Global Courant
Image: FOODStuff SA
Webber Wentzel experts have revealed that the new food labeling laws the Department of Health is planning to introduce may be more harmful than good.
It was in April when the minister proposed amendments to the Foodstuffs, Cosmetics and Disinfectants Act, making the regulations regarding the labeling and advertising of foodstuffs public.
The new regulations will introduce a host of changes to food marketing, most notably requiring items high in sugar and fat to carry a warning and prevent these items from being sold to children.
The department stressed that it wants to see mandatory front-of-package labeling (FOPL) on all pre-packaged foods that contain saturated fat, added sugar, added sodium and exceed nutrient limits for total sugar, total sodium. or total saturated fatty acids. A similar label should also be used on products containing artificial sweeteners.
Webber Wentzel’s Yolandi Robbertse and Bernadette Versfeld revealed that the new regulations would entail huge costs for producers. They said trademark portfolios should be reviewed, requiring new trademark applications to be filed and existing trademarks to be changed. With regard to copyright portfolios, artworks will also need to be adapted and media and digital advertising reviewed and restored.
“The significant costs associated with all of these additional measures come at a time when brand owners are already facing a challenging economy. We note in this regard that the JSE’s food producer index is down 16% with rising production and distribution costs compounded by tax shedding. – Added Robbertse and Versfeld.
Moreover, the experts also revealed that the draft regulations have gone too far and that multinationals could exit the South African market. The draft regulations could potentially do serious damage to companies that have spent decades building their brands and relationships with consumers.
This approach appears to be based on a combination of the approaches of the European Union (EU), Australia and Chile, with the most restrictive measures coming from Chile. Although Chile passed extremely strict rules in 2016 to address childhood obesity, the obesity rate in Chile has nevertheless increased from 51.2% in 2016 to 58% in 2022.
Recent studies have shown that there is limited evidence that unhealthy food advertising influences dietary behaviour, and Robbertse and Versfeld added that the models used in Australia, Canada or the EU, while still having strict requirements, are better for companies than the Chilean model.
We also need to look at the risk that the additional costs associated with FOPL compliance and extended warning signals will be passed on to consumers who are already facing increased food inflation.
Deadline for public comments on food labeling and advertising regulations is 21 July 2023
Ensuring new food labels in SA
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