Food Industry Taskforce on Addressing
Factors Contributing to Obesity

FINAL REPORT TO MINISTERS
OF HEALTH AND FOOD SAFETY

20 December 2018

CONTENTS
Executive Summary
Introduction
Background
Reformulation and Innovation
Employee Health 8: Wellness Programmes
Community and Education Initiatives
Food and Beverage Marketing
Labelling and Roll-Out of HSR
Other Comments
Conclusion
List of Recommendations
References
Attachments

Attachment A: Food Industry Taskforce Addressing Factors that
Contribute to Obesity Terms of Reference

Attachment B: Links to food and beverage company nutrition policies
and Commitments to Reformulation

Attachment C: List of Health and Wellness Programmes in Food and
Beverage Industry Companies

Attachment D: Highlights from companies in Health and Wellness

Attachment E: Community and Education Initiatives Undertaken by
Food and Beverage Industry from Survey comments

Attachment F: Community and Education Programmes Specific
examples

Attachment G: Self Reporting Checkiist for companies against
Taskforce Recommendations

Appendices

Appendix A: Report Cards

Food Industry Taskforce Final Reportto Ministers 20 Dec 2018

Executive Summary

The food and beverage industry is committed to working with Government, non-government
organisations and the community to address factors that contribute to obesity. The industry
recognises the global obesity issues and shares concerns about obesity levels in New
Zealand.

A Food industry Taskforce Addressing Factors that Contribute to Obesity (the Taskiorce) was
set up, at the request of the Ministers for Health and of Food Safety, to identify what more
industry could do to assist. The Taskforce represented the processing and manufacturing
industry, the retaii industry and the fast food, hospitality, restaurants, baking and service
station sectors. Ministers asked for:
package of practical measures that will make a contribution to the broader range of
Government initiatives aimed at addressing consumer knowledge and consumer healthier
choices.? (Taskforce Terms of Reference, Attachment A).

To inform its work, the Taskforce conducted an industry survey in August and October 2018
seeking information and suggestions irorn companies and associations on practical measures
they had taken or could take in the future.

The 51 recommendations deliver a 'package of practical measures' by addressing five main
areas:

a Food and Beverage Formulation and Innovation
0 Employee Health and Weilness Programmes

Community and Education Initiatives

in Food and Beverage Marketing

a Labelling and the roliout of Health Star Ratings.

Three aspects are considered the highest priority activities for the industry: Reformulation,
Health Star Rating (HSR) system, and Education.

Reformuiatfon

By reformulating packaged foods, and developing new products that reflect reduced negative
nutrients and increased positive nutrients, the consumer does not need to change behaviour
to get heaithier foods simply make a choice. This is a powerful way of addressing the factors
that contribute to obesity. Recommendations to deliver this require ambitiously expanding
reformulation targets beyond the current targets into a range of categories that are being
developed in Australia (so that there is trans?Tasman alignment) (Recommendations 5, 6
and 8). The beverage industry is specifically developing a bold new sugar reformulation
pledge programme to be announced in February 2019 (Recommendation 7).

NNS is needed to form an evidence base to set targets and direct efforts for reformulation and
education. It is vital that New Zealand conduct another Chiidren's National Nutrition Survey
and an Adult Nationai Nutrition Survey. It is notjust industry pressing forthis, as there is equal
support from public health, non-government organisations (NGOs), academics and
researchers. Both the Children and Aduit Surveys are very dated. with the Chiidren?s Nationai
Nutrition Survey now 1? years old. Consumption patterns have likely changed a lot in the 21?
Century. Updated information about what New Zealanders consume is a vital platform for
building effective health policy (Recommendations 3 and 4).

Food industry Taskforce Finai Report to Ministers 20 Dec 2018

HSR

The HSR system has already resulted in extensive reformulation on an estimated quarter of
the eligible packaged foods availabte, on work by the manufacturing sector that has
targeted sugar, salt and saturated fat over the past decade. Recommendations for HSR
(Recommendations 4446) focus on expansion (increased uptake) and consumer education
but this must have regard to the 5-Year Review of the system currently underway and due to
be presented to Australian and New Zealand Ministers responsible for food by the end of 2019.

Education

Education on nutrition complemented by initiatives in schools by both the primary processing
and manufacturing sector takes the HSR information and complements it with the
development of cooking and shopping skills for children creating an intergenerational uptake
(Recommendations 26 to 29). Education is also necessary for understanding kilojoute
information on menu boards in fast food outlets, a key recommendation of the Taskforce
Report. and for recipes provided on industry websites (Recommendations 47 and 49).

Other related recommendations in the above areas and in areas of Employee Health and
Wellness and Marketing

Other recommendations in the Reformulation and Innovation area cover company nutrition
policies (Recommendations 1 and 2), serving and portion guidance (Recommendations 9
to 13) and uptake of the Be Treatwise? programme in New Zealand (Recommendation 14).

The food industry employs over ?50,000 working New Zealanders. This is a captive sector of
the population that already benefits from employer health and wellbeing initiatives
(Attachments 0 and D). The industry is very active and innovative in this area and the
recommendations in the Taskforce Report focus on sharing, expanding and developing
programmes Recommendations 15 to 19).

The food industry has a very strong presence in the community, not only as an employer but
in giving back and supporting the community. Every day, community groups seek assistance
or sponsorship from food companies. The food industry reaponds not only to these but also
with ideas and programmes that deliver health and wellbeing to all sectors in the population
but most particularly to school children and young people. For example, the Weetbix Tryathlon
is the largest programme of its type in the world, the Fonterra and Sanitarium breakfast in
schools (KickStart) and Fonterra Mitk for Schools programmes reach many thousands of
schoolchildren every day. There are many other national and local programmes described in
this Report (Attachment and F).

Recommendations in the area of community and education, aside from the school-related
educational recommendations noted above, focus on sharing, expanding and developing
programmes (Recommendations 20 to 22, 3D and 31). The Report also identifies the value
of a food industry liaison point in each of the Ministries of Health and Education in enhancing
collaboration and joint work (Recommendation 23) especially in the development of
resources for schools (Recommendation 24).

Also in relation to schools, the industry is seeking the assistance of the Government to work
with schools to encourage them to adopt a water-only (and milk) policy in Primary and
Intermediate schools (Recommendation 25). It is important that schools are healthy
environments for children, which is why it is important to fulfil the aspiration of the Voluntary
Schools agreement (announced in 2006) that schools should not sell sugar-sweetened
beverages. The ambition of this agreement between beverage companies and Government
has been circumvented by some schools. and it is recommended that the Ministry of Education
take further steps to ensure schools embrace water-only (and milk) policies. This would align
with the food industry supported former National Administration Guideline 5 regarding
healthier food and nutrition in schools.

Food Industry Tasktorce Final Report to Ministers 20 Dec 2cm

In marketing. the industry has recommended bold steps that particularly focus on children and
young people, including expanding the period of television viewing during which
advertisements for food high in saturated fat, salt and added sugar and aimed at children are
not to be shown (Recommendation 33), and restricting fixed-site outdoor advertising (digital,
billboard, sandwich board etc) of high saturated fat, salt and added sugar products within 300
metres of the main gate of Primary and Intermediate schools by 30 Jun 2019
(Recommendation 32). Setting a defined distance from Primary and intermediate schools for
store branding of high saturated fat, salt and added sugar products is set to be discussed with
convenience stores for decision by Dec 2019 (Recommendation 35).

Other marketing-related recommendations cover publication of company marketing policies
and development of a schools sponsorship policy (Recommendations 40 to 42 and
Attachment B), best practice in advertising (Recommendation 34, 3? and 39) and reporting
(Recommendation 36), and review of the Food and Beverage Classification System that
underpins the Advertising Standards Authority?s Children and Young People?sAdvertising
Code (Recommendation 38).

The report recommends healthy eating options appear on menus and be provided by frontline
fast-food staff as part of their training on interacting with customers (Recommendation 48).
The Report also recommends that supermarkets with muitiple checkout lanes provide a
confectionery-free checkout lane (Recommendation 43).

Some companies have already reported to the Government for the 201? year in a number of
the areas covered by the Taskforce's work through the Government?s Heaithy Kids Industry
Pledge scheme, and these companies and others have prepared ?Report Cards' for this Report
that are similar but address the areas covered by the Report (Appendix A). In the future, and
in addition to reporting in speci?c areas, the Taskforce is developing a checklist of the
recommendations to be undertaken by companies to assist them in seif?checking and
reporting annually to the Government (Recommendation 51 and Attachment G).

Food Industry Tasktorce Final Report to Ministers 2D Dec 2018

Introduction

The Minister of Health (the Hon David Clark) and the Minister for Food Safety {Hon
Damien O'Connor) met in March and May 2018 with a wide range of food and beverage
companies and associations to discuss industry?s role in encouraging consumers to make
healthier food choices and in reducing obesity. Ministers proposed the establishment of
an industry group that would develop ideas to address obesity from a food and beverage
industry perspective- Industry and the Government ?nalised Terms of Reference in
Manyune (Attachment A) and the Food Industry Taskforce Addressing Factors that
Contribute to Obesity commenced work in July 2018. The New Zealand Food 8 Grocery
Council volunteered to provide the secretariat on behalf of industry and to undertake the
coordination role of the five working groups established.

The objectives of the Taskforce were to identify food and beverage industry successes
(andfailures) from the past and present in relation to factors contributing to obesity and
their applicability together with others that might be identified for the future; identify what
was planned for the future in terms of food and beverage reformulation.i formulation,
innovation and other activities; recommend a package of practical initiatives that couid
contribute to addressing obesity (noting that the food industry is only one element within
a broader network of actions and initiatives that are required} and identify with the
Government the potential metrics to assess results overtime.

This report sets out work in five key areas: Food and Beverage Formulation and
Innovation; Employee Health and Wellness Programmes; Community and Education
Initiatives; Food and Beverage Marketing; Labeliing and the roliout of Health Star Rating
System. It has been informed by an industry survey across the five areas. The results
have then been brought together into a package of practical measures that can be
pursued to make a contribution to the broader range of Government initiatives addressing
factors contributing to obesity.

Background

4-

The Food Industry Taskforce comprised members from primary production and
processing, manufacturing (food and beverage), quick service (including outlets in fuel
stations), food service, hospitality, retail and representatives from severe! industry
associations.

The food and beverage industry recognises the global obesity issues and shares
concerns about obesity levels in New Zealand. It notes that New Zealand remains high in
OECD comparisons on the obesity scale. The latest data on obesity in New Zealand
(Ministry of Health, 15 November 2018) describes the following:
about 101,000 children aged 2?14 years were obese
- the child obesity rate has not changed significantly since 2018r1 7 {when it was 
0 Children living in the most socioeconomically deprived neighbourhoods were 2.1
times as likely to be obese as children living in the iess deprived neighbourhoods after
adjusting for age, sex and ethnic differences
about 1.26 million adults were obese, up from 28.8% in 2011f012.
of the adult population, Maori represented 18.8% but 47% were obese, while Pacific
Islanders represented 12.8% but 85% were obese.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

This is set out in the following graphs.
Graph ?1

Obesitv Trend in New Zealand 2011/12 - 2017/18

35

25

20
15

It]

2011/12 Hill/13 2013/14 2014/15 2015/16 2016/1? 

?Chi dren 

Graph 2

2017/18 Percentage Obese by Population Group

120
100
All Maori Pac Is Asian Euro



l% Popn I obese

6. The factors contributing to obesity are complex and broad-ranging. This Report does not
present arguments for or against particular factors but rather recognises that no single
action or 'fix? has delivered a causal reduction in obesity. The Taskforce has adopted a
food and beverage industry, multi-pronged approach that has been taken in many
countries including New Zealand over the past decade. Such an approach has been
favoured to date as the best means of responding to the multi-factorial nature of obesity
and its apparent impact by education, literacy, promotion and awareness, activity and
sport, cultural in?uences, economic, demographic, social and environmental issues and
individuals? food choices. The interactions amongst these factors are expected to
influence how effective the cumulative impact might be.

Food Taskforce Final Report to Ministers 2U Dec 2018

T. The Taskforce was cognisant of the extensive range of laws, regulations, standards,
guidance documents and codes of practice relating to food and health and the work of the
Taskforce has had cognisance of these, particularly the Australia New Zealand Food
Standards Code shared with Australia and trans-Tasman developments in these and
related areas.

8. A strategic approach to obesity for New Zealand is intended to encompass the broader
food and non-food industries across the supply chain (processing through to retailisale to
the consumer) and have regard to what action had been successful in the past in New
Zealand and overseas.

9. Actions of the past 10-15 years, have included:

industry reformulations (these commenced with reductions in saturated fat levels
during the 19603 with the advent of margarine} leveraging science, research and
consumer preferences to deliver extensive change through to the salt-reduced, stanol
enhanced spreads of 2018

5+ a day programme to encourage five or more servings of colourful fresh fruit and
vegetables every day. The logo appears on a range of packaged foods. The
programme is now a Charitable Trust.

the New Zealand Fruit and Vegetable Association Alliance promotion
programme that encourages the consumption of fruit and vegetables spanning fresh,
frozen and processing sectors.

the Heart Foundation salt reduction programme began 11 years ago with the setting
of food reduction targets for sodium in bread. This was hugety successful and targets
and products in 14 other categories have continued over time. Sodium levels in bread
are now 25% lower and children?s cereals 33% lower. The programme was expanded
to include sugar reduction targets in specific products in 2016. The result has been a
substantial reduction of salt in targeted products. and sugar reduction is now being
prioritised by a number of food companies.

Healthy Eating Healthy Action was a Government programme in 20032009 and
aimed at changing lifestyles to address non-communicable diseases in lower
socioeconomic groups, children young people and their families and whanau,
environments, communication and workforce. It was widely embraced by health
professionals, communities, industry and a wide range of agencies and, at its height
boasted 1254 initiatives being undertaken {Mann et al 2010). It laid a strong
foundation for subsequent developments in changing behaviours rather than taking
a punitive approach.

The signing the world?s first Voluntary Schools Agreement in 2006 by Frucor and
Coca?Cola Amatil New Zealand with the Ministries of Education and Health to NOT
sell sugar-sweetened carbonated soft drinks or energy drinks directly to any primary,
intermediate or secondary school. This agreement was part of proactive efforts by
both companies to respond to the emerging issue of obesity in New Zealand. in 2017,
this agreement was extended to all New Zealand Beverage Council members and
was revised so that members agreed to sell only bottled water to primary and
intermediate schools (see comment under ?Barriers? in the section on Community and
Education Initiatives section).

Children?s Obesity Plan was launched in October 2015 and has three focus areas
made up of 22 initiatives, which were either new or an expansion of existing initiatives.
The initiatives were collected under three broad areas: targeted interventions for
those who were obese; increased support for those at risk of becoming obese; and
broad population approaches to make heatthier choices easier for all New
Zealanders. The focus remains on food, the environment and being active at each

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

10.

11.

life stage. The package brought together initiatives across government agencies, the
private sector, communities, schools, families and whanau. Several of the initiatives
either directly or indirectly involved industry: Health Star Rating promotion, Marketing
and Advertising to children and a partnership with industry on a Healthy Kids Industry
Pledge. All three areas are potentially transformative, (not ?flashes in the pan?) that
are challenging to implement but high impact once underway.

Food and beverage labelling has been a feature of the New Zealand supply for many
years but took a major boost with the fuli implementation of the Austratia New Zealand
Food Standards Code in 2003 covering mandatory nutrition information panels,
ingredients listing and a claims framework (in 2014).

. The development and implementation of the voluntary Health Star Rating system (in
2015) was also a significant collaboration between governments, academics and
industry.

A key difference between consumers? experiences in the past 15 years is greater choice
of a much wider range of low sugar, fat and sodium products. Global trade, science and
nutrition advances, public health recommendations and sophisticated consumers now
mean consumers can choose foods to suit their iifestyies and health and nutrition-related
goals.

This increase in choice can be seen in the non-alcoholic ready?to?drink beverage sector,
where there has been a significant increase in the number of low- and no-sugar products
launched in New Zealand over the past decade. Over the past two years, 87% of growth
has come from low? and no-sugar beverages, representing 41.9% of sales.

12. To inform its work, the Taskforce conducted an industry survey in August and October

2018 seeking information and suggestions from companies and associations on practical
measures they had taken or could take in the future. The survey had 55 respondents and
a further T0 respondents from the Hospitality sector focussed primarily on empioyee health
and weliness.

Food industry Taskforce Final Report to Ministers 20 Dec 2018

1D

Reformulation and Innovation

13.

14.

15.

16.



18.

For ail food and beverage businesses, providing consumers with safe, quaiity food is a
priority. Reformulation has been, and continues to be, a significant feature of delivering in
this priority area, by altering a food or a beverage?s composition to improve the product's
health profile and through new product development drawing on improved nutrition
targets. Such work has been demonstrably shown to contribute an environment of
nutritional quality for consumers and deliver an intervention that does not necessarily rely
on changing consumer behaviours (Lehmann et 51120117). The food and beverage industry
has a key role to play in providing healthier and more nutritious products through product
reformulation and new product development.

