Implementation Of HFSS Rules Could Be Delayed

Namnews, 24th March 2022

The government restrictions on the placement and promotion of high fat, salt and sugar (HFSS) food & drink products in stores due to come into force from October could be delayed to help ease the cost-of-living crisis.

The industry has been warning that the implementation of the rules will cost millions as supermarkets and convenience stores are reconfigured to accommodate the changes. Retailers face not being able to put HFSS products at the store entrance, at the checkout, near a queuing area, or at the end of an aisle.

Promotions such as multibuys will also be banned for HFSS products. This loss of key sale drivers could potentially cost some manufacturers millions in lost revenue and make food more expensive for consumers.

Several leading manufacturers have already launched HFSS-compliant versions of their key brands, whilst supermarkets such as Tesco have been testing new store layouts that comply with the placement rules.

According to The Telegraph, the Department for Environment, Food and Rural Affairs (Defra) is now considering pushing back the ban as part of an initiative to limit the impact of surging inflation caused by the rising cost of energy and commodities.

“We are kicking the tyres on government policy and thinking about anything we should be doing to ease the cost-of-living crunch,” a government source told the newspaper.

The new push is reportedly being led by the Cabinet Office, which has urged all government departments to consider whether changes to existing policy could help those people facing a major cost-of-living squeeze.

The HFSS measures had been due to come into effect in April but got pushed back to October to give retailers more time to adjust in the wake of the disruption caused by the pandemic.

George Eustice, the Environment Secretary, nodded to the potential delay when he appeared at the Food and Drink Federation’s (FDF) annual conference in London on Tuesday. He also suggested climate change and environmental protections could be delayed to minimise increases in shopping bills over the coming months.

Eustice said further hikes in food prices fuelled by the Russian invasion of Ukraine, which is a major wheat and fertiliser producer, meant there was a “very volatile and dynamic situation” on costs.

NAM Implications:

• Government ‘hints’ are a way of checking reaction.
• i.e. potential extremes of Aye or Nay.
• Remaining silent doesn’t help…
• i.e. an even more emphatic expression of views is required…