A recent survey of suppliers and retailers has found that almost half feel unprepared for the upcoming implementation of strict rules governing the sale of high in fat, salt, or sugar (HFSS) food & drink products, with 70% unaware that volume promotions will be banned. Alarmingly, 20% of businesses were unaware of the new legislation altogether.
Due to be implemented from 1 October 2022, the new rules represent one of the most significant challenges the grocery retail industry has ever faced. They are comparable to the restrictions placed on tobacco and alcohol and are set to have a significant impact on both manufacturers and retailers.
HFSS products will have to be removed from prime locations in stores and volume promotions such as BOGOFs will be banned. Restrictions on digital marketing and advertising will also come into effect from 1 January 2023.
The research by GS1 UK also found that only one in three firms have assessed their products ahead of the October deadline, with just 48% reformulating existing products and around one quarter having not even considered it.
It also emerged that only 33% are training staff on the new rules and only 35% are auditing suppliers.
Two-thirds of businesses questioned said that more financial support from the government is needed to help them adapt – with 81% saying the new rules will significantly change how they operate.
Meanwhile, consumer research by GS1 UK found that the legislation is likely to significantly affect the way people shop; given that over half currently purchase HFSS products regularly.
68% of shoppers surveyed agreed with the new legislation and nearly half say it will help them think more about which products they buy. 51% said they would be less likely to buy HFSS products if they were less visible in stores, and a quarter would buy less if they were only available at full price. 53% also said that they would miss BOGOF offers on HFSS items.
GS1 UK stated that its research suggests that unpreparedness amongst firms largely stems from a lack of awareness and access to trusted data. As a result, the group has joined forces with the UK retail industry to launch an HFSS solution as an extension to its productDNA platform. Approximately 75% of grocery retailers in the UK are now using the product data sharing service, including Sainsbury’s, Tesco, Waitrose, Ocado, Asda, and Morrisons.
The service is free to all suppliers and aims to enable a common approach for the capture and sharing of data to support compliance with the new legislation.
“The HFSS legislation represents a seismic shift for businesses across the UK and many of our 57,000 members will be affected,” said Anne Godfrey, CEO of GS1.
“Whilst our research reveals that businesses and consumers are aligned on the benefits the changes can bring, the findings show there is much more to be done if the sentiment of the legislation is to become a reality.
“Many businesses feel overwhelmed with the challenges they have faced over the last two years, but there is no doubt that the industry, now more than ever, needs to take a standardised approach for the collection of quality data if they are to adapt quickly and confidently to new legislation and growing consumer demand.”
Professor Tim Lang, Professor Emeritus of Food Policy at City University of London’s Centre for Food Policy, added: “It’s worrying to see that businesses across the food and drink industry do not feel prepared for the upcoming changes in legislation.
“Whilst the changes will no doubt affect how countless businesses operate, the new legislation is a crucial step toward solving issues around public health. It is however, encouraging to see support for the introduction of the new rules amongst both the industry and the general public.”
NAM Implications:
- Not surprising, given the distractions of Lockdown and Scare2: Ukraine.
- However, given that over half currently purchase HFSS products regularly…
- Action is needed, urgently.
- (unless suppliers and retailers are ok with a government department taking over the process…)
- Preferable that suppliers and retailers aim for compliance with Spirit-of-Law rather than Letter-of-Law.
- Therefore a common formula seems to be a practical way forward…
- Rather than awaiting the results of the first test cases…
