inStorebuyer - June 2012 - (Page 33)

foodsafety Labeling Regulation Poses Burden As the intended limits of restaurant labeling regulations are nearing implementation, the burden the regulations will pose on supermarkets is becoming increasingly alarming. Primarily developed to create a federally standardized labeling system for chain restaurants, the rules for labeling of standard menu items are being blanketed over grocery stores as well. The cost of this regulation poses a significant burden on both chain restaurants and supermarkets. “The federal regulation is extremely sweeping, it’s very difficult to comply with and it applies in the broadest sense imaginable to supermarkets, which we think is beyond what the Food and Drug Administration has authority to do under the law,” says Erik Lieberman, regulatory counsel with the Food Marketing Institute. Because the rule was written to apply to “restaurants and similar retail food establishments,” FDA interpreted the law to apply to supermarkets. EXPERT ADVICE ON HANDLING FOOD “FDA acknowledges that supermarkets will face a larger burden under this law than restaurants. This makes no sense when supermarkets were never the intended target of the law.” Erik Lieberman, Food Marketing Institute Considering the vast difference in operation and sales, there • FDA has failed to account for any quantitative benefits are a number of of the Proposed Rule. reasons this regulation • Of the studies FDA cites in its PRIA, most demonstrate that will be a tremendous menu labeling has little or no effect on purchasing habits. financial setback for • None of the studies show any link to reduction in obesity retail grocery stores. rates, the purported benefit of menu labeling. It is estimated • Enforcement at over 31,000 retail grocery stores. that the rule will cover approximately • Only 23,000 restaurants covered according to PRIA. 31,000 retail grocery • Much more complex regulatory regime for supermarkets. stores. Considering that the cost of determining nutrition information for an Additional expenses will include item costs roughly $1,000 and that menu boards and signs, new scales and each of 150 of these chains will be software, developing training material required to provide labeling for about for employees, training employees, 15,000 items, the financial burden for recordkeeping and the standardlabeling will be around $2.25 million. ization of menu items. In sum, the “FDA acknowledges that super- compliance costs are estimated to markets will face a larger burden cost more than $300 million for the under this regulation than restaurants,” supermarket industry. Lieberman says. “This makes no sense Covering any food item that is when supermarkets were never the processed or prepared in the superintended target of the law.” market, the labeling rule will also require nutritional labeling to be listed according to the entire item, not by serving size. This means a bakery item such as a cake will require a total calorie quantity for the entire item, which might be 25,000 calories. Consumers are accustomed to per-serving calorie quantities, and that is what is most helpful, Lieberman says. Details of the Regulation TIMMY TRABON | inStorebuyer | June 2012 | 33 |

Table of Contents for the Digital Edition of inStorebuyer - June 2012

inStorebuyer - June 2012
Editor's Note - How Consumers Eat
Table of Contents
Frontline News - CSM to Divest Bakery Supplies
Frontline News - Register for All Things Baking
Frontline News - Chang wins Supermarket Chef Showdown
Frontline News - Haggen Hires Bakery Director
Frontline News - Kings Unveils Innovative Store
Frontline News - Culpitt Ltd. Wins Queen’s Award
Frontline News - Consumers Watch Sodium Intake
Food Serivce Retail - Minimize Sandwiches for Maximum Appeal
Baking & Decorating - Decorate to Win
Bakery Development - Seek New Opportunities with Pies
Deli Development - Specialty Cheese Broaden Appeal
Foods of the Decade
A Price War in Phoenix
Food Safety - Labeling Regulation Poses Burden
Health & Nutrition - Weight Loss Trends
Cheese Corner - Teaching Cheese
Product Trends
Product Showcase
Marketplace Network
Ad Index

inStorebuyer - June 2012