Kraft Foods, Inc. Global Health & Wellness Discussion. World Medical Tourism & Global Health Care Congress Seminar. Wellness Track September 22, 2010

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2 Kraft Foods, Inc. Global Health & Wellness Discussion World Medical Tourism & Global Health Care Congress Seminar Wellness Track September 22, 2010 Joanne Armenio Director International Benefits Kraft Foods, Inc.

3 About Kraft Foods Our Global Outreach: World s #2 food company; #1 in North America Approximately $50 billion in revenue #1 in global confectionery and biscuits Sales in 160+ countries; operations in more than 70 countries Approximately 140,000 employees North America: 48,830 (43,000 U.S.; 5,700 Canada; 130 Puerto Rico) International: 91,170 Donated more than on billion servings of food since 1997 Brand Portfolio Includes: Eleven $1 billion brands 70+ $100 million+ brands 80% revenue from #1 share positions

4 Kraft s Global Total Wellness Framework Geographical and Individual Influences Health Personal Finances Lifestyle Individual Demographics Culture Government Catastrophes Total Wellness Kraft s Commitment Prevention Savings Accumulation Financial Protection Wellness Education & Assistance Program & Service Discounts Decision Support Rewards Employee Commitment Be Aware Be Informed Take Responsibility Act 4

5 Global Wellness Overview Top Health Risks or Issues Driving Wellness Strategy Africa Asia Australia Canada Europe Latin America United States Stress Stress Stress Stress Stress Physical Activity/ Exercise Physical Activity/ Exercise Infectious Diseases/ AIDS/HIV Physical Activity/ Exercise Physical Activity/ Exercise Work/Life Issues Physical Activity/ Exercise Nutrition/healt hy Eating Nutrition/ Healthy Eating Work/Life Issues Nutrition/Heal thy Eating Work/Life Issues Depression Work/Life Issues Stress Chronic Disease (e.g., heart disease, diabetes) Physical Activity/ Exercise High Cholesterol Nutrition/ Healthy Eating Physical Activity/ Exercise Tobacco Use/ Smoking High Blood Pressure High Blood Pressure Depression High Blood Pressure Chronic Disease (e.g., heart disease, diabetes) Nutrition/ Healthy Eating Workplace Safety High Cholesterol Stress From Global Wellness Survey 2009, Buck Consultants 5

6 Global Overview (continued) Top Wellness Program Elements Africa Asia Canada Europe Latin America United States Biometric health screening Biometric health screening Immunizations/ flu shots Gym/fitness club membership discount Immunizations/flu shots Immunizations/flu shots Executive screening program On-site health classes Gym/fitness club membership discount Biometric health screening Biometric health screening Health risk appraisal Health portal/web site Companysponsored sports teams Executive screening program Immunizations/ flu shots On-site health classes Gym/fitness club membership discount Employee health fairs Executive screening program Health portal/web site Employee health fairs Health risk appraisal Employee health fairs Health risk appraisal Health risk appraisal On-site health classes On-site health classes Gym/fitness club membership discount Health portal/web site From Global Wellness Survey 2009, Buck Consultants 6

7 Global Overview (continued) Fastest Growing Wellness Program Elements Africa Asia Canada Europe Latin America United States Caregiver support Cycle-to-work program Personal health/lifestyle coaching (on-site) Vending machines emphasize healthy food options Cycle-to-work program Cycle-to-work program Programs to improve the psychosocial work environment Online healthy lifestyle programs Cycle-to-work program Online healthy lifestyle programs Vending machines emphasize healthy food options Vending machines emphasize healthy food options Vending machines emphasize healthy food options Vending machines emphasize healthy food options Programs to improve the psychosocial work environment Programs to improve the psychosocial work environment Online healthy lifestyle programs Programs to improve the psychosocial work environment Companysponsored sports teams or leagues On-site physiotherapy/phy sical therapy Employee health fairs Disease management programs Programs to improve the psychosocial work environment Personal health/lifestyle coaching (on-site) Work/life balance support Programs to improve the psychosocial work environment Personal health record Personal health record Personal health record Personal health record From Global Wellness Survey 2009, Buck Consultants

