Kellogg’s get Crunched
Today Kellogg’s has failed in its bid to challenge new regulations restricting promotions of foods high in fat, sugar or salt (HFSS foods). The aim of the regulations is to reduce the consumption of unhealthy foods by banning them from appearing in prominent sales locations and being part of special offers. Here, James Corlett looks at the argument Kellogg’s made and what the new regulations mean for businesses.
The Regulations were initially slated to come into effect in October, but some have been delayed due to the cost-of-living crisis. The aim of the Regulations is to reduce consumption of unhealthy foods buy banning them from appearing in prominent sales locations (checkouts, store entrances and online equivalents) and being part of special offers (such as BOGOF or free-refill deals) HFSS foods covers items such as ice cream, pizzas, breakfast cereals and cakes. For more details on the Food Promotion and Placement England Regulations 2021 you can find guidance here.
In their bid to challenge new regulations, Kellogg’s argued that the full nutritional value of its cereals should be taken together with the milk in which they are ‘usually’ served, therefore reducing the proportion of sugar and salt relative to the weight of the overall serving. The High Court has now rejected this argument. The judgment stated that the court found no unfairness to Kellogg’s and the public health case for the new Regulations was “compelling, proportionate and rational”.
Despite some delays caused by the current level of inflation and energy price increase, the measures set out in the Regulations look set to come into force at staggered intervals between October 2022 and January 2024.
The Regulations apply to businesses with 50 or more employees offering pre-packed foods for sale in store and online, including retailers that sell food or drink as secondary activity, such as pharmacies, DIY stores, and clothes stores in England and Wales. Failure to comply with the Regulations could result in fines following an investigation by local authorities.
If you would like to know more about the Regulations and how they might impact your business, please get in touch with a member of our Commercial Team here.
By James Corlett