Gina’s newborn girl has just contracted pneumonia. A few years ago, the young mother from Quezon City lost twins to premature birth. And her new baby does not look good either, being obviously malnourished and small for her age.

Despite her family’s poverty, Gina stopped breast-feeding and opted to feed her baby with infant formula after getting convinced by television ads. Hours of TV exposure led her to believe that her baby would grow healthy and intelligent if she is fed with breastmilk substitute. By failing to breast-feed, which is also a natural way to limit pregnancy, Gina is again on the way.

In a hospital also in Quezon City, Lisa has given birth to a baby boy. The baby was delivered with a problem in his stomach that breast-feeding him is not possible until the deficiency is operated on. But what she could not do for her newborn, Lisa was able to do for other infants in the hospital.

Just across Lisa’s bed, a mother died after delivering triplets. Without a baby to feed her breastmilk, the young mother offered to nurture the triplets. Soon enough, Lisa’s milk was feeding countless babies in the hospital whose mothers could not immediately initiate breast-feeding. Her relatives donated dozens of baby bottles where she could express her milk, round-the-clock, while the nurses brought these to babies who needed them.

These stories serve as a picture of how mothers actually understand the value of breast-feeding. Despite financial constraints, poor women are likely to use infant formula than those who are more economically well-off, according to studies.

Corporate lobby

The United Nations Children’s Fund (Unicef) and the World Health Organization (WHO) blame the “aggressive” and “false” marketing of infant formula for the low breast-feeding rate in the Philippines, especially among poor mothers.

The two international agencies found an ally in the Department of Health (DOH), which is now caught in a court battle against multinational milk companies represented by the Pharmaceutical and Healthcare Association of the Philippines (PHAP). But while the Supreme Court has yet to decide on the case, lobbyists are not wasting time waging another tactic to win the fight.

A year ago,as the DOH approved the revised implementing rules and regulations (RIRR) of the Milk Code, the Unicef regional office in Bangkok received an unexpected letter from the International Formula Council (IFC), an organization of milk companies composed of multinational firms such as Nestlé USA, Abbot Laboratories, Wyeth Inc. and Mead Johnson.

The letter contained a strongly worded complaint against Nicholas Alipui, Unicef country representative to the Philippines, who is very vocal against the marketing of infant formula in the country.

The IFC complained of Alipui’s attacks on breastmilk substitutes, saying he dishes out “unscientific” remarks to the media and that he is “not competent” for the job of looking after the welfare of Filipino children.

“I was surprised. I didn’t know that we would instantly become the subject of international scrutiny of the sort. I think that was when I first realized the enormity of the challenge that we’re facing and how big the opposition from the milk companies was going to be,” Alipui told the BusinessMirror.

The attack did not stop at the Unicef office. The IFC also complained about Jean Marc Olivé, the former WHO country representative to the Philippines.

Allegedly, there have been efforts to quiet Olivé through threats that he will have a hard time getting clearances from WHO higher-ups to continue his programs in the country. Interviewed by the BusinessMirror before he was moved to another mission, Olivé neither confirmed nor denied that he had been on the receiving end of harassment from milk producers.

“The nerve of milk companies comes from the fact that they do have lobbyists around the world who have an exaggerated impression about themselves and what they can actually achieve in terms of influence within various organizations and child-rights groups. I think the fact that they are able to penetrate organizations to the point of trying to undermine representatives is an indication that they feel that they have enough influence within these organizations to challenge individuals who represent [them] in their respective countries,” explained Alipui.

On the local front, the US Chamber of Commerce also wrote President Arroyo expressing concern about the implementation of the RIRR, saying it will limit the advertising of infant formula. It added that this will put “at risk” the country’s “reputation as a stable and viable destination for investment.”

“We know you would want to avoid such a situation occurring,” Thomas Donohue, president and chief executive of the US Chamber of Commerce, wrote Arroyo in a letter dated August 11 last year. He asked that the government “reexamine” the regulation and even offered the help of chamber members in coming up with a new one.

During the same period, Health Undersecretary Alexander Padilla had a surprise visit from David Katz, US trade representative, who flew all the way from his country to Manila to air his “concern” on the issue.

The BusinessMirror tried to reach the PHAP for a reaction, but it declined to be interviewed.

In an e-mailed letter to this reporter on July 27, the Atlanta-based IFC denied that infant formula is responsible for the 16,000 annual deaths of Filipino babies and ailments attributed to milk products.

“We are hopeful that those concerned with infant health will take an objective and factual perspective in addressing this issue. Continued publication of inaccurate claims and conclusions regarding infant health in the Philippines will prevent Filipino mothers from making informed feeding decisions based on facts.  Further, misrepresentation of research can lead to exaggerated and unethical claims, potentially negatively impacting public health policy. Science and medicine have made impressive progress in addressing the needs of infants who do not receive breast milk.  Mothers who cannot or choose not to breast-feed have the right to know their options and must be aware that iron-fortified infant formula is appropriate when it is ‘available, affordable and can be safely used’—a fact that is clearly supported by the World Health Organization,” said the letter signed by IFC vice president Mardi Mountford.

