Disney to cut ties with McDonald's

[Sonic Youth]

Disney cuts fat promotional ties with McDonald's

By Rachel Abramowitz
Los Angeles Times

For 10 years, the Walt Disney Co. and McDonald's appeared to have the perfect marriage. Happy Meals bore little figurines of Nemo, Mr. Incredible and 101 Dalmatians.

But no more. This is one relationship that's ending because of the children.

Disney is not renewing its cross-promotional pact with the fast-food giant, which comes to a close with this summer's release of "Cars" and "Pirates of the Caribbean: Dead Man's Chest." Part of the reason, say high-ranking sources within Disney, is the company that prides itself on being family friendly wants to distance itself from fast food and its links to childhood obesity.

Disney's not the only studio that thinks French fries loaded with trans fats may be too hot to handle.

DreamWorks is working with McDonald's to promote "Shrek 3," due out in 2007. But according to one top-level studio source, there is internal debate about whether the green ogre should steer clear of Chicken McNuggets and Big Macs in favor of the more healthful fare on McDonald's menu, such as salads. (Shrek is, after all, overweight.)

The end of the Happy Meal partnership comes when the processed- and fast-food industries are under fire because of growing concerns about expanding waistlines, particularly among youngsters. Just last week, beverage distributors, working with the William J. Clinton Foundation and the American Heart Association, agreed not to sell sugary sodas in the nation's public schools.

But some say the actions of the entertainment industry could have a greater influence, especially if other corporate giants follow suit.

"I think it would have impact in contributing to the cultural change that is necessary," said Dr. J. Michael McGinnis, chairman of a National Academy of Science panel that just released a study showing how food marketing harms children's diets. "The committee thought it was important for the use of cartoon characters that appeal to children only to be used in the marketing of healthy products," he said.

One of the fast-food industry's most prominent critics, "Fast Food Nation" author Eric Schlosser, said it would be "hugely significant" if Hollywood walks away from Happy Meals. "It will put more pressure on McDonald's to change what they sell in Happy Meals."

While nutritionists caution that fast food isn't the only culprit linked to childhood obesity, it's a factor.

Happy Meals are specifically marketed to children between ages 3 and 9. A Happy Meal with a cheeseburger, small fries and Sprite is 670 calories, with 26 grams of fat and 4.5 grams of trans fat — the kind that experts say is particularly dangerous. In recent years, McDonald's has added healthful alternatives such as apples and low-fat milk.

Industry analysts say the breakup will force both Disney and McDonald's to find new promotional outlets.

"Fast food has been a very important promotional partner in promoting films to children," said industry analyst Lowell Singer, from S.G. Cowen. "As the animated marketplace gets more competition over the next few years, Disney will need to be much more aggressive and creative in reaching children though other promotional outlets."

Sources on both sides of the agreement say the parting of the ways was mutual. And it's not a complete divorce, either. McDonald's fare will continue to be a staple in Disney's theme parks.

Disney also is leaving open the possibility of McDonald's promotions geared toward adults.

Disney released a statement praising its decadeslong relationship with McDonald's, adding: "While our contract with them will expire at the end of the year, we look forward to a more flexible, nonexclusive relationship where we will be working with them on a case by case basis."

Dean Barrett, senior vice president of global marketing for McDonald's, agreed. "Our relationship was ongoing before the agreement and will continue after. We've had great success. There's great entertainment value with us and Disney, and I would think that would continue for years to come."