s&r july 2013 packaging

an important role in enforcing labelling

legislation.

A matter of interpretationHowever, this may prove difficult. “Food

labelling in South Africa is complex due

to food being controlled by a number of

different government departments,” says

Byers.

The Department of Health (DOH),

for example, is responsible for labelling

around additives and contaminants, while

the Department of Agriculture, Fisheries

and Forestry (DAFF) is responsible for

labelling around the Agricultural Product

Standards Act, the Meat Safety Act and the

Liquor Products Act, while the National

Consumer Commission has an overarching

responsibility for any misleading labelling

and advertising.

Furthermore, SABS regulates quantity

declarations for pre-packaged products

subject to legal metrology under the Trade

Metrology Act and the National Regulator

for Compulsory Standards controls certain

compulsory standards for tinned meat and

fish products.

If a manufacturer is labelling pre-

packaged fruit juice, for example,

containing ginseng and added vitamins,

then the label must comply with the fruit

juice regulations under the DAFF, various

regulations under the DOH and SANS 289.

“It comes down to interpretation –

different people interpret certain sections

of the regulations in different ways,” says

Horsburgh.

Some of the requirements conflict and

contradict each other, but in general,

the DAFF overrides. “The DAFF is very

good about providing advice concerning

implementation and interpretation of these

regulations, but the other regulatory bodies

are not accessible for this service,” says

Byers.

Implications of non-complianceAlthough food labelling legislation can

be confusing and costly, non-compliance

can have serious implications for retailers

and manufacturers. “If prosecuted, a guilty

party can be fined R20 000 for a first

offence, R40 000 for a second offence, and

R80 000 for a third offence,” says Luterek.

Imprisonment and forfeiture of products

are also possible. “It’s enough to put a SME

out of business,” adds Byers.

Consumers are wising up to their rights as outlined by the CPA and, following the meat scandal, report more and more incidents of mislabelled food.

It’s time for industry players to get their cans in a lineBy Simone Armer

In March 2012, the new R146 food labelling regulations came into

force and although not without controversy, the changes were largely

welcomed by consumers and retailers alike. More than a year later,

however, non-compliance remains an issue. Many manufacturers and

smaller retailers have still not fully invested in the changes that are

necessary to meet new industry standards. With more regulations on the

way, non-compliance is no longer an option.

Reasons for non-compliance“Either smaller manufacturers are not

aware of labelling legislation or they

misinterpret certain aspects of it,” explains

Karen Horsburgh, consultant dietician at

Food and Allergy Consulting and Testing

Services (FACTS). “They may also overlook

certain aspects of legislation in order to be

competitive,” she says.

In addition, the cost of compliance is

high – laboratory testing is needed for

nutritional analysis, as is the assistance

of consultants and lawyers with legal

interpretations. Updating and changing

labels is expensive and some manufacturers

seem to only be willing to change their

labels when forced to do so.

“Regrettably, enforcement of R146 is

very poor at best,” says Janusz Luterek,

legal expert in the CPA and partner at

Hahn & Hahn Attorneys. Regulations are

compiled and published at national level,

and enforced at municipal level by local

environmental health officers.

“Unfortunately, they have a heavy

workload, so mislabelling is often not top

of mind,” says Horsburgh. “Training, human

resources and skills are limited at municipal

level and for this reason, enforcement is

poor,” adds Moira Byers, director of Chill-e

Food Consultants.

According to Horsburgh, it is expected

that competitors will report each other and

that this self-policing approach will play

27SUPERMARKET & RETAILER, JULY 2013

P A C K A G I N G , L A B E L L I N G , B A R - C O D I N G & S C A L E S

▲

No more excuses

50 per cent of genetically modified (GM)

maize. Neither product was labelled to say

it contained GM food, despite a clause in

the CPA stating GM levels higher than five

per cent must be declared. One thousand

consumers signed a petition against GM-

maize and non-labelling of these products,

forcing the manufacturer to source non-

genetically modified maize for its products.

