The landscape of food regulation in the United Kingdom is undergoing significant transformation with the introduction of stringent rules targeting high fat, sugar, and salt (HFSS) products. Starting in October 2022, the UK government imposed strict restrictions on the promotion and merchandising of HFSS foods, with further measures planned for October 2025. These regulations are set to reshape the way medium and large retailers operate, impacting advertising strategies, pricing models, and product formulations.
Key Regulations and Their Impact
2022 Regulations
In October 2022, the UK government implemented regulations banning volume price promotions for HFSS products and restricting their advertising on digital platforms and pre-watershed television. These rules primarily affect medium and large retailers, with the out-of-home sector largely exempt, except for those offering free refills of sugary drinks. This approach targets retail environments where impulse purchases are common.
New Restrictions
Postponed to 2025
Originally set for January 2023, new restrictions on advertising HFSS products have been postponed until 1 October 2025. Introduced through the Health and Care Act 2002, these rules will amend the Communications Act 2003 to include:
- 9pm TV Watershed for HFSS Products: Applies to all TV programmes and on-demand programme services (ODPS) regulated by Ofcom, regardless of programming or typical audience age.
- Restrictions on All HFSS Paid-For Advertising Online: Includes non-UK regulated ODPS.
Scope and Exemptions
Products in scope must fall into a relevant category and meet certain nutrient profile criteria. Exemptions include brand advertising without identifiable HFSS products, owned media, SMEs, audio content only available online, broadcast radio, online business-to-business promotions, and online transactional content.
Enforcement
Ofcom is the statutory regulator, with the Advertising Standards Authority (ASA) designated as a co-regulator. The ASA will update the CAP Code to ensure compliance with the new online advertising prohibition and produce guidance on the online prohibition. Ofcom retains backstop powers to investigate and enforce compliance.
Food (Promotion and Placement
These regulations restrict the promotion and placement of HFSS products in physical stores and their online equivalents.
Scope and Exemptions
The scope includes medium and large businesses offering prepacked food for sale in stores and online. Exemptions include the out-of-home sector, specialist retailers, and free refills of sugary drinks in the out-of-home sector, subject to volume price promotion restrictions.
Location Restrictions
Effective from 1 October 2022, these regulations prohibit qualifying businesses from placing specified HFSS products in key locations such as checkouts, queuing areas, aisle ends, and store entrances. Online equivalents include homepage, search results for non-HFSS products, pop-up pages, and ‘favourite products’ pages.
Volume Price Promotion Restrictions
Initially delayed, these restrictions are now set to come into force in October 2025. They prohibit volume price promotions (e.g., multibuy offers) on HFSS products. Exemptions include meal deals, dine-in promotions, discount promotions, and free samples or vouchers.
The Labour Party’s Stance and Future Directions
The recent election of the Labour Party, known for its advocacy for public health, suggests an imminent tightening of HFSS regulations. The party’s commitment to stricter rules will likely compel manufacturers to reassess and adapt their business models. The anticipated 2025 measures are expected to heighten these regulatory demands, pushing companies towards greater innovation in product development and marketing.
Challenges for Manufacturers
- Sugar Reduction and Alternative Sweeteners
The push for lower sugar content in products necessitates the exploration of alternative sweeteners. However, these substitutes often bring their own set of challenges, including consumer acceptance, cost implications, and potential health concerns.
- Resource Scarcity and Supply Chain Issues
The industry is grappling with resource scarcity and supply chain disruptions, exacerbated by global economic uncertainties. Ensuring a stable supply of ingredients that meet new regulatory standards is crucial for uninterrupted production.
- Operational and Strategic Risks
Companies must navigate operational risks, such as the need for new manufacturing processes, and strategic risks, including shifts in consumer demand and potential brand repositioning. Updating risk registers to reflect these changes is essential for effective risk management.
Strategic Preparation for Future Regulations
- Innovative Product Reformulation
Investing in research and development to reformulate products with healthier ingredients can help meet regulatory requirements while maintaining consumer appeal. This might involve reducing sugar, fat, and salt content without compromising taste.
- Transparent and Responsible Marketing
Adapting marketing strategies to comply with advertising restrictions is vital. Emphasizing transparency and responsible marketing practices can build consumer trust and align with regulatory expectations.
- Collaborative Industry Efforts
The industry has the opportunity to unite and present a cohesive response to regulatory pressures. Collaboration can lead to shared solutions for common challenges, such as ingredient sourcing and technology adoption for healthier product development.
- Supply Chain Resilience
Strengthening supply chain resilience through diversification and establishing reliable supplier relationships can mitigate the impact of resource scarcity. Proactive planning can ensure the availability of compliant ingredients.
- Consumer Education and Engagement
Educating consumers about healthier choices and the benefits of reformulated products can drive acceptance and demand. Engaging with consumers through transparent communication can foster loyalty and support for new product lines.
Conclusion
The evolving HFSS regulations in the UK present both challenges and opportunities for the food industry. Manufacturers must navigate complex regulatory landscapes, adapt to changing consumer expectations, and innovate to stay competitive. By proactively addressing these challenges and embracing collaboration, the industry can turn regulatory compliance into a catalyst for positive change and sustainable growth. The path forward involves a balanced approach, combining regulatory adherence with strategic innovation, to create a healthier food environment for all.
