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.
Leading wholesale buying and marketing group Sugro UK has collaborated with Britvic Soft Drinks, a global organisation with 39 much-loved brands sold in over 100 countries, to launch a groundbreaking Fast Food Sample Box.
The sample box is specifically designed for ICS UK LTD customers, giving them a unique opportunity to sample and experience new Fast Food soft drinks offerings firsthand.
The new Fast Food Sample Box offers ICS customers an exclusive opportunity to explore a curated selection of Britvic's best-selling and new product offerings that drives incremental sales. This trial initiative is designed to provide Fast Food retailers with a hands-on experience of market-leading products, helping them identify key opportunities for growth in the Fast-Food soft drinks categories.
Sugro UK's Fast Food Sample Box represents a pioneering approach to boosting customer engagement, providing tailored solutions that meet the evolving demands of today’s consumers. This initiative is the first of its kind in the sector, giving ICS customers exclusive access to products that are proven to drive sales and offering them a competitive edge in their local markets.
Alice Graham, GB Head of Dining Route to Market Wholesale, "We are delighted to collaborate with both Sugro and ICS with this initiative. The fast-food market has seen double digit growth over the last few years and the growth is set to continue. This initiative with ICS, a leader in fast food wholesale, underscores our commitment to supporting the growth of Britvic brands and advancing our partnerships with fast food establishments.”
Sid Musa, Manager at ICS (UK) added, “At ICS UK LTD, we are thrilled to partner with Sugro UK and Britvic on this industry-first initiative. The Fast-Food Sample Box gives our fast-food customers a unique opportunity to experience top-tier products firsthand, empowering them to make informed decisions that can truly elevate their offerings. We’re confident this exclusive initiative will help our customers stay competitive and drive growth in an ever-evolving market.”
Yulia Petitt, Head of Commercial and Marketing at Sugro UK commented: “We are incredibly excited about the partnership with Britvic delivered with excellence by our member – ICS Ltd. Fast Food sector is a big part of the group commercial strategy, so we see it as a huge opportunity for the group.”
Sugro UK is proudly owned by its 90 plus independent wholesale members, with a combined turnover of over £2.5 billion. The group was recently voted number one across all buying groups in the recent Advantage Group Survey.
British plant-based ready meal maker Allplants has filed a notice of intention to appoint administrators, citing ongoing financial losses, stated recent reports.
Allplants, known as the UK’s largest vegan ready meal brand, has faced mounting losses over recent years. Filing the notice provides the company with a critical window to explore options to avoid liquidation, such as restructuring, refinancing, or negotiating a sale.
According to the founder and CEO Jonathan Petrides, Allplants is working closely with insolvency specialists Interpath Advisory to assess “all possible options for restructuring, refinancing, and ensuring the sustainability of Allplants".
The reports added that while the prospect of a buyer offers some hope, failure to finalise a deal would likely lead to the company’s remaining stock being sold off to pay creditors. The development underscores the challenges faced by plant-based food companies as they navigate a competitive and increasingly crowded market.
Allplants started off as a direct-to-consumer brand in 2016, made its retail debut in November 2022, listing its meals at Planet Organic and several independent stores, as well as online grocer Ocado. It witnessed instant success, selling six million meals within the first three months and becoming the second-most purchased frozen meal brand on the latter platform.
Allplants has raised £67m across several financing rounds from investors including Molten Ventures, Felix Capital, Octopus Ventures, The Craftery, and professional footballers Chris Smalling and Kieran Gibbs.
Allplants’s move to appoint administrators is indicative of the distressed vegan ready meal category in the UK. It was among the categories that have witnessed a drop-off in sales recently, falling by 20 per cent between 2022 and 2023, according to Circana data commissioned by the Good Food Institute, which attributed it to cost-of-living pressures that led shoppers to cut back on non-essential and convenience items.
The country’s largest meat-free company, Quorn, posted pre-tax losses of £63m in 2023, a fourfold increase from the £15m it lost the year before. Meatless Farm and VBites also came close to the brink, before being rescued by VFC (now the Vegan Food Group) and owner Heather Mills, respectively.
Entrepreneur and businessperson Stanley Morrice, an influential figure in the retail and wholesale sectors, received an Honorary Doctorate from the University of Stirling at Stirling’s winter graduation held today (22).
Stanley, from Fraserburgh, is being recognised for his services to Scottish food, drink and agriculture. He entered the sector as a school leaver. In 1993, he joined Aberdeen-based convenience stores Aberness Foods, which traded as Mace. He rose to become Sales Director, boosting income by 50 per cent and tripling profits, and went on to be Managing Director, successfully leading the business through a strategic sale to supermarket group Somerfield.
Throughout a stellar business career, Stanley has set up, led, managed and sold more than 100 companies, from retail, wholesale and property to coaching and mentoring firms, in the UK and internationally.
An MBA graduate in retailing and wholesaling from the University of Stirling and Chair of the University of Stirling Management School’s International Advisory Board, Stanley was recognised with an MBE in 2022 for his work to support sustainable food and drink production in north-east Scotland.
Collecting his degree along with more than 300 other graduates at Friday morning’s ceremony, Stanley said, “I am deeply honoured to receive this recognition from the University of Stirling, where I completed my MBA in 1998. The University has played a pivotal role in shaping my career, and it has been a privilege to serve as Chair of the International Advisory Board at Stirling Management School since early 2020.
“This honorary degree reflects the University's commitment to cultivating industry partnerships and its dedication to preparing students for success in the business world. I was grateful for the opportunity to contribute to Stirling's mission of fostering innovation and developing future leaders.”
