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Scottish Government Outlines Plans For More Restrictive HFSS Rules

The government in Scotland has published its plans to restrict the sale of products high in fat, salt or sugar (HFSS) through additional rules on price promotions and the location of such items in stores, with the intention of putting in place more restrictions than those already operating in England.

While the proposals, scheduled for implementation 12 months after regulations are laid in the Scottish Parliament, broadly follow those that have been introduced in England, additional restrictions are being proposed.

These include a ban on temporary price reductions (for example, 10% off a product for a defined period of time), a crackdown on in-store free-standing displays and islands that feature HFSS products, and ‘meal deal’ restrictions in some form, either those that contain one or more HFSS products, or discretionary foods.

Jenni Minto MSP, minister for public health and women’s health, said: “Scotland has an issue with high levels of overweight and obesity and poor diet, which can have serious consequences for our health.

“What surrounds us shapes our health. This is why measures to transform the food environment are so important – to support people to eat well by making the healthier choice, the easy choice.”

However, several trade bodies raised concerns.

The Association of Convenience Stores (ACS) has previously called on the Scottish Government to align its approach with the UK Government to ensure that it’s as operationally workable as possible for retailers and suppliers. It had also raised concerns about the inclusion of symbol groups within the rules, noting that they should be considered as independent retailers and not in the same category as a franchise or multiple store.

“We are disappointed that the Scottish Government plans to go even further with restrictions on HFSS products in stores than the rules that are already in place in England,” ACS Chief Executive James Lowman said yesterday.

“This will cause additional confusion for retailers operating on both sides of the border. The evidence from England so far is that the HFSS location restrictions are not proving effective at changing consumer behaviour, amounting to little more than an expensive hassle for both retailers and customers.”

He added: “It’s also extremely disappointing that the Scottish Government has no plans to address the inclusion of symbol group retailers within the regulations, despite referencing this issue extensively in the consultation. Symbol group retailers are independent retailers running their own businesses, this should not be a difficult concept to deal with. We will continue to make the case to the Scottish Government in the consultation period that symbol retailers should be exempt.”

The Scottish Grocers Federation (SFG) also raised concerns. The trade body welcomed the exemptions for retailers with fewer than 50 staff, and location exemptions for stores smaller than 2,000 sq. ft., but warned that those hit by the regulations could be put at a significant disadvantage.

The SGF stated that the Scottish government also needed to make it clear that independent stores that trade under symbol fascias, but are otherwise independent, are not targeted by these restrictions.

Chief Executive, Dr Pete Cheema said: “Many of our members are facing a range of higher costs, including increased energy prices and inflation, alongside a rising tide of new regulation. Placing an additional burden on struggling stores at this time will mean that customers inevitably must pay more for their shopping, and businesses are less viable overall.

“For that reason, we strongly believe that the exemption for location restrictions should be increased to 3,000 sq. ft. as we have called for throughout the process.

“We are also concerned that these proposals could have a significant and disproportional impact on some small Scottish producers. Many of whom are a celebrated part of the Scottish food and drink sector.

“Over the coming weeks, we will be studying the detail of the proposals and developing a set of robust recommendations to ensure the voice of the convenience sector in Scotland is heard.”

A consultation on the Scottish government’s proposed HFSS regulations is due to run until 21 May.

NAM Implications:
  • Restrictions that will further test the pulling power of HFSS brands.
  • The key will be the extent to which these changes in Scotland are replicated in the rest of the UK.
  • And the unintended consequences for smaller (symbol) retailers caught up in the additional cost of complying with the new regulations.
  • i.e. if the Scottish government want to preserve small independent retail…
  • …they need to think again.