Changing Nutrition Facts Label Requirements: An Opportunity for Innovation

On May 27, 2016, the FDA published final rules regarding changes to the iconic Nutrition Facts Label. With the current label being over 20 years old, many things have changed since then in the world of nutrition. The new labeling requirements will reflect the latest scientific information, including the link between diet and chronic illnesses like obesity and heart disease. The changes to the Nutrition Facts label are meant to increase transparency and empower consumers to make more informed food and beverage choices. However, sweeping changes in labeling requirements will pose a challenge to manufacturers. Today we're taking a look at what exactly is changing on the Nutrition Facts Label, what it means for food and beverage manufacturers and packagers, and the unique opportunities the new labeling requirements provide.

Changes to the Nutrition Facts Label (In a Nutshell)

Most large-scale manufacturers will need to be in compliance with the new Nutrition Facts Labeling requirements by July 26, 2018. According to the FDA, the major changes are as follows:

• Calories, serving size, and servings per container. These sections of the label are highlighted with either larger or bold type to make it easier for consumers to quickly find this important nutritional information.
• Updates regarding nutrients, vitamins, and minerals. Some will need to be more accurately declared and quantified while others will no longer be required.
• % Daily Value" footnote clarification. A source of confusion for many consumers, this portion of the label has been updated to better explain that it is for general nutritional advice only.
• Adding 'Added sugars'. With scientific-based evidence pointing to added sugars as a contributor to obesity and chronic diseases, 'Added sugars' must be included on the new nutrition label.
• Serving sizes are getting a major overhaul. They must be updated to reflect what people are actually eating and not what they should be eating. If a package is between one and two servings, the nutrition label will reflect one serving because consumers typically consume the entire package in one sitting. For packages that could be consumed in one sitting but could also be consumed over multiple sittings, a dual column label will be required, informing the consumer of the nutritional content of both one serving and the entire package.

                                                                                                                   Image source: FDA.gov 

Turing a 'Costly Redesign' Into a Marketing Opportunity

Undoubtedly many Consumer Packaged Goods (CPG) companies view the required Nutrition Facts Label updates as a costly and burdensome undertaking. They must give every product label a complete overhaul and sometimes update their packaging and entire marketing strategy. However, in an interview with Packaging Digest, SGK's Senior Vice President of Client Engagement Carol Best has a different take. Instead of a burden, the new labeling requirements can be seen as an opportunity for differentiation of your brand:

" Over the past decade, growing consumer demands for simplicity, sustainability, and wholesome nutrition have led to the creation of entirely new categories...Many brands have understood this trend for years and have already been adapting their labeling and communications to better address consumer needs—well in advance of regulatory mandates...Smart companies see the Nutrition Label update as a powerful signal and a rare market opportunity to create meaningful changes that consumers want to see, driving significant new growth. The entire industry must make labeling changes. The big winners will be brands that see this as a strategic opportunity, not just an imposed burden.

Best feels that the Nutrition Facts Label update requirements will force companies to scrutinize their product formulations, packaging, and marketing, leading to industry innovations that can benefit CPG companies and consumers both. Whether it be repositioning your brand as 'indulgent' rather than 'healthy', revisiting product formulations to create healthier versions, or taking this opportunity to embrace transparency and appeal to the consumer via truth and simplicity in your labeling, the Nutritional Facts Label update is sure to have lasting effects on the food and beverage industry. It is up to you to decide if you will simply comply, or if you will take this opportunity to innovate and set your brand apart from its competition.