What the UK’s new healthy food rules mean for your startup

The UK Government is planning to make further changes to its food advertising and labelling rules, as it claims market forces alone aren’t sufficient in encouraging children to make healthier food choices. 

The reforms arrive against a backdrop of increasing regulations for food and beverage producers in the UK, with many businesses already feeling the pinch from tighter packaging laws and compliance measures that came into force at the start of the year.

But as these changes quickly approach, what impact will the new food business rules actually have on the factory floor, and what actions startups can take to avoid getting caught short?

What new healthy food rules are the government proposing?

In a bid to tackle poor diets and obesity among children, the Government is considering making changes to its Nutrient Profiling Model (NPM) — a scoring system that measures the healthiness of foods and drinks based on their levels of salt, calories, saturated fats, protein, and free sugars. 

Under these new changes, which are expected to take effect later this month, products such as fruit juices, yoghurts with fruit compost, and bran flakes could be reclassified from the “less healthy” to “unhealthy” category. This revision directly impacts which items can be sold on promotion, displayed in high-traffic areas in-store, and advertised on television during peak times. 

After dropping plans to encourage supermarkets to roll out voluntary food price caps on staple products like bread, milk, and eggs in May, these new regulations take another stab at tackling the drivers of obesity by making healthier products more accessible and appealing to consumers.

How the Government’s new rules could impact prices and investment

The food and drink industry, which is already grappling with rising labour costs, packaging taxes, and stricter recycling rules, is unsurprisingly finding these changes hard to digest. Industry groups argue these reforms risk fueling inflation and dampening investment in the sector, while adding costs that will ultimately be passed onto consumers.

These worries aren’t unfounded. Major manufacturers have already voiced concerns about these new rules, with Jon Hughes, managing director at Haribo, telling the Financial Times that the company would invest less in Britain as a result of the proposed changes, commenting that “The goalposts are moving every year from how we advertise to run promotions”, creating “a huge amount of distraction”.

Changes to NPM scoring criteria may also force manufacturers to spend more on reformatting products, revising packaging, and reconsidering supplier relationships, while retailers could face tighter rules on promoting and displaying less healthy products.

While the Government maintains that these new regulations would only affect large and medium-sized UK businesses, these changes would likely create downstream effects for smaller pubs and restaurants. If manufacturers face stricter rules, the higher costs they face could be passed onto hospitality businesses, forcing venues to raise food prices, switch suppliers or adjust menus to offset costs.

How can your business prepare for the new rules?

While the proposed changes are primarily aimed at larger food businesses, smaller manufacturers and hospitality operators should still consider taking steps to reduce disruption.

For small food manufacturers, we recommend reviewing the proposed Nutrient Profiling Model changes and assessing which products could potentially be reclassified as less healthy or unhealthy. 

You could also explore reformulation opportunities to reduce levels of sugar, salt, or saturated fat in your products, where possible. This could have a direct impact on how retailers you work with market, display, and promote your items.

The rules could also affect small restaurants, pubs, and independent shops slightly differently, potentially affecting which products you’re able to buy and sell. To keep disturbances to a minimum, keep in close contact with suppliers about product availability, recipe changes, and price changes.

You could also stay one step ahead of the curve by reviewing current menus and product ranges, so you’re able to act fast if key products become unavailable, more expensive, or face display regulations when the new regulations come into effect.  

Ultimately, while these looming changes may prove unsavoury for parts of the manufacturing industry, the sooner businesses prepare, the easier it will be to absorb the impact of the new rules.