Nutrition Facts Label Changes Potentially Delayed: How Complying Today Could Boost Sales

In Blog, Food Transparency by Amy Mangueira

edit: As of June 13, 2017, the FDA has announced a delay on the Nutrition Facts Label changes. The new proposed date for manufacturers with over $10 million in annual revenue is January 1, 2020 with retailers under the $10 million mark having an additional year.

During the Obama administration, there was a large push to shed more light on the nutritional value of the food products we consume. Part of this push was to increase visibility and transparency revolving around food labeling. A new nutritional facts label was proposed to do just that. The new label would increase the size of calorie callouts, change serving sizes to reflect the amount people actually consume, callout added sugars, and more.

The proposed date of compliance is July 26th, 2018 for all manufacturers with revenue over $10 million, with manufacturers with revenue under $10 million having an additional year to comply. Many are now speculating that this date will be pushed back three years. The Trump administration, being more anti-regulation, has already moved back the menu label changes, which were originally slated for May 5th 2017, at the behest of many food industry players.

Looking at industry trends and consumer survey data, the rollback is counterproductive for CPG manufacturers. Consumers are demanding transparency and studies have shown that shoppers are actually more likely to purchase brands they view as more transparent. Michael Jacobson, President of the Center for Science in the Public Interest, stated, “It is mind-boggling that the food industry is fighting transparency and consumer information even though that’s exactly what their customers want.”

So if the law is delayed how could this help boost sales for some? Early adoption. Manufacturers can still comply with the original date and now be seen as putting the customer first, giving the consumer what they have been proven to desire, transparency and clarity. A study conducted by Rare Consulting, in 2016, found that 83% of consumers said “trust” was the primary driver for brand loyalty. Invest in the label changes early, be ahead of the game, earn goodwill, and boost your sales.

For the full list of changes to the nutritional facts label and for additional information click here.