Product reformulation has been underway in New Zealand for over a decade, due in part
to manufacturer?s and fast food companies? own commitments and targets, to the Heart
Foundation ?Tick' programme, and to work commissioned from the Heart Foundation by
the Ministry of Health on reduction of salt and, latterly, sugar. The Healthy Eating Healthy
Action programme up to 2009 provided a real focus for the food and beverage industry
on reformulation that was leveraged by the Heart Foundation. The Heart Foundation?s
work is based on the premise that ?most of the sait and sugar we eat in New Zealand
comes from processed foods? (Heart Foundation 2018}. The objective of the Heart
Foundation food reformulation programme is to have at least 80% of the market share (by
sales volume) within a category meeting the targets. This ensures highuvolume foods in
each category are prioritised.

For industry, sodium and sugar are added to processed foods for flavour, texture,
preservation and other processing reasons. Many companies have embarked on product
reformulation over many years to reduce these and saturated fat to the greatest extent
possible without significantly impacting taste or consumer acceptance. Reducing sugars
is particularly technically challenging in many products outside the beverage category and
there are practical limitations that may limitprogress. As well, an improved food choice
and a range of products with lower added sugars may not always equate to foods with a
better overail nutrient profile or greater heaith benefits. Energy density of products may
increase if added sugars are replaced with fat, or remain the same if replaced with starch.

Individual company and the Heart Foundation work has been supplemented and
enhanced over the past 2-3 years due to the impact of the voluntary Health Star Rating
(HSR) system. HSR has resulted in an accelerated programme of reformulation and new
product development to a nutritional profile that is lower in sugar, saturated fat, sodium
and overall energy and higher in protein and fibre.

The Food industry Taskforce targeted reformulation and new product development in
order to identify the extent of current practices and to recommend how best to advance
these initiatives and how to better facilitate commitment and support. This work
considered both negative nutrients and beneficial nutrients.

Supermarkets are very much part of this activity, since both the major supermarket chains
in New Zealand (Foodstuffs and Countdown) have extensive home brand product ranges
and have been refonnulating concurrently with other food manufacturers, particularly to
reduce sugar.

Nutrition poiicies and focus on risk nutrients

19.

Having clearly-stated nutrition policies and applying those in the development of new
products is beneficial. Companies with written nutrition policies have been shown to score

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

20.

21.

22.

23.

24.

11

three times higher than counterparts with verbal nutrition policies in balanced scorecard
exercises (Doonan et al 201?). This is, in part, attributed to the reputational risk of failing
to deliver publicly declared nutrition commitments. If a company makes public
reformulation commitments, it is more likely to deliver on those commitments than
companies that have not made public commitments. Providing a public-facing statement
of a companies? nutrition policy is a way of showing company intent, providing incentive
to deliver on targets! accountability and an informal accountability mechanism. Nutrition
policies generally comprise the desired nutrition attributes of the product range and goals
and actions that the food or beverage company commits to. In some cases these policies
have been reflected in the pledges made by companies to the Healthy Kids Industry
Pledge programme. The key is that they are written and public.

For example, in 2017 Heinz Wattie's (Kraft Heinz) made a global commitment to achieve
70% compliance by 2023 to meeting its nutrition guidelines. These are self-imposed
stretch targets. In the same vein, Kellogg?s launched its Global Breakfast Food Beliefs in
2015 and Global Snacks Food Beliefs in 2016. These Food Beliefs are intended to
innovate healthier products. The year 2020 was set as the target for these changes, and
Kellogg?s has already met its sugar and sodium reduction goals for cereals and sodium
reduction goals for snacks. The company is continuing to incorporate positive nutrients
and ingredients across its foods and to review its foods for continued improvement. .

As a further example, Fonterra has public targets for its New Zealand and global nutrition
portfolio relating to dairy nutrition and refined carbohydrates. These targets were first
published in its 2017 Sustainability Report. It has assessed all New Zealand dairy nutrition
products against these targets, with a view to informing its future reformulation
programme.

 

Foodstuffs is committed to steadily improving the nutritional profile of its private label
range so that customers can eat more healthily. To this end, it has reformulated hundreds
of its private label products. As a good example of a front?facing nutrition policy, this is on
its website at 

In 2018 Countdown launched its health and nutrition targets. These were further updated
in 2017 as part of the Corporate Responsibility Strategy out to 2020; commitment 20 of
this strategy is that we will support and inform our customers to help them make healthier
choices. These targets also align with retail industry "Reducing Child Obesity? pledges.
The targets are on the website:



targets

The New Zealand Beverage Council is working with its members to develop a
sugar-reduction pledge. While still under development, this pledge is likely to be similar to
a commitment made by the Australian Beverage Council, which has seen signatories in
Australia commit to an industry-wide reduction in sugar of 20% by 2025. In developing the
Pledge, the New Zealand Beverage Council is committed to ensuring that it will result in a
further meaningful reduction in sugar consumption from non-alcoholic beverages. The
complexity ofthis Pledge should not be underestimated and is a significant undertaking by
the non-aicoholic beverages sector. In signing the pledge, signatories in New Zealand will
be required to make difficult decisions and change many aspects of their business
operations. The sector, however, is committed to delivering a Pledge that will help address
obesity in New Zealand. Modelling work is currently underway, and the New Zealand
Beverage Council expects to be in a position to brief the Government in the new year,
ahead of a joint public launch.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

12

25. In the survey conducted by the Taskforce, over a third of the companies responding
had a nutrition policy but a quarter of respondents had it ?public facing?. Links to a range
of nutrition policies currently available are at Attachment B. In some cases these are
global policies, in other cases they form part of an overall strategy around healthfulness.
Examples are:

Heinz Wattie's {Kraft Heinz} has a fully developed Globai Nutrition Policy

Kellogg's Global Nutrition Policy and Kellogg Food Beliefs for Breakfast Cereals and
Snacks

Unilever?s Global Nutrition Policy includes strong commitments to improving health and
weilbeing

Vegetables NZ has a publicly facing strategy document on ensuring the health of all
New Zealanders by encouraging greater consumption of fresh NZ grown vegetables.

26. These are ali examples which could be held out as best practice to encourage other food
companies and organisations to lift their participation.

Risk nutrients are generally recognised as sodium, sugar and saturated fat and are
considered nutrients of public health concern. As noted above, a focus on these nutrients
and on overall energy delivered by products are key components of nutrition policies and
commitments. Some best practice examples:

Nestle uses its Nestle Nutritional Pro?ling system to benchmark products against set
criteria. The system assesses a product's nutritional contribution, considering its role
in a balanced diet, its ingredients (including saturated fat, sugar, sodium, fibre and
wholegrain) and the serving size usually consumed either by adults or children. The
company?s commitments are also public on increasing whole grains and vegetables.
Mondelez International has established energy, saturated fat, trans fat, total sugars,
sodium and portion control criteria for new product development and reformulation
initiatives. Where possible fibre and whoiegrains are aiso a focus for the company's
biscuit portfolio.

Kellogg?s uses its Global Food Beliefs for Breakfasts and Snacks to guide changes to
its food portfolio- --
Countdown has been involved in the Heart Foundation's wider reformulation work for
over 10 years, and the programme since launching in 2010. Internal
targets for Own Brand products are set for sodium, sugar, energy and HSR, along with
removing artificial colours, flavours and preservatives {where food safety altows), and
removing MSG and trans fats.

The beverage sector has been introducing new and low sugar beverages and
reform ulating to reduce sugar for many years. Overthe past year alone, Frucor Suntory
has launched NZ Naturai Sparkling flavoured waters with no sugar and no artificial
ingredients, Pepsi Max Vanilla with no sugar and Amplify Kombucha, which has less
than 1g of sugar per 100ml. Frucor Suntory has also reformulated existing products
including OVI reducing sugar by 50 percent so it is now 2.2g of sugar per 100ml and
their 0h! soda range, which has between 1g and 2g of sugar per 100ml. Major
innovations from Coca-Cola New Zealand include Coca-Cola No Sugar, world-first
Coca-Cola Stevia No Sugar, Keri 50% Less Sugar Fruit Drink, Fanta Zero, Powerade
Zero, plus reduced sugar reformulations of Fanta Raspberry, Fanta Grape, Sparkling
Duet Raspberry and Powerade 10N4. New Zealanders have positively responded. For
example, almost 50 percent of Coca-Cola trademark sales being no sugar variants.
Further. the New Zealand Beverage Council has worked with members to develop a
sugar reduction pledge, to be launched in early 2019. With details still being finalised,
the industry has agreed in principle to an industry-wide reduction in sugar of 20% by
2025.

Food industry Taskforce Final Report to Ministers 20 Dec 2018

13

28. Some companies are subject to or choose global nutrition guidelines. Some choose those
developed or endorsed by other agencies, such as the NZ Nutrition Foundation, that set
criteria for nutrients including protein, calcium, and other nutrients as relevant to formats
e.g. fibre, magnesium and vitamin (3. Others set their own targets:

Fonterra has recently developed global nutrition guidelines, endorsed by the New
Zealand Nutrition Foundation. These provide guidance to help move more of the
product portfolio towards using minimum quantities of added sugars, refined
carbohydrates, added fats and added salt.
Unilever has been working on the nutritional profile of its food and refreshment
products sold in New Zealand since the late 1990s. Brands such as Streets Paddle
Pop, Continental and Lipton Iced Tea have been made healthier by reducing nutrients
of concern like sugar, salt and saturated fat for over a decade. By 2020, Unilever will
double the proportion of its portfolio that meets its global nutrition standards which are
based on globally recognised dietary guidelines. This involves published time-bound
targets for reducing sugar, salt, saturated fat, trans-fat, calories and providing clear
nutrition labelling on product labels.
Vegetables NZ provides recipes within parameters of choosing food and drinks with
unsaturated fats, low in sodium, little or no added sugar and least processed.
Kellogg in Australia and New Zealand work to a set of criteria for new products
including sugar, sodium, saturated fats and partially hydrogenated oils.
Mondale: International has published global well-being targets, and issues progress
reports to ensure consumers and stakeholders can track progress against these
targets. Focusing on the greatest impact within the product portfolio. Mondelez?s three
pillars of action are:
- Expanding 10 existing wellbeing brands in its portfolio, with the goal of growing
them at twice the rate of its base portfolio.
Renovating and improving the nutrition and ingredient profile of its biggest-selling
brands.
Continuing to encourage consumers to snack mindfully and planning to deliver
15% of revenue from portion control snacks.
Lion created a new division called the Drinks Collective, focused on growing its range
of crafted alcohol free, lower sugar beverages and catering to the future of the New
Zealand drinks market.
McDonald's ?Commitment to Families? addresses nutrients of concern (salt, saturated
fat, trans fat, added sugars) speci?c to Happy Meals and its forward looking goals focus
on fruit, vegetables and grains.
Frucor has committed that one in every three drinks sold will be low or no sugar by
2030 and that they will also double the size of their low and no sugar portfoiio at the
same time. Frucor also developed juice dilution guidelines for parents a decade ago
for parents who want to give juice to their children as an occasional treat.
Coca-Cola NZ introduced Nutrition Guidelines in 2016. They include guidelines of less
than 8g of sugar per 100ml (excluding 100% fruit juice) for new beverages.
In 2017, Coca-Cola committed to a 10% reduction by 2020 sugar reduction target
across its entire portfolio. Today all of its top sellers offer a low or no kilojoule
alternative and almost 40% of Coke NZ total sales are low or no sugar.
Pepsico has been transitioning to healthier oils across its chips range since 2015. It
has atso been an active participant in NZ Heart Foundation?s reformulation programme
since 2014 sodium reduction.
Whittaker?s has focused on high cocoa content products eg 82% cocoa content which
has a lower sugar content than standard 33% creamy milk chocolate. For these
products, 19.4g of sugar per 100g compares favourably to standard chocolate which
contains 44.79 sugar per 1009.
Nestle has publicly stated commitments on reduction of sodium, sugars, saturated and
trans fats, as well as increasing micronutrient fortification where appropriate.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

29.

14

. Heinz Wattie?s has had a sodium reduction programme in place since 2005, and
various company guidelines for levels of sugar, saturated fat, protein, fibre and the
percentage of fruit and vegetable in its products, where relevant to a product category.
Internal targets for sodium and sugar are based on the Heart Foundation industry
guidelines as applicable.

Driving increased development and publication of food and beverage nutrition policies and
commitments should be a key outcome of the Food Industry Taskforce.

Nutrition Advice

30.

31.

The role of dietitians and nutritionists and the nutrition advice they provide for the food and
beverage industry has been shown to impact on formulationireformulation, new product
development, identifying evidence to support claims, regulatory advice around allergens,
labelling, composition and compliance and nutrition strategies and policies. Many larger
companies employ dietitians or nutritionists fortheir guidance and expertise in developing
healthier products.

Dietitians and nutritionists influenceiadvise their marketing teams on advertising from a
nutritionihealth point of view in addition to regulatory provisions. Increasingly, such advice
is not a ?nice to have? option but rather a ?must have? element of a successful and
appropriate food manufacturing operation. in this context, the Taskforce survey identified
that almost half the responding companies employ or gain expertise from registered
dietitians or nutritionists. More access to expert nutrition advice could be a helpful in
improving the food supply. Sanitarium is one company that offers and promotes free
nutrition advice to New Zealand consumers-

Action on risk nutrients

32.

33.

34.

Policies and commitments have to translate into action. In New Zealand this has been
demonstrated by individual company targets and through participation in the Heart
Foundation?s work with food companies to set voluntary targets to reduce the amount of
sodium, and more recently sugar, in key food categories including breads, breakfast
cereals, processed meats, savoury pies, soups, cheese, snacks, sauces, spreads,
crackers, canned baked beans and spaghetti and dairy foods. To date the programme has
resulted in a significant annual removal of salt from the above key categories (Heart
Foundation 2018}. This does not include reductions in other categories undertaken by
companies. However, by focusing on products and manufacturers where the greatest
impact can be achieved (products having at least 80% of the market share by sales volume
to meet the targets) prioritisation can target high-volume foods in each category. The level
of salt removal in New Zealand places us at the forefront in comparison with the efforts of
other countries (World Cancer Research Fund, 2018}.

Actions on risk nutrients must be acceptable to the consumer and, for this reason, small,
incremental changes overtime have often proved more successful than ?big bang? actions.
To assess the importance of consumer acceptability, the survey canvassed products that
had not succeeded. 31% of companies said they had examples where sodium. saturated
fat or sugar was reduced but the products were unsuccessful in the market.

Reformulation often presents serious technical challenges, eg Fonterra tried in the past to
formulate a salt-reduced block of cheese, and a salt-reduced spread. This was technically
very demanding without the use of other preservatives. Salt has a key food safety, taste,
and preservative effect, and despite best intentions these projects were eventually
abandoned. It may be dif?cult in some cases to assess whether unsuccessful products
can be attributed to reformulation or other reasons.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

35.

36.



15

It should also be noted that sugar and salt reductions are very costly activities to undertake.
Some products developed with the aspiration of providing healthier options for consumers
can be roundly rejected for many reasons. For example shelf life may decrease, and food
safety compromised unless additional preservatives are used. Sugar reduced foods may
have altered taste resulting in reduced consumer acceptance. This may also affect nutrient
rich foods such as breakfast cereals and yoghurts. Sugar reformulation is tikely to increase
the use of non-nutritive sweeteners in the marketplace and reduced added sugars
products may be more expensive for consumers, due to product development costs.
Unsuccessful products subject to risk nutrient reductions are set out in the following:

Consumer barriers

I 25% less fat mozzarella cheese in pizzas was not popular with consumers

- Frucor?s range of flavoured waters, although sugar reduced, did not attract consumers
until the sugar was eliminated. However, by 2030, a third of the entire Frucor range
will be low- or no-sugar.

- A product with 30% less sugar compared to the standard product did not sell

- In 2016 and 201?, Nestle had examples of where sodium and sugar reduction in soups

and baked beans were tested at levels beyond which were acceptable for consumers.
Consumers felt taste was compromised for health. The result of this meant smaller
reduction steps being taken. The unsuccessful products included a beverage {less
sugar), a milk beverage (less sugar and fat, added iron and iodine), lollies (less sugar),
and quick oats (no added sugar).

Reduction of sugar in carbonated beverages initially sawa reduction in sales, but sales
recovered over time.

introduced reduced fat cheese into the NZ market which was rejected by customers
Cereals with reduced sugar have in the past been rejected by consumers

Oven grilled chicken instead of fried

Several companies in the United Kingdom that reformulated to significantly reduce sugar
content ahead of the introduction of the UK Soft Drinks industry Levy faced significant
consumer backlash and major drops in sales as consumers reacted negatively to the
change in taste and formula. Affected brands included Ribena, Lucozade and Irn-Bru.

Technical barriers

Sugar in everyday yoghurts reduced by 25% in 2017 demonstrating that reduction
targets for added sugar need to be balanced against the overall flavour profile of the
products.

Some reduction projects for historical products for which reformulations did not progress

to commercialisation due to significant changes in eat and flavour delivery
. Cakes using stevia alone instead of sugar did not work

Reformulations are not conducted without research, product testing, consideration of food
safety impacts (such as the preservation qualities of salt in preserved meat and sugar in
jams) and consumer testing. Targets are increasingiy challenging in an environment where
considerable reformulation has already been undertaken. This is not only reflected in
external targets as might be set by the Heart Foundation but also company commitments.
The most successful reformulations in New Zealand to date have been ones that have
been done stowly and incrementally so that taste differences cannot be detected. This
approach has worked extremely well in the breakfast and bread categories over the past
10 years.

