The encyclopedia · Advertising & PR · Marketing decision · 2014
Kashi said 'nothing artificial' — the label hid hexane-processed soy
May 2014: Kellogg paid $5M and dropped 'All Natural'/'Nothing Artificial' from Kashi — the 'natural' bars contained synthetic and GMO-processed ingredients.
Kellogg Company · 2014-05
What happened
Kashi, Kellogg's health-positioned brand, sold granola bars and cereals as 'All Natural' and 'Nothing Artificial'. A class action showed the ingredient lists told another story: synthetic additives and hexane-processed soy, the GMO-connected processing method the natural positioning was meant to exclude. 'All Natural' was the premium the brand charged for, and the label was the ad.
The settlement filed in May 2014 required Kellogg to pay $5 million and to stop using 'All Natural' and 'Nothing Artificial' on the challenged Kashi products — with '100% Natural' and '100% Pure and Natural' coming off certain Bear Naked products too — changing formulas or labels nationwide by the end of the year. Kellogg maintained its practices had been proper; the settlement nonetheless rewrote the labels.
The case taught the food industry that 'natural' is a claim, not a vibe: a word on the front of the pack that the ingredient list contradicts is a misrepresentation, and class actions read the two together.
Why it happened
- 'All Natural' was the price premium — the positioning the whole brand was sold on.
- The ingredient list contained synthetic additives and hexane-processed soy the claim was meant to exclude.
- The front of the pack and the back of the pack are read together — and the back won.
The lesson
'Natural' on the front of a pack is a claim the ingredient list must back: a positioning word that the contents contradict is a misrepresentation, and courts read the label as a whole.
Aftermath
Kashi and Bear Naked dropped the natural claims on the challenged products by the end of 2014. The settlement landed in a wave of 'natural' label litigation that pushed the food industry off the word.
Sources
- Crain's Grand Rapids Business — Food maker reaches $5M settlement over 'All Natural' labels
- Marketing Magazine — Kellogg's Kashi settles class action suit over use of 'All Natural' label
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