Later in May, another story concerning

food labelling made headlines in a local

community newspaper. A consumer alleged

that the sell-by date labels on a sandwich

she purchased from a forecourt had been

swapped. The manufacturer’s sticker stated

that the sell-by date was 14 May while the

forecourt’s sticker covering it claimed that

the product would be fit for consumption

up until 18 May.

PACKAGING, LABELLING, BAR-CODING & SCALES

In terms of the R146 regulations, a label has to contain the name of the foodstuff, the name and address of the manufacturer, instructions for use, a list of ingredients, special storage conditions and the net contents of the container.

In addition to the cost of compliance,

incorrectly labelled products may be

stopped at Port Health resulting in the

expiration of perishable products. Some

of the larger retailers are also starting to

refuse products that do not comply with

the regulations.

Careful with consumersConsumers are also wising up to their rights

as outlined by the Consumer Protection Act

(CPA). Following the meat scandal, reports

citing mislabelled foodstuffs are becoming

more and more common.

In May, laboratory tests showed that two

popular baby foods contained more than

In June, a supermarket chain had to

publicly apologise after a consumer fed

her grandson a meal that was labelled

halal but whose contents showed the

product contained 49% pork. The matter

was investigated and it was found that the

food sold was halal but had been labelled

incorrectly.

The role of the CPAThe CPA is enforced through the National

Consumer Commission (NCC) and

the various accredited Ombudsmen.

Registration for accreditation is currently

pending for the Consumer Goods Council

and Services Ombudsman as well as the

Advertising Standards Authority (ASA)

Ombudsman, both of which would have

potential jurisdiction over labelling issues.


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Forthcoming regulations will introduce the concept of nutrient profiling where foods are ranked based on their nutrient composition.

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In addition, there are provincial Consumer

Protectors and, in some provinces,

Consumer Courts.

“A consumer can lodge a complaint

with one of these bodies who would then

investigate the complaint. If it cannot be

resolved, the NCC has the power to charge

the offender before the National Consumer

Tribunal (NCT). The NCT can raise a fine of

up to 10% of the annual company turnover

in extreme cases,” says Luterek. There is

also the possibility of imprisonment of up

to 12 months for failing to comply with a

CPA compliance order.

In addition, the DAFF has inspectorates in

all provinces and has the power to order

the removal of non-compliant products

from sale and to prosecute offenders

criminally. The NRCS also has the power

to remove products from sale and to

prosecute offenders.

“We operate in a litigious society where a

philosophy of ‘guilty until proven innocent’

prevails and thus accurate labelling is vital

for retailers and manufacturers,” says Byers.

“The CPA does not favour the manufacturer

or the retailer,” she says.

The importance of the R146Protection from liability and legal action

should be a significant motivation for

retailers and manufacturers to become

compliant, but the new labelling legislation

has additional advantages.

“Labelling legislation levels the playing

fields so that all manufacturers can make

the same claims,” says Horsburgh. “The new

regulations do not allow for misleading

claims and half-truths, and consumers

are therefore better protected than in the

past,” she says.

“It’s a standardised method of conveying

information to consumers. It allows for fair

comparisons between products and ensures

that information is not misleading or

ambiguous. Informed customers are happy

customers,” says Byers.

Positive impactThe implementation of the new legislation

has had a positive impact on some

companies, creating new opportunities for

them in the food industry.

“The new legislation allows us to partner

with our clients to develop and implement

a cost effective, accurate and reliable

method of goods identification,” says Karin

Parker, senior marketing executive of Zetes

South Africa.

Zetes has developed ZetesAtlas, a

manufacturing solution that gives clients

the important functionality of tracking and

tracing items throughout the supply chain.

“It is important for us that Zetes’ clients’

brands are protected and trusted by the

consumer. However, not everybody has

made the required changes as yet and a lot

of companies are still thinking of how to

do it, so it will take some time to roll out,”

she says.


Proposed amendments to dairy regulations and recent amendments to fruit juice regulations in the Agricultural Standards Act are aimed at better alignment with regulations falling under the DOH.

Updating and changing labels is expensive and some manufacturers seem only willing to change their labels when forced to do so.