The Health Star Rating system has impacted on the nutritional profile of foods, such that
a sample of products (431 found a small but statistically significant change in mean energy
(-29le1DUg) and sodium mg! 100g) from Nutritrack {data on mandatory nutrition
information panels) between 2014 and 2016 (Ni Mhurchu at at 2017). it is significant that

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

15

New Zealand joined the HSR system after Australia and there was a lag between joining
and New Zealand companies implementing the system, as evidenced by the following
trend in uptake (provided by MPI, October 2018}:

t?ot?r

'url-H 2'5! 21

'4 

Figure 1 Total Industry Health Star Rating Quarterly Uptake Figures

38. Ni Murchu's results would be expected to be more significant if undertaken over the period
2016-2018.

39. When responding to questions relating to products reformulated, for many companies,
their entire range is or has been reviewed for nutrition parameters with the process being
ongoing. A selection of verbatim company?s statements from the survey about products
subject to reformulation review includes:

Our entire branded range

Our core product range

Total portfolio

We are getting on with reformulating more of our product range to reduce sugar without
affecting the taste

All iour company products have been reviewed. We have actively made changes

to remove all "artificial ingredients" and manage to NPSC score This included
removal of salt and assessment of protein and ?bre

A whole range of products in a company have been reformulated, but with a specific
recent focus on carbonated beverages and bread

For another company, a whole range of products have been reformulated to reduce
sugar, sodium and saturated fat over the past few years.

40. The breadth of products subject to reformulation by companies overlaps with the
categories of products that the Heart Foundation has set reformulation targets and were
described by those surveyed by the Taskforce as:

Bread, soups, small goods {eg pepperoni) and processed meat, oil spreads, cheese,
breakfast cereals including quick sachet oats, cooking sauces, muesli bars,
condiments, chips and potato crisps, savoury crackers, spaghetti, baked beans,
yoghurts, flavoured milks, infant formulas, supplementary foods, side dishes, frozen
meals, dips, dressings, food mix, noodles and noodle cups, desserts, calorie reduced
and portion controlled ice cream, cocoa in confectionery, reduced trans-fat chocolate,
confectionery generally, low GI sugar, reduced calorie sugar and sweeteners, portion
controlled sugar sticks and cubes and pizzas (Domino's introduced 75% fresh
vegetables including fresh spinach and kalamata olives to the menu, reduced fat by
20% and sodium by 25% in its classic and deep pan crusts and reduced fat by 48%
and sodium by 34% in its thin'n'crispy crust).

Beverages

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

41.

42.

1?

a As noted earlier in this section, the New Zealand Eieverage Council has agreed in
principle to an industry-wide reduction in sugar of 20% by 2025. With details still being
finatised, the industry intends to launch the pledge in early 2019.

- Unilever adds that prior to 2010 it had already reduced sugar leveis in its ready-to-drink
teas. This was followed by a 12% sugar reduction across all Unilever sweetened
tea-based beverages in 2016 since 2010. By 2020 Unilever will have removed an
additional 25% sugar in ready?to-drink teas.

Many countries have taken steps around reformulation targets (UK, USA, South Africa,
EC, Canada and Mexico). Over the past two years, Australia, under the umbrella of the
Healthy Food Partnership (a partnership comprising the Government, industry, public
health established to address obesity, encourage healthy eating and empower food
manufacturers to make positive changes) has worked to produce reformulation draft
targets that have included modeittng outcomes (Heaithy Food Partnership 2018). This
work has been predicated on consumption data from the national nutrition survey
conducted in 2011-2012 (ABS 2014). Using the nutrition data, the Healthy Food
Partnership has derived draft targets for sodium, sugar and saturate fat in categories found
to contribute the highest amount of these nutrients in the population.

The categories identified by the Australian Healthy Food Partnership are bread (Ieavened
and flat), breakfast cereat, cheese (cheddar and processed}, crumbed and battered
proteins (seafoodirneatipoultry), flavoured milk (mammalian and dairy alternatives),
gravies and sauces (including pesto, Asian style and other savoury sauces}, muesli bars,
pizza, processed meat (including ham, bacon and deii meat), ready meals, sausages,
savoury biscuits (ptain savoury, soda, plain corn, rice, other, flavoured crackersicakes},
pastries (wet), savoury snacks (potato, salt and vinegar, extruded, corn, vegte, grain and
other), beverages (soft drinks, energy drinks, flavoured water, mineral water, soda water,
iced tea), soups, cakes muffins and siices and sweetened yoghurt.

comparison Of the Australian Healthy draft targets and the New

44.

Zealand Heart Foundation targets shows that there are several categories which overlap

with some targets aligned, while in other areas there are slight differences. It is possible

that New Zealand couid consider adopting targets set by the Australian Healthy Food

Partnership that are not captured by the Heart Foundation. For example:

i In categories where Healthy Food Partnership and Heart Foundation have aligned
targets, increase industry uptake e80% of market by sales volume engagement

In categories where both Healthy Food Partnership and Heart Foundation have targets
but they are not aligned, manufacturers commit to either. When timeframes lapse with
the Heart Foundation targets, industry work with the Heart Foundation and the
Government with the aim of aligning targets to Healthy Food Partnership

in categories where only the Heart Foundation has targets, increase industry uptake
e80% market by sales volume engagement

. In categories where only the Healthy Food Partnership has targets, industry works with
the Head Foundation and the Government with the aim of setting targets that match
those ofthe Healthy Food Partnership.

The Heaithy Food Partnership targets are underpinned by Australian survey data based
on the consumption patterns of the Australian consumer, but the Food Industry Taskforce
supports proceeding with adopting the Australian-developed targets (rather than delaying
the process} and supporting and recommending that New Zealand update its nutrition
survey data as soon as possible.

Food Industry Taskforce Fina! Report to Ministers 20 Dec 2018

13

Beneficiaf nutrients

45.

46.



Another reformutation activity undertaken by the food and beverage industry has been to
increase beneficiai nutrients, thereby changing the nutrition profits of products so that they
deliver consumer benefit.

The Taskforce survey identi?ed beneficial nutrients as including: ?bre, wholegrains, serve
of fruit or vegetables, and calcium. Other beneficial nutrients identified by companies
surveyed included: increased protein, vitamin C, other vitamins as forti?cants, nuts and
seeds and magnesium.

Products impacted by the addition of beneficial nutrients included:

Cheese, white milk, yoghurt, growing up milk powder and flavoured milk with increased
protein and calcium

- Extensive range of juice and juice drink brands which contain good sources of
vitamin 

Cannedfpouched tuna

Breakfast cereal products with increased wholegrain content

Soups, cake lines, raw salad promotions

Cakes, breakfast and lunch and cabinet items on our cafe menus

Bread including for increased fibre

Crackers, bars

Frozen meals, frozen vegetables, infant and toddier meals and legume range

Breakfast cereai products with increased fibre and wholegrain content

Cereal bar, noodies.

Serve size and portion guidance

48.

49.

50.

51.

The Australian Healthy Food Partnership included a group specially focused on guidance
on portions. Through a review of the scientific literature, and government and policy
documents, the working group identified four key terms currently used often
interchangeably amongst both health care professionals, researchers and the food
industry namely serving size, serve size, portion size and portion control (Healthy Food
Partnership 2018}.

The terminology was defined as:

Serve: This term should be used when referring to standardised amount of food or drink
as identified in the Dietary Guidelines

Serving: This term should be used when describing the amount of food provided by a
manufacturer, company, restauranteur or cooki'host.

Portion: This term should be used when educating people about how much they should
select or choose at one occasion (meal or snack).

The Australian Healthy Food Partnership recommended a range of communication and
educational strategies to address portion guidance inciuding the development of an
industry best practice guide to ensure consistency. The recommendations and actions also
included a focus on better awareness. better choices, and the development of voluntary
goals for sizes of servings of key discretionary (high saturated fat, salt and added sugar)
foods and beverages building on existing resources and recognising that a range is likely
to be the most appropriate strategy (Healthy Food Partnership 2018).

The Australian Healthy Food Partnership concluded that serving size was an important
strategy for the Partnership, ?one size would not ?t all", monitoring and evaluation was

Food industry Taskforce Final Report to Ministers 20 Dec 2018

52.

53.

1B

important to demonstrate progress overtime, and the work should be embedded into the
broader Partnership implementation.

The Food Industry Taskforce agrees that serving size should be considered a key area of
focus going forward. Work has already been conducted In New Zealand in this area by the
Ministry of Health and the New Zealand Beverage Council. The Council has agreed on
standard serving sizes. Another area of portion guidance across Australia and New
Zealand is the Be Treatwise? programme, which covers portion guidance for treat foods
such as sweets and chocoiate. The New Zealand Food Grocery Council has recently
become responsible for the application of the Be Treatwise? programme in New Zealand
and is working with the Confectionery Group within the Australian Industry Group to align
and revitalise application in New Zeaiand.

The New Zealand beverage industry publicly committed to giving people more choice to
control sugar consumption by providing and promoting a range of small packs and more

- convenient pack sizes. The smaller packs are providing popular with Coke 250ml can

54.

55.

sales growing 40% over the past two years.

In terms of awareness programmes, messaging about heatthier sizes of portions may not
engage community so messages need to focus on issues that do engage such as value
for money, budget, waste, weight management and health. This should form the basis of
a government and industry communications strategy going forward.

Providing healthier choices would be an outcome from product reformulation to meet
targets set jointly by industry, the Government and the Heart Foundation, and drawing on
the Australian Healthy Food Partnership targets. Developing an industry best-practice
guide or adapting the Australian guide for New Zealand could assist companies,
particularly in the SME area, with implementing appropriate serving size for products,
appropriate portion education, and the way to communicate this to consumers. New
Zealand should review, adopt and implement, as appropriate, other successful strategies
applied by the Australian Healthy Food Partnership.

Recommendations on Reformuiation and innovation

56.



Reformulation and parameters around new product development creates an environment
of nutritional quality for consumers and delivers an intervention that does not necessarily
reiy on changing consumer behaviours. By targeting reformulation and new product
development. the Food Industry Taskforce has identified the extent of current practices
and some of the factors necessary for successfully deiivering processed food and
beverage with an improved nutritional profile. The Taskforce also wanted to identify how
best to advance reformulation initiatives beyond those currently in place and how to better
facilitate commitment and support across the industry.

Driving increased development and publication of food and beverage nutrition policies and
commitments should be a key outcome of the Food Industry Taskforce.

Recommendation 1: Nutrition policies and guidelines should be public facing for food and
beverage companies including food manufacturers, brand owners and fast food service
interests with more than 10 outlets by 1 June 2019.

Recommendation 2: Industry associations work together to deveiop a nutrition poiicy
template for SMEs, to use in the future, by June 2019 and informed by governmenUNGO
positions.

Food industry Taskforce Final Report to Ministers 20 Dec 2018

20

58. it is possible that New Zealand could consider adopting a similar set of voluntary risk
nutrient reduction targets as has been developed by Australia. While the underpinning
Australian survey data is based on the consumption patterns of the Australian consumer,
delaying the process for New Zealand until we have updated nutrition survey data is not
favoured. While there are known demographic differences, in the meantime it may be the
best proxy information New Zeaiand policy makers have access to a poor reflection on
New Zealand's available information, but the current reality. Even if the Government
agreed today to undertake the next children?s or adults? National Nutrition Survey. results
would not be available until 2022, some 20 years after the previous New Zealand
Children?s National Nutrition Survey. Even so. in every sphere of food and beverage
activity, including this current activity of addressing factors contributing to obesity, the
National Nutrition Surveys have vital roles to play:

a the basis of standards set by Food Standards Australia New Zealand for labeliing and
composition in New Zeaiand

. necessary for food supply contaminant and toxicity work for risk and impact
assessment ..

a used in the conduct of the Total Diet Survey (reach into community of potential
contaminants and information on key vitamins and minerals

- benchmark for consumption of foods contributing added sugar, saturated fat and
sodium to the diet.

Recommendation 3: The Governmentto proceed immediately to initiate a Children's Nationai
Nutrition survey to update the 2002 survey. While consideration might be given to phasing and
segmenting the survey to spread cost over time. immediacy of commencement is vita! for
reasons set out in the foregoing discussion.

Recommendation 4: The Government to schedule the conduct of an Adult National Nutrition
Survey as soon as possible to update the 2008 survey for all the reasons set out in the
foregoing discussion.

59. The Food industry Taskforce considers it important to recognise that reformulation of foods
and beverages has limits because of:
Ir technicai complexities

preservation and other functional purposes of some nutrients

consumer acceptability

behavioural lead times in changing the palate of a nation

short time frames set for reformulation of foods which limit ability to change food over

time and re-calibrate consumer palates to accept the changed food.



60. Working within these constraints, the Food industry Taskforce proposes work be
undertaken on a broad range of refon?nuiation targets.

Recommendation 5: The Government (lead), with the Heart Foundation and industry, agree,
where possible and appropriate, to adopting the same voluntary nutrient reformulation targets
identified by the Australian Healthy Food Partnership in categories that align with the New
Zealand Heart Foundation Targets. Work on this should commence in early 2019 and targets
agreed by mid-2019. Progress should be reported by December 2021. The measure would
reflect the percentage of target product by sales volume active in the reformulation to meet
the targets.

Recommendation 6: Where targets identified by the Australian Healthy Food Partnership are
in categories that do not align, consideration be given as to whether, and how best, these
might be adopted. This should be conducted in parallel with Recommendation 1, with the
Government {lead}, the Heart Foundation,

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

21

industry and other expert groups reviewing the full completed fist of Australian Healthy Food
Partnership targets during 2019 to identify additional targets that could commence in New
Zealand in 2020 and be reported on two years after commencement. The measure would
reflect the percentage of target product by sales volume active in the reformulation to meet
the targets.

Recommendation T: To further accelerate the reduction of sugar New Zealanders consume
from beverages the New Zealand Beverage Council finalises its ail-new sugar reduction
pledge (20% by 2025) and launches it in the first quarter of 2019.

Recommendation 8: Following the completion of each phase of the Children?s National
Nutrition Survey, the Government, the Heart Foundation and industry to review the categories
and associated targets to identify any adjustments appropriate for the New Zeaiand
population.

6.1. In the area of portion guidance and serving de?ned terms, the Healthy Food
Partnership recommended a range of communication and educational strategies for
consumers, voiuntary goals for key discretionary foods and drinks and an industry best
practice guide. This focused on better awareness, better choices. voluntary goals for
serving sizes and industry best practice. These are equally applicable in New Zeatand and
depending on timing of compietion of the Australian developments, the foilowing
recommendations are made.

Recommendation 9: The Government and industry to agree on the definitions of ?serve?.
?serving?, and ?portion', based on the Australian Healthy Food Partnership work in this area by
March 2013. The measure is agreement by the Government and industry.

62. The Food Industry Taskforce considers that serving size should be a key area of focus
going forward taking into account work underway or compieted in New Zealand and
Australia. in terms of awareness programmes, messaging about healthier sizes of portions
any awareness campaign may not engage or target at risk communities so
messages wouid need to focus on issues that do engage such as value for money, budget,
waste, weight management and health. This should form the basis of a
governmentrindustry communications strategy going forward.

Recommendation 10: The Government and industry establish principles to apply for
determining serving size by mid-2019 in fine with the Australian Heathy Food Partnership work
(had been expected December 2018}.Tne measure is agreement on principles by the
Government and industry.

Recommendation 11: Once principles for determining serving size are established, the
Government and industry develop and identify implementation strategies to adopt an
awareness campaign on portion guidance and serving size by December 2019. The measure
is an action programme of strategies, and level of awareness achieved over current
awareness.

Recommendation 12: The Government and industry develop and adopt voluntary principles
and serving~size ranges (inciuding for fast and snack foods) and establish a pledge
programme for uptake by December 2019, subject to review after a three-year period of
application. The measure is extent of pledges by industry.

Recommendation 13: Once principles for determining serving size are established, industry

develops a best-practice guide for serving size and portion guidance in line with the Australian
Heathy Food Partnership. This should provide guidance and support to food companies to

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

22

incorporate nutrition as a key driver in labelling decisions regarding the size of servings and
the size of food and drinks offered. This could be part of wider guidance from the Australian
Healthy Food Partnership. Areas for guidance, relating to serving size and portion size,
include:

Adopting consistent terminology

- Offnpack labelling information

. Voluntary goals relating to serving size

. Promoting appropriate portion sizes

- Serving control devices in product presentation

- Advice about serving size in consumer communication material.

Recommendation 14: The New Zealand Food 8? Grocery Council and the confectionery
industry identify strategies to further promote uptake of the Be Treatwise? programme in New
Zealand and raise awareness across consumers. The measure is an action programme of
strategies, and level of awareness achieved over current awareness.

Food lndustry Taskforce Final Report to Ministers 20 Dec 2018

23

Employee Health and Wellness Programmes

63. Organisations that commit to achieving the best for their employees and customers in

64.

65.

terms of nutrition, health and wellness will outperform others over the long term- In doing
so, they set themselves apart as not just good companies but enduring great companies.
The job is never done. While the journey has been underway for some for many decades,
it needs to ramp up and be continually revitalised to take New Zealand healthily into the
20205.

