Fresh reports have emerged that the proposed ban on volume-based promotions for HFSS (high fat, salt, or sugar) products could be scrapped as part of a range of measures to mitigate the ongoing cost of living crisis.
The ban is due to come into force in October, alongside restrictions on the placement of HFSS food and drink in supermarkets and convenience. The new rules will stop retailers from providing multibuy offers and extra free deals on a range of products.
The move is part of the government’s strategy to tackle obesity in the UK and has been welcomed by health campaigners. However, retailers and manufacturers have warned that implementation and lost sales opportunities will cost the industry millions and ultimately lead to higher prices on some products.
A potential delay in introducing the regulations was flagged earlier this year amid concerns about rising inflation. In recent days, several news channels have reported that the plans are set to be shelved after Prime Minister Boris Johnson made no mention of the restrictions in this week’s Queen’s Speech.
Industry sources suggested that the government had decided to drop the proposed ban on volume promotions due to concerns about the rising cost of living, which will worsen in the months ahead. The ban is currently due to come into force at the same time as the energy price cap is likely to increase again.
It is unclear whether the placement restrictions on HFSS products in high-profile locations such as aisle ends and checkouts will be affected. A television and online advertising clampdown is also due to come into force next year.
Last month, cereal giant Kellogg’s launched a legal challenge in the High Court, claiming the model used to determine which foods were HFSS was not fit for purpose. Other companies are also believed to be considering their own legal action.
Commenting on reports of a potential u-turn, James Lowman, Chief Executive of the Association of Convenience Stores (ACS) said: “Our members are telling us that customers are watching every penny, so now is not the time to put new legislation in place that makes feeding families more expensive. Scrapping the ban on ‘buy-one-get-one’ deals and other promotions would help retailers to deliver value for customers in stores.
“We are also urging the Government to rethink whether to continue with location restrictions. These measures are complex, unnecessary and expensive to implement, and retailers tell us that they cannot just absorb the cost as they are dealing with increased costs in every area of their businesses.”
Steve Dresser, CEO of industry consultancy Grocery Insight, said on Twitter: “If the latest rumours around HFSS are true, and the legislation won’t see the light of day, we all need a grown-up conversation about health in supermarkets and how to get it so everyone is happy.
“Because HFSS is wrong, but a middle ground is necessary. Customers lead the way.”
NAM Implications:
- Pragmatists have to take this as a postponement/cancellation of legislation.
- Given the potential political fall-out…
- …at a time when skins need saving.
- Best budget for implementation in Spring 2023, latest…