8 Plan Documentation Database - BenTrack Sample Template Plan Provision Plan Provision Plan Provision Country Australia China Hong Kong Region Asia Pacific Asia Pacific Asia Pacific Employees covered? (Blue Collar, White Collar, Executives) Preventive Benefits All Employees Blue Collar, White Collar, Executives Medical Exams/Physicals Yes (SG 12+) Yes No Vaccinations Yes for international travel No No Flu Shots Yes for all employees (subsidized) Yes No Screenings: Blood Pressure Yes Yes No Cholesterol Yes Yes No Glucose Yes Yes No Skin Cancer Yes No No Body Fat/Body Mass Index Yes Yes Yes PSA (Prostate Specific Antigen) Yes Yes No Bone Density No No Mammograms Yes Yes No 8

9 Global Overview Kraft Foods Wellness Initiatives Percentage of countries that offer program Medical exams/physicals 73% Biometric screenings (Blood pressure, cholesterol, and/or glucose) 71% Newsletters, postcards, or other communications 53% Flue shots 53% Fitness membership discounts 37% Healthy food choices at work 29% Wellness incentives/drawings 18% Health Risk Assessment (HRA) 16% Financial planning seminars 12% Onsite fitness facilities 10% Employee Assistance Program (EAP) 8% 9

10 Global Employee Assistance Program (EAP) US: Uses Aetna Canada: Uses Sheppell.fgi All Other Countries: can use PPC Worldwide Each country can decide to use PPC Each country bears the cost of the program Ability to launch telephonic 24 x 7; face-to-face counseling is optional 10 Barriers to implementation Limited local / regional resources: integration of Cadbury Costs EAP still not common; continue education locally Lack of medical data available

11 U.S Initiative - Health Risk Appraisal (HRA) Launched Aetna s Simple Steps (10/1/ /30/2009) to 30,000 employees (including salaried and non-union hourly) Online / paper available; extensions provided through 1/2010 Completion was voluntary for employee if not completed, an additional $250 surcharge per month would be assessed on medical coverage until completed Significant effort by ALL - senior management, plant managers, HR generalists, line managers, local area wellness managers New hires have 45 days to complete the HRA The results: Total EEs completed HRA 95% EEs enrolled in medical who completed HRA 99.6% EEs with $250 monthly surcharge 0.4% 10

12 U.S. Wellness Communications Delicious You! quarterly newsletter Communication pieces and templates for health fairs, locationspecific and function-specific newsletters, etc. Posters Considering other communication channels and approaches 12

13 U.S. - Where we are in 2011 Aetna One Program Preventive Screenings Physical Wellness Simple Steps Health Assessment Health Concierge Healthy Lifestyle Coaching New Aetna Get Active New Disease Management Programs Beginning Right Maternity Program Informed Health Line Online Wellness Programs Discounts (fitness, nutrition) Free & Clear smoking cessation program Fitness discounts (Proactive Partners) - New Physical Activity Pilots - New Onsite fitness centers (some locations) EAP Diet Plan Discounts Jenny Craig South Beach Diet Weight Watchers Financial Wellness Ameriprise Edward Jones Chase At Work Financial Engines Personal Finance Center Target Funds EAP Personal Wellness EAP Resource &Referral Concierge Service Paid Time Off/ Vacation Time Flexible Work Arrangements

14 10 Recommendations to Drive Engagement In Global Worksite Wellness #1: Don t Underestimate Value of Marketing #2: Leverage Local Resources #3: Encourage Variety in Local Health Programming #4: Design Wellness Programs with an End Goal #5: Engagement Requires Employer Constancy & Consistency #6: Allow Programs to Grow Over time #7: No Danger in Repetition #8: Incentives Should Promote Desired Behaviors #9: Localize Programs & Messages to Population #10: Get Creative Source: Global Health Benefits Institute (GHBI) Members September

15 Stay Connected with Your Peers International Groups: Global Health Benefits Institute (GHBI; part of NBGH) International Benefits Group (IBG; with Towers Watson) U.S. Groups: Council on Employee Benefits (CEB) Mid-West Business Group on Health (MBGH) National Business Group on Health (NBGH) Healthy Weight Commitment - CEO lead organization focusing on: The Workforce, The Marketplace, and The Schools The Alliance for Wellness ROI, Inc. founding members: BMW, Henry Ford Health Systems, Kraft Foods, MasterCard, and Schlumberger 15

16 Questions