New Zealand company health and wellness programmes have the ability to reach a
significant proportion of the population. Across the food and beverage industry, this could
mean close to half a million people. This is why company programmes align well with a
number of existing national programmes such as Healthy Families New Zealand
the Health Promotion Agency?s
Workplace wellbeing website, and 5+ A Day


Focusing on employee health and wellness not only presents the opportunity to address
factors contributing to obesity and overall health and wellbeing but also increases
productivity and reduces the impost on the health system. All companies have a stake in
health and wellness and the vast majority start their health and wellness programmes ?at
home? by implementing employee health and wellness programmes.

Benefit for employees in Health and Wellness Programmes

66.



58.

69.

For employees, maintaining their health is often seen as a dif?cult challenge amidst
competing demands of the work day, family responsibility, and other social commitments.
However, combining the adoption of healthy behaviours within the work day helps with the
healthfulness of the employed population and can reduce the prospect of communicable
and non?communicable diseases and their associated costs. it also improves the everyday
quality of life (AJ Grande et ai 2015). Some elements of health and wellness programmes
may not seem to contribute but, for example, flexible work arrangements can
accommodate breaks for exercise 2010). Large employers can have a significant
impact on the workforce (Nestle 201?) but companies of any size as shown by 
surveys can also have a broad range of programmes 2015).

Programmes such as have been launched by Ministry of Health and Healthy Families
called Good4Work are aimed at small- to medium-size
businesses just getting started in workplace wellbeing and provide tools for such
businesses. Good4Work was developed by the Health Promotion Agency in collaboration
with a number of other national health agencies in New Zealand, and is intended to embed
positive practices into the workplace and provide the ?place to start'. It draws on the most
up-to-date workplace wellbeing knowledge and experience in New Zealand and
internationally.

Participation in health promotion activities through a workplace health programme allows
individuals to develop knowledge, self-management, and coping skills as well as build a
social support network among co?workers, supervisors, and family. Employees often see
a health and wellness programme as a reflection of how much the company cares about
its employees, which may impact job satisfaction and morale.

The New Zealand food and beverage industry has a long history of investment in
supporting health and wellness, recognising that it has a key role to play in promoting
healthy lifestyles and addressing factors that contribute to obesity. This is in addition to,
and goes beyond, the provision of healthy foods, and reformulation to improve nutrient

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

T0.

71.

7'2,

24

pro?les of foods, to direct investment in employee?s environment, education and activity
initiatives.

The Food Industry Taskforce makes the following key points:

- The food and beverage industry, broadly defined, reaches over 400,000 New
Zealanders and potentially their families.

It Companies are strongly supportive of their employees through a range of health 8%
wellness programmes many addressing directly the factors contributing to obesity.

- Size of company is no indicator of extent of programmes

. Programmes reflect the expected as welt as the inventive that supportive companies
working with employees can generate.

companies surveyed by the Tasktorce have health and wellbeing programmes. The
full list of programmes is at Attachment C. The top ?ve components of the programmes
were:

. Flexible work hours 80%

Influenza vaccinations 66%

Employee assistance 57%

Provision of free fruit and vegetables 55%

Wellness challenge 50%



As noted above, flexible work hours provides for accommodating employee health related
activities. The provision of free fruit and vegetables in over half the companies contributes
directly to the avoidance of unheaithy snacking and health and wellbeing checks can lead
to individual health management programmes for employees to follow.

innovation in Employee Health and Wellness Programmes

7'3.



Increasingly, online wellbeing hubs are being established by companies that provide
resources for employees that help with social connection, mental health and physical
vitality Some of the more innovative elements In health and wellness programmes in New
Zealand food and beverage companies are:

. Walking meetings

I Individual health support programmes

- Employee-led wellness initiatives eg meditation sessions

1- Leader Profiles

I Resilience workshops (Fiesta annual all-staff event)

- Introduction of a 'mental health day? for staff who just need to take a breather from work

- Literacy support

- Bike racks to encourage employees biking to work and Bike Club

- LionFleX award winning flexible work poiicy

KFlex flexible work place programme including mental health days and flexible work
arrangements

. Nutrition training for new employees

. Community days

. Healthy living expos for staff that include Cervical Screening bus, skin checks etc

. Better Wellbeing Hub a centralised interactive communication and engagement

platform to deliver info and generate personal dashboards.

The Taskforce survey showed that 66% of programmes had been evaluated in the past
12 months and 41% said there had been a culture or behavioural change as a result of
the programmes offered that had been evaluated.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

25

3?5. Other initiatives highlighted are listed at Attachment They include social media

developments, health and wellness app for employees, targeted nutrition education
sessions, regular health checks, healthy staff meals and watt-balanced dishes in the staff
restaurant, access to wellbeing support and healthy lifestyle advice, supporting activities
such as Round the Bays run and Healthy Active Kids days,
individual health support plans to support weight reduction, centralised interactive
communication and engagement platform that informs employees of all wellbeing
programmes and initiatives happening across the business.

Barriers to Health and Wellness Programmes
76. Evaluation of health and wellness programmes can assist in better identifying what is

working and what is not. These programmes can be outsourced to groups such as the
Sanitarium Vitality works group, which would design measurable programmes based on
research that could address some of the barriers the Taskforce survey identified:
- Cost and time for employees and the employer
. Attendance getting people engaged in the programmes provided and ensuring its
not the same people participating in all the activities, not all staff choose to avail
themselves of programmes offered
- Encouraging employees in their personal endeavours for physical activity.
. Logistics generally
- Employee Diversity
- community setting and culture, engagement of blue collar workers
Shift work Access to healthy food for shift workers, Shift work and
fatigue
Access to physics! exercise for sedentary workers
Multi-site challenges - Options are altered for relevancy at each site location across
NZ {employees working remotely may not have access to all offers available on
specific sites)

Plans for Health and Wellness programmes

"l7.

T8.

Companies surveyed by the Taskforce repotted a variety of plans, including:

. strategy and technical plans to address targeted needs ?three?year plan

team meets to review programme and ensure there is communication
around initiatives and so there is maximum participation.

- more regular speaker sessions and programmes eg. sleep and mindfulness

. providing free fresh fruit to staff on a regular basis and increasing healthy eating
programmes

. continuing with volunteering programmes

. participating in "Eat my Lunch"

discounted membership

Companies surveyed by the Taskforce also made several comments about the issues

involved in addressing factors contributing to obesity in the workplace:

- Obesity in the workplace can affect morale, daily work, sick leave, productivity and
have impacts far reaching into individuals' personal lives. Education programmes
in the work place, having fresh fruit, water available to all staff every day is a
commitment from one company to its staff. Its mission - One Planet, One Health 
is to bring health through food to as many people as possible.

It A greater focus on frontline employees is needed to recognise the barriers associated
with this such as shift work.

. People sitting for long times at their desks is a particular problem area but some
companies have standing desks available and actively promote them to decrease the
amount of time people are sedentary though the day.

Food Industry Taskforce Final Report to Ministers 20 Dec 2013

26

Recommendations for Employee Health and Weflness Programmes

7?9. The food and beverage industry has a long history of investment in supporting health and
weliness and all companies have a stake in health and wellness. There are direct benefits
to the employee (eg membership) and indirect benefits (improved fitness from walking
meetings} as well as benefits to the employer (eg reduced absenteeism, increased
commitment and loyalty and increased productivity). Elements that address factors that
contribute to obesity go beyond the provision of healthy foods.

80: Focusing on employee health and wellness presents the opportunity to reach a broad
group in the population and address factors that contribute to obesity: Acknowledgement
from the Government might recognise the value that companies can add to the health and
wellbeing of the workforce in the food and beverage sector and increase support and
collaboration in this area. The Food Industry Taskforce makes the following
recommendations:

Recommendation 15: Industry to increase sharing and promoting health and wellness
programme best practice by increasing the presence on their websites of steps they are taking
and initiatives underway. Benchmark to be assessed from current websites of top 20 major
manufacturers by category volume and reassessed in December 2020.

 

Recommendation 16: Industry and the Government to further promote company and
government tools on health and wellness for smaller companies to draw on. The Government
to assist this process by ?pushing? ideas and successful programmes outto food and beverage
companies they contact. This could be measured by reach and frequency of communication.
The measure to be a continuation and ampli?cation of the Government's programme
supplemented by an assessment of industry communication.

Recommendation 17: Industry and the Government to recognise and promote innovative
programmes that address to factors contributing to obesity through direct and indirect
communication channeis. The measure to be reach and frequency of communication over two
years to December 2020.

Recommendation 18: Industry associations to identify initiatives to increase uptakei
penetration of offered health and wellness programmes within companies: The benchmark to
be nominated by industry associations and reassessed by survey in 2020:

Recommendation 19: Industry associations to develop a ?Small but Beautiful? minimalist
health and wellness programme for companies with 0-10 employees operating in the food and
beverage industry in coliaboration with the Health Promotion Agency andfor Ministries of
Health and Primary industries by December 2019. This programme to be rolled out to other
industries if successful:

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

2?

Community and Education Initiatives

81.The food and beverage sector undertakes an impressive range of work directly in
communities and schools to further education and activity around healthy eating and
support exercise activities. This engagement is both directly through delivery programmes
and indirectly through partnership with other agencies. Greater focus on communities in
low socioeconomic areas would increase the positive impact since health and obesity
metrics identify these areas as the most prevalent for obesity. Some 80% of companies
involved in the survey conducted by the Taskforce are involved in community and
education initiatives. The initiatives range from providing website information to partnering
with non-government agencies to undertake or assist with this work.

82. Involvement in the community fabric and school environment is a mix of branded and
unbranded support intended to contribute to the overall health and wellbeing of
communities. The intention is to deliver a positive impact and leverage industry skills.
knowledge and resources to help people live healthier. They reach an estimated 900,000
New Zealanders annually.

83. Companies that are involved in the community are demonstrating commitment for which
there are benefits in both directions, a shared value (Porter 2011) for the community in
initiating or implementing their plans or expanding their efforts and for companies, in
workforce satisfaction. team building, morale and exposure to potential customers
{Treuren et al 2011}. Kindig (2013} states that no single sector is responsible for health
improvement, and company involvement can increase the scope. impact and outcomes of
community efforts. There is strong evidence that employees of companies conducting
community activities are prouder of and more committed to their employers (Bath),
affecting team member morale, spirit, pride, increased employee engagement and
satisfaction for the company. Collective action by sectors delivers a multiplier effect.

84. Nonetheless, it is important for the community to be at?the forefront and companies
supporting. This has been the approach of the Government?s Healthy Families NZ
programme. While industry has been very keen to partner and support these efforts, it has
been by invitation and few invitations have been made {only two are known in one of the
10 high-focus regions).

85. The social responsibilities of companies are sometimes set out in public statements and
undertaken by staff for the positive conscience it delivers. For example, New Zealand
Beverage Council members have committed to only-sell bottled water directly to primary
and intermediate schools, and to not sell sugar-sweetened carbonated soft drinks nor
energy drinks in secondary schools. Council members have further agreed to not
undertake any commercial advertising in any primary, intermediate or secondary school in
New Zealand.

industry, children, young persons and the education sector

88. While many programmes are across the population, a quarter are developed for schools
and school children, and over 40% are designed to reach particular ethnic or
socioeconomic population groups. Targeting children and young people is intended to
make an intergenerational impact to significantly reduce obesity in the population in the
long term.

87. The Ministry of Education recognises the importance of Healthy Lifestyles and Nutrition

for school children and has dedicated several pages on its website to this, including
guidelines for school food programmes, food and nutrition snapshots and case studies,

Food Industry Tasktorce Final Report to lvlinisters 20 Dec 2018

88food and nutrition for healthy, confident kids, and links to nutrition websites including five
commercial resource sources 

Countdown's Free Fruit for Kids initiative was launched 2 years ago in stores has given
away over 5 million pieces of fruit during this period. Countdown's research found that the
fruit gets children excited about fruit, and for some it's the only fruit they will have that day
or even that week.

Industry is actively involved in providing healthy eating and nutrition education and
resources in schools. Nestle's partnering with AUT Millennium, the NZ Nutrition
Foundation, and School Kit to provide the Healthy Active Kids Nutrition education
programme in schools is a good example. The programme is designed for teachers in
partnership with teachers at School Kit and aims to improve nutrition and health knowledge
and promote physical activity amongst school aged children.

Breakfast is often described as the most important meal of the day, providing sustenance
and energy for activities that lie ahead. Ensuring children start the day satiated is the key
objective of the Fonterra and Sanitarium KickStart Breakfast, complemented by the
Fonterra Milk for Schools.

Keeping children satiated during school is also important. Another example of Foodstuffs
?social impact? investment is its partnership with Eat My Lunch. This will allow Eat My Lunch
to expand its operations and achieve a target of 25,000 free lunches daily for children in
need.

Research shows that children who eat home-cooked meals more frequently are less likely
to be overweight (Serge et a! 2015). Teaching children to cook is therefore a skill that will
have lifelong benefits. Several industry programmes are conducted on this theme:

Vegetables NZ and The Heart Foundation have developed ?The Cooking Curriculum
Project? to work with teachers to develop resources for children to learn to cook a healthy
meal. This consultative project ?for teachers by teachers? will enable children to gain the
life skill of being able to prepare vegetables and cook healthy meals. As of August 2018,
a Year 8 Unit Plan with lessons and including cultural and activities and resources has
been developed. These are available for teachers to download and use. The Year 7'
material is currently being developed.

For over6 years, the Nestle Cook for Life, Ka Tunu Ka Ora, programme has been teaching
youth (aged 13 19} nutrition knowledge, capability and con?dence in a hands~on
interactive session about cooking and healthy food choices. These classes are fun,
informative and motivational, and recipes use common affordable ingredients, including
plenty of vegetables. Students learn to make healthy, tasty, easy and affordable meals
together and are able to take home recipes and cooking skills to share with their wider
whanau and community.

The Foodstuffs Food for Thought education for Year 5 and 6 primary school students teach
the students to make healthier food and lifestyle choices. Foodstuffs research shows
children who have been through the programme over the past 10 years have reduced their
families? sugar intake by more than 50 tonnes.

The learning environment is also impactful and the global Outdoor classroom day aimed
at getting as many children as possible playing and learning outside is supported in New
Zealand. When teachers take learning outdoors they report some powerful impacts:

Food Industry Taskforce Final Report to Ministers 20 Dec 201 

29

Chiidren?s behaviour improves, whole classes are excited to learn, and individuals who
feel inhibited by the curriculum often thrive in an outdoor environment.

Schools activity, sports days and sport sponsorships at national and local level are widely
supported by industry, with the Anchor AIMS games just one example. This is a strategic
partnership between Sport Bay of Plenty, the four Western Bay Intermediate Schools, and
the Tauranga City Council. It links with various local sporting clubs and regional and
national sporting organisations.

98. For young people there is also Preparation for Life (Food Safetinork Ready courses for
Youthline Students) and Females in Science, Technology, Engineering, and Mathematics
(STEM).

99A key consideration industry is hearing is that school resources concerning food and
nutrition, in particular, are not only at saturation point but there are also factors such as
maintaining materiats (updating, reflecting current approaches etch-meeting the school
curricuium and supporting teachers. Many of the above programmes have addressed
these issues but more general guidance on the best way to achieve this would be helpful
as would a liaison point in the Ministry of Health and Ministry of Education.

100. New Zealand Beverage Council and New Zealand Food 8: Grocery Council members
have committed to sell only bottled water directly to primary and intermediate schools. and
to not sell sugar-sweetened carbonated soft drinks in secondary schools. There has been
an issue of other wholesaling firms selling members products to schools. This is a
compliance issue that can be solved only by the Government, the Ministry of Education
or, failing other intervention, the Boards of Trustees at schools. New Zealand Beverage
Council members have further agreed to not undertake any commercial advertising in any
primary, intermediate or secondary school in New Zealand.

101. The Government published revised Eating and Activity Guidelines for adults in 2015.
Industry statements could be enhanced and potentially have reference through greater
promotion by the Government of the Eating and Activity Guidelines- The Guidelines are
excellent, but they sit on a website and more can be done by the Ministry of Health, the
Health Promotion Agency, District Health Boards or health professionals to make the
Guidelines a living document.

102. The food and beverage industry is keen to share successes and promote the scaling
up of programmes that bring communities together and that help inspire healthier
communities. In doing so. the industry can share in genuine communityiindustry leadership
and offer an opportunity for positive change.

Reach of Programmes

103. In successive Health Surveys, the Ministry of Health reports a growing disparity
between the prevalence of obesity in Maori and Pacific Island peoples and persons of
European orAsian descent. Maori adults were more than one-and-a?half times as likely to
be obese as non-Maori adults (Obese, 15+ years, percent, 2013(14 Maori 
non-Maori 247%) 2015). The latest data. presented in Background to this Report,
confirms this trend and shows Pacific Island peoples are at even higher risk with 65% of
its population group reported as obese.

104. As well, the Ministry reports that ?Children living in the most socioeconomically

deprived neighbourhoods were 2.5 times as likely to be obese as children living in the least
deprived neighbourhoods, after adjusting for age, sex and ethnic differences.? 201 8}

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

30

105. While many community programmes involving companies are across population
groups, over 40% of the programmes identi?ed by companies surveyed by the Taskforce
are designed to reach particular ethnic or socioeconomic population groups and a quarter
of the programmes are targeted at schools.