Judicial burden

Observers say the Supreme Court’s decision would be crucial not only in the Philippines but also in the rest of Southeast Asia because it could represent a precedent for other litigations of similar nature. Foreign milk companies see the region as a big market following stiff regulations in more developed economies. Infant formula is among the top consumer products in the country.

In July 2006 the Supreme Court justices had junked the PHAP’s petition for a temporary restraining order on the implementation of the RIRR.

The decision pleased the health department which approved the regulation, both the Unicef and the WHO, and nongovernment organizations advocating breast-feeding. The law would ban the use of texts and images of babies and adults in the promotion of infant formula, and also impose sanctions on health professionals receiving perks from milk companies.

While the move was seen as the start of a strong campaign for breast-feeding that seeks to reduce the annual infant mortality rate attributed to milk substitutes, as well as the various infections and diseases attributed to formula, the implementation of the RIRR seemed to be a death sentence for milk companies.

Poor Filipino mothers spend an estimated P21 billion a year on infant formula. Milk companies, on the other hand, spend P4 billion a year in advertising alone minus the travel, sponsorship and other perks given to health professionals who promote their products.

Under Philippine laws and the WHO’s International Code of Marketing of Breastmilk Substitutes, infant formula should not to be promoted by health-service providers.

In 2003 only 16 percent of about 2 million babies being born in the country annually were exclusively breast-fed at four to five months. The Philippines also had the lowest “ever-breast-fed” rate among 56 countries that conducted demographic health surveys for the past 10 years.

Since last year breast-feeding advocates have been scoring points against the PHAP as they launched campaigns, starting with a record-beating project in the Guinness Book of World Records of the most number of mothers breast-feeding simultaneously. The project was followed by another one this year that is expected to reap a Guinness record again.

But the jubilation among child-rights advocates was interrupted when the Supreme Court ruled to approve the temporary restraining order sought by the PHAP four days after the US Chamber of Commerce wrote the President and a month after the justices sided with the DOH. Sources said the justices took into consideration threats from the milk companies that they stand to lose P10 billion if the RIRR is implemented and this will force them to reduce their work force.

Advocates somehow saw this coming when a few days before the court decision and after the US chamber’s letter, President Arroyo refused to give her regular speech in support of last year’s observance of World Breastfeeding Day that was celebrated in Malacañang and attended by UN representatives and the health department.

The President’s sudden change of tune in her support for breast-feeding has borne fruit in business, apparently: Australia and New Zealand gave commitments during her state visit early this year that they are setting up milk-manufacturing plants in the Philippines.

Despite the obvious lobbying being exerted by milk companies, international agencies and local breast-feeding advocates are tireless in attacking and exposing their influence on the government and the health system.

Days before the scheduled oral arguments in the Supreme Court between the PHAP and the health department over the RIRR, the Unicef released a 30-minute documentary showing how poor mothers are enticed by milk advertisements and how companies influence hospitals and barangay clinics to promote their products.

The milk companies’ image was dented even more by some coincidence: on the day of the oral arguments, the Bureau of Food and Drugs revealed that about 2 million cans of Wyeth products have been recalled because they contained mold and rusts due to a strong typhoon that struck the country late last year.

There seems to be a brewing disagreement among milk companies as to their marketing strategies. On May 25 Nestlé Philippines Inc., a sister company of Nestlé USA, which is a member of the IFC, wrote Alipui and protested the Unicef documentary which it alleged was “inadvertently slanted in a manner that shows our company in a bad light.”

But the letter—a copy of which was obtained by this paper, signed by D. Nandkishore, the company’s chairman and CEO—also lambasted the product advertisements of some infant formula, calling them “exaggerated,” especially “those that promise to give children increased intelligence or even become gifted, for which there is no scientific basis.”

Nestlé stresses that it is not a member of the PHAP and should not be attacked by breast-feeding advocates because it strictly adheres to international and local marketing codes. It even offered to work with the Unicef, the WHO and the health department to “implement strictly” the code through an “open and transparent dialogue” that includes the milk industry.

In a three-day meeting between the Unicef and the WHO held in Manila recently, they agreed that the Supreme Court’s decision on the Milk Code will set a precedent as to how companies promote their products in other countries.

On the other hand, the government is carefully weighing the matter since milk companies that belong to the PHAP are also pharmaceutical firms that directly work with the health department.

Profit vs public health: When infant formula tastes sour

Gina’s newborn girl has just contracted pneumonia. A few years ago, the young mother from Quezon City lost twins to premature birth. And her new baby does not look good either, being obviously malnourished and small for her age.

‘President’ Sorensen’s New Vision

My fellow Democrats: With high resolve and deep gratitude, I accept your nomination.

