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ColumnsFRONT-OF-PACK LABELLING CHANGES

FRONT-OF-PACK LABELLING CHANGES

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Strategies retailers can implement to mitigate against negative perceptions
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In 2022, Health Canada announced that, starting January 1, 2026, all pre-packaged foods exceeding specified levels of saturated fat, sugars and sodium must display a front-of-package (FOP) nutrition symbol. Drawing from Chile’s and Mexico’s experiences, where similar measures reduced overall basket size in food and beverage categories, the Canadian Health Food Association (CHFA) studied the potential impact of these symbols on Canadian businesses, retailers and consumers, especially in the better-for-you category.* The study found that while the FOP symbol can increase trust in familiar brands, it may seem contradictory on natural, organic and wellness products.

Here are three strategies retailers can implement to mitigate any negative perceptions the new symbol may bring.

1. Educate consumers

Despite taste and cost being paramount for Canadian shoppers, nutritional labeling remains vital for about one-third of consumers, especially those aged 31-55+. Notably, three-quarters of respondents believe the FOP symbol will help align their purchases with health goals, and 52 per cent acknowledge its influence on their choices in natural, organic and wellness categories.

Retailers can harness their marketing channels – social media, e-mail newsletters and in-store signage – to educate consumers about the new symbols. Clear communication explaining the context and significance of these symbols can alleviate misconceptions. For instance, informing customers a product labeled high fat can still be part of a healthy diet, or educating them on how food pairing can reduce the glycemic index can transform potential negatives into informed choices.

2. Highlight local in merchandising strategy

Products labeled as “Made in Canada” or featuring locally sourced ingredients positively impact consumer perception. Emphasizing sustainability, brand reputation, and high Omega-3 claims can also improve views of products with the FOP symbol.

Retailers can leverage creative merchandising strategies to highlight these positive attributes. By showcasing locally sourced products and emphasizing their health benefits and sustainability, retailers can help counterbalance any adverse reactions to FOP symbols.

3. Work with health experts

Younger consumers (18-34-year-olds) are notably influenced by endorsements from nutritionists or health experts, with 42 per cent saying such endorsements affect their perception of products with FOP symbols. Retailers can leverage this by hosting in-store nutritionist sessions or featuring health experts in digital marketing campaigns. These experts can provide valuable insights into the nutritional benefits of products carrying FOP symbols and offer practical advice on incorporating these products into a healthy lifestyle.

For an in-depth understanding of how FOP symbols will impact consumer behaviour, read CHFA’s latest report, “Consumer Perceptions to Nutrition Labelling and the New Front-of-Pack Symbol in the NOW Industry,” available at chfa.ca. CHFA members can access the entire report, while non members can download a sample.

* NielsenIQ 2023, Connected Commerce Conference, Toronto, April 2024
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Aaron Skelton is president and CEO of the Canadian Health Food Association (CHFA)

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