Confusion is currently prevailing at retailers’ ends over the Mandatory Calories Labelling rule that is set to come into effect on April 6, Asian Trader has learned.
Under the new regulations, businesses of a certain size (250 or more employees) will need to display calorie content for food products that are sold for immediate consumption and are not pre-packaged. The regulations form part of the government’s wider strategy to tackle obesity and encourage people to make healthier food choices.
Calorie information per food item can be displayed on a ‘point of choice’ like menus or display units. The upcoming regulation covers food outlets and hospitality venues as well as convenience stores offering food-to-go.
However, many retailers are still not sure whether they too have to comply with the new rules in their food-to-go section or not.
A Premier retailer from Gosport, whose major part of sales happen in the food-to-go section, revealed how he is still not very sure whether the rule is applicable for retailers like him or not.
“Some retailers say the Mandatory Calorie Labelling rule will cover only restaurants and takeaways. Some say we will also have to comply. There is so much lack of clear information,” the store owner told Asian Trader.
He also revealed that he is yet to receive information or communication in this matter from his symbol group as well as from his supplier Country Choice.
“Maybe it's a bit early,” the retailer said.
Another store owner who runs a Budgens store was totally unaware of any such upcoming regulation. He gave a similar feedback saying he is yet to receive any information regarding the matter.
It is true that calorie labelling rule is majorly going to affect eateries and takeaways. However, as per Department of Health and Social Care as well as Association of Convenience Stores (ACS), many retailers will also come under this umbrella if they are a part of a symbol group.
Symbol groups who have more than 250 employees are considered to be within the scope of the rules. Much like the upcoming HFSS regulations, the government intends for symbol and franchise retailers to be included, ACS said, urging retailers to contact their symbol or franchise operator to find out whether they will have to comply with regulations or not.
Calorie Labelling quick guide by ACS
“Convenience retailers that are deemed to have more than 250 employees, calculated based on their participation in ‘franchise agreement’ and symbol groups, will have to work with their franchise partners and suppliers to get the calorie labelling information for products sold for immediate consumption that are not pre-packaged,” says the ACS guidelines aimed at retailers issued on Feb 28 and a reminder issued today (16).
“Part-time employees should be included as part of the head count. Convenience retailers will need to consult their symbol group supplier or franchise partner to discuss whether their agreement is considered to be a ‘franchise agreement’ as defined in the regulations,” ACS says.
The guidance from the Department of Health and Social Care clearly mentions the following while clarifying examples of food in scope of this new policy.
“Convenience grab and go: hot beverages (all varieties) (but not pre-packed cold drinks), bakery items (such as pastries, cakes, sausage rolls, pasties), ready to eat pies, pizza and sandwiches,” states the guidance while listing examples of food in scope.
What’s covered?
The calorie labelling requirements will apply to food that is sold for immediate consumption on or off the premises and is not prepacked. Food that is prepacked for direct sale, packed at the request of the consumer or sold loose will be included. For example, hot beverages, bakery items, ready to eat pies, pizzas and sandwiches.
Apart from some convenience stores, the types of businesses covered include restaurants, fast food outlets, cafes, pubs, supermarkets, home delivery services and third-party apps selling food, specialist food stores, delicatessens, sweet shops, bakeries, contract catering and domestic transport businesses including planes, trains, ferries and other forms of water transport within the UK.
The regulation implies that retailers will need to work with their suppliers and franchise partners to secure the “accurate calorie information” of food items, ACS says.
Under the new rule, retailers will need to:
Display the energy content of the food in kilocalories (kcal)
Reference the size of the portion to which the calorie information relates. For example “pork pie, 323 kcal per pie”
Display the statement that ‘adults need around 2000 kcal a day’
The statement must be displayed on every page of a menu, and in a prominent position where people are choosing what to buy (for example at a hot food counter).
“Where food is chosen from a menu this information should be on the menu, next to the description or price of the food. Where food is chosen from items on display it should be on a label identifying the food, next to or near the item.
“For food that is pre-packed for direct sale and chosen from items on display, calorie information may be displayed on its packaging as an alternative to a label, so long as it can be clearly seen and read by the consumer,” ACS says, adding that the information required to display must be “easily visible, clearly legible, and not in any way hidden or obscured”.
Businesses should develop and implement processes to ensure that calorie information is “as accurate as possible to ensure the food can be reproduced consistently each time it is made”, says the government guidance.
labelling sample- Annex C- calorie labelling illustrations by gov.uk
The food items which are exempted from the new rules are:
fresh fruit or vegetables, including potatoes, provided that they are not added to other food, or sold as an ingredient in food consisting of more than one ingredient
fish, meats or cheese, provided that the fish, meat or cheese is not added to other food, or sold as an ingredient in food consisting of more than one ingredient
loaf of bread or baguette
food which is on the menu temporarily, that is for less than 30 consecutive days and a total of 30 days in any year
food which is not included on the menu or otherwise offered for sale and which is expressly requested by the consumer to be made available or prepared differently to the way it is usually prepared
alcoholic drinks over 1.2 percent ABV (alcohol by volume)
condiments which are provided to be added by the consumer to their food (this exemption does not include condiments which are part of the food served)
For most of the businesses, calorie labelling is a brand new concept and a new challenge to overcome.
