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Consumer, Food & Retail Insights

| 5 minutes read

ANZ Food Law Updates

Proposed Changes to the Definition of "Genetically-Modified" under the FSANZ Code (Proposal P1055)

Food Standards Australia New Zealand (FSANZ) is currently undertaking a second round of consultation regarding proposed changes to how genetically modified (GM) foods are defined in the FSANZ Code. It is proposed that foods that do not contain novel DNA will no longer be considered GM, even where they have been processed via new breeding techniques. 

Under the proposed changes, certain foods produced via new breeding techniques would be exempt from pre-market assessment and approval as GM foods.

Reason for the Proposal

The current approach is that all food which uses gene technology must undergo a safety assessment before being made available for sale. 

However, there is recognition that the Food Code should keep pace with technology and that the current approach may be too restrictive and will become quickly outdated as new breeding techniques (NBT's) become available.   

Applicable Products

The proposal seeks to focus on the presence of novel DNA as an outcome, i.e. if novel DNA is present in the organism from which the food for sale is derived, it will be considered a GM food for Food Code purposes. Certain NBT foods will not require pre-market assessment under the Food Code.

For further information, and to watch a FSANZ webinar on the topic, see here.

Proposed Changes to Energy Labelling on Alcoholic Beverages (Proposal P1059)

FSANZ proposes to require a statement of energy be included on the label for alcoholic beverages. 

The statement of energy will set out: 

  • the number of servings in the package,
  • the average quantity of the beverage in a serving expressed in mL; 
  • the average energy content expressed in kilojoules or both in kilojoules and in kilocalories per:
  • serving of the beverage; and
  • 100 mL of the beverage.

Reason for the Proposal

Currently, alcoholic beverages, unlike most other packaged food, are not required to be labelled with average energy content information in a nutrition information panel (NIP), unless a nutrition content or health claim is made.

Evidence indicates consumers generally have a poor understanding of the energy content of alcoholic beverages and do not understand alcohol is most often the main source of energy. For example, an Australian-based study in 2010 indicated that consumers may mistakenly perceive carbohydrates as the main source of energy in beer and opt to consume low-carbohydrate beer over other types of beers (such as light alcohol strength beer), believing (mistakenly) that it is less calorific. 

Consequently, FSANZ is considering introducing mandatory standardised on-label energy information for alcoholic beverages. 

Applicable Products

If approved, Proposal P1059 would apply to:

  • most standardised alcoholic beverages; and 
  • most beverages containing no less than 0.5% alcohol by volume (ABV) that are not standardised alcoholic beverages. 

‘Standardised alcoholic beverage’ is defined under the Food Code as beer, brandy, cider, fruit wine, fruit wine product, liqueur, mead, perry, spirit, vegetable wine, vegetable wine product, wine or wine product.

Brewed soft drinks containing more than 0.5% ABV are included in the scope of this proposal. 

Proposed Changes to Carbohydrate and Sugar Claims on Alcoholic Beverages (Proposal P1049)

Proposal P1049 relates to claims about carbohydrate and sugar on alcoholic beverages (>1.15% ABV). 

Specifically, the draft variation proposes to make the following amendment in relation to nutrition content claims about food that contains more than 1.15% ABV:

  • allow the making of nutrition content claims about the content of ‘sugar’ and ‘sugars’ (among other things);
  • prohibit nutrition content claims about the sugar content of such food from naming or referring to any specific sugars (e.g. fructose); 
  • prohibit nutrition content claims about the carbohydrate content of such food from naming or referring to any component of carbohydrate other than sugar or sugars. 

The proposed amendments seek to provide clarity on claims about sugar on alcoholic beverages – once the proposal comes into force, sugar content claims made about alcoholic beverages would be explicitly permitted under the Food Code.

Some health groups have made submissions opposing FSANZ’s proposed reform to permit nutrition claims about carbohydrates and sugars on alcoholic beverages, arguing that ‘low carb’ or ‘low sugar’ claims are marketing tools and should not be permitted for any alcoholic beverages. 

Reason for the Proposal

Currently under Standard 1.2.7 of the Food Code, voluntary claims about carbohydrate content in alcoholic beverages are permitted. However, the Food Code lacks clarity around the extent of such claims – in particular, whether claims about sugar (a component of carbohydrate) content are permitted. As such, both carbohydrate and sugar content claims are currently being made about alcoholic beverages sold in Australia and New Zealand. 

Following a review of the requirements for making voluntary nutrition content claims about carbohydrate and sugar for alcoholic beverages, FSANZ’s assessment is that claims about ‘sugar’ and claims of ‘carbohydrate’ should be regulated consistently.

Applicable Products

If approved, Proposal P1049 would be applicable to alcoholic beverages that contain more than 1.15% ABV.

Timeline

Given the interrelationship between P1059 and P1049, these proposals are being progressed in tandem to minimise the potential impact on industry of having to make multiple label changes and to consider the implication of any label changes on consumers ability to make informed choices. 

Submissions for these proposals closed on 20 March and 4 September 2023 respectively. FSANZ will consider all submissions and draft a final approval report, which will be presented to the FSANZ Board. FSANZ expects the FSANZ Board to complete approval by early December 2024 (originally June 2024) and anticipate the changes to come into force by late February 2025 (originally August 2024) (if no review is requested). 

Health Star Rating Takes a Step Closer to Being Mandatory

At the end of July 2024, Food Ministers at both a state and federal level from Australia and New Zealand met to discuss a range of issues currently facing the food industry. Among the matters discussed were tighter regulation of infant formula and carbohydrate and sugar claims on alcohol. However perhaps the biggest headline to come out of the meeting was with regards to the Health Star Rating (HSR) which is currently voluntary across both countries.

The target for voluntary uptake of the HSR across ANZ is set at 70% by November 2025, however only 32% of products in Australia and 30% in New Zealand currently apply the HSR. There are also concerns that HSR use is skewed towards higher scoring products when arguably it is the lower-scoring products about whose nutritional contents consumers need to be better informed.

Significantly, meeting stakeholders agreed that FSANZ would work with the Food Regulation Standing Committee (FRSC) to start preparatory work on making the HSR system mandatory. According to the Food Ministers Meeting Communique, "this work will facilitate an efficient process to mandate the system if the final results do not reach the target". 

It's an interesting step from the government and is akin to its reaction to voluntary reporting in the fashion industry, which we reported here. Moving forward, it will be interesting to see if these developments prompt a sudden increase in voluntary use of the HSR. Watch this space. 

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consumer goods food and retail, food and beverage