106. A key consideration we are now hearing is that school resources concerning food in
particular, are at saturation point. There are also factors such as maintaining materials
(updating, reflecting current approaches etc), meeting the school curriculum and
supporting teachers.

10?. Other programmes identi?ed by the Taskforce survey not covered above include:

. Schools activity, sports days and Sport sponsorships at national and local level

a Newsletter for customers on nutrition related matters, New Zealand Fruit and
Vegetable Alliance (NZFAVA), Food in a Minute healthy recipes, Food SafetyAMork
Ready courses for Youthline Students, Piunket Partnership, Careline team of
Nutritionists for parents, Fonterra Grass Roots Fund, education centre including a
baking school.

. Cans for Good donations, Feeding people in need through provision of food to
Auckland City Mission, Micronutrient Campaign partners with Rise Against Hunger

. Females in Science, Technology, Engineering, and Mathematics (STEM), Work
Inspiration Program (The Smith Family)

A full list of programmes is at Attachment E. Specific summaries of a selected company

programmes are at Attachment F.

108. Only 18% of companies surveyed undertook no community activity.

108. While many programmes are across the population, a quarter are developed for
schools, and over 40% are designed to reach particular ethnic or socioeconomic
population groups. Other programmes developed for groups either within or outside
schools involve offering to be an assessor, teaching food preparation__and cooking,
information on piant?based diets, babies and toddlers, other population groups (Nestle
South Auckland Cook for Life programme), nutrition education focused on school type
(primary) and decile rating (lower), and school curriculum resource material around
farming.

Website education

110. As at 30 June 2017', Statistics NZ reported that New Zealand had 3.8 million mobile
phones with active internet connections (Statistics New Zealand, 201?). This was up 11%
from the same time in 2016. it has also reported that mobile phone internet usage
increased 104% from June 2018, to 8,453,000 gigabytes in June 201?. This is around
1,700 megabytes for each mobile phone connection, compared with 900 megabytes in
June 2016. By 2018, New Zeaiand has been forecast to have 80% smartphone and 78%
tablet ownership (Frost 8 Sullivan 2013). Mainstream activities include mobile media,
social networking, online shopping, video and music access. Shopping is a key smartphone
activity. In such an environment, using websites (and social media) to communicate health
messages makes good sense. Some 50% of companies surveyed by the Taskforce had
undertaken education via their website. This included:
- Nutrition advice consumer service 

Healthy eating resources 

Meal preparation and cooking 

Sponsorship of NGO initiatives 

Gardens for fresh produce 

Physical activity programmes 



Food industry Taskforce Final Report to Ministers 20 Dec 2018

31

111. Countdown continues to roll out nutrition product information to its online shopping
website to help customers make more informed choices. Currently more than 10,000
products have nutrition information.

Future Pians

112. Some 38% of respondents planned to broaden their community and education
programmes and 28% were expanding partnering and collaboration. Many were
continuing or embarking on applying the Health Star Rating system and continuing to drive
initiatives already in place, such as the Fonterra Milk for Schools, Fonterra Grass Roots
Fund, KickStart Breakfast and AIMS games.

Collaborating on education and community activities
113. Collaboration is recognised as delivering greater benefits and broader programmes.

Some examples of the food and beverage industry collaborations drawn from the

Taskforce survey include:

- 43% of companiesjoin with schools In programmes such as Outdoor Classroom Day,
a global programme to get as many children as possible playing and learning outside.
When teachers take learning outdoors they report some powerful impacts: children?s
behaviour improves, whole classes are excited to learn, and individuals who feel
inhibited by the curriculum often thrive in an outdoor environment.

. 38% of companies join with community groups such as Youthline. Salvation Army,
Plunket, Heart Foundation, Graeme Dingle Foundation and AIMS games collaborates
with 349 community groups to support local community programmes

- 29% of companies join with sports groups such as junior rugby

19% of companies join with local councils on programmes.

114. One example is Nestl??s involvement in a number of past and ongoing community
initiatives partnering with different groups such as Fresh Ed, Westfield Shopping Malls
Primary Intermediate and High Schools, AUT Millennium NZ, NZ Nutrition Foundation
School Kit and Massey University Dietetics Programme.

115. Another is Foodstuffs ?social impact' investment in a partnership with Eat My Lunch
described above.

116. Other collaborations include central government (eg Ministry of Social Development,
Ministry of Social Development, Ministry of Education) and NZ Nutrition Foundation.

Costs of education and community programmes

11?. Many companies consider costs invested in education and community programmes as
confidentialicommercially sensitive information. Of those open to share, the total was
$19.7m, with individual company investments ranging from less than $1000 to $10m. This
included some capital cost from 201?-18. Time was also a cost in such programmes.

vaiuation and measurement

118. Some 28% of companies were planning to evaluate their programmes but another 28%
had researched ?ndings about the impact of community and education initiatives. Only
four companies made research publicly available:




Food industry Taskforce Final Report to Ministers 20 Dec 2013

32

Barriers

119. Very few barriers were identified for starting programmes but of those noted, 13% of
companies surveyed considered cost as a barrier, while others identified the schools?
curriculum, energy, and lack of time for the relationship building and community
engagement necessary.

120. For scaling up programmes, the biggest barrier was cost, cited by 40% of companies
surveyed followed closely by organisational resourcing 

121. A significant barrier exists, however, with the New Zealand Beverage Council?s
?water-only? policy- It is important that schools are heaithy environments for children, which
is why it is important to fulfil the aspiration of the Voluntary Schools Agreement (announced
in 2005) that schools should not sell sugar-sweetened beverages. The ambition of this
agreement between beverage companies and Government has been circumvented by
some schools, and it is recommended that the Ministry of Education take further steps to
ensure schools embrace water-only (and milk) policies.

122. While New Zealand Beverage Council members have committed to selling only bottled
water to primary and intermediate schools, the Council has no ability to prevent schools
from purchasing its members products from thirdnparties, therefore undermining the policy.
The Council seeks support from the Government to encourage schools to adopt the water-
only (and milk} policy. The position aligns with the the former National Administration
Guideline 5, widely supported by the food industry, regarding healthier food and nutrition
in schools and which stated ?where food and beverages are sold on schools? premises, to
make only healthy options available'.

Success of community and education initiatives

123. The vast majority of programmes started or conducted are successful. Only 5% of
companies surveyed said results showed programmes did not succeed as expected. An
example was a company that wanted to support education material in schools but found
schools had so much already in their curriculum that the area was saturated and no more
could be taken. The overhead to maintain the material was also deemed to be significant
and, for one company, was found to have been already provided by another party.

Recommendations for Community and Education initiatives

124. No single sector can be singuiarly responsible for health improvement, and company
involvement can increase the scope, impact and outcomes of community efforts. There are
benefits for communities, companies and the Government in collaboration resulting in
shared value.

Recommendation 20: Companies are encouraged to continue programmes, especially those
that have been demonstrably successful at improving the health and wellbeing of the
community.

125. The key barrier with initiating or expanding community programmes is cost and time.
Recommendation 21: Companies to expand community programmes where feasible or
develop ways to join with other companies, associations, communities and other Government
initiatives to expand.

Recommendation 22: Industry and the Government to promote (with associations) templates

of community programmes (that set out description, resourcing, ideas for implementation and
aspects to particularly consider) to increase uptake by more companies.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

33

126. Schools are under pressure and there is a saturation of materials available to schools
in the area of health and nutrition. in order to better direct food and beverage company
involvement, there needs to be better liaison between central government and industry.
Even with well-targeted programmes and resources, there is also a challenge in
encouraging schools to take these up since schoois are run by Boards not the Ministry of
Educa?on.

Recommendation 23: The Ministries of Health and Education establish industry liaison
positions as points of contact for the food and beverage industry to facilitate ongoing
engagement on community and education initiatives.

Recommendations 24: Ministries of Health and Education and industry develop Guiding
Principles for developing school resources.

Recommendation 25: The Government works with schools to encourage them to adopt a
water-only policy that supports the pledge made by New Zealand Beverage Council members
to only supply bottled waterto primary and intermediate schools.

Recommendation 26: Speci?c to the ?The Cooking Curricutum Project? developed by
Vegetables NZ and The Heart Foundation:
- By 2020, 80 ?a of teachers of the cooking curriculum are using the resources and
tools to teach year 7 and 8 students to cook a meal
. By 2021, 80% of students at the end of year 3 are able to cook a healthy meal.

12?. The prevalence of obesity is higher in low socioeconomic areas that are potentially the
areas adjacent to low decile schools.

Recommendation 27: Companies are encouraged to prioritisei'develop programmes or

content relevant and accessible to ?at risk? populations such as in low decile school areas (it

not already doing so, and as appropriate) in orderto reach low socioeconomic communities.

128. The prevalence of obesity is higher for Maori and Pacific Islanders than people of
European or Asian descent.

Recommendation Companies encouraged to prioritiseldevelop culturally relevant
programmes to Maori and Pacific as appropriate.

129. NGOs undertake key roles in the community to address obesity. Company support of
such organisations and agencies contributes to efforts to address obesity such as for
Youthline.

Recommendation 29'. Industry to develop strategies to increase the number of companies
supporting NGOs in areas affecting obesity such as through partnering or social responsibility
investment.

Recommendation 30: Associations to develop strategies to increase the number of
companies educating consumers oniine through their company websites.

Recommendation 31: Where initiatives are evaluated. companies form summaries which are

made public in order to show the level of impact and as a means of encouraging others to
undertake similar programmes.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

34

Food and Beverage Marketing

130. Advertising of food and beverages in New Zealand is subject to both regulatory and
non-regulatory controls. The regulatory requirements are contained in Food, Commerce
and Fair Trading legislation. The non-regulatory provisions are administered by the ASA
through a suite of ASA Advertising Codes which apply to all advertising in all media in this
county.

131. The Taskforce is aware of the work of the Independent Panel chaired by the Hon.
Sir Bruce Robertson, former Court of Appeal Judge, in reviewing the Advertising
Standards Authority (ASA) Codes relevant to children in 2016. This resulted in the new
Chiidren?s and Young People?s Advertising Code (hereafter referred to as the ASA Code)
which came into effect in October 201?.

132. The Taskforce Report does not intend to restate the many issues raised in the 92
submissions to the Independent Panel {noting that many went to matters other than
advertising and marketing), but rather to consider the driver for the ASA review and the
resultant changes to the Codes and to describe what is being done as a result and what
more could be done.

ASA and Review of Codes
133. The ASA decision to review the codes aimed at children was undertaken ?in a ciimate
of increased concern at the growing levels of obesity and claims that advertising played
an increasingly strong role in the rising consumption of unhealthy food and beverages.?
(ASA Code's Review Panel, 2016). The review also formed part of the 2015 Government
Childhood Obesity Plan. The suite of ASA Advertising Codes cover all advertising in all
media, and all major media companies are members of the ASA. As a result of the review,
the ASA Code was rewritten to strengthen and update provisions. The key changes made
(relevant to food and beverage) include:
a no advertising of high saturated fat, salt and added sugar food and beverage products
[including sponsorship advertising) to target children under 14
- expanding the ASA Code to cover advertising to young people aged 14 to 18 years
- clarifying the definition of ?targeting children? - including product advertised, words,
imagery and placement
- inclusion of an interim nutrient profiling system to clearly define high saturated fat, salt
and added sugar food and beverages
- inclusion of restrictions on sponsorship advertising to young people.
- application to all advertisements in all media including all digitalisocial media.

134. This resulted in changes to the approach taken, both in terms of creative message and
media placement (such as limiting advertising during peak children's viewing times on
television) and making it clear that all communication channels were covered, including
digital and digital advertising including websites and social media platforms.

 

 

 

Companies surveyed by the Food Industry Taskforce stated the following as actions
highlighted in response to the new ASA Code and the type of liaison they have with
media agencies. In many cases it represents different expressions of similar
approaches:
Requiring the media agency to be aware of and adhere to the ASA Codes
especially the ASA Code.
a? Placement by media agencies has to be in accordance with ASA codes and
company policy eg if a programme has more than 25% of kids viewing under
18 not advertise in that programme for some foods.

Food Industry Final Report to Ministers 20 Dec 2013

35

 

- All creatives for one company using children in relation to products being used
and placement of advertising must be aligned with ASA Code. i

- All agencies for one company undergo ?marketing to children? training which
covers company policies and external codes. 3

. Some companies ensure they and agencies do not advertise in children's 
programmes. i

- Some companies do not feature young people in their marketing as a part of i
their media policy.

- Media placement is provided to some contracting companies to review.

- Reviews are in place with media agencies to ensure channel strategy limits
any potential exposure.

Some agencies are required to report back regularly.

Some companies provide internal compliance training (including with agencies)
Content reviewed internally by some Legal and Nutrition teams, and ASA if
required

External advice is sought by some companies on any advertising campaign to
ensure exposure to children is limited and aligned with the ASA Codes.

- ?Kid meals" were not offered by a company surveyed.

- One company stated that children were not incentivised to purchase products
{such as toys} and it did not align with brands that marketed towards children
e.g. Disney, Pixar.

. Another company said that selling toys as incentives ceased 5 years ago.

a An agency was instructed not to advertise within 100m of schools.

in One company advised its media agencies on appropriate placement and age i
targeting to ensure compliance to the ASA Code. i

. 

 

 

 

Compliance with ASA Codes

135. All the major media companies are members of the ASA, providing strong support for
compliance with the ASA Code. This ensures that if a complaint to the ASA Complaints
Board is upheld, that advertisement is immediately withdrawn from all media platforms in
New Zealand.

136. In terms of compliance. before the commencement of the new ASA Code, the ASA
conducting training attended by over 400 advertisers, agency and media representatives.
Following commencement, the ASA has run further workshops and training on request for
over 150 more company representatives.

137. Food and beverage advertising has not been a significant source of complaint. For
example, in 2017, the ASA received 503 formal complaints. Ofthe complaints of substance
that went to the Board, just 21 concerned food or beverage companies. Of these,
13 were upheld or settled (the advertisements were removed or changed) and 8 were not
upheld 2017).

138. The introduction of the new Code has not seen a material lift in complaints. As at
6 November 2018, of the complaints of substance that went to the Board, 20 concerned
food or beverage companies. Of these, 8 were upheld or settled and 12 were not upheld
(ASA 2018).

139. Eight of the 14 complaints received under the ASA Code since it came into effect in

October 2017 were about food and beverage products. Two of these complaints were
upheld and the advertisements were removed. Advertising to children, however, remains

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

35

a very small proportion of complaints to the ASA as has been the case over the last 20
years.

140. The best approach to compliance is to avoid complaints and enforcement action in the
first place by providing training and tools for system users at the outset of the advertising
process. To this end, the ASA ran and continues to run, training sessions for advertisers
and their agencies on the ASA Code drawing on decision interpretations overtime.

141. At the time of implementation of the new ASA Code, an independent approval service
was established. The Children's Advertising Pro-vetting Service or CAPS, is based on the
longstanding Therapeutic Advertising Pre-vetting Service or TAPS, and is a user-pays
service available to the food and beverage industry to provide advice on the form, content
and placement of advertising and marketing.

142. Encouraging uptake of the service could further strengthen compliance with the ASA
Code. The Taskforce therefore considered the option of encouraging advertisements likely
to have high attractionfappeal to children to undergo CAPS pre-vetting to ensure maximum
compliance particularly where internal compliance assessment may not be available.

143. In July 2018, the ASA launched a new Adhelp Information Service. This is for anyone
in the advertising industry who wants detailed information about a Code interpretation,
precedent decisions and the legal framework that applies to advertising and is accessed
on the ASA website This draws on the considerable
body of knowledge about standards in advertising. It?s a user-pays service aimed at
contributing to the ASA vision of 'Every Ad a Responsible Ad' and works alongside CAPS.

 

144. With the range of tools and training available, another option considered by the
Taskforce was that industry work with the ASA to develop best practice for companies to
ensure understanding of and compliance with the ASA Code. This might lead to a
?certification' programme for companies and couid involve a range of requirements such
as having advertising policies in place, participation in training by the ASA, and the
inclusion of advertising and marketing in company induction programmes along the lines
of many other certification activities in other industries. The ASA website could maintain a
list of ?certified" companies.

145. The ASA was established to set standards for reaponsibie advertising. Currently,
compliance is tested by complaints from consumers and the ASA does not undertake
investigations. Pronactively looking for possible breaches is restricted by resourcing, and
at the time of the ASA Code review it was considered that a strong pre?vetting system
would be of more value than trying to put the genie back in the bottle once a campaign
was in the pubiic arena. A prenvetting approach, such as the media agreeing not to run
ads that did not have a pre-vetting number or been subject alternative internal pre?vetting,
could be worthy of consideration. ASA Code compliance prior to publication or broadcast
via pro-approval is considered the best way to ensure advertisers support the ASA Code
rather than a post-publication monitoring process.

145. The Taskforce considered monitoring and reporting of compliance with the advertising
Codes. However, increasingly best-practice self-regulation around the world includes a
reporting mechanism, conducted independently. Therefore, instead of the level of
compliance with the ASA Codes relying on an analysis ofthe ASA complaints process, the
Taskforce considered the prospect of an annual review of company compliance with the
ASA Code be undertaken by an independent agency. Funding is a key issue in
consideration to date.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

3?

