Michael Leeds and Bruce Levinson Live Webinar: Off the Starting Block: Making the Most of the New...

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Off the Starting Block:Making the Most of the New FDA

Label Regulations

Michael Leeds & Bruce Levinson, SGK

August 18, 2016

©2016 Matthews International Corporation. All Rights Reserved.

How are leading companies starting to tackle the nutrition label update? What can we learn?

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What has happened to date?

SOME BACKGROUND

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Nearly every food and beverage

label in the country must change.

Most companies have until July 28,

2018 to comply.

Impact to serving sizes, nutrients

such as added sugars, sodium,

certain vitamins and fiber.

It creates a new level of

transparency and information

available to shoppers.

Previous Brandsquare sessions

have covered the key changes.


Why the change?

SOME BACKGROUND

According the U.S. Food and Drug Administration:

• “Reflects updated scientific information, including the link between diet, chronic diseases, and public health• Updated serving sizes are needed to reflect changes in amounts of foods consumed• Format draws attention to calories and serving sizes, two important elements in making healthier food choices”

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Initial Reactions

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Question 1. What have companies already started to do?

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“Um, nothing, actually.”

What have companies started to do?


“Organized a cross-functional team to manage the transition. We also ear-marked budget for this.”




“Organized a cross-functional team to manage the transition. We also ear-marked budget for this.”


“We have begun discussions about how to prioritize our SKUs."



It’s still early. If you are ahead of the game or behind the game, don’t feel too proud or too nervous. We are just getting started.

Companies are at very different stages

What can we learn from these initial reactions?

KEY TAKEAWAYS


The FDA regulation has been a very long time in development; now is the time to align resources and take this seriously again.

One critical first step is simply organizing a team


KEY TAKEAWAYS




Budgets are finite of course, so determining if this effort will replace or be incremental activity will be essential to brand planning.

The budget will dictate more than just finances




KEY TAKEAWAYS




Competing priorities are inevitable; setting a clear, fact-based, objective approach can keep things efficient and reduce redundancies.

Spend time to determine the key priorities

Budgets are finite of course, so determining if this effort will replace or be incremental activity will be essential to brand planning.

The budget will dictate more than just finances




KEY TAKEAWAYS




Question 2. What early challenges have companies encountered?

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“We expected to have more than 2 years to comply. Now we’re going to need to make choices about how we pace certain projects.”

What are the early challenges?




“Templates were only recently published, with guidance to come.”




“We need to educate and inform our Marketers.”

“Templates were only recently published, with guidance to come”



“Actually getting the new nutritional data - e.g, how much Vitamin D is in a serving - will be a bottleneck for us.”


“We need to educate and inform our Marketers.”

“Templates were only recently published, with guidance to come”


Depending on how much of your brand portfolio you typically change in a year, the compliance window could pose a challenge.

Two years may sound like a lot of time, but it may not be

What can we learn from these initial challenges?

KEY TAKEAWAYS





KEY TAKEAWAYS

Some companies noticed that new templates were not immediately provided by the FDA. The right partners will help you through this.

Seeking the right resources is key




If your company has felt this update is a “regulatory thing” or even a “packaging thing” some serious education is required.

It’s time to raise organizational awareness


KEY TAKEAWAYS






It sounds trite, but expect the unexpected. Some brands and some categories - will see enormous opportunities or challenges emerge.

Expect new challenges

If your company has felt this update is a “regulatory thing” or even a “packaging thing” some serious education is required.

It’s time to raise organizational awareness


KEY TAKEAWAYS




Question 3. What initial brand growth ideas have companies developed?

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“Yes! We see a new competitive claim we’ll make versus our closest competitor. On pack and off!”

Any initial brand growth ideas?




“Actually, we see a serious risk with some products. We need to either reformulate or repackage - or both.”


“We’re going to save money by doing a graphics restage at the same time as we change the labels.”





“We’re going to save money by doing a graphics restage at the same time as we change the labels.”


“As a healthy brand, we are excited to get out there first and show our consumer that we are leaders in label transparency.”




This regulation may enable powerful new claims - this is rare - seize the chance to gain advantage and think beyond the pack.

Seize the moment

What can we learn from these initial ideas?

KEY TAKEAWAYS



Seize the moment

Brands are increasingly looking to leverage the always-on channel of packing but less real estate poses a design challenge.

Consider broader implications


KEY TAKEAWAYS



Seize the moment

Beyond the supply-chain logistics, the in-market timing of new packaging can also influence consumer perceptions of brands.

Timing matters




KEY TAKEAWAYS



Seize the moment

Will you reformulate or repackage? What will your competitor do? Now is the time to do some war-gaming and plan for different marketplace scenarios.

Thoroughly evaluate the deeper decisions

Beyond the supply-chain logistics, the in-market timing of new packaging can also influence consumer perceptions of brands.

Timing matters




KEY TAKEAWAYS


Additional Considerations

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What’s in a word?

THE NATURAL DEBATE

• A lot and nothing at all

• A potential fine or change in interpretation

• The FDA has been petitioned to provide a definition

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The new direction and options for food and beverage brands

CONGRESS AND GMO

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• The State of Vermont’s Law has been pre-empted

• Greater flexibility now sits with the brand-owner

• Solution sets now include Smart-Labels


Smart labels informing traditional and e-commerce choices

DIGITAL CONNECTIVITY

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• Federal GMO legislation is fueling the conversation

• Alternate watermarking techniques are viable

• Agile production models can enhance the experience


What can we learn?

EUROPE JUST WENT THROUGH THIS

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• A solid project plan, resourced fully, will reduce business disruption

• Have a plan to manage the entire supply chain

• Don’t wait until the last minute to react, you can’t buy more time

• Planning for both the physical and digital shelves concurrently saves time and money


This is only the first lap.

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It’s still early, but leading companies are getting focused and prepared to win.


Your questions, please.

To assess your preparedness, get resources and talk to SGK’s brandand label experts, visit Label Central at schawk.com/label-central

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Michael Leeds and Bruce Levinson Live Webinar: Off the Starting Block: Making the Most of the New...

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