Florida Citrus Endorsement Deals Get Their Juices Flowing
Three leading nonprofit organizations are getting a combined total of $2 million to plug Florida citrus products though other foods are equally healthful, raising questions about charities’ growing role as paid endorsers.
In a series of new commercials funded by the Florida citrus industry, the American Cancer Society, the American Heart Assn. and the March of Dimes tout the benefits of Florida oranges and grapefruit--in the broadest such alliance yet between charities and business.
The nonprofit organizations say the pact with the Florida Department of Citrus allows them to raise money as they reach consumers with an important health message.
But a mounting chorus of critics say such deals are unfair to competitors and cast doubt on a charity’s independence.
“They are endorsing citrus from Florida--isn’t any other citrus as good?” said Robert Lowry, director of the Center for Professional Ethics at Case Western University in Cleveland. “They are not being candid with the public about what is good for them.”
The deal is one of many being forged between charities intent on raising money and corporations seeking a competitive edge. Prominent nonprofit groups that fight such diseases as emphysema, arthritis and diabetes have sold use of their logos to makers of pain relievers, air cleaners, ice cream treats and ballpoint pens.
In a recent deal also involving the American Cancer Society, that organization reaped $1 million from selling use of its insignia to SmithKline Beecham for use in marketing Nicoderm smoking-cessation patches, which are available without a prescription. The deal gives exclusive use for Nicoderm of the American Cancer Society logo within its product category, meaning the makers of no other anti-smoking patch can use it. Similarly, the Florida citrus industry is paying $1 million to become the society’s exclusive beverage sponsor for one year.
Charities say that exclusive deals bring in more money than do other arrangements. The American Heart Assn. will allow manufacturers to use its “heart check” symbol on the package of any food that meets its qualifications, for a modest processing fee of $1,500. But the association will receive $450,000 from the Florida citrus industry, which has exclusive use of the heart check in advertising within its product category for six months.
“There is not significant value from a marketing standpoint if a couple companies can use the commendation simultaneously,” said Eric Hargis, executive vice president of the Arthritis Foundation.
Thus the foundation stands to receive $250,000 from Johnson & Johnson for exclusive use of an Arthritis Foundation commendation in advertising for its easy-to-open Tylenol containers. The deal blocks the makers of rival pain reliever Aleve from advertising its commendation for an easy-to-use bottle cap. (Aleve is allowed to mention its commendation only in press releases.)
Although such deals may be lucrative for the charities, critics say they come at a price.
“The question is whether a nonprofit with an educational mission should give its imprimatur to a particular consumer product to the exclusion of other worthy products,” said Paul Root Wolpe, a bioethicist at the University of Pennsylvania. “It seems an abdication of their educational role.”
Wolpe said a proliferation of such deals could damage the credibility of the nonprofit organizations involved.
“When we begin to see nonprofit logos on TV commercials and the back of cereal boxes, it conflates in the mind of the consumer with McDonald’s arches and Joe Camel,” he said. “It detracts from what should be the implication of the logo--an unbiased, sober attempt to educate the public.”
Charities also can get stung if their logos are associated with questionable or inappropriate products. Last year the Federal Trade Commission accused the makers of Eskimo Pie of false advertising because ads for the high-fat dessert bore the seal of the American Diabetes Assn. In settling the allegations, Eskimo Pie changed its advertising.
Despite such episodes, charities argue that marketing deals actually enhance their educational mission. The American Cancer Society says its partnership with the Florida citrus industry allows it to spread important health information.
“It is an opportunity to communicate a cancer control message,” said Joanne Schellenbach, a society representative. “We could never afford to make the media buys they [the citrus industry] are willing to make.”
The Florida Department of Citrus is spending $30 million on the one-year ad campaign.
The commercials are carefully worded so as not to overstate the benefits of oranges or grapefruit, which have no special disease-fighting powers.
In a TV spot that was first aired this week, oranges fall from a tree as an announcer states: “The American Cancer Society says a healthy diet including Florida orange juice could reduce the risk of some cancers.”
Next grapefruit fall from the tree as the voice-over says: “The American Heart Assn. has certified Florida grapefruit and grapefruit juice as part of a heart-healthy diet.”
More oranges disappear when the announcer intones: “And the March of Dimes tells us the vitamin folic acid in orange juice could prevent certain birth defects.”
The March of Dimes is receiving $500,000 for participating in the campaign.
Besides lending its name to the advertising, the American Heart Assn. is being asked to hawk Florida citrus. In a memo from its headquarters to 50 regional offices, the American Heart Assn. said the Florida citrus industry wants help conducting “tastings” in grocery stores.
Members “are free to participate in this activity if they so chose,” the memo states. “It is not required.”
For the citrus growers, using the charities in their ads makes their claims more convincing.
“They give us a lot more credibility,” said Daniel L. Santangelo, executive director of the Florida Department of Citrus. “It is not just the Florida Department of Citrus making these statements. It is three leading, well-respected health organizations.”
And though the charities insist they are not endorsing Florida citrus, merely pointing out its benefits, consumers are likely to think otherwise.
“It’s an implied endorsement, clearly,” said Daniel L. Pearlman, a Los Angeles marketing consultant.
The success of such partnerships isn’t assured, as the termination last week of a $2.5-million deal between Johnson & Johnson and the Arthritis Foundation shows. The drug company said that it would no longer market its Arthritis Foundation brand pain relievers because sales were low.
The Florida citrus growers are optimistic; when the campaign was tested in eight cities last year, including at Ralphs grocery stores in Los Angeles, Florida citrus products recorded double-digit growth.
“One retailer told us it was the single best promotion they ever did,” Santangelo said.
