Mandatory nutrient labelling currently being considered by the European Commission (EC) could cost individual companies as much as £4.18m, according to the European Advisory Services impact assessment published last week.
The EC began consulting on nutrient labelling back in January 2003 with a view to helping consumers make better nutritional choices about foods they eat. While many large multinationals already provide some nutrient labelling, there is no standardised format or legal requirement to do so. This could all change however with the resulting proposal which would amend Council Directive 90/496/EEC on nutrient labelling.
The impact assessment calculates the average costs of introducing tabular nutrient labelling at over £4.18m for companies with a turnover in excess of £33m a year, and £800,000 for those with a turnover between £1.35m-£33m and £219,000 for those with a turnover of less than £1.35m.
No formal decision has yet been taken on whether the legislation will be mandatory, but md of lobby group The Whitehouse Consultancy, Chris Whitehouse, says that the projected costs should "jolt the food industry into acting"
While larger manufacturers may have the software and equipment to cope with major labelling changes, smaller manufacturers would find it hardest to cope with the added costs, said the consultancy.
It is expected that some 70% of food products would have to carry the nutrient labelling, with only very small products such as chewing gum and those that have never been labelled such as coffee and spices being exempted. The proposal is expected to be published in the first half of 2006.