Implementing Strong Nutrition Standards: Financial ... · PDF fileImplementing Strong...

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Implementing Strong Nutrition Standards for Schools: Financial Implications A frequently expressed concern is that implementing strong nutrition standards will reduce revenue obtained from food and beverage sales. (12-14) The Issue The percentage of children and adolescents who are obese has more than tripled in recent decades, and most young people do not meet recommendations for healthy eating. (1,2) Overweight and obesity are strongly associated with an increased risk of diabetes, high blood pressure, high cholesterol, asthma, joint problems, and poor health status. (3) Despite these facts, many schools still allow students to purchase competitive foods such as candy, chips, soda, and other unhealthy snack foods and beverages in vending machines, school stores, or as à la carte offerings in school cafeterias. (4,5) Research shows that students who attend schools that sell foods with low nutrient density (often referred to as junk foods*) and sugar- sweetened beverages have lower intake of fruits, vegetables, and milk at lunch, lower daily intake of fruits and vegetables, and higher daily percentage of calories from total fat and saturated fat. (6-9) The majority of students attend schools in districts with written wellness policies that include nutrition standards for competitive foods and beverages, and more than half of states have policies that limit or restrict competitive foods in schools. (10,11) However, these policies vary in strength, and many do not ensure that only healthy foods and beverages are available on school campuses. *Foods or beverages that have low nutrient density (i.e., they provide calories primarily through fats or added sugars and have minimal amounts of vitamins and minerals). National Center for Chronic Disease Prevention and Health Promotion Division of Adolescent and School Health

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Implementing Strong Nutrition Standards for Schools: Financial Implications

A frequently expressed concern

is that implementing strong

nutrition standards will reduce

revenue obtained from food

and beverage sales.(12-14)

The Issue• Thepercentageofchildrenandadolescentswhoareobesehasmorethantripledinrecentdecades,and

mostyoungpeopledonotmeetrecommendationsforhealthyeating.(1,2)

• Overweightandobesityarestronglyassociatedwithanincreasedriskofdiabetes,highbloodpressure,highcholesterol,asthma,jointproblems,andpoorhealthstatus.(3)

• Despitethesefacts,manyschoolsstillallowstudentstopurchasecompetitivefoodssuchascandy,chips,soda,andotherunhealthysnackfoodsandbeveragesinvendingmachines,schoolstores,orasàlacarteofferingsinschoolcafeterias.(4,5)

• Researchshowsthatstudentswhoattendschoolsthatsellfoodswithlownutrientdensity(oftenreferredtoasjunkfoods*)andsugar-sweetenedbeverageshavelowerintakeoffruits,vegetables,andmilkatlunch,lowerdailyintakeoffruitsandvegetables,andhigherdailypercentageofcaloriesfromtotalfatandsaturatedfat.(6-9)

• Themajorityofstudentsattendschoolsindistrictswithwrittenwellnesspoliciesthatincludenutritionstandardsforcompetitivefoodsandbeverages,andmorethanhalfofstateshavepoliciesthatlimitorrestrictcompetitivefoodsinschools.(10,11) However,thesepoliciesvaryinstrength,andmanydonotensurethatonlyhealthyfoodsandbeveragesareavailableonschoolcampuses.

*Foodsorbeveragesthathavelownutrientdensity(i.e.,theyprovidecaloriesprimarilythroughfatsoraddedsugarsandhaveminimalamountsofvitaminsandminerals).

National Center for Chronic Disease Prevention and Health Promotion Division of Adolescent and School Health

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The EvidenceWhile some schools report an initial decrease in revenue after implementing nutrition standards, a growing body of evidence suggests that schools can have strong nutrition standards and maintain financial stability.

