Corporate political activity of the food manufacturing and fast-food industries in Australia
This section provides a snapshot of the food manufacturing and fast-food industries in Australia, including revenue and growth projections. It also outlines some of the tactics used by major players to influence public policy in ways that favour their business interests.
Key Evidence
Total revenue across the fast-food and takeaway service industry in Australia was $23 billion in 20231
There are parallels between the corporate political activity of the food and tobacco industries
Industry-funded research is used to shape the evidence base
Sponsorship of sporting clubs is a tactic used to win public favour
The food industry can be defined quite broadly as any business enterprise involved in the production of food – including agricultural producers, manufacturers, retailers and restaurants . This section will mainly focus on major food manufacturers and fast food companies, due to their influence in shaping global and local food systems (for more information see previous section, The ’nutrition transition’).
To provide a sense of the main food manufacturing and fast-food industry players in Australia, a snapshot of the snack food manufacturing; chocolate and confectionery manufacturing; and fast-food and takeaway service sectors is provided below.2
- The snack food manufacturing sector in Australia produces products such as potato chips, savoury snacks, nuts, and muesli and protein bars.3 Total revenue across the sector in 2023 was $3.1 billion, with annual growth of 6.3% from 2018-23. The sector is moderately concentrated with the largest players Mondelez Australia Pty Ltd (11.2%) and Arnott's Biscuits Ltd (7.4%) accounting for more than half of market share. Mondelez’s brands in this sector include Belvita, Ritz and Oreo; while Arnott's’ brands include Tim Tam, Shapes, Tiny Teddy and Vita Weats.
- The chocolate and confectionery manufacturing sector in Australia produces confectionery, chocolate and cocoa products.4 Total revenue across the industry in 2023 was $8.1 billion. While the market has grown 0.6% per year on average between 2018 and 2023, it declined by 1.4% in 2023. The top three players are Mondelēz Australia Holdings Pty Ltd (Mondelēz) (28.9%), Mars Wrigley Australia (16.2%) and Nestlé Australia Ltd (Nestlé) (10.1%). Mondelēz’ brands in this sector include Cadbury and the Natural Confectionery Co.; Mars Wrigley Australia brands include Mars Bar, M&Ms and Skittles; and Nestlé brands include KitKat, Smarties and Allen’s.
- The fast-food and takeaway service industry in Australia produces fast-food such as burgers, pizza, sandwiches and sushi for immediate consumption.5 Total revenue across the industry in 2023 was $23 billion, with annual growth of 0.3% from 2018-23, increasing by 7.3% in 2023. The industry is moderately concentrated, and the top three players are McDonald’s Australia Holdings Pty Ltd (31.3%), Yum! Restaurants Pty Ltd (17.1%), and Restaurant Brands International (9%). Yum! Restaurants operates in Australia through its KFC and Pizza Hut brands, and Restaurant Brands International through its Hungry Jack’s brand.
In her book Food Politics, Professor Marion Nestle argues that diet is inherently political, given disputes about what people should eat and who gets to decide what is ‘healthy’. She writes that such disputes “inevitably involve struggles over the way government balances corporate against public interests ... They are revealed whenever a company attacks its critics as ‘food police’ or justifies self-interested actions as a defence of freedom of choice. They are expressed whenever food companies use financial relationships with political leaders and nutrition and health experts to weaken the regulatory ability of federal agencies and whenever they go to court to block unfavourable regulatory decisions.”6
Major food manufacturers and fast-food industry players use various tactics to influence public policy in ways that favour their business interests. Where successful, this influence can jeopardise the development and implementation of policies that effectively promote public health. Researchers have drawn parallels between food industry activity and the long-running corporate political activities of the tobacco industry.7
Drawing on a framework used to classify the tobacco industry’s methods of exerting political influence,7 there is evidence of food industry actors using similar approaches in Australia, as shown below.
| TOBACCO TACTIC | FOOD INDUSTRY EXAMPLE |
|---|---|
| Information and messaging (lobbying, framing, shaping the evidence base) | Mars-sponsored research suggesting that cocoa can reduce cognitive decline in older adults |
| Financial incentives | Donations to Australian political parties by peak bodies, including the Australian Food and Grocery Council |
| Constituency building (seeking to gain the favour of public opinion and other stakeholders) | McDonald’s sponsorship of children’s sporting clubs, including as a major sponsor of Little Athletics and by providing branded sporting equipment to children’s community soccer, basketball and AFL clubs |
| Legal strategies | The Australian Food and Grocery Council lobbying to influence trade agreements so they are more favourable to processed foods |
| Policy substitution (proposing alternatives to regulation such as voluntary initiatives) | Self-regulatory codes on unhealthy food marketing to children by Australia’s food and advertising industries. |
| Attempts to fragment opposition groups and destabilise individuals | Coca-Cola South Pacific monitoring the activities of a researcher studying the integrity of industry-sponsored research and how it is used to influence health policy |
| Ultra-processed food industry using social media to affect public perceptions and value judgements |
There is also evidence showing that policy makers in Australia report extensive directly experience of the political activities of the food industry during their careers, with the 'information and messaging' and 'constituency building' strategies most prominent. Other studies highlight the prominent use of ‘policy substitution’ strategies by the food industry in Australia,1516 and their extensive influence.17 Policy makers and public health advocates have expressed concern that food industry political activities have resulted in weakened policy responses to addressing obesity and diet-related disease.18