Managing claims in a dynamic regulatory

and business environment

29th July 2015

Change is inevitable.

• “You can't stop the future

You can't rewind the past

The only way to learn the secret

...is to press play.” Jay Asher

• “Success is not final, failure is not fatal: it is the courage to continue

that counts.” Winston S. Churchill

• “Everyone thinks of changing the world, but no one thinks of changing

himself.” Leo Tolstoy

• “Be the change that you wish to see in the world.” Mahatma Gandhi

Outline

• Factors that influence claims

• Upcoming legislation

• Responding to HSR

• Compliance approaches

• Labelling approaches

• Value of integrated approach

• Key elements to an integrated approach

– Informing the integrated approach

• The label revisited

• Conclusion

Claims

Regulations

Labelling

Procedure

Product

Relevance

Market

Norms

Product

Lifecycle

Consumer

Preferences

Case Law

Enforcement

Policy

Brand

Image

‘Clarity’ that requires change

• Additional accuracy required, should it be by mass or by value?

• Should additives and processing aids be counted?

• Should 100% mean >99.5%? Should other voluntary % be allowed?

• Consider stock in trade, tinned food has long shelf life.

Sometimes clarity requires change

3 1 3

2 2 2

Compliance

Impact of P1025

Health Star Rating

• Converts ‘complex’ nutrition

information to a simple rating

• Logical extension of the NPSC

• Recognizes whole foods and

improves their score

• Voluntary system

• Algorithm can be reviewed

• Promotion a synergistic benefit from

government and industry.

Product identified

Simple claims

Credible claims

Not too many!

The detail needed to back claims

and be cognitively convincing

belong elsewhere.

What is the ‘ideal’ place to sit?

EnterprisingRegulation

Compliance

Case Law &

Market Norms

Labelling

Procedure

Brand Image

& Consumers

Conservative

‘Open’

Proactive

Cheeky

Prescriptive

Reactive

Conservative

• Strictly follow ANZFSC 1.2.4 8 (2)

(use functional names as read)

• Use of ANZFSC 1.2.4 4 (a) or (c)

(common or generic names)

• Maximize use of ANZFSC 1.3.3 3

(foods, Schedule 2 additives)

• Maximize use of ANZFSC 1.2.4 6

(5% rule)

• Strictly follow ANZFSC 1.2.4 8 (2)

(use functional names as read)

• Use of ANZFSC 1.2.4 4 (a) or (c)

(common or generic names)

• Maximize use of ANZFSC 1.3.3 3

(foods, Schedule 2 additives)

• Maximize use of ANZFSC 1.2.4 6

(5% rule)

• Maximize use of ANZFSC 1.2.4 8

(2) (name or number)

..., vegetable oils (sunflower, canola), [contains antioxidant

(tocopherols) (contains soy)],...

..., acidity regulator (332), Antioxidant (ascorbic acid),...

Value of integrated approach

• Predicable

– Faster to develop

– Optimize claim selection

– Improve claim consistency

– Build consumer trust

• Known risk

– ANZFSC & ACL properly considered

– Prior legal challenges reviewed

• Proactive

– Consumer insights

– Competitor review

Overview of claim management

• Sets frameworks & risk profiles

• Engages strategic stakeholders

Law, policies, & positions

• Accelerates development of standardised claims

• Engages functional stakeholders.

Compiled claim menu

• Ensures comprehensive review

• Independent of individual staff preference

Detailed product data

Overview of market review

•Claim approach is both applicable to product and market

•No intellectual property or trademarks are infringedAdopt

•Claim approach needs modification to suit product or market

• Intellectual property or trademarks could be infringed if unchanged

Adapt

•Claim approach is not suitable to product or market

•Risk not suited to corporate risk profileAvoid

•Claim approach is not suitable to product or market

•May impact on own products if not acted onAct against

Review challenges

• Revise the voiceover to state “oats

with milk are naturally rich in

protein”

• Increase the size of the qualifier

and bold the “with 2/3 cup of

skim milk”

• Remove the text on the right of the

screen in the end frame which

states “naturally rich in protein

superfood.

Review challenges

• New terms can have an evolving meaning

• In the absence of a clear definition within the food

standards code, a reputable dictionary definition is

reasonable.

• Factual accuracy alone is not sufficient, message should

remain clear in execution.

• Worth exploring behind the headlines, often the reason for

a determination is as valuable as the determination itself.

Review challenges

Artwork built on

agreed data

Claim wording set

Review process

accelerated

Anyone in team

can review

The foundations needed to build

artwork data rests on agreed

policy and claim wording.

Conclusion

• There are many factors influencing whether claims

can be used and how they should be presented.

• An integrated approach is essential to keep track of

the many factors involved in managing claims well.

• These processes can be improved by reviewing the

market including news and challenges.