleading or deceptive and in fact are honest and truthful. Section 2 of the Code of Ethics As requested by the ASB, we have reviewed the Advertisement in line with the relevant sections 2 of the Code of Ethics, and we feel the advertisement complies in all respects. Children s Code and the RCMI The Advertisement is not directed to children or predominantly directed to children. The audience of the programs in which the Advertisement appears is not predominantly children. Therefore, the Children s Code and the RCMI are not applicable to this Advertisement. Final Comments The Advertisement clearly relates to the Advertised Product, being specifically referred to in the voiceover plus there are at least 3 occasions throughout each version of the Advertisement where the product packaging is shown. In particular, reinforcing that the claim roasted and blended in Australia relate to the specific product, is the closing shot in each version of the Advertisement which includes on screen at the same time an image of the specific product packaging and the words Roasted and blended in Australia. The Advertised Product is roasted & blended only in Gympie, Queensland. Therefore, the Advertisement does not contain inaccurate statements and is not misleading and deceptive. We are firmly of the view that the Advertisement does not breach the Food Code, Ethics Code, the RCMI or any other Codes which the ASB administers. We respectfully request the complaint be dismissed. THE DETERMINATION

4 The Advertising Standards Board ( the Board?) considered whether this advertisement breaches the AANA Food and Beverages Advertising and Marketing Communications Code (the Food Code?). The Board noted the complainant s concerns that the advertisement is misleading in its suggestion that the coffee is blended and roasted in Australia. The Board viewed the advertisement and noted the advertiser s response. The Board noted that the advertiser is a signatory of the AFGC RCMI but that the complaint does not raise any issues under that Industry Initiative. The Board noted that the product advertised is food and therefore the provisions of the AANA Food and Beverages Advertising and Marketing Communications Code (the Food Code) apply. In particular the Board considered Section 2.1 of the Food Code which provides: 'Advertising or marketing communications for food...shall be truthful and honest, shall not be or be designed to be misleading or deceptive or otherwise contravene prevailing community standards, and shall be communicated in a manner appropriate to the level of understanding of the target audience of the Advertising or Marketing Communication with an accurate presentation of all information including any references to nutritional values or health benefits.' The Board noted the advertisement features a voiceover stating that Australians start their mornings with NESCAFE BLEND 43, proudly roasted and blended in Australia. The Board noted the Practice Note to Section 2.1 of the Food Code which provides: The Board will not attempt to apply legal tests in its determination of whether advertisements are truthful or honest, designed to mislead or deceive, or otherwise contravene prevailing community standards in the areas of concern to this Code. In testing the requirement that an advertising or marketing communication should be truthful and honest, the Board will consider whether the information most likely to be taken from the advertisement by an average consumer in the target market would be reasonably regarded as truthful and honest. The Board acknowledged the provisions of the Food Standards Code and noted that there are governing bodies responsible for the enforcement of this Code. The Board noted that its role as a community Board is to consider the advertisement under the provisions of the AANA Codes only and in particular consider the message that would be taken by an average consumer watching the advertisement. The Board noted the complainant s concern regarding the provision of information in the advertisement relating to the origin of the coffee depicted in the advertisement. The Board noted that whilst the advertisement does not specify the origin of the coffee the Board noted that the voiceover clearly state the coffee is blended and roasted in Australia and that this is not a statement about the source of the ingredients. The Board acknowledged that there is a distinction between the phrase blended and roasted in and the source of the ingredients used to make the finished product and that the advertisement does not create an impression that the product is made from Australian coffee beans.

5 Based on the above the Board determined that the advertisement did not breach Section 2.1 of the Food Code. Finding that the advertisement did not breach the Food Code the Board dismissed the complaint.