BBB Advertising Division Confirms Celsius Marketing Claims

Review validates research on calorie-burning beverage

Published in CSP Daily News

NEW YORK -- The National Advertising Division (NAD) of the Better Business Bureau has announced that after an extensive review of research, it confirms that Celsiusa calorie-burning beveragesubstantiates its marketing claims with the multiple clinical studies that have been conducted on it.

Specifically, "NAD found that the advertiser (Celsius) could support claims that referenced the taste of Celsius and the product's ingredients, as well as claims Celsius supplementation results in 'increased metabolism,' 'calorie burning,' 'fat loss,' 'decrease in body fat,' 'greater [image-nocss] endurance performance' and 'greater resistance to fatigue (increased energy)'."

Steve Haley, CEO of Boca Raton, Fla.-based Celsius Holdings Inc., said, "We are particularly proud that Celsius has passed NAD's exhaustive review of our claims considering the scrutiny that product claims are getting these days. NAD's decision and findings validates the importance of the significant investment Celsius has made in the six clinical research studies performed to date and represents a true vote of confidence for consumers that Celsius delivers on its claims."

"This is real big news for us because it validates the research we've spent so much time and money on over the years," Haley told CSP Daily News.

NAD's recommendations for Celsius to emphasize exercise are in line with the repositioning that Celsius completed earlier in the year to establish Celsius as a pre-exercise fitness drink with the tag line, "Your Ultimate Fitness Partner."

The positive message that consumers should combine Celsius with exercise and a healthy lifestyle is one that Celsius has embraced since its inception in 2005 and will continue to embrace in the future, the company said. It was founded on the belief that there is no magic bullet for weight loss without exercise and a healthy diet and Celsius was created to assist people in reaching their fitness goals and their desire for a healthier lifestyle, it added.

"Celsius will continue to invest in research that validates the claims for Celsius as it has done since its inception. Celsius supports the self regulatory review process and appreciates the comprehensive analysis taken by NAD to the claims reviewed by this inquiry," said Haley.

Celsius contains no sugar, no high-fructose corn syrup, no aspartame, no artificial flavors, colors or preservatives and is very low in sodium. It contains a proprietary blend of ingredients: MetaPlus, which includes Green Tea with EGCG, Ginger, Caffeine, Calcium, Chromium, B Vitamins and Vitamin C. Celsius is available nationally at more than 35,000 retail locations and online at www.celsius.com. It is available at retailers such as CVS, Walgreens, Vitamin Shoppe, most regional grocers and at select supercenters and club stores.

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/CARU Case Report.

The National Advertising Review Council (NARC) was formed in 1971. NARC establishes the policies and procedures for the National Advertising Division (NAD) of the Council of Better Business Bureaus, the CBBB's Children's Advertising Review Unit (CARU), the National Advertising Review Board (NARB) and the Electronic Retailing Self-Regulation Program (ERSP).

The NARC board of directors is composed of representatives of the American Advertising Federation Inc. (AAF), American Association of Advertising Agencies Inc., (AAAA), the Association of National Advertisers Inc. (ANA), Council of Better Business Bureaus Inc. (CBBB), Direct Marketing Association (DMA), Electronic Retailing Association (ERA) and Interactive Advertising Bureau (IAB). Its purpose is to foster truth and accuracy in national advertising through voluntary self-regulation.

NAD, CARU and ERSP 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. NARB, the appeals body, is a peer group from which ad-hoc panels are selected to adjudicate NAD/CARU 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 primary source of funding is derived from membership fees paid to the CBBB. ERSP's funding is derived from membership in the Electronic Retailing Association.