Leading foodservice wholesaler Brakes has created a slew of new resources to help its customers tackle regulations requiring businesses to display calorie information.
In addition, Brakes has also partnered with Nutritics to launch a recipe-management tool which will help save time and lower risk by reducing human error and avoids having to separately enter data for allergens and calories.
Foodservice wholesaler and distributor Bidfood has also come up with a new online hub and an array of support tools to help its customers to understand and adhere to new calorie-labelling legislation. The supplier has launched a dedicated calorie-labelling page on its website, which has all the information business and customers need ahead of the rule change.
Additionally, the wholesaler has also launched Bidfood Direct MyRecipes that automatically calculates the calorie content of recipes based on the ingredients and quantity of those ingredients.
Leading food-to-go supplier to convenience channel Country Choice was reached out for a comment to know about their efforts in this matter.
Failing to Comply
The regulations are to be enforced by local authorities in their respective areas, who will also have discretion in how they enforce it, including the accuracy of calorie information.
As per the government guidance, local authorities may serve businesses that fail to comply with an improvement notice, and a fixed monetary penalty (FMP) of £2,500, as an alternative to prosecution.
Calorie labelling sample as shown in Annex C- Calorie labelling illustrations by gov.uk
Noteworthy here is that FMP is not the first action but imposed after initial conversations, an improvement notice and a notice of intent. It implies that any FMP would be the result of non-compliance after the business has been given the repeated opportunities to take measures to secure compliance.
“Local authorities will have the discretion to consider pursuing criminal prosecution as an alternative to civil sanctions where they consider it appropriate, including in relation to repeat offences where the fixed monetary penalty may have had no effect in achieving compliance,” the government guidance says.
Wrap
As per the government, in food and drink that is prepacked, consumers are familiar with seeing calorie content on the majority of items sold in the retail sector. In contrast, when it comes to pre-packed food selling in takeaways and food-to-go sections, it becomes difficult for consumers to make informed, healthier decisions.
“Our aim is to make it as easy as possible for people to make healthier food choices for themselves and their families, both in restaurants and at home,” public health minister Jo Churchill said.
“That is why we want to make sure everyone has access to accurate information about the food and drink we order.”
Additionally, the government also hopes to encourage businesses to reformulate the food and drink they offer and provide lower calorie options.
Calorie Labelling comes closely on the heels of Natasha’s Law that hit the food-to-go section in October last year, pertaining to potential allergens in the food. In about next six months, HFSS regulations are also set to hit the grocery sector under which restrictions will be imposed on items high in sugar and salt in terms of volume promotions, such as buy-one-get-one-frees and two-for-one deals, which will no longer be allowed for in stores larger than 2,500 square feet.
Speaking about the challenges that retailers come across whenever any new regulation comes up, one of the retailers pointed out that “ extreme lack of both- information and support” as major issues.
“At the time of Natasha’s Law as well, my store never got any support from my supplier in terms of labelling tools. We had to figure out ourselves how to display the ingredients. The suppliers should have helped us,” the retailer concluded.
Scottish business conglomerate Glenshire Group has hired Daniel Arrandale as its new Property Director.
Starting in the newly created role last week, Arrandale brings a wealth of industry experience to the business, including his most recent position as Acquisitions Manager for Asda and his previous position as Development Manager at EG Group.
“I am thrilled to be joining Glenshire Group in a period of tremendous growth, with many exciting opportunities on the horizon,” said Arrandale. “I’m looking forward to working with the existing development team to maximise the opportunities within our current estate, whilst also growing the business further with the acquisition of new sites.”
As part of Arrandale’s remit, he will oversee acquisitions, development, and growth for Greens Retail, Pizza Hut, and wider Glenshire Group property development and investment interests.
The bulk of Arrandale’s career has been as Retail Director at commercial agents Christie & Co, focussing on the convenience, forecourt and franchise markets. Arrandale served at Christie & Co. for 23 years.
Harris Aslam, Managing Director at Glenshire Group added: “We are very excited to welcome Dan into the Glenshire family. Having worked with Dan many times over the years on several transactions, I can confidently say his breadth of knowledge and experience in this sector will give us a huge advantage as we continue to expand our portfolio.”
Currently operating 27 convenience stores and 20 Pizza Hut franchises in Scotland, Glenshire Group has committed to significantly furthering new location openings in Scotland as well as bolstering their property portfolio.
Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.
The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.