Changing media

147'. All media are going through a transformative stage as consumers of all ages adapt to
an online, always on, digital media iandscape at the expense of linear television and print
media.

143. For example, average television viewing levels for 5-14 year olds has halved from 2011
to 2018. This pattern in viewing occurs both in the 5pm to 9pm timezone, and averaged
across all day viewing. For 15-18 year olds, the decline is even greater, with average
audiences in 2018 38% below 2011 (6am to midnight average), and in the 5pm to 9pm
timezone down 38%.

149. As a consequence, children and young people are seeing significantly less advertising
of products including those high in saturated fat, added sugar and salt on television. For
example, for the ?fast food category?, there has been a 59% drop in exposure of such
products on television by 5-14 year olds and a 44% drop for 5-14 year oids since 2011.
This compares to a 15% reduction in exposure to TV ads for the category for all people
5+years since 2011- Clearly there is not a correlation between exposure to TV advertising
and obesity trends.

150. Nonetheless, in terms of voluntary restrictions on advertising on television, the
Taskforce recommends considering extending the band of afternoon viewing restrictions
to 6pm when news programming leads to a substantial drop-off in young audiences.
Further work with broadcasters is necessary to determine such an extension.

151. At the same time the genre of magazines targeting children andior young people has
largely disappeared from the marketplace, making specific rules for this media largely
irrelevant.

152. Young people are instead choosing online media choices. These platforms, including
social, video and gaming, by their very nature, with a high degree of audience data, enable
advertisers to responsibly avoid targeting children and young peopie, as required by the
ASA Code.

153. The transition of out-of?home advertising to digital formats, purchased
programmatically, enabies greater controi of where, and importantly when, many
advertisements appear in public spaces, enabling voluntary restrictions to be in place
around, for exampie, the hours that chiidren typically travel to and from schools.

154. The Taskforce took account of the particular attention placed on the near-school
environment in relation to advertising and considered a range of additional voluntary
constraints:

. setting a distance of 300 metres within which food and beverages high in saturated tat,
salt and added sugar would not be advertised (digital, billboard, sandwich Board etc)
around primary schools and intermediate schools (that is, addressing exposure to
children under 14 years}

0 setting limitations for digitai out-of?home advertising for such products for school
transport hours such as from 8am estabiishing an industry standard for product branding on convenience stores within a
defined distance from schools.

This last consideration is continuing.

Nutrition profiting for the ASA Code

155. The ASA Code currently draws on the Food and Beverage Classification System as
the basis for applying certain aspects of the Code. The Ciassitication System was

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

38

developed for the New Zealand school sector to help schools choose food and beverages
for students that better aligned with the dietary guidelines in New Zealand. in its current
form it does not cover the breadth of food and beverages in the food supply that might be
subject to advertising. As well, unlike the Health Star Rating system, the Classification
System focuses on negative nutrients only, taking no account of the overall nutrient profile
of the food.

156. Application of the Food and Beverage Classi?cation System to the ASA Code was an
interim measure by the ASA, noting that for nutrient profiling to be the most effective in
any given application it needs to be specific to an objective and an environment. For this
reason, profiling systems developed for one purpose may not readily transfer or work for
different environments or for different purposes. The ASA has acknowledged that the
Classification System may not be a fit-for-purpose food and beverage profiling system for
advertising, and is in the eariy stages of a review to consider the ongoing appropriateness
of the Classification System for application to the advertising Codes. The Taskforce is very
supportive of such a review.

Company advertising policy

157. As with nutrition. having a written publicly available policy on advertising that refers to
the control environment (mandatory and voluntary) is an important expression of a
company?s commitment to ensuring responsible marketing and advertising. An
advertisingimarketing policy can be compared to a business code of ethics. Each
addresses aspects of responsible marketing the business considers most important. For
example, one company's marketing policy might focus on nutrition guidelines and
guidelines for marketing to children, while another company?s marketing policy might
include guidelines for the different marketing channels it uses.

158. In general, such policies are intended to ensure that the company?s advertising and
marketing portrays the company in a positive and consistent manner, are aligned with the
company?s strategic objectives, are factually accurate, and meet legal and regulatory
requirements. Having them public?facing is also a statement about the company?s.
willingness to be accountable to the public.

159. Almost 70% of companies surveyed by the Taskforce, have a policy on advertising to
ensure compliance with the ASA Codes generally as well as the ASA Code in particular,
but only a third ofthese are public facing. These {often covering marketing as well) include:
I 

I 18.pdf

I responsible?foodand
beverage-marketing?july? 

I 
While this is published in Australia and is the Mondelez
International commitment in Australia, it applies to the company in New Zealand

I 
healthier? eatingimarketino?#32 activities

I 

. 
social responsibilitvinestle-


I Countdown Responsible Advertising Policy was launched in June 201?


I Countdown endeavours to include fresh food options on the cover pages (front or back)
of the weekly Countdown mailer.

Food industry Taskforce Final Report to Ministers 20 Dec 2018

39

160. To ensure exposure to children and young people meets the new ASA Code provisions
{reduced exposure) and aligns with company policy, companies can take any number of
steps and actions, including through training, contractual expectations. policy decisions,
media previews and placement reviews and reporting.

161. The Taskforce considered the targeting of advertising and the control of placement
online on the more ?one-to-one? channels such as ?age gate? checks and policies across
the industry for all digital mediums especially social media. The Taskforce proposed that
identifying best practice by companies in this area wouid not only encourage brand safety
but would also assist companies to best controi online placement while simultaneously
reducing the exposure of advertising to children and young people.

162. In terms of checking media placement by companies, 75% of companies said they
undertook checks. They added:

. Checks are made via the agency.

. Many companies check media placement through internal audit systems.

at For some companies, all media placement is reviewed and approved by the company
prior to publication.

. One company reviews media spot lists, brand safety black lists and online media
schedules.

- Another company conducts post campaign reviews. spot checks during campaigns by
company staff.

- One company states there are implications for the agency if they do not follow
guidelines. It is monitored by a third party and the agency is ?pulled up? if there is an
infringement.

. Media placement is required to meet contractual arrangements.

. Media piacement strategy is confirmed prior to booking to ensure there are no potential
issues. Brand and communications teams approve all spot lists to ensure compliance.

. One company reviews spot list of television ads.

- For television, one company?s process is to brief the media agency and the agency

formulates its media plan which the company signs off. All content that the agency
schedules is signed off internally by the contracting company, so the agency only ever
uses content that is approved and supplied by the company.

. One company receives a report to show all spots for the company?s television
commercial was played in and what programme.

. For one company, periodic checks only are made, while another company reviews
placement on a case-by?case basis to ensure compliance to ASA Codes, 
in instances when product may appeal to children.

Additional industry comments

163. Media companies have taken initiatives on advertising food and beverage to children
and young people through their own outdoor minimum advertising distance from schools
and working within Commercial Approvals Bureau rules in relation to advertising to
children. The Bureau is responsible for approving and classifying all television
advertisements on behalf of New Zealand?s television industry. Without Commercial
Approvals Bureau approval, a commercial cannot be broadcast in New Zealand.

164. In terms of the process for the Commercial Approvals Bureau approval, the Bureau
requires additional information and documentation to approve commercials for certain
types of products, and for food and beverage products "advertisers need to supply their
product's nutritional details if they want to target children under 13 years old. We {the
Commercial Approvals Bureau] strongly recommend that these details are provided
before the commercial is produced or the media is booked? (CAB 201B). Broadly

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

40

speaking, to achieve a CF (Children's Food) rating, the featured product must meet
the minimum standards to be recognised as an ?everyday or sometimes? food under
the Food and Beverage Classification System

165. Even with a rating allocated by the Commercial Approvals Bureau, additional

requirements are in place:
- there is no advertising in pre-schooi television programming

- advertising in school-age television programming is limited to 10 minutes per hour,

no endorsement, promotion or selling of products or services within the associated

programme, and no advertisement may be played more than twice within an hour

per channel or more than three times during a specific programme which is
longer than an hour

 

Companies have made?the'foilowing additional comments concerning m-arketing:

Domino?s says it does not, and will never, market to children. Nor does it feature children
in its advertising, whether it be broadcast or non-broadcast as part of its media policy.
This includes the use of marketing techniques that appeal to children such as games
and toys. This is a core driver of Domino?s brand values.

 

. Fonterra has 7 Pledges as part of the Healthy Kids Industry Pledges. These are
published on its website: 
The fifth pledge reads ?Our advertising will always
comply with the Advertising Standards Authority Chiidren and Young Peopie?s
Advertising Code in New Zealand?. Fonterra's advertising material (content and
placement] is assessed by its Nutrition and Regulatory team to ensure compliance to
the Code.

Kellogg?s has an internal sign-off process for all advertising, sponsorship and packaging
materials. As part of this process, all advertising and labels are subject to a rigorous
internal review and sign-off process and must comply with all relevant regulations in
New Zealand. Kellogg?s also has defined Worldwide Marketing Guidelines that have
been in place since 2006 which all advertising and marketing must comply with.

 

 

Heinz Wattie?s marketing and agencies attend regular ASA training to ensure all are
aware of the company?s obligations under the advertising codes. All advertising and
labels are subject to a rigorous internal review and a sign-off process. It requires its
advertising agency to comply with placement requirements (Adsheils and Buses} to
ensure they meet expectations around schools. Heinz Wattie?s recognises the
importance and the superiority of breast milk in feeding infants and young children.
Outiined in its company policy is its worldwide charter of practice for marketing of breast
milk substitutes. Locally, it is a member of the Infant Nutrition Council and adheres to
the INC Code of Practice for the Marketing of Infant Formula in New Zealand.

 

New Zealand Beverage Council members are required to abide by the Chiio?ren?s and
Young Peopie?s Advertising Code, Code for Advertising Food and the Advertising Code
of Ethics. Beverage Council members have also committed to not undertake any
commercial advertising in any primary, intermediate or secondary school in New
Zealand. This means Beverage Council members do not advertise in media that directly
targets children under-14 or where 25% or more of the expected audience will be 
[children under-14. Further, members will not design advertising that significantly
appeals to children under-14. 

Coca-Cola in New Zealand and Australia have an internal weekly review and approval 
committee comprised of senior staff across the functions of legal, public affairs,
marketing and science and regulation. The committee ensures compliance with the
Advertising Standards Codes and other policies and regulations.

 

 

 

 

Food industry Taskforce Final Report to Ministers 20 Dec 2018

41

 

 

Coca?Colas global Responsibie Marketing to Children P?oiicy in New Zealand and' 

Australia stipulates that no commercial (paid for) outdoor material or billboards for its i
sparkling drinks will be placed within 300m of schools (primary or secondary), child
clinics, playgrounds and skateparks and 150m for other non-alcoholic beverages.

Lion New Zealand is committed to promoting its products responsibly, has robustl
internal 'responsibie marketing' codes in place, and adheres to strong self-regulatory i
codes (ASA) that cover all marketing from TV to social media and sponsorship. Within i
its codes, Lion New Zealand ensures that its marketing follows the highest standard of 3.
social responsibility, promotes a positive environments and is directed at adult
audiences.

McDonald's has an extensive and evolving responsible marketing policy which is to be 

added to its corporate website. It does not use ceiebritiesiheroes of the young to
II promote food, and is changing elements of its junior football collaboration such as player
of the day certificateivoucher. McDonald's has stopped advertising Happy Meals on 
day-time TV, has undertaken an extensive overhaul of digital media buying, conducts a
risk assessment of all its ?out of home? advertising sites and restaurants with regards to
schools, and has made changes to its radio placements to avoid school drop-offipick-
up times

 

 

All Nestl??s advertising and promotional activity goes through a review process against i
both the Advertising Code and its own policy to ensure it?s compliant. The policy!
specifically covers marketing communication using television, radio, print, cinema, 
outdooripiaces where children gather, digital media (digisphere), mobile, games,
consumer relationship marketing, viral marketing, apps, Nestle-owned I
websites, movie tie-ins, promotions, premiums, contests, product sponsorships,i
sampling, and point of sale. It also considers activities in primary schools. It has 5
restricted the times it shows advertisements for products that do not meet nutrition
criteria. and ensures the content is not directed to children. It has implemented the EU
Pledge globally as nutrition criteria to assess products that are 'healthier? for the 
purposes of advertising.

 

All Mondelez International marketing campaigns and materiai that could appeal to
children or young people is reviewed by subject- -matter experts within the business. This
review considers the requirements under the ASA Code, the company commitmentI
under the Australian Food and Grocery Council's Responsible Childrens Marketing I
Initiative, and the companys comprehensive global internal Marketing to Children 
policy. Mondeiez regularly sends material to the CAPS Adjudicator for final review 
before proceeding with promotional and advertising activity. I

 

Company Marketing Policies
166. Some 10% of companies surveyed by the Food Industry Taskforce have a company
policy on marketing activity outside ?advertising that is not captured by the ASA Codes.

167. For those marketing infant formula and members of the Infant Nutrition Council, they
must meet the requirements of the (soon to be republished} Code of Practice for the
Marketing of infant Formuia in New Zeaiand (INC, 2012). A quarter of companies with a
policy on marketing activity outside ?advertising? provide this publicly. The links provided
above are all applicable to both advertising and marketing.

166. Some 41% of the companies surveyed by the Taskforce had taken steps to reduce the

exposure of children andior young people to advertising and marketing of ?high saturated
fat, salt and added sugar? foods and beverages over the past 5 years.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

42

 

The initiatives taken by companies to reduce the exposure of children andior young
people to advertising and marketing of ?high saturated fat, salt and added sugar? foods
and beverages were variously described by companies as:

I does not send e-newsletters to people under 18 years of age because they may
contain advertisements of high saturated fat, salt and added sugar food and
beverages

I made adjustments based on the new Children?s Code

I requested additional reporting from media agencies as well as additional 
training to ensure 'value add' advertising opportunities are in line with policy. .

I removed sponsorship of a branded road show 'i

I part of a company usual policy of not marketing to children i

I stopped advertising its product on television as an indication of commitment to
ASA and [the Australian Food and Grocery Councils Responsible .
Children's Marketing initiative] advertising requirements I

I all advertising and labels are subject to a rigorous internal review and sign off
process

I marketing staff and agencies have all been in ASA presentations and all
relevant materials have been circulated internally. All advertising is well
considered with the ASA Codes in mind. The company is very careful with its
content and placement and considers all aspects in relation to advertising to
children and young people 

I made changes to ?creative? to ensure it complies and with the risk, however
minimal, of encouraging excessive behaviour. The company has also changed
media placement to ensure there are no issues with the target audience

I does not advertise to children because children are not the companies' target
market

I prior to the ASA Children and Young People?s Advertising Code coming into
effect, the development of an internal global standard on Marketing to Children
was already underway. This standard set out minimum requirements that all of 
the company's global business units must meet to ensure responsible
marketing of food and beverage products to children

 

 

 

 

Confectionery-free checkout lanes in Supermarkets

169. Confectionery-free checkout lanes have been suggested as a step to provide
shoppers, especially those accompanied by young children, with an option of a checkout
where they will not be badgered by children or tempted themselves with a last-minute,
impulse purchase of confectionery. The choice to use such checkout aisle remains with
the shopper. The growing provision and popularity of self-checkout facilities might, over
time, negate the need for confectionery-free checkouts than might otherwise have been
the case. Nonetheless, where a supermarket presents a number of checkout lanes there
should be at least one clearly identified as confectionery-free.

1?0. Both major supermarket chains have committed to the provision of confectionery-free
checkout lanes.

Recommendations for Food and Beverage Marketing

Recommendation 32: Amend the ASA Children and Young People's Code to restrict fixed?
site outdoor advertising (digital, billboard, sandwich board etc) of high saturated fat, salt and

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

43

added sugar products within 300 metres of the main gate of Primary and Intermediate schoois
by 30 June 2019-

Recommendation 33: Review with television broadcasters opportunities to expand the band
of afternoon viewing restrictions for high saturated fat, sait and added sugar food and
beverage outside school hours pre-Spm by June 2019.

Recommendation 34 The Association of NZ Advertisers and companies to identify and
encourage adoption of best practice for controiling placement and targeting on
digitalioniinefsocial media channels such asfuse of ?age gate? mechanisms and use of white
lists across the industry to iimit inadvertent exposure to young audiences. ANZA to report on
progress mid and end 2019.

Recommendation 35: Industry to develop with convenience store representatives a policy for
store branding on convenience stores within a de?ned distance from Primary and Intermediate
schools by December 2019.

Recommendation 36: industry to present an annual report to Ministers and other
stakeholders on compliance with the ASA Code. both media placement and creative.

Recommendation The Association of NZ Advertisers to develop a 'certificate of
compliance? recognising companies that complete accredited training and have in place
mitigation policies to ensure compiiance with the ASA Code by 30 June 2019. This might
include training programmes completed by companies and their advertising agencies, use of
external pre-vetting and mitigation and compliance steps taken in marketing.

Recommendation 38: ASA (lead), industry and the Government to proceed with a review of
the Food and Beverage Classification System in order to design a fit-for?purpose system within
12 months (2019) taking into account any impact from the outcomes ofthe HSR 5-year review.

Recommendation 39: New advertisements that may have high attractioniappeal to children.-.
be subject to ore-vetting to ensure compliance, particularly where internal compliance
assessment may not be available, by 30 June 2019.

