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Fast Food Labelling in NSW – An Australian First 7 November 2010
In an Australian first, all NSW major fast food retailers will be required to display kilojoule information under new laws coming into effect on February 1.
Any standard food outlet with 20 or more stores in NSW or 50 or more stores nationally will be required to comply.
Premier Kristina Keneally and Primary Industries Minister Steve Whan today announced the new laws as part of the NSW Government’s push to improve health and reduce obesity across the State.
This follows the Fast Food Forum hosted by Ms Keneally in August this year – co-chaired by former NSW Premier and healthy food advocate, Bob Carr, and Executive Director of the Sydney Business Chamber, Patricia Forsythe.
The Fast Food Forum brought together Government, industry, public health professionals and stakeholders to discuss food content and how to give consumers better nutritional information at the point of sale.
The new laws mean:
- Businesses such as major fast food, bakery, coffee and doughnut chains will be required to clearly and legibly place the kilojoule content on their menu board as well as prominently featuring the average adult daily energy intake of 8700kj; and
- The kilojoule content must be adjacent to the price of the product and be at least the same size as the price of the product.
The new requirements will come into effect on 1 February 2011, with a 12 month implementation period.
“This is a responsible approach to healthy living. It’s clear that people want to make an informed choice about their food,” Ms Keneally said.
“More and more NSW families are eating fast food, and if they’re not preparing food themselves, they want more information about what they are eating.
“NSW consumers will now have the benefit of clear information about the kilojoule content of the food they order from fast food businesses.”
Albert Baladi, Managing Director of KFC and Pizza Hut Australia, said: “We think the Premier has set the standard for industry consultation.
"We share her vision of providing consumers with information to make sensible dietary choices.
“By bringing together industry, health experts and government, we believe we have arrived at a solution that achieves that aim. It supplements the information we already provide freely on packaging, in store and on our website.
“While we will always serve that great taste that our customers crave, we also will continue to provide more nutritious food, through reducing salt, introducing low saturated fat oils and providing grilled options."
McDonald’s CEO Catriona Noble said: “McDonald’s Australia is committed to helping our customers make informed decisions about their food choices.
“Nutrition information has always been available in our restaurants, and we were the first Quick Service Restaurant in Australia to introduce nutrition labelling on our packaging.
“We believe menu board labelling is another way we can help Australians make informed food choices and forms one part of a broader solution working in collaboration with the government to address the public health issue of obesity.
“We are committed to continue to collaborate with government to help evaluate the menu board labelling scheme.”
The NSW Government has also committed $1.5 million to an evaluation of the initiative and supporting education materials to help consumers understand kilojoule labeling and energy consumption.
“I have established a Reference Group drawn from public health, consumer advocates and industry, which has been actively involved in developing this important initiative,” Ms Keneally said.
“I will be seeking the Group’s continued participation as we move toward evaluation and monitoring over the coming 12 months.”
The NSW Food Authority will be working with industry during the implementation to assist them in meeting the new requirements.
Primary Industries Minister Steve Whan said the new rules would establish a level playing field across traditional fast food chains as well as café and coffee chains, bakery chains, snack food chains, juice bars and ice cream chains.
“Any ‘healthy image’ conveyed by these businesses will have to be supported by genuine nutritional data.
“Similar models overseas – such as the United States and the United Kingdom – are beginning to demonstrate long term benefits to community health, including moves by the standard menu food retail industry to produce and market healthier product ranges.”
Minister for Health Carmel Tebbutt said the 2009 NSW Population Health Survey showed more than half of adults in NSW are overweight or obese.
“Sadly the financial and health costs of obesity and associated chronic disease are significant,” Ms Tebbutt said.
“This model will allow consumers to consider the complete picture and take into account their own total daily energy requirements before they buy.”
The Heart Foundation – which is part of the Reference Group – has welcomed the announcement.
Tony Thirlwell, NSW Heart Foundation CEO, said: "There is building evidence that menu labelling encourages people to make healthier choices, especially parents choosing meals for their children.
“Given the fact that 4.5 million Australians eat out at fast food or snack food outlets everyday, we must learn by doing.
“Labelling information needs to be on menus where it’s going to be noticed if we’re serious about helping people make healthier choices and reducing the risk of heart disease, the number one killer of Australian men and women.
“The Heart Foundation congratulates the NSW Government for their commitment to menu labelling and supports future moves to also provide consumers with information on saturated fat and salt.”
The NSW Government intends to evaluate the scheme within one year with a view to investigating including other nutrients such as saturated fat and salt.
On behalf of the Quick Service Restaurant (QSR) Forum of the Australian Food and Grocery Council (AFGC), AFGC Chief Executive Kate Carnell said: “Industry supports any initiative that ensures consumers and their families have the information they need to make informed choices.”
The aim of the QSR Forum – representing major QSR operators in NSW – is for industry to work collaboratively with governments to deliver appropriate and transparent information to consumers so they can make informed purchasing decisions.
Background Notes
- Following the implementation period, businesses will be subject to penalties of $880 for an individual or $1760 for a corporation if dealt with by a penalty notice; or up to 500 penalty units for an individual or 2500 for a corporation if dealt with by a court.
Fast Food Industry
- The Australian fast food market represents one of the largest segments within the commercial fast food sector.
- About 44 per cent of all meals served within the commercial sector are fast food.
- Food labelling in Australia is governed by the Australia New Zealand Food Standards Code. Amendments to the Code are made through agreement by the Australia and New Zealand Food Regulation Ministerial Council.
- ABS statistics show that when based on dollar value, consumption of “fast foods” has doubled over the last 10 years from 1999 to 2009.
- In 2009, BIS Shrapnel reported 3.7 billion meals were served by commercial foodservice outlets in Australia, with 1.6 billion from 16,000 fast food outlets.
- BIS Shrapnel also reported that approximately 30% of the Australian household food budget is spent at restaurants and fast food outlets, with nearly half being spent on fast foods.
- NSW has 32.5% of all fast-food outlets nation-wide.
- Over 50% of the market share of take-away food comes from Quick Service Restaurant outlets:
o McDonalds
o Yum Restaurants Australia – KFC and Pizza Hut
o Competitive Foods Australia – Hungry Jack’s
o Domino Pizza
o QSR holdings – Oporto, Red Rooster and Chicken Treat (WA only)
Obesity
- In 2009, the New South Wales Population Health Survey showed that 52.5 per cent of adults were classified as overweight or obese.
- More males (59.5 per cent) than females (45.4 per cent) were classified as overweight or obese. 25 per cent of children are overweight or obese
- The NSW Government’s target under the state plan is to reduce the percentage of children who are overweight or obese to 22 per cent by 2016.
Health impacts
- In 2010-11, NSW is spending $16.4 billion on its health and hospital services.
- Australia has one of the highest hospitalisation rates in the world. All other states face a similar budgetary dilemma.
- Lifestyle diseases such as diabetes and heart disease comprise a large part of this budget. Most of these are preventable.
Overseas actions on food labelling
- In the United States, President Barack Obama put into his healthcare legislation a requirement forcing every restaurant chain to put calorie/kilojoule information next to each item on menus and menu boards. It is based on a policy that New York adopted in 2006, and California and Philadelphia in 2007. (In New York, it applies to outlets with 15 or more restaurants.)
- In 2009, more than 450 UK food outlets introduced calorie/kilojoule information on a pilot basis. Each company has agreed to display calorie/kilojoule information for most food and drink they serve, print calorie/kilojoule information on menu boards, paper menus or on the edge of shelves, and ensure the information is clear and easily visible.
Download a PDF of the NSW Government News Release here:
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