"In Asia, China stands out as a market where the consumer is very weak. Most other Asian markets are actually okay," he said, adding the company had not yet seen Chinese stimulus measures having any impact on consumer behaviour.For years, brewers have relied on a strategy of developing and promoting their more expensive premium brands to offset an overall decline in drinking.
Aarup-Andersen said he remained confident in the long-term growth potential of premium beer and that the category will comprise a significantly larger portion of Carlsberg's business in a decade.For now, however, the company is adjusting its marketing.
"In markets where we are seeing a significant pressure on premium, we are reallocating some of our focus into making sure that we are promoting properly around the right mainstream brands," he said.
The world's third-largest brewer behind Anheuser-Busch Inbev and Heineken said third-quarter sales rose 1 per cent to 20.5 billion Danish crowns ($2.98 billion), compared with 20.7 billion expected on average by analysts in a poll gathered by the company.
Despite the shift in consumer behaviour, Carlsberg said it still expects full-year organic operating profit growth to be between 4 per cent and 6 per cent. The company lifted its full-year guidance in August.
Also on Thursday (31), the world's largest beer maker Anheuser-Busch InBev reported third-quarter profits, revenues and volumes behind forecasts. AB InBev's third-quarter statement highlighted stronger growth for its more expensive beers, like Corona, which grew 10.2% outside of its home market, Mexico, during the period.
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.
Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.
The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.
The E-Loyalty Extra loyalty scheme will be accessible by retailers via WhatsApp platform and will allow retailers to capture evidence of compliance by simply clicking “take photo” button.
With the addition of another digital enhancement introduced to the group recently – Coupon - based loyalty mechanic, members are now empowered to incentivise and reward customers, driving stronger consumer connections and fostering brand loyalty at a granular level. Retailers can now simply redeem a coupon at the point of check out. Another key digital development within the group is WhatsApp E-Presell which enables Sugro UK’s retail partners to provide advance product volume commitments for new product launches. This functionality is particularly powerful as it ensures that suppliers have accurate forecasts before product launches, enabling better stock availability from day one of product being available on the market.
The ease and speed of using WhatsApp for these commitments simplifies the presell process, ensures accuracy and strengthens relationships across the supply chain.
While other industry players may soon consider introducing similar digital tools, Sugro UK are proud to be at the forefront of enhancing retail-focused digital solutions. This early adoption not only ensures that Sugro UK members remain competitive but also guarantees them access to the best digital tools available in the market. These efforts are part of Sugro UK's ongoing commitment to delivering value to its members and empowering them with innovative solutions for growth and success in an increasingly digital retail environment.
Sugro Head of Commercial and Marketing, Yulia Petitt said: “I am delighted that Sugro UK members are now able to provide photographic evidence of retail compliance and in-store execution to our supplier partners, using a wide range of display and compliance criteria such as planograms, secondary displays, trials, and new product developments (NPDs).These digital features allow members to share real-time proof of execution, enhancing accountability and building supplier confidence. The launch of E-Presell functionality opens a huge digital advantage for the group which will benefit all – members, retailers and suppliers in gaining accurate forecast and ensuring product visibility in store from day one of product being on the market and with the ease of using WhatsApp, the entire pre-sell process becomes a much quicker and easier process to manage for all parties.
"The Group has had 18 consecutive years of growth and, once again, on track to deliver in 2024, with the year-to-date performance of +15% year on year and growth across all categories.” Rob Mannion, CEO of b2b.store, added: “The rate of innovation in the wholesale sector is increasing and these launches are further great examples of that. We’re particularly excited about the developments and different uses of WhatsApp in the industry, with more coming in the pipeline for 2025 – it’s a tool no wholesaler or buying group can afford to ignore because of the level of influence it’s having in the sector and there’s no sign of that direction of travel changing any time soon.”
Sugro UK is proudly owned by its 90 plus independent wholesale members, with a combined turnover of over £2.5 billion.
Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.
Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.
This collaboration is expected to accelerate product launches and drive growth in diverse offerings, including sauces, salsas, marinades, dips, and condiments.
"We have collaborated with Panesar Foods for 17 years, and we are very pleased to welcome the company to Paulig," said Rolf Ladau, CEO of Paulig. "Today, our combined taste expertise and innovation skills unite around a shared ambition: to accelerate our international growth and expand our World Foods offerings."
Bill Panesar, CEO of Panesar Foods, expressed confidence in the partnership, stating, “As Panesar Foods becomes part of Paulig, I am confident that our ambitions for international growth will be realised, and the business will continue to thrive. We share a strong commitment to innovation and delivering high-quality, flavourful products, and I look forward to bringing even more delicious products to the market, together."
Jas Panesar, MD of Panesar Foods, echoed, “This partnership will allow us to reach new markets and deliver our authentic World Food flavors to a broader audience. We look forward to combining our passion for quality food with Paulig’s commitment to sustainability and innovation.”
All 308 Panesar employees will transition to Paulig’s team. Financial details of the transaction remain undisclosed.