Day 046 - 04 Nov 94 - Page 26

     
     1        "We all seemed to agree that, if possible, McDonald's
     2        should attempt to deflect the basic negative thrust of our
     3        critics by creating a scenario where we take the high road.
     4          How do we do this?  By talking 'moderation and balance'.
     5        We can't -- at this stage of the situation -- really
     6        address or defend nutrition.  We don't sell nutrition and
     7        people don't come to McDonald's for nutrition.  Rather than
     8        fight a defensive war of attrition by responding to
     9        constant nutrition attacks, let's not even deal with it."
    10
    11        Then he goes on to the points of a way of dealing with it?
    12        A.  Yes.
    13
    14   Q.   So there is a recognition there, is there not, that there
    15        are constant nutrition attacks?
    16        A.  There is a recognition, yes.
    17
    18   Q.   When it says, "We don't sell nutrition and people don't
    19        come to McDonald's for nutrition", your department, does it
    20        have a role in advising the company on whether it can
         develop its menu in a more nutrition-orientated direction?
    22        A.  No, that is not the role of the department.
    23
    24   MR. JUSTICE BELL:  You do not, for instance, say:  "Look, we
    25        could put forward a really good advertising campaign if we
    26        did this with our product"?
    27        A.  From a nutritional point of view-----
    28
    29   Q.   Does your department enter into that kind of exercise?
    30        A.  No.  When a product is developed, a product like the
    31        McLean Deluxe, then obviously we use that as an opportunity
    32        to advertise.
    33
    34   Q.   But your department does not say:  "Come on, let us have a
    35        burger with a lower percentage of fat", whatever that means
    36        to you?
    37        A.  No.  That is the Product Development department.
    38
    39   Q.   "----because in the current climate we will be able to
    40        mount a really effective advertising campaign"?
         A.  No, we do not.
    42
    43   MR. MORRIS:  On the other hand, does the converse apply, which
    44        is that if McDonald's is interested in developing healthier
    45        menu items or in introducing salads, for example, or it may
    46        want to introduce a veggie burger, or something, do they go
    47        to the promotional department and say:  "Can we promote
    48        this; can we sell this; will it be a problem", before they
    49        bring an item in, or do they just leave it to chance?
    50        A.  No.  In most cases, the Product Development department 
    51        will do its own research to see whether our consumers would 
    52        enjoy the product and whether it would fit within the 
    53        context of our full menu; and then, once the product is
    54        developed, it is then brought to the Marketing department
    55        to market.  Sometimes we will be in the development of the
    56        product itself, but most of the time the product is pretty
    57        well developed, and then Marketing gets involved.
    58
    59        Marketing sometimes will, you know, have some research on
    60        other things that might be given to the Product Development