Disney's Promotion Agreement with McDonald’s Ends

(LA Times) – For 10 years, Walt Disney Co. and McDonald's appeared to have the perfect marriage. Happy Meals bore little figurines of Nemo, Mr. Incredible, and 101 Dalmatians. But no more. This is one relationship that's ending because of the children. Disney is not renewing its cross-promotional pact with the fast-food giant, which comes to a close with this summer's release of ''Cars" and ''Pirates of the Car-ibbean: Dead Man's Chest." The reason in part, say multiple high-ranking sources within Disney, is that the company that prides itself on being family friendly wants to distance itself from fast food – and its links to the epidemic of childhood obesity. Disney's not the only studio that thinks french fries loaded with trans fats may be too hot to handle. DreamWorks is working with McDonald's to promote ''Shrek 3," due out in 2007. But according to one top-level source inside the studio, there is internal debate about whether the lovable green ogre should steer clear of Chicken McNuggets and Big Macs in favor of the healthier fare on McDonald's menu, such as salads. The end of the Happy Meal partnership comes at a time when the processed- and fast-food industries are under fire on a number of fronts because of growing concerns about expanding waistlines, particularly among youngsters. One of the industry's most prominent critics, ''Fast Food Nation" author Eric Schlosser, said it will be ''hugely significant" if Hollywood walks away from Happy Meals. ''It will put more pressure on McDonald's to change what they sell in Happy Meals. The obesity issue would be irrelevant if the food in the Happy Meals was healthy." Sources on both sides of the agreement say the parting of the ways was mutual. And it's not a complete divorce, either. McDon-ald's fare will continue to be a staple in Disney's theme parks. Disney also is leaving open the possibility of McDonald's promotions geared toward adults.