Recommendation 40: Industry, the Ministry of Health and the Ministry of Education, to
develop a policy on school sponsorship (sports, cultural, events) by December 2019.

Recommendation 41: Encourage companies to publish advertising and marketing policies
by 30 June 2019. The measure to be the number of companies with published advertising and
marketing policies.

Recommendation 42: The Association of NZ Advertisers to develop a template of responsible
advertising and marketing policy for those companies, particuiarly SMEs, that do not have
such a policy by 31 March 2019.

Recommendation 43: Companies with multiple checkout ianesto report on their
undertakings to provide confectionery free checkout lanes by December 2019.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

175.

44

Labelling and Rollout of Health Star Rating
System

All food and beverage sold in New Zealand must meet mandatory labelling
requirements as set out in the Austraiia New Zealand Food Standards Code. Of
importance in terms of addressing factors affecting obesity are the ingredients list and the
nutrition information panel. Atso of note are the requirements around claims.

17?2. The Health Star Rating (HSR) system that commenced in 2014 is a significant

voluntary undertaking developed jointly by governments and industry across Australia and
New Zealand (MPI HSR resources 2018). The system is currently subject to a 5-year
review that is to be reported on by the end of 2019. There is considerable focus on this
review and a number of activities are on hold until the outcome is known. However, the full
draft 5-year report with recommendations is to be published for public consultation in
February 2019. This will provide a strong indication of the potential outcome of the review,
and preliminary work on recommendations impacted by the 5?year review might be
considered so as to minimise any delays in implementation.

1?3. There are also two labelling reviews being undertaken by the trans-Tasman Food

Regulation Standing Committee Labelling of Sugar and Naming Sources of Fats and Oils
(Food Reguiation Secretariat, 2018).

174. As noted at the outset, supermarkets are also major participants in the HSR system.

By way of example, Foodstuffs has over 1,100 products carrying HSR labeis, ranging from
a half to five stars. Foodstuffs has not been selective on application of HSR and is working
towards complete coverage of eiigible products, having reached 94% coverage since
commencement.

In parallel with the 5-year review. there is a trans-Tasman Sugar Labelling Review
programme underway, conducted by the Food Regulation Standing Committee which
advises the Ministerial Forum on Food Regulation. It is considered pre-emptive by the
Taskforce to include recommendations in this report relating to sugar labelling other than
commit to the Ministerial Forum's recommendations when the sugar labelling review is
complete.

17?8. The Food Industry Taskforce recognises that both mandatory and voluntary labelling

have to work in concert and that facilitation of further consumer awareness, understanding
and choices of healthy foods and diets is vital.

HSR
llel monitors uptake of HSR quarterly, and its most recent report was that there were

over 4,000 SKUs in New Zealand carrying HSR. There is no estimate of eligible products
for New Zealand but there has been an estimate made of 15,78? products for Australia
(Jones et al 2018) which excludes notable areas of uptake in New Zeaiand such as
Sanitarium, Frucor Suntory, Life Health Foods and Kellogg?s. But the Australian figures
include companies not covered in New Zealand as at mid-2018. such as Simplot Australia
{included new for New Zealand}, George Weston Foods, Mars, Nestle and Schweppes
{this last covered in New Zealand by Coca-Cola).

178. llel lists 31 companies as participating in HSR in New Zealand Website 15 Nov

2018), while Jones et al (2018) lists 120 companies in Australia {in Appendix to their
paper)- The disparity is, in part, explained by any company that has applied HSR at any
time being listed in Australia whereas MPI lists only current participating companies.

Food Industry Taskiorce Finai Report to Ministers 20 Dec 2018

45

Nonetheless, there would appear to be opportunity for those supporting HSR in industry
to work with MRI to encourage wider uptake.

179. The independent consultants conducting the 5-year review published an issues paper
(mpconsulting 2018) in October 2018 for submission by 7? December 2018, covering many
of the concerns of consumers and companies. Four areas of issues are explored:

. scope of the HSR system
. risk nutrients

- positive nutrients

I product speci?c issues.

180. Within each area, two or more issues are discussed and options presented for each.
In total there are 10 issues described, ranging from sugars and sodium to oils and spreads
and dairy desserts. Potentially this couid result in at least 10 changes to the system since
this remains just part of the final report. A further round of consultation is to be conducted
in Q1402 2019 of the full draft final report. --

181. The Taskforce sought industry views on further education and awareness by the
Government on HSR. Over 70% supported this. The value of the education and awareness
programme cannot be over-emphasised and could build on the campaign that concluded
in mid-2018. The population of supermarket and packaged food consumers is added to
each year, and another education and awareness campaign will reinforce the
understanding by those atready aware and reach those new to the consuming population.

182. The Taskforce survey asked respondents what percentage of their product range
eligible to carry HSR system applied it. Responses were spread between less than 10%
and up to 100%. The largest percentages of product range were 20-30% of the range and
80-100% (both on 15% of respondents). There was also a sizeable group recording
tess than 10% of their product range carried HSR. It is considered important that one of
goals going forward should relate to product range, that all eligible products should be
labelled with HSR, and that products should not be --

Industry comments on HSR

183. The following reflects a range of comments made by respondents to the Taskforce's
survey concerning HSR:

I The New zealand Beverage Council, whose members represent over 75% of
the non- -a coho ic ready- -ito-dr nk beverages sold at retail level. strongly supports
HSR and encourages its members to adopt the HSR system 3 integrated energy it
icon on front-of?pack Iabelting.

. Coca-Cola NZ applies the integrated energy icon across of its packs.

i . Frucor applies the HSR energy icon across its portfolio of non-alcoholic
beverages, including shelf stable and chilled juices, juice drinks, energy drinks,
sparkling water, milk-based drinks, sports drinks and sports waters. kornbucha
and carbonated soft drinks.

- Fonterra continues to roll out HSR on packaging, prioritising ?everyday" products
and where the packaging is not also used for export to regions where HSR is
not accepted. Fonterra is also on track to publish HSR on websites for all

i "everyday" products by the end of 2018.

Kelloggs breakfast foods, including cereals, breakfast bars and biscuits and

protein pouches, all carry the HSR Application on snacks commenced but is

now on hold pending the outcome of the 5- -year review to minimise write- off;;:

5 _packaglng that needed be updated

 

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

 

184.

4B

 

Wattie? has HSR on around 25% of applicable products and plans to add 
to the product information on its website In the interim of its labels being updated;
in line with other required label updates

N_e_stle applies HSR on relevant categories in its range including breakfast I
cereals, confectionery (energy icon), soups, noodles and snacks- Nestle also i
provides the total number of SKUs carrying the HSR to MPI quarterly. 
PepsiCo ANZ is supportive of the HSR and as of 2018 has started gradually
transitioning snacks and beverage packs. The HSR values of all snacks are
available on the company website.

Sanitarium has applied HSR to over 90% of its products, including breakfast
cereals (including portable), convenience, non-dairy milks, frozen desserts and
spreads. 
Unilever supports HSR in Australia and New Zealand, and has rolled it out to i
more than 100 SKUs in New Zealand. Its commitment to HSR is published on 5
its website. i
Foodstuffs is committed to rolling out HSR on all eligible private label products I
and as new products are launched or existing products are repackaged. It has
labelled 1,15?r private label products to date, a 94% coverage. Of these, 53%
rate 3.5 stars or higher. 
Countdown is committed to rolling out HSR on all eligible Own Brand products.
We have reviewed 1,089 products to date and currently 86% have the HSR on
front of pack, and almost half have a HSR of 3.5 or higher.

 

Almost one in five companies surveyed expected to reach 100% coverage of their

eligible product range with target times varying between mid-2019 and within two to three
years, but a quarter said this was not their expectation. Some 12% of companies said it
was under consideration, while 15% said it was not being contemplated.

185.

Reasons for not participating in HSR were variousiy given as product range not

covered or not applicable (eg restaurants), orthe system presented anomalies such as for
some beverages. For some, uptake or expansion was dependent on the outcome of the
5 year review, expected to be completed by the end of 2019.

188.

MPI commissioned a report from Colmar Brunton exploring issues such as what

motivates the packaged food industry to take up the HSR system on some or all of their
products, what are the barriers to uptake, and what would increase levels of voluntary
implementation. For those companies that are watching developments, their reasons
included no business case, lack of visibility of products in store, packaging logistics, and
perception of inherent flaws in the system. For companies that were ambivalent, the key
barriers were system knowledge, low involvement (time poor) and no tangible benefit to
the business (Colmar Brunton 2016). Industry supports a focus on consumer education
and as a result helps to create consumer demand, a more effective consumer education
campaign, providing evidence as to efficacy of HSR, and the need to capitalise on
influential others (nutritionists and media).

187.

The Taskforce sunrey asked if respondents promoted HSR to consumers and or

educated them on HSR. A quarter undertook promotion or education. The types of
programmes include:

website education and on pack education

in relation to introducing relabelling products, one company assesses HSR to evaluate
whether it is appropriate to reformulate to improve the HSR score

promote HSR and provide educational material on their website to inform consumers
what it is, how it was developed, how it works, and how consumers can use it

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

4?

I in product advertising as relevant.
plan to add to it to the company product information on the website while product labels
are being updated in line with other required label updates

I Sanitarium product packaging includes a website address to an HSR education piece
on the Sanitarium website. It is an article called ?What is the Health Star Rating on food
packaging??, and includes a video explaining the system

Menu labelling

188. The Food Regulation Standing Committee published a consultation report on menu
labelling in Australia in May 2018 {Food Regulation Standing Committee, 2018). This
considered the several systems operating in Australia. Since 2011, States and Territories
have had the choice to introduce legislation to mandate menu labelling in theiriurisdictions.
As at May 2018, New South Wales, South Australia, the Australian Capital Territory,
Queensland and Victoria had all introduced such legislation covering the food choices of
over 86% of the population. The key issue now being addressed by the Standing
Committee is consistency, exclusions, thresholds and form.

189. Generally, menu labelling in Australia has been supported, national principles need
revisiting to address inconsistencies, labelling needs to be on type of food sold not the
type of business. But there is disagreement as to the inclusion of cafes, restaurants and
convenience stores, a threshold of 50 or more outlets across Australia or 10 within a
jurisdiction, prescription for displays with changeability and creativity, differences as to
online versus point-of?sale information, kilojouie information preferred rather than an
interpretive system, and clarity and simplicity sought.

190. Fast food developments are emerging that do away with static menu boards.
Nonetheless, the form of delivery of labelling whether static or digital, should be considered
at the point of choice by the customer.

191. MSW Food Authority?s evaluation of its menu labelling programme for the programme?s
ability to change consumer behaviour demonstrated that "the median kilojoules purchased-
decreased significantly during the evaluation period (May 2011 to January 2013): an
overall reduction of 519kJ (from 3355kJ to 2836kJ, or a 15% decrease" (NSWFA 2013).
The evaluation went on to state that ?consumers noticed the new information in outlets,
there is a shift towards consumers having a better understanding of the average daily
energy intake, and some reduction in kilojouies purchased was observed".

192. There has been limited evaluation of effectiveness in Australia, but elsewhere this has
been a key feature. For example, in Ireland, menu labelling was introduced in 2012-13 and
has been evaiuated since then (McElroy et at 2016, Clements et al 2016, Ussher GD
2015). McElroy says "Displaying calories in food service cutlets has resulted in consumers
purchasing fewer caiories and this effect increases with time post calories menu labelling"
and Clements says that such labelling "increases awareness of the caloric content of food
and helps consumers choose foods with fewer calories".

193. A significant issue in Ireland was the calculation of calories, especially for SMEs. This
was addressed by the Irish Government developing a menu calorie calculator MAT
et al 2014, Douglas FE et al 2014, Kelly SM et al 2014). This could be part of a phased
approach in New Zealand.

194. A question in the Taskforce survey related to the use of menu labelling. This was not
applicable for almost 60% of respondents (eg primary producers, manufacturers), and of
the balance, 20% did use menu iabelling and 28% did not. Respondents were then asked
if they would label their menus as a mechanism to assist in addressing factors contributing

Food Industry Taskforce Final Report to Ministers - 20 Dec 2018

48

to obesity. This was not applicable for 65% of respondents, and of the balance, 23% said
they would not use menu labelling and 20% that they would.

195. The survey canvassed what else the industry could do if it did not embrace menu
labelling. This was not applicable to over half the respondents white others commented
that (verbatims):

 

. 

Il

Survey comments on menu labelling i

there is already enough on packs, ingredients COO, nutritional etc another i
requirement seems over the top .

. one company stated it was the first and oniy QSR to do this public facing on

menu boards

already provide detailed nutritional information for products across our menu

healthy serving options

label meals -

advise on healthy eating options if asked when customer is ordering

would only label menus with kilojoule values. A nutritional value breakdown of

the company?s core product was available on its website.

- company nutrition policy highlights the approach being taken to assist in
addressing obesity

0 do not provide menu options

0 nutritional information is on all packs

a cafeteria food and nutrition guidelines currently range of options including
salads, sandwiches, fruit, main meals including meat vegetables and
carbohydrate options small and large sizes available.

. have internal guidelines for recipes published on our website. We could possibiy
add nutrition info on these.

I an association offered the provision of general messaging around the role of
meat in a varied diet with plenty of vegetables 

 

 

industry examples of education and awareness

196. Fonterra has a page on its website to educate consumers as to what the HSR is, its
origin, how consumers can use it, and how it works.


19?. Nestle provides extensive information on HSR digitally. Links

do?they-mean-to-you-Ef

packaged-foods!

198. Nestle also provides information and client support materials for dietitians, including
portion toolkits, HSR pocket cards, healthy eating posters and brochures.

199. The Sugar Research Advisory Service (SRAS, which is supported
by NZ Sugar, has provided articles, latest news and developments on the HSR and links
to the HSR website for further information. it also provides the latest scientific research
that has been published in relation to the HSR.

200. Pegsico provides ongoing employee training and education across all functions,
including senior leaders. Transparent information regarding the snacks portfolio has been
on the company website since 2017. Pepsico actively participates in broader initiatives via
industry trade associations.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

4a

201. Sanitarium product packaging includes a website address to an HSR education piece
on the Sanitarium website. It is an article called iWhat is the Health Star Rating on food
gackaging?? which also includes a video explaining the HSR system.

202. Countdown includes HSR information on its website:


203. The August 2017 release of the Sanitarium Whoiicious Living electronic newsletter,
which was sent to just under 4,700 people with an open rate of about one-third. included
an article called ?lvlake a healthier choice with the health star rating?. This article now
features on the website and includes an illustration to demonstrate that only products
within category should be compared when using the HSR to choose a product. The full
HSR (star rating and icons) across its product range is also featured on the Sanitarium
website.

204. Mondale: International has resources available to health professionals and consumers
to educate them on the importance of ?mindful snacking-? These resources are based on
scientific research. have been developed with nutritionists and are designed to be easily
understood and practical for health professionals and consumers. 
Drosnackmindfulcomi.

 

205. The Beverage Council includes information on HSR on its website, including a link to
an video explaining how the rating works:


206. Some 73% of companies surveyed by the Taskforce supported continued consumer
education by the Government.

Other forms of nutrition information labelling

-207. Beef&Lamb flags those recipes it develops that-are low fat (less than 3gi1009), low in
sodium (less than 120mgl100g), a source of iron (10% RBI), and an excellent source of
iron (25% BeefSLamb has not recorded the proportion of recipes that meet these.

208. Countdown continues to roll out nutrition product information to its online shopping
website to help customers make more informed choices. Currently more than 10,000
products have nutrition information. Its recipes cards available in store new display dietary
and nutritional information to help customers make healthier choices

209. Dominos believes in being transparent with their customers to help them with their food
choices. This includes providing all relevant information relating to nutritionals, allergens
and additives clearly on its website to help customers choose food that fits into their
lifestyles.

210. Fonterra applies the mandatory nutrition information on all consumer-ready products
as per the Food Standards Code requirements. Its Food Service products also contain
nutrition information in the form of a HIP on packaging. This information can be found on
the Fonterra Anchor Food Professionals website:


211. Frucor applies on-pack nutrition information labelling across its portfolio. All Frucor?s
products comply with the Food Standards Code and carry a NIP (nutrition information
panel) which clearly states energy, protein. fat, carbohydrate, sugar and sodium values.
The Frucor website also contains this information in an easy?to-access format for its

Food industry Taskforce Final Report to Ministers 20 Dec 2018

50

QSR and food service customers. click on the individual products
for the nutritional information.

212. Foodstuffs supports the United Fresh and the 5+ A Day labelling programme, which
promotes daily consumption of 5+ servings of fruit and vegetables and which appears on
over 350 home label products.

213. Kellogg?s was one of the first companies to provide nutrition information panels on
foods. It led the way in developing and communicating the Daily Intake Guide on all packs
and was an early adopter of HSR. Products in the system are online. The company
provides information on the bene?ts of breakfast and cereal via various communication
channels.

214. Heinz Wattie's frozen 8: canned vegetable and canned fruit range have an on-pack
device 'Wattie's Fruit it Veg Each Day' indicating the number of fruit or vegetable serves
in the product.

215. McDonald?s provides full nutrition and ingredient information online
and on tray mats. Core packaging
includes nutrition infoilinks.

