Legal development

Do wine calories count - FSANZ says yes

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    What you need to know

    • FSANZ is currently preparing a proposal that contemplates additional labelling requirements that would see energy content listed on alcoholic beverages.

    What you need to do

    • If you are in the alcohol industry, start preparing for the introduction of energy content labelling on alcoholic beverages.

    Food Standards Australia and New Zealand (FSANZ) is preparing a proposal to amend the Australia New Zealand Food Standards Code (the Code) to require mandatory labelling in relation to the energy content of alcoholic beverages. This proposal comes out of research done as part of a detailed literature review and evidence assessment conducted by FSANZ. The review discovered that approximately 69% of consumers generally value the inclusion of energy content on alcoholic beverage labels, but typically value other information like alcohol content and ingredients to a greater extent.

    Why is the change being proposed?

    As part of its evidence assessment report, FSANZ identified that "unlike most other packaged food and beverages, labels on most packaged alcoholic beverages do not provide information about energy content to enable consumers to make informed choices in line with dietary guidelines" (the Issue). The report found that in the context of the Australian Dietary Guidelines and the Eating and Activity Guidelines for New Zealand Adults (that recommend limiting alcohol intake to assist in managing body weight) labelling was the most appropriate solution to the Issue.

    Results from a number of studies analysed as part of the literature review suggested that, based on general knowledge alone, consumers typically have a poor understanding of the energy content in alcoholic beverages. This might indicate a good reason to introduce this kind of labelling. However, studies also showed that knowledge of the energy content has little effect on the likelihood of a consumer drinking an alcoholic beverage.

    Some common misconceptions among consumers include things such as: wine and spirits being mistakenly perceived as having a lower energy content than other types of alcoholic beverages; the overestimation of energy in beer; and finally, that alcohol is generally the main source of energy in alcoholic beverages, not the accompanying sugar or carbohydrates.

    The current requirements

    Currently, FSANZ has set a number of requirements for the labelling of alcoholic beverages under the Code. These labels must include a statement of the alcohol content and approximate number of standard drinks, as well as a pregnancy warning (as set out in the Code). The Code also restricts the use of phrases such as "low alcohol", "non-intoxicating" and "non-alcoholic" based on alcohol content. General labelling standards under the Code also apply such as identification of some allergens, date markings, directions for use and storage requirements. It is worth noting that all foods, including alcoholic beverages, are also subject to additional country of origin labelling requirements set out in the Australian Consumer Law, under the Competition and Consumer Act 2010 (Cth).

    As part of its analysis on the options to overcome the Issue, FSANZ consulted with a number of industry stakeholders including manufacturers, distributors, government departments, not-for-profits and a range of public health organisations.

    The proposed change

    Under the proposed change, it would be mandatory for manufacturers to list the energy content of the product in a shortened nutrition panel. FSANZ says that this requirement will "provide regulatory certainty and a level playing field for all alcoholic beverages and producers".

    To read more about FSANZ's proposal, visit here.

    Authors: Kellech Smith, Partner and Daele Tyler, Lawyer.

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.

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