Patrick Nycz is President of NewPoint, a full-service food and beverage marketing agency, and author of Moving Your Brand Up the Food Chain.
The U.S. government is being pressured to mandate front-of-package (FOP) food labels, providing nutritional and dietary information to consumers as conveniently and directly as possible. According to an article in Food Policy: “FOP label policies have been implemented internationally that could serve as policy models for the U.S. However, the First Amendment poses a potential obstacle to U.S. government-mandated FOP requirements.”
Experts are attempting to navigate around this obstacle by using “interpretive” labeling requirements, such as specific colors, shapes and design elements for food and beverage products. So far, there has been no breakthrough policy change, but the day may soon come when food and beverage brands are forced to adapt to this new legislation.
As a food and beverage marketing and branding agency, we stay up to date on food packaging requirements and often help our clients prepare for potential food policy shifts like FOP labels.
Current And Future Labeling Requirements
Currently, there are no strict requirements for FOP food labels. However, the FDA issues guidance to the industry as follows: “[the FDA] recognizes that point of purchase labeling can be a way of promoting informed food choices and helping consumers construct healthier diets following the Dietary Guidelines for Americans.” However, the FDA also warns that FOP labeling could give people a false sense of confidence in what they’re buying, causing them to neglect reading more specific, informative back-of-package labels.
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Now, health officials (including members of the Center for Science in the Public Interest, or CSPI) are pushing for the U.S. to expand requirements for package labeling to remain in step with other developed countries. It’s clear that Americans are overeating in many categories, including total calories, added sugars, sodium and saturated fat, while undereating in healthy categories, like fruits and vegetables. Scientists believe that more informative and present FOP labels could help change that.
FOP labels wouldn’t be as strictly descriptive as current back-of-package labels. For example, a food may be required to have a small emblem that identifies it as being “high in sugar/sodium/saturated fat” if it meets a certain threshold. In addition, foods low in these ingredients may have a green label to advise customers that the food is generally good to consume. In contrast, foods with a yellow label should be consumed in moderation, and foods with a red label should mostly be avoided.
Why Use FOP Food Labels?
The biggest motivation for introducing these FOP food labels:
• Improve public health nutrition choices: There is evidence that informative labeling does have a positive impact on public health choices. For example, suppose a consumer sees, at first glance, that a product is exceptionally high in something like added sugars or saturated fats. In that case, they may be immediately less likely to buy that product. Conversely, if they see a product low in all these potentially harmful ingredients, they might be incentivized to purchase it. Over enough time, this can lead to meaningful improvements in public health.
Less realistic motivations we’ve heard voiced in the debate around FOP labels:
• Discourage the production of unhealthy foods: Consumption of unhealthy snack foods is on the rise for various reasons. But if the number of unhealthy snack foods suddenly plummeted, this momentum could easily reverse. In addition, forcing food manufacturers to label their unhealthy products as harmful could incentivize them to make healthier products in greater abundance, shifting the distribution of healthy and unhealthy foods on store shelves.
• Preserve the U.S.’s reputation: To a degree, this change may also be motivated by a desire to keep the United States in high international standing. Experts frequently refer to the U.S. as “falling behind” other nations, so the country’s reputation is somewhat at stake.
What Should CPG Business Owners Do?
What should you do now to prepare for these potential changes if you own a food and beverage business?
• Keep a close eye on legal developments. It’s hard to tell exactly when or how this legislation will be introduced, so keep a close eye on legal developments. You’re probably already used to complying with new laws as they’re introduced, but the sooner you get the jump on these new requirements the better. In the meantime, consider how various new laws could affect your production, distribution and sales.
• Explore healthy options in your product innovation programming. It’s clear that food and beverage businesses that focus on developing and promoting healthy products are going to have an edge over the ones producing only unhealthy products (if and when FOP labels become the norm). Accordingly, consider exploring healthier options for your customers. For example, is there a way to reduce added sugars, saturated fats or other unhealthy ingredients in your best-selling products? Could you consider rolling out a new, healthy alternative product?
• Be prepared for a shift in marketing. You may also need to undergo a significant shift in your marketing campaigns. If some of your products are unhealthy, you’ll need to make up for the detriment of red warning labels. If some of your products are healthy, you’ll need to brainstorm creative ways to promote their health value and emphasize their attractive green labels.
It’s not an absolute certainty that the United States will eventually introduce and enforce these new standards for FOP labeling. However, with ample objective evidence to prove the value of these labels and the rest of the developed world in line with them, it may only be a matter of time before these new rules and regulations are instated. The sooner you start preparing for them, the better you’ll perform once they become mandatory.
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Author: Patrick Nycz, Forbes Councils Member