▲



However, Marc Fryer, sales manager at Mettler Toledo Retail Scale Division, says that scaling equipment has the ability to print anything the client wants. “The possibilities are endless, from recipes for food, to advertising and specials,” he says.

The demand for bigger labels is low, however, as it is costly for manufacturers to move to a bigger size. “Until the market decides that that is what it wants, it will remain stagnant,” says Fryer. “The market is reactive, not proactive, so it is largely dictated by the consumer – until they know more about their rights, it will be a slow process,” he says.

Cutting costsThe area in which it costs retailers and manufacturers the most to comply with labelling regulations is also an area in which they can cut costs. Switching from coated to uncoated labels, for example, can bring reasonable savings in the fresh produce department.

“It wouldn’t make sense in the butchery as the packaging is wet and would probably have to be re-labelled, resulting in an even higher price,” says Fryer. Coated labels do have a better shelf life, but in departments where this is not a priority, the change could be beneficial for retailers and manufacturers.

Although small, such savings will become increasingly important as retailers and manufacturers are forced to find creative ways to comply with food labelling legislation while also keeping customers happy. “The costs of compliance will ultimately be passed on to the consumer,” says Fryer.

Nutrient profilingA second forthcoming phase of food regulations is expected to be published for comment by the DOH in the near future.

“The new regulations will introduce the concept of nutrient profiling as a means of limiting the types of foods and drinks for which claims can be made. This already has been extensively discussed with all affected parties and has generally been well received.” says Nigel Sunley, owner of Sunley Consultants

Food labelsThe new legislation has, however, affected food labelling itself. “The demand for more nutritional information limits the visual

▲

Swapping coated labels for uncoated wouldn’t make sense in the butchery, as the packaging is wet, but could save manufacturers quite a bit in fresh produce.

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displays unless bigger labels are used. The quality of the labels is

often the last decision and not necessarily a priority,” says Parker.

According to the DOH, nutrient profiling is the science of ranking

foods based on their nutrient composition. The process aims to

benefit both the consumer and food manufacturers by ensuring

that claims do not mask the overall nutrient content of food

products.

“We believe that the requirement for manufacturers to comply

and retain the trust of the consumer will increase when the ability

to identify, validate and trace ingredients in products becomes

imperative. Recent enquiries highlight the urgencies and accuracy

the nutrient profiling scheme requires. An example of lack of

traceability is the recently exposed ‘meat scandal’,” says Parker.

Future landscape“What is a complete unknown, and a cause for some trepidation,

is the nature of the mechanisms that will be put in place to assess

the acceptability of the claims themselves,” says Sunley.

It is not known whether the authorities will develop a system

specifically for South Africa or whether they will simply choose

to adopt an existing system such as that of the European Food

Safety Authority (EFSA), which has a reputation for using extremely

stringent and demanding approval criteria, according to Sunley.

“Whatever the proposals from the DOH may be, the food

industry is hoping that a proper process of consultation regarding

the new regulations will be undertaken. The process followed for

phase 1 of the regulations gave rise to considerable dissatisfaction,”

says Sunley.

Additional regulationsOther forthcoming regulations are the proposed amendments to

the Dairy regulations and recently promulgated amendments to the

Fruit Juice regulations in the Agricultural Standards Act. Many of

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Laboratory testing in terms of nutritional analysis is costly but an essential step for compliance with the new regulations.

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It is essential for retailers and

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Scales today are capable of printing anything from recipes for food to advertising and promotions, but few retailers take full advantage of it.


these are aimed at better alignment with

regulations falling under the DOH.

This is to be welcomed by the industry

having to comply with different labelling

requirements from different government

departments.

“There is a much needed rationalisation

of both the regulatory systems themselves

and, very importantly, their related enforce-

ment processes which are currently dis-

jointed and often ineffective,” says Sunley.

The bottom lineDespite costs of compliance, the

lack of enforcement and the risk of

misinterpretation, the food labelling

regulations are here to stay.

The recent furore over meat species

identification has prompted a broad-based

government initiative to review the current

status of food regulations in South Africa.

A major workshop was recently held in

Pretoria at which government and industry

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s&r july 2013 packaging

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