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BrandSquare Webinars | February 29, 2016

6 Things Your Brand Must Do Before The Nutrition Facts Label Update

Recently, Carol Best, SVP of Client Engagement at SGK, presented a BrandSquare Live Session on how to “Turn the Nutrition Facts Label Update into Your Competitive Advantage”.

The revision to the Nutrition Facts Label is more than simply updating packaging labels. Consumers are looking for more transparency in the products they are buying, and the food they are eating. Since the announcement of the impending update, Carol has come up with 6 steps brands should take when preparing, and how to stay on budget, and on time in the execution of these label changes.

Evolving diet and health trends are reflected in what consumers look for most on the label. According to NPS’s Dieting Monitor, calories remain the most important item consumers are looking for, where in 2014, sugar and sodium were more important than in 2010, where fat and calories from fat held the second and third most important items.

Below, you can see 3 key proposed revisions planned for the update:

Carol Best Proposed Changes

First, the serving per container will be updated, based on the rise of obesity and type 2 diabetes. This will help coach and education consumers on portion control. The second update, as shown above, will be the text of calories – which is a lot bigger than the current label on the left. Lastly, there will be a new line included for added sugars.

The proposal is also considering changing the Reference Amounts Customarily Consumed (RACC), so as opposed to looking at what the suggested serving is, what the regulation is causing everyone to reconsider is what is more likely to be the portion consumed.

Carol presents the example of a pint of Ben and Jerry’s ice cream. As some consumers may eat a pint in one serving, the actual serving size is 4. The changes will now prompt consumers to read the label, and in turn will see a higher calorie count. Due to different serving size amounts, this may lead to consumers putting the container back in the freezer to find a different brand option. To ensure you don’t push consumers out of the brand altogether, Carol offers 6 ways to leverage your labeling for an edge over the competition.

Carol Best Six Routes to Success

Instead of thinking as the label update as a supply chain regulation change, this should be seen as an opportunity to meet consumer needs.  This update will reset marketplace dynamics by creating new winners and new losers.

Seize the competitive advantage by reformulating, repackaging, innovating, and most importantly, by acting bold. Be sure to optimize your time by understanding your true design equities and assets, as the new label is much longer. Determine what other design changes should be made while you are touching the label and look at the copy changes and workflow of volume and activity to make sure you only touch the design once. Lastly, coordinate the changes at the same time, rather than revise separately during the 2-year compliance window.

As of now compliance is on shelf and on digital shelf, so it’s important that the supply chain is prepared. With an increase of private label design changes coming in at once, prepare your supply chain so they will not be burdened with a lot of changes at once.

Again, this is a fantastic opportunity for brand owners to clean up their process and gain new information and insights from consumers.

For more information and resources regarding the impending label changes, please visit Schawk's Label Central. For up-to-date news and insights on how to out-strategies your competitors, assess your preparedness with our free, interactive labeling tool.

View the full episode >> Live Session – Carol Best: Turn the Nutrition Facts Label Update into your Competitive Advantage

For more information on future Live Session episodes, or to become an expert contributor, head over to the BrandSquare website.