Walmart Decides to Cut Sales of Unhealthy Foods

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By Douglas A. McIntyre Published
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Instead of admitting that it has, in the past, sold food with too much sodium, salt and sugar, Walmart (NYSE: WMT) has made a public relations bonanza of its decision to sell more healthy food. The world’s largest retailer will put “Great for You” badges on products backed by “rigorous nutrition criteria.”  Walmart has had a sudden change of heart about what it sells to its customers.

One reason Walmart suddenly has taken the action is First Lady Michelle Obama, the poster child for the new initiative. Walmart went so far as to get a quote from her for its press release about Great for You. She said:

 Today’s announcement by Walmart is yet another step toward ensuring that our kids are given the chance to grow up healthy. Just over a year ago, Walmart committed to save shoppers a billion dollars in their cost of fruits and vegetables and the fact that Walmart exceeded this number is a real accomplishment and a milestone in our efforts to support families eating better. In addition, the healthy seal will be another tool for parents to identify the best products for their kids. Giving parents the information they need to make healthy choices is a key piece of solving childhood obesity.

The quality of Walmart food products probably was never an issue for her and her family. Mrs. Obama did not mention it, but she likely was never a regular patron of Walmart. She almost certainly is not now, either.

The Walmart decision matches ones made by other huge American companies that sell food, either fast food or food that people take home to cook. McDonald’s (NYSE: MCD) is the best example. Last summer, the largest fast-food chain said it would offer low-calorie options for children’s meals. McDonald’s also said it would reduce sodium content in some of its food by 15% by 2015.

Stores and fast-food companies have tried to create the illusion that they have only recently gotten the FDA list of food content by product and studies about which food ingredients undermine healthy eating habits. What actually happened is that pressure from the government and public to cut back on the fatty foods that people love most became overwhelming. Some of the blame for unhealthy foods does fall with the customers. But to turn what should have been done some time ago into a press event masks a lack of actions — ones not taken by these companies for years.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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