In-store bakery and deli operators face a daunting challenge when it comes to interpreting and applying requirements set out by the Nutrition Labeling and Education Act, which became law in 1990. More than that, time to muse about the situation is drawing short because some provisions of the law go into effect about five weeks hence, on May 8.
Precisely because of the complexity and urgency of the matter, a special supplement called "Supermarket Bakery & Deli" is bound into this issue of SN. The cover story of the supplement is about what supermarket retailers are doing to comply with the nutrition labeling law and how they think it may affect product development and merchandising.
Those are interesting issues, so let's take a quick look at them here, too, addressing the fundamental questions: What does the new nutrition labeling law seek to do, and why does the industry see it as so nettlesome?
Clearly, the intent of the law is to make it easier for end users of bakery and deli products to determine what's in their food and how it should fit into a daily dietary regime. The label is intended to be user-friendly. That intention is given a big boost by the fact that its format is uniform and will be common to all products, regardless of packaging or shape. It also will require a uniform and predictable listing of information concerning elements such as calories, fat, cholesterol and so on.
Despite all the fears the mandatory labels inspire in the industry, is it possible they may actually offer a net long-term positive for the industry? No question, the labeling situation can be an opportunity to spin gold from straw if the labels are viewed as a sort of third-party confirmation to consumers that their favorite treats or foods aren't quite as replete with calories or as devoid of nutritional value as might have been feared. For instance, bread -- that in-store bakery staple -- will have a new chance to shine now as its health benefits are highlighted by the labels. The industry also may be able to use the presence of labels to form a rebuttal strategy to turn back negative publicity that springs up periodically about food content and nutrition.
Finally, it seems that the labels may impart to supermarket shoppers the notion that the bakery and deli departments are run by competent and knowledgeable professionals. Needless to say, the labels pose considerable hazards to the industry as well, chief among them are the cost and the high level of complexity that compliance demands. The exercise is complex since each product must be examined to determine if it's exempt or must be labeled. Reasons for exemption are based on answers to questions such as: Where is the food to be consumed? Where was it processed? To what extent is it sold in a ready-to-eat condition?
The situation grows more complex in the case of products fabricated in-store, since nutritional profiles must be prepared by a government-approved laboratory, paid by the retailer. The Food and Drug Administration has estimated that testing may cost $1,785 per item, according to an interview in this week's supplement with Peter Houstle, executive vice president of the Retail Bakers of America. But an analysis program available through RBA and the American Institute of Baking may reduce that cost to $40 per item. Moreover, labels will probably change consumption patterns for the obvious reason that full nutritional disclosure will shed harsh light on the type of bakery and deli products that don't look so good in terms of caloric or fat content. Finally, stockkeeping-unit reductions may occur as retailers decide the cost of compliance for some products simply isn't worth it. But here's hoping in a couple of years it will develop that the benefits consumers derive from well-labeled products (and the favorable reaction that will redound to the benefit of the industry) will overcome the initial cost and bother that implementation requires of retailers.
