April 2006 Better Business Bureau report against POM juice

NAD NEWS

For Immediate Release
Contact: Linda Bean
212-705-0129

POM WONDERFUL & WELCH FOODS PARTICIPATE IN NAD FORUM

NAD recommends POM Wonderful modify or discontinue wide range of health claims

New York, NY – April 12, 2006 – The National Advertising Division (NAD) of the Council of Better Business
Bureaus, Inc., has recommended that POM Wonderful, LLC, modify or discontinue advertising claims for POM
Wonderful Pomegranate Juice.

NAD, the advertising industry’s self-regulatory forum, reviewed advertising for POM Wonderful Pomegranate
Juice following a challenge by Welch Foods Inc., A Cooperative, competing maker of fruit juices. Welch’s
challenged advertising claims that suggest drinking eight ounces of POM Wonderful pomegranate juice each day
prolongs life and protects against illnesses that include heart disease, Alzheimer’s disease and cancer.

Express and implied claims at issue included:

• “More antioxidants than any other drink” and “More antioxidant power than any other drink”

• “Some things in life just aren’t worth risking. Like not protecting your body against nasty free radicals –
molecules that can cause heart disease, premature aging, Alzheimer’s, even cancer. With more naturally
occurring antioxidants than any other drink, POM Wonderful Pomegranate Juice gives you the protection
you need. Be on the safe side, drink eight delicious ounces every day.”

• “Cheat death ... Eight ounces a day is all you need.”

• “Throw your body a lifeline and let POM Wonderful come to the rescue. This incredible juice has more
naturally occurring antioxidants than any other drink. Antioxidants fight free radicals, those molecules
that can cause heart disease, premature aging, Alzheimer’s, even cancer. Drink eight ounces a day and
you might even save a life. Yours!”

NAD, in its decision, noted that “the study of the relationship between diet and disease prevention is of great
interest to the scientific community and, increasingly, to consumers and advertisers of food products.”

“In recent years, the subject of antioxidants has attracted the attention of researchers and marketers because of the
potential role that antioxidants may play with respect to heart disease, cancer prevention and other diseases,” the
decision states. “NAD is sensitive to the vulnerability of the target audience and is committed to ensuring that
information is conveyed in a manner that does not overstate the scientific findings or exaggerate the performance
benefits of any food or dietary supplement product.”

NAD recognized that “antioxidants play a vital role as one health protecting factor” and that “the advertiser
produces a high quality, healthful drink demonstrating a high level of antioxidants.”

However, with respect to the advertiser’s claims that POM Wonderful contains “more antioxidants than any other
drink,” NAD recommended that the advertiser either discontinue the claim, or modify the claim to narrow the
scope of its superior antioxidant content claim to more accurately reflect the basis of comparison. NAD also
recommended that the advertiser discontinue its claim that POM Wonderful “has more antioxidant power than
any other drink.”

Following its review of the evidence, NAD determined that the headlines and photographs that anchor the
advertising campaign are, when accompanied by language regarding the prevention and/or risk reduction of
specific diseases, beyond the realm of puffery and hyperbole.

“Likewise, with respect to its claim that POM Wonderful is ‘The Antioxidant Superpower,’ NAD determined that
when accompanied by the aforementioned language or language touting the superior antioxidant power of POM
Wonderful to other drinks, these were similarly objective provable claims requiring substantiation ... .”

NAD recommended that the advertiser’s claims regarding POM Wonderful and its cardiovascular benefits be
substantially modified to clearly disclose the limitations of the scientific findings – in particular, the emerging
nature of the scientific findings as they concern the role of its pomegranate juice in one’s diet and the association
between antioxidants and heart health.

Finally, NAD recommended that, in the context in which they appear, the advertiser discontinue its claims, either
express or implied, that drinking eight ounces of POM Wonderful daily can reduce one’s risk of cancer,
Alzheimer’s disease, stroke, premature aging, or prolongs life or that consumers can “Cheat Death” with respect
to any of these diseases by drinking POM Wonderful daily.

“NAD noted that nothing in this decision precludes the advertiser from making truthful claims regarding the state
of science of antioxidants, free radicals, and the encouraging results of preliminary research regarding the impact
that antioxidants have on heart health, cancer, etc., and to accurately reflect what this research may suggest,” the
decision states. “NAD takes no issue with the advertiser discussing and/or educating the public as to the state of
this science or promoting the fact that its product is an excellent source of antioxidants which is, undisputedly,
may be beneficial to one’s health.”

However, the decision states, “NAD believes it is an advertiser’s responsibility to present the whole story
regarding the available scientific data by qualifying its claims in such a manner that employs the weight of the
evidence properly and ensures that consumers understand the extent of the support for the claim.”

POM Wonderful, in its advertiser’s statement, said that it “respectfully disagrees with NAD that consumers may
be unable to appreciate the humorous and “over the top” context in which its claims are presented, particularly in
light of NAD’s recognition that POM Wonderful’s headlines and visuals (standing alone) are puffery. POM
Wonderful also respectfully disagrees that certain of POM Wonderful’s advertising claims overstate the scientific
support for such claims. However, in deference to NAD’s expertise and in support of the self-regulatory process,
POM Wonderful agrees to take into account NAD’s findings in this inquiry with respect to its future advertising
by discontinuing or modifying certain claims.”

For a copy of the NAD decision, please contact Sheryl Harris at 212.705.0120.
For media inquiries, please contact Linda Bean at 212.705.0129.

NAD's inquiry was conducted under NAD/CARU/NARB Procedures for the Voluntary Self-Regulation of National
Advertising. Details of the initial inquiry, NAD's decision, and the advertiser's response will be included in the
next NAD Case Report.

The National Advertising Review Council (NARC) was formed in 1971 by the Association of National Advertisers, Inc.
(ANA), the American Association of Advertising Agencies, Inc. (AAAA), the American Advertising Federation, Inc. (AAF),
and the Council of Better Business Bureaus, Inc. (CBBB). Its purpose is to foster truth and accuracy in national advertising
through voluntary self-regulation. NARC is the body that establishes the policies and procedures for the CBBB’s National
Advertising Division (NAD) and Children’s Advertising Review Unit (CARU), as well as for the National Advertising
Review Board (NARB).

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NAD and CARU are the investigative arms of the advertising industry’s voluntary self-regulation program. Their casework
results from competitive challenges from other advertisers, and also from self-monitoring traditional and new media. The
National Advertising Review Board (NARB), the appeals body, is a peer group from which ad-hoc panels are selected to
adjudicate those cases that are not resolved at the NAD/CARU level. This unique, self-regulatory system is funded entirely
by the business community; CARU is financed by the children’s advertising industry, while NAD/NARC/NARB’s sole
source of funding is derived from membership fees paid to the CBBB. For more information about advertising self
regulation, please visit www.narcpartners.org.