• Eightypercentofprincipalsinonesurveyreportedlittleornochangeinrevenuewhentheyimplementedastatepolicyrestrictingthesaleofjunkfoodsandsodainschools.(15)

• Apilotstudyinanurbanmiddleschoolfoundthatwithin2monthsofimplementingnutritionstandards,theschoolgeneratedmorerevenuefromfoodsalesthanalargermiddleschoolinthesamedistrictthatcontinuedtosellsodaandfastfood.Thisincreaseinrevenueresultedfromincreasedparticipationintheschoollunchprogram.(16)

• DatafromapilotstudyinfiveschoolssuggestthatimplementingnutritionstandardsthatallowsalesofonlyhealthysnackchoicesincreasedthenumberofstudentsparticipatingintheNationalSchoolLunchProgramanddidnotcauseanysignificantchangestoschoolfinances.(17)

• Among16schoolsthatreceivedfundingtopilottesttheimplementationofstatenutritionstandards,13schoolsreportedanincreaseingrossrevenue.Mostoftheseschoolsreportedincreasesinthesalesofreimbursableschoolmeals,withthegreatestincreasesoccurringintheschoolsthateliminatedàlacartefoodscompletely.(18) Twooftheschoolsreportinganincreaseingrossrevenuewereabletoincreasebothsalesofschoolmealsandcompetitivefoodswhilecomplyingwithstatenutritionstandards.Oftheremainingthreeschools,onehadvirtuallynochangeingrossrevenues;onelost8%ingrossrevenue,andanotherlost15%.

• InareportofschoolnutritionsuccessstoriespublishedbytheU.S.DepartmentofAgricultureandtheCentersforDiseaseControlandPrevention,fourofthefiveschoolsanddistrictsthatimplementednutritionstandardsforcompetitivefoodsreportedanincreaseornochangeinrevenue.(Onedistrictdidnotreportanyfinancialdata.)(19)

• Anevaluationoftheimpactofstatelegislationestablishingnutritionstandardsforcompetitivefoodsfoundthatofthe11schoolsthatreportedfinancialdata,10experiencedincreasesofmorethan5%inrevenuefrommealprogramparticipation,whichoffsetdecreasesinrevenuefromàlacartefoodservice.(20)

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Financial risk often can be minimized by careful selection and clever marketing of the healthier food and beverage choices.

• Arandomizedcontrolledtrialof20secondaryschoolsfoundthatpromotingthesaleoflow-fatfoodoptionsandincreasingtheavailabilityoftheseoptionsresultedinahigherpercentageofsalesfromthesefoodsandnoeffectonoverallfoodservicerevenue.(21)

• Twostudieshavefoundthatloweringthepriceoffruits,vegetables,andlow-fatsnacksresultedinasignificantincreaseinthesalesofthesefoodswithoutadecreaseintotalrevenue.(22,23)

School beverage vending contracts are not a significant source of revenue for most schools.

Ananalysisof120beveragecontractsfrom16statesfoundthat,onaverage—

• Salesofbeveragesinschoolsgenerateonly$18perstudentperyear.(24)

• Foreverydollarthatstudentsspendonbeveragevendingmachinepurchases,only33centsgoestotheschool.Theremaining67centsgoestothebeveragecompanies.(24)

Resources• InstituteofMedicine.Nutrition Standards for Foods in Schools: Leading the Way toward Healthier Youth. Availableat

www.iom.edu/Reports/2007/Nutrition-Standards-for-Foods-in-Schools-Leading-the-Way-toward-Healthier-Youth.

• CentersforDiseaseControlandPrevention.NutritionStandardsforFoodsinSchools.Availableatwww.cdc.gov/Healthyyouth/nutrition/standards.htm.

• U.S.DepartmentofAgriculture.TeamNutrition.Availableatwww.teamnutrition.usda.gov.

• U.S.DepartmentofAgriculture.HealthierUSSchoolChallenge.Availableatwww.teamnutrition.usda.gov/healthierUS/index.html.

• U.S.DepartmentofAgriculture.ChangingtheScene–ImprovingtheSchoolNutritionEnvironment.Availableatwww.fns.usda.gov/TN/Resources/changing.html.

• RobertWoodJohnsonFoundation.SchoolWellnessPolicyEvaluationTool.Availableatwww.yaleruddcenter.org/resources/upload/docs/what/communities/SchoolWellnessPolicyEvaluationTool.pdf.

• CenterforScienceinthePublicInterest.SweetDeals:SchoolFundraisingCanBeHealthyandProfitable.Availableatwww.cspinet.org/new/pdf/schoolfundraising.pdf.

• ConnecticutStateDepartmentofEducation.ActionGuideforSchoolNutritionandPhysicalActivityPolicies.Availableatwww.sde.ct.gov/sde/lib/sde/PDF/DEPS/Student/NutritionEd/Action_Guide.pdf.

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