It has been a long campaign—too long, too expensive, with too much media attention on matters irrelevant to our nation’s nature.

Race Relations

FOR several weeks now, the Philippine Racing Club Inc. (PRCI), one of the country’s oldest and most prestigious racing clubs in the country, has been at the center of a raging corporate boardroom battle, pitting its minority shareholders against the company’s Malaysian-controlled board of directors.

Where more research and development dollars should go

Although U.S. companies are spending more on research and development overall than they have in recent years, they’re putting that money mainly into new project development and neglecting other areas that are important to long-term innovation efforts.

Productivity is killing American enterprise

I fear for the future of American business—not because of US trade imbalances or budget deficits but because of the productivity of its corporations. America’s highly touted productivity may be destroying its legendary enterprise and many of its powerful enterprises.

Crafting food

Benilda Moises starts her day taste-testing a violet liquid to determine the right mix of citric acid and the sweetener aspartarme.

Winning: Giving up on a broken operations

Q:  If you’re part of a diversified company, when do you give up hope on fixing a broken business? Ron Adner, Fontainebleau, France. 

A:  Big companies hold onto failing businesses for all kinds of reasons: sentimental value, false hope and culture, to name just three.

Murdoch Wins

In locking up Dow Jones & Co. for $5 billion late Tuesday, Rupert Murdoch ensured that his vast influence would be felt in the business world for years to come—as it is now by hundreds of millions of global TV viewers, moviegoers and Internet users.

‘WSJ’ reaction: ‘Sickening’

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Money, or duty to society?

The Bancroft family, which has controlled the prestigious Wall Street Journal for more than a century, is the latest newspaper dynasty to be dismantled by the pressures of the Internet age.

Global tire brand sets example of market knowledge, community integration

IT boils down to having a good name—Goodyear Philippines Inc. has close to a hundred years’ experience in support of this statement.

Vex Populi

Hand in hand with the dwindling supply of power and water is the proliferation of people, the population “explosion” (2.36-percent increase for this year) that the National Statistics Office (NSO) has warned us about—a case of plenitude in the midst of penury. A far cry from the zero growth rate (2 percent) of 1991, obviously the result of the martial law politely termed “family-planning program.”

Going beyond business

TO gain trust of people, practice what you preach.

This is what Manila Water Co. Inc. president Antonino T. Aquino has been doing in the past 10 years, since taking the helm of leadership of the Ayala-owned water firm servicing the east zone of urban Metro Manila.

Manila Water and communities: Some recent projects

COVERAGE of its water sampling and testing operations has been expanded to include several towns in Rizal province within its service grid.

Regarding Mark Jimenez

The view from Mark Jimenez’s penthouse is one of a kind: neat rows of the white crosses in the Libingan ng mga Bayani in Bonifacio Global City. Inside, crystal vases with fresh flowers are everywhere. There is an old Austrian piano that nobody knows how to play in the living room. There are photos of his family.

Five books that will amplify your ability to lead through influence

Leaders shape the future; they set strategic goals and guide their organizations toward attaining them. But they are powerless without others’ cooperation. Here are five books that will hone your ability to lead through influence.

The Cost of Myopic Management

Under pressure to hit immediate performance targets, many managers inflate earnings, often by cutting expenditures. In a recent survey of 401 top financial executives, 80 percent said they would decrease spending on “discretionary” activities like marketing and research and development to meet short-term goals.

Tattoo you

Last year Justin Miloro had to wear long sleeves to conceal the Buddha curling around his left forearm and the yellow-orange sun rays on his right. Pants covered the depiction of Earth on one leg and wings on the other.

From WOM to www

FOR years, small businesses have relied on the magic of WOM (word of mouth) to attract customers. Yet, with young Filipinos lately turning into entrepreneurs, too many small companies are creating too much buzz that customers now find it hard to tell apart the best from the bluff.

Winning: AVOIDING THE REVERSE-HOSTAGE SYNDROME

Q: Why do so many companies not address cross-cultural differences in a merger until it’s too late? Karen Fenner, Camden, New Jersey

A: Because you can’t number-crunch culture. And financial analysis is almost always where merger evaluations begin, along with some level of strategic analysis.

The monarchical tradition

Thomas Jefferson discontinued the practice of personally delivering the president’s report to Congress that was inaugurated by George Washington, the first president, on January 8, 1790, in New York, the capital of the new nation until 1801. But since the US Constitution required a president to report to Congress, Jefferson wrote his message and had it read by a clerk.

The future of San Miguel

‘We’ve done preliminary studies, going so far as to hire an independent adviser to shortlist for us attractive industries in which we might choose to participate, industries like mining, power, infrastructure, water, other utilities and property.’

Seeing the World

We can state, quite categorically, that we are living in very demanding times. Our planet is under stress. Our country confronts serious challenges. Our communities are in search of real solutions to age-old problems.