It’s not been a good week for chocolate confectionery giants. A salmonella-linked product recall at Ferrero has followed on from allegations of Cadbury’s links to slave labour and shrinkflation on its countlines – just days before Easter. And the tale of woe seems likely to continue, with chocolate manufacturers of all shape and size struggling to innovate in a way that meets the high fat, salt and sugar compliance parameters; while aisle-based trials suggest that attempts to mitigate or circumvent the upcoming promotions ban on gondola ends have not been encouraging.
Its position compares starkly with the extensive reformulation in bagged snacks, which continues apace, with the likes of Walkers, Hippeas, Mini Cheddars and even Manomasa among the latest to come in under the HFSS bar. After the softly, softly carrot, this sudden progress appears to vindicate the government’s use of the regulatory ‘stick’ to achieve a reduction in calorie intake, in much the same way that the soft drinks levy, introduced four years ago this week, resulted in wholesale reformulation in that category.
Whether it has the desired effect on obesity rates is another matter, with the soft drinks levy’s effectiveness inconclusive at best, given the latest obesity stats. There’s also a big question mark as to whether these new bagged snacks actually taste nice enough to warrant both the innovation cost and the cost of promotions. Will healthy snacks mean healthy profits for all concerned? We shall have to wait and see. And of course there’s soaring ingredients and heating costs for bagged snack manufacturers to factor in too.
So there’s a lot riding on this reformulation to work, especially now the HFSS promotions ban is going ahead. With the government pressing on with the clampdown this October despite the added cost that entails, while also introducing calorie labelling in restaurants and pubs from this week, and the packaging tax last week, the pressure on the industry is as challenging as it’s ever been. And that’s without the National Food Strategy white paper or the sugar reduction report.
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