Professor Sir Gerry McCormac, Principal and Vice-Chancellor of the University of Stirling, said: “We are delighted to be awarding an Honorary Doctorate to Stanley Morrice, who has been an influential and exemplary figure in business and entrepreneurship, and in his advisory role at the University of Stirling. We know Stanley’s accomplishments, impact and leadership will be an inspiration to those graduating alongside him this week.”
In total, more than 1,000 students will graduate from the University of Stirling this week. Three ceremonies are being held across two days (21 – 22 November) as students celebrate their academic achievements alongside their families, friends and University staff.
British consumers have turned less pessimistic following the government's first budget and the US presidential election and they are showing more appetite for spending in the run-up to Christmas, according to a new survey.
The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, rose to -18 in November, its highest since August and up from -21 in October which was its lowest since March.
Economists polled by Reuters had expected a deterioration in the confidence indicator to -22. Neil Bellamy, GfK's consumer insights director, said consumers seemed to have moved past their nervousness in the run-up to the 30 October budget and the 4 November US elections.
Finance minister Rachel Reeves announced a big increase in taxes on 30 October but the burden fell mostly on businesses rather than individuals.
Bellamy said it was too soon to say a corner had been turned. "As recent data shows, inflation has yet to be tamed, people are still feeling acute cost-of-living pressures, and it will take time for the UK's new government to deliver on its promise of 'change'," he said.
All five of the five components of the GfK's survey rose this month, led by a gauge of shoppers' willingness to make expensive purchases which rose five point to -16.
The survey was conducted between 30 October and 15 November and was based on the responses of 2,001 people.
GfK’s survey reported modest improvements in consumer measures of their personal finances and the general economic situation over the next 12 months. The figures clash with a separate survey of 1,500 households which showed growing pessimism over job security, according to S&P Intelligence.
“Consumer confidence continues to be variable but ability to spend depends on household circumstance,” Linda Ellett, UK head of consumer and retail at KPMG, said. “Inflation and interest rates having not yet sufficiently fallen and a toughening labour market are all weighing on the minds of many people.”
The government announced a £20 billion rise in employer national insurance contributions at the budget, as part of its promise not to hit “working people” with extra levies. Labour has also cut back on winter fuel payments for all pensioners, and said it will boost pay for public sector workers this year.
British retail sales fell by much more than expected in October, according to official data that added to other signs of a loss of momentum in the economy in the run-up to the first budget of prime minister Keir Starmer's new government.
The Office for National Statistics (ONS) said sales volumes have fallen by 0.7 per cent in October. A Reuters poll of economists had forecast a monthly fall of 0.3 per cent in sales volumes from September.
The drop was the sharpest since June when sales fell by 1.0 per cent from May. A monthly rise in sales in September was also revised down to 0.1 per cent from a previous estimate of a 0.3 per cent gain.
The ONS said retailers across the board reported that consumers held back on spending ahead of the new government's first tax and spending budget on 30 October.
It also said a possible contributor to the weakness in sales were the school half-term holidays for England and Wales which typically fall within the October data reporting period but did not this year.
Sales of clothing were particularly weak in October, something reflected in previously released figures for the month from the British Retail Consortium, representing the industry, which linked the fall to weather that was warmer than usual.
The ONS said during the 12 months to October, sales volumes rose by 2.4 per cent, slowing from September's 3.2 per cent rise and weaker than the median forecast in the Reuters poll for a 3.4 per cent increase.
Slow start to Golden Quarter
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, described the figures as a “concerning start to the Golden Quarter” - the busiest period for retailers.
“With half-term falling later this year and relatively mild weather, consumers have put off buying their winter coats and boots. This has made it difficult for retailers to shift stock,” she said. Many shoppers appear to be holding out for Black Friday deals, which Baker predicts will lift sales throughout November.
Baker noted that despite a challenging October, there is hope for a recovery in the months ahead.
“The Budget didn’t deal a huge blow to consumers in the form of tax rises, plus interest rates continue to come down, and the American election is now out of the way, which should help with confidence and create a clear runway for Christmas spending,” she said.
Thomas Pugh, an economist at RSM UK, echoed these concerns, pointing to the timing of the school half-term as a significant factor in October's sales slump. However, he expressed optimism about the longer-term outlook, predicting that retail sales would grow through 2025 as “higher consumer incomes and rising consumer confidence … feed through into higher spending volumes.”
He added: “While headline inflation jumped from 1.7 per cent in September to 2.2 per cent in October, retail prices fell at an accelerated rate. Indeed, retail inflation dropped from -1.3 per cent to -1.6 per cent, meaning lower prices will help a rise in spending feed through into bigger increases in sales volumes.”
Silvia Rindone, EY UK&I Retail Lead, highlighted consumer caution as another key factor behind the October decline.
“The decline in sales volumes can be attributed to a decrease in consumer confidence, influenced by several factors including uncertainty surrounding the Autumn Statement, rising energy bills, and the impending costs of Christmas,” she commented.
EY’s latest Holiday Shopping survey revealed that nearly half of consumers began their festive shopping before November, aiming to spread out holiday expenses.
Rindone warned that retailers face a challenging period ahead, with upcoming labour cost increases, including changes to National Insurance and a minimum wage hike set for April 2025.
“The next few months are critical… Retailers will need to ensure they drive margin this Golden Quarter so that investments can be made in their proposition,” she said.
“As our survey found, shoppers are willing to spend if the price is right and the proposition is strong. Continuing to operate as efficiently as possible while steadily improving the experience for customers will be key. Much like the last few years, the market is getting tougher, and only those able to continually evolve will thrive.”