Day 012 - 18 Jul 94 - Page 22


     
     1   Q.   First of all, I would like to ask you, who are
              Golin/Harris Communications Inc.?
     2        A.  They are an outside communications agency that does
              work for McDonald's.
     3
         Q.   Are they owned by McDonald's?
     4        A.  No, they are not.
 
     5   Q.   The memorandum is addressed to a lady called Stephanie
              Skurdy.  Is she a McDonald's person?
     6        A.  Yes, she is.
 
     7   Q.   What about Al Smedley?
              A.  He was an employee of Golin Harris.
     8
         Q.   So it is the publicity agents writing to the company, is
     9        that right?
              A.  To the communications, one of the communications
    10        public relations people at McDonald's.
 
    11   Q.   The memo is dated March 18th 1986?
              A.  That is correct.
    12
         Q.   Mr. Smedley writes:  "These are key points we discussed at
    13        our meeting on Monday".  I will not trouble you with
              anything on the first page.  I would like to ask you about
    14        the next page, page 185, the paragraph marked 4 in the
              margin.  Do you have that?
    15        A.  Yes, I do.
 
    16   Q.   Mr. Smedley writes:  "The initial position, we all seemed
              to agree that, if possible, McDonald's should attempt to
    17        deflect the basic ... thrust of our critics by creating a
              scenario where we take the high road?  How do we do this?
    18        By talking 'moderation and balance'.  We cannot at this
              stage of the situation really address or defend
    19        nutrition.  We do not sell nutrition and people do not
              come to McDonald's for nutrition.  Rather than fight a
    20        defensive war of nutrition by responding to  constant
              nutritional attacks let us not even deal with it. ...
    21        suggests let us try to develop a broad umbrella position
              where we incorporate the following points".  I will come
    22        to those in a moment.
 
    23        Mr. Horwitz, were you concerned, you personally concerned,
              in these discussions about what the campaign should
    24        attempt to achieve?
              A.  Generally, yes.
    25
         Q.   Do you know what Mr. Smedley means when he says:  "We do 
    26        not sell nutrition.  People do not come to McDonald's for 
              nutrition", or when he says:  "We cannot really address or 
    27        defend nutrition".  Do you know what he is talking about?
              A.  Yes, the answer is, yes; it was my belief that he was
    28        saying we just had not set the proper stage to address all
              of these issues at this point in time.  Once again I point
    29        out this was written in March 1986 prior to the
              distribution of our brochures and advertisement.
    30
         Q.   They did not actually hit the market until January 1987,

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