 

216. Nestle provides on?pack portion guidance on many products and on-pack serving
guidance for breakfast cereals and recipe bases. to encourage a healthy balanced
meal.

21?. ERAS provides the mandated labelling information for all its products which includes
sugars in the nutrient information panel, ingredients list and serving size information.

218- Sanitarium has full nutrition information panels available for each product on its website
as well as for all Sanitarium recipes. Sanitarium also has a booklet ?Healthy Eating -
Reading Food Labels' and website article 
on how to interpret food labels.

 

219. Unilever has a long history of providing clear nutrition labelling to consumers and. in
addition, provides the for energy on the front of pack, and for other nutrients in
the nutrition information panel.

220. Mondal?z International is a founding member of Be Treatwise? in Australia and New
Zealand. and its confectionery products display the logo. Be Treatwise? is a message to
educate and remind people that confectionery is a treat that is designed to be enjoyed as
part of a balanced diet and active lifestyle. Be Treatwise? labels include a message to
enjoy treats as part of a balanced lifestyle and a link to the Be Treatwise? website.

221. Coca-Cola New Zealand provides nutritional information on pack about all its products.
It has launched an online beverage comparison tool allowing comparisons of nutrient
information and product ingredients across its beverages. Over 95% of its vending
machines have energy {kilojoule} information panels and it highlights serves-per-pack on
the front-of?Iabel of multi-serve bottles (eg. 1.25L 5 serves) to show how many serves it
contains.

Recommendations for Labelling and of Heaith Star Rating System

Recommendation 44: Industry to identify actions, in conjunction with MPI. to encourage
greater uptake of HSR. This should encompass measures to encourage application on all

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

51

eligible products within a company?s product range ratherthan selecting a limited range. This
is intended to build further consumer familiarity and broaden application on supermarket
shelves. The measure to be the increase in uptake annually.

Recommendation 45: Industry to consider further actions necessary or applicable after the
outcome of the HSR 5-year review is announced in the latter half of 2019.

Recommendation 45: The Government to resource a further promotion and awareness
campaign for HSR commencing as soon as possible to build on the campaign that conctuded
mid-2018.

Recommendation MPI and industry to review the regulatory provisions for menu labelling
in various Australian States and Territories with a view to voluntary application of the best
elements in New Zealand. This review to be complete for implementation and 2019.

Recommendation 48: Fast food outlets to agree a voluntary approach to provide customers
with guidance on healthier eating optionstboth on menus and if asked) and nutrition
information by December 2019. Evidence of this might include reference in frontline training.

Recommendation 49: Companiesiassociations to voluntarily add nutrition information to
recipes they publish on-line. A baseline survey is necessary in order to assess progress in this
over time.

Recommendation 50: Industry to take on the recommendations that might result from the
developments of the Australia and New Zealand Ministerial Forum on Food Regulation
of Sugars on Packaged Foods and Drinks review.

Other Comments
222. Manufacturers within the Taskforce discussed taxes on sugar. There are a number of
models operating globally. The New Zealand Food Grocery Council has tracked
- developments in a number of countries and believes that taxes targeting a single nutrient
in a defined product range does not achieve the objectives of reducing the sale of particular
products.

223. In recent years, taxes on soft drinks have been introduced in Mexico, the City of
Berkley in California. and more recently in the United Kingdom and South Africa. In their
report. Sugar Taxes: A Review of the Evidence. the New Zealand Institute of Economic
Research (NZIER) found the evidence was weak for sugar taxes improving health
outcomes.

224. As part of its research, NZIER analysed 4? peer?reviewed studies and working papers
relating to sugar taxes and found that:
- estimates of reduced intake were often overstated due to methodological flaws and
incomplete measurements
i there was insufficient evidence to judge whether consumers were substituting other
sources of sugar or calories in the face of taxes on sugar in drinks
0 studies using sound methods reported reductions in intake that were likely to small
to generate health benefits and could easily be cancelled out by substitution of
other sources of calories; and
- no study based on actual experience with sugar taxes had identified an impact on
health outcomes.

225. Likewise. McKinsey Global institute?s 2014 report Overcoming Obesity." An initiai
Economic Anaiysis found that taxing sugar was one of the least effective interventions in

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

52

combating obesity. The study found that of 4D model interventions, taxation was not in the
top 10 interventions. and that the science supporting taxation as an effective policy
intervention was deemed weak. The McKinsey Global Institute instead stated that the most
effective way to combat obesity was reformulation, offering smaller portion sizes and
providing better education. These are all actions endorsed by the Food Industry Taskforce

226. Disincentivising the purchase of products containing high saturated fat, salt and added
sugar with gifts to children under 14 years is an area that was debated by the Taskforce
but no recommendation was determined since competitions generally require
parentalrguardian permission to enter.

22?. The Taskforce is keen to see a self-checking arrangement in place for assessing the
extent of action on the recommendations proposed in this Report. This could take the form
of inclusions in a Pledge or Scorecard arrangement or it could be added to an annual
reporting of some form to the Government. This remains an area to be explored further

Recommendation 51: The Taskforce deveiop a checklist of the recommendations to be
undertaken by industry for companies to seif?check and report against annually for the
Government.

Conclusion

228. The food industry, representing the processing and manufacturing industry, the retail
industry and the fast food. hospitality. restaurants, baking and service station sectors. has
engaged solidly in the work of the Food Industry Taskforce to enable delivery within less
than six months this Report on ?a package of practical measures that wilt make a
contribution to the broader range of government initiatives aimed at addressing consumer
knowledge and consumer healthier choices.? (Taskforce Terms of Reference,
Attachment A).

229. Throughout this Report. there?is reference to information and suggestions collected?
through an industry survey conducted in August and October 2018 from companies and
associations on practical measures taken or that could take in the future.

230. The more than 50 recommendations deliver this ?package of practical measures? in the
five main areas of: -
. Food and Beverage Formulation and Innovation
. Employee Health and Weliness Programmes
- Community and Education Initiatives
. Food and Beverage Marketing
Ir Labelling and the rollout of Health Star Ratings.

231. Three aspects are considered the highest priority activities for the industry:
Reformulation, the Health Star Rating system, and Education. While these are priorities.
the Taskforce has included a broad range of recommendations on the basis that as many
steps as possibie should be taken to address factors contributing to obesity rather than
limiting activity to a 'top three? or similar.

Reformuiation

232. Reformulating packaged foods. and developing new products that reflect reduced
negative nutrients and increased positive nutrients removes the need for the consumer to
change behaviour to get healthier foods they simply make a choice. The Taskforce
recognises this as a powerful way of addressing factors that contribute to obesity. To

Food Industry Taskforce Final Report to Ministers 20 Dec 2013

53

deliver this requires the expansion of reformulation targets, beyond the current targets,
into a broader range of categories. The Taskforce proposes that New Zealand pick up the
categories identified and the targets being developed in Australia so that there is trans-
Tasman alignment for products sold in both countries. The beverage industry is specifically
developing a boid new sugar reduction pledge, to be announced in the first quarter of
2019.

233- National Nutrition Surveys are needed to form an evidence base to set targets and
direct efforts for reformulation and education. Both the Children?s National Nutrition Survey
and the Adult National Nutrition Survey (last conducted in New Zealand in 2002 and 2008
respectively) need to be conducted again. Without these, we do not know the extent of
change in consumption patterns in the past one to two decades.

HSR

234. Companies have undertaken extensive reformulation on many of the estimated quarter
of the eligible packaged foods available that currently carry HSR. This has built on work
by the manufacturing sector, which has targeted sugar, salt and saturated fat overihe past
decade. The Taskforce focuses on expansion {increased uptake) and consumer education
but recognises thatthe 5-Year Review of the system, which is currently undenvay and due
for conclusion by the end of 2019, must be taken into account in this area.

Education

235. Education on nutrition and the deveiopment of cooking and shopping skills for children
is seen to create an intergenerational understanding of a balanced diet and how to best
deliver it. This extends to education on kilojoule information for menu boards in fast food
outlets and for recipes provided on industry websites.

236. Other recommendations in the Reformulation and Innovation area cover company
nutrition policies, serving and portion size, and uptake of the Be Treatwise? programme
in New Zealand.

237. With more than 760,000 working New Zealanders in the food industry, this captive
sector of the population already benefits from employer health and wellbeing initiatives.
The industry is very active and innovative in this area and this Report focuses on sharing,
expanding and developing programmes.

238. The food industry is active in the community, not only as an employer but in giving
back and support. This Report describes many of the programmes that deliver health and
wellbeing to New Zealanders, but most particularly to school children and young people.
Many national and local programmes are covered in Attachment E. Aside from
school-related educational recommendations, the Report focuses on sharing, expanding
and developing programmes. It also identifies the value of a food industry liaison point in
each of the Ministries of Health and Education to enhance coliaboration and joint work
especially in the development of resources for schools.

239. Also in relation to schools, the industry is seeking the Government's assistance to
address the sale of drinks other than waterto Primary and intermediate schools.

240. In marketing, steps that particulariy focus on children and young people have been the
primary focus. For food high in saturated fat, salt and added sugar, this includes expanding
the period of television viewing during which advertisements aimed at children are not to
be shown; restricting fixed site outdoor advertising (digital, billboard, sandwich board etc)
within 300 metres of the main gate of Primary and intermediate schools: and setting a
defined distance from Primary and Intermediate schools for store branding, subject to
discussions with convenience stores. Other marketing related recommendations cover

Food industry Taskforce Final Report to Ministers 20 Dec 2018

54

publication of company marketing policies and development of a schools sponsorship
policy, best practice in advertising and reporting, and review of the Food and Beverage
Classification System that underpins the Advertising Standards Authority's Chiidren and
Young Peopie?s Advettisfng Code.

241. This Report recommends that healthy eating options appear on menus and be
provided by frontiine fast food staff as part of their training on interacting with customers.
it also recommends that supermarkets with multiple checkout lanes provide a
confectionery-free lane.

242. Companies that signed the Government?s Healthy Kids industry Pledge scheme in
2016 reported to the Government for the 201? year, covering a number of the areas
covered by the Taskforce?s work. These companies and others have prepared ?Report
Cards? covering similar areas for this Report (Attachment F). For the future, and in addition
to reporting in specific areas, the Taskforce developed a checklist of the recommendations
to be undertaken by companies to assist them in self-checking and reporting annually to
the Government (Attachment G).

243. This Report is the culmination of an intense period of work by the food industry,
culminating in December 2018, the historically busiest period of the year for many in the
food industry. it signals the commitment of the industry to contribute many and varied
actions to address factors contributing to obesity in New Zealand and which are intended
to work in concert with other Government initiatives in areas outside the food industry,
such as sport, general education, promotion and awareness, literacy, cultural influences,
economic, demographic social and environmental issues and individuals? food choices.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

55

List of recommendations

Reformuiation and Innovation

Recommendation 1: Nutrition policies and guidelines should be public facing for food and
beverage companies including food manufacturers, brand owners and fast food service
interests with more than 10 outlets by 1 June 2019.

Recommendation 2: Industry associations work together to deveiop a nutrition policy
template for SMEs. to use in the future, by June 2019 and informed by governmentiNGO
positions.

Recommendation 3: The Government to proceed immediately to initiate a Children?s National
Nutrition survey to update the 2002 survey. While consideration might be given to phasing and
segmenting the survey to spread cost overtime, immediacy of commencement is vital for
reasons set out in the foregoing discussion.

Recommendation 4: The Government to schedule the conduct of an Adult National Nutrition
Survey as soon as possible to update the 2008 survey for ail the reasons set out in the
foregoing discussion.

Recommendation 5: The Government (lead), with the Heart Foundation and industry, agree,
where possible and appropriate, to adopting the same voluntary nutrient reformulation targets
identified by the Australian Heaithy Food Partnership in categories that align with the New
Zealand Heart Foundation Targets. Work on this should commence in early 2019 and targets
agreed by midv2019. Progress should be reported by December 2021. The measure would
reflect the percentage of target product by sales volume active in the reformulation to meet
the targets.

Recommendation 6: Where targets identified by theAustraiian Healthy Food Partnership are
in categories that do not align, consideration be given as to whether, and how best, these
might be adopted. This should be conducted in parailel with Recommendation 1, with the
Government (lead), the Heart Foundation,

industry and other expert groups reviewing the full completed list of Australian Healthy Food
Partnership targets during 2019 to identify additional targets that could commence in New
Zealand in 2020 and be reported on two years after commencement. The measure would
reflect the percentage of target product by sales volume active in the reformulation to meet
the targets.

Recommendation 7: To further accelerate the reduction of sugar New Zeaianders consume
from beverages the New Zealand Beverage Council finalises its all-new sugar reduction
pledge {20% by 2025) and launches it in the first quarter of 2019.

Recommenc?on 3: Foliowing the completion of each phase of the Children?s National
Nutrition Survey, the Government, the Heart Foundation and industry to review the categories
and associated targets to identify any adjustments appropriate for the New Zealand
population.

Recommendation 9: The Government and industry to agree on the definitions of ?serve?,
?serving?, and ?portion?, based on the Australian Healthy Food Partnership work in this area by
March 2019. The measure is agreement by the Government and industry.

Recommendation 10: The Government and industry establish principles to apply for
determining serving size by mid-2019 in line with the Australian Heathy Food Partnership work

Food lndustry Taskforce Final Report to Ministers 20 Dec 2018

56

(had been expected December 2018) The measure is agreement on principles by the
Government and industry.

Recommendation 11: Once principles for determining serving size are established, the
Government and industry develop and identify implementation strategies to adopt an
awareness campaign on portion guidance and serving size by December 2019. The measure
is an action programme of strategies, and levei of awareness achieved over current
awareness,

Recommendation 12: The Government and industry develop and adopt voluntary principles
and serving-size ranges (including for fast and snack foods) and establish a pledge
programme for uptake by December 2019, subject to review after a three-year period of
appiication. The measure is extent of pledges by industry.

Recommendation 13: Once principles for determining serving size are established, industry
develops a best-practice guide for serving size and portion guidance in line with the Australian
Heathy Food Partnership. This should provide guidance and support to food companies to
incorporate nutrition as a key driver in labeiling decisions regarding the size of servings and
the size of food and drinks offered. This could be part of wider guidance from the Austraiian
Healthy Food Partnership. Areas for guidance, relating to serving size and portion size,
inctude:

- Adopting consistent terminology

- Off-pack labeliing information

- Voluntary goals relating to serving size

- Promoting appropriate portion sizes

- Serving control devices in product presentation

. Advice about serving size in consumer communication material.

Recommenda_tion 14: The New Zealand Food 8: Grocery Council and the confectionery
industry identify strategies to further promote uptake of the Be Treatwise? programme in New
Zealand and raise awareness across consumers. The measure is an action programme of
strategies, and Ievei of awareness achieved over current awareness.

Employee Health and Weiiness Programmes

Recommendation 15: Industry to increase sharing and promoting health and wellness
programme best practice by increasing the presence on their websites of steps they are taking
and initiatives underway, Benchmark to be assessed from current websites of top 20 major
manufacturers by category volume and reassessed in December 2020,

Recommenc?on 16: Industry and the Government to further promote company and
government tools on health and weilness for smaller companies to draw on. The Government
to assist this process by ?pushing? ideas and successfui programmes out to food and beverage
companies they contact. This could be measured by reach and frequency of communication.
The measure to be a continuation and amplification of the Government?s programme
supplemented by an assessment of industry communication.

Recommendation 17: Industry and the Government to recognise and promote innovative
programmes that address to factors contributing to obesity through direct and indirect
communication channels. The measure to be reach and frequency of communication over two
years to December 2020.

Food Industry Taskforce Final Report to Ministers 20 Dec 2018

57

Recommendation 18'. Industry associations to identify initiatives to increase uptake!
penetration of offered health and wellness programmes within companies. The benchmark to
be nominated by industry associations and reassessed by survey in 2020.

Recommendation 19: Industry associations to develop a 'Small but Beautiful? minimalist
health and wellness programme for companies with 0?10 employees operating in the food and
beverage industry in collaboration with the Health Promotion Agency andior Ministries of
Health and Primary industries by December 2019. This programme to be rolled out to other
industries if successful.

Community and Education initiatives

Recommendation 20: Companies are encouraged to continue programmes, especially those
that have been demonstrably successful at improving the health and wellbeing of the
community.

Recommendation 21: Companies to expand community programmes where feasible or
devetop ways to join with other companies. associations, communities and other Government
initiatives to expand.

Recommendation g3: industry and the Government to promote (with associations) templates
of community programmes (that set out description, resourcing, ideas for implementation and
aspects to particularly consider} to increase uptake by more companies.

Recommendation 23: The Ministries of Health and Education establish industry liaison
positions as points of contact for the food and beverage industry to facilitate ongoing
engagement on community and education initiatives.

a: Ministries of Heatth and Education and industry develop Guiding
Principles for developing school resources.

Recommendation 25: The Government works with schools to encourage them to adopt a
water-only policy that supports the pledge made by New Zealand Beverage Councii members
to only supply bottled water to primary and intermediate schools.

Recommendation 26: Specific to the ?The Cooking Curriculum Project? developed by
Vegetables NZ and The Heart Foundation:
. By 2020, 80 of teachers of the cooking curriculum are using the resources and
tools to teach year ?i and 8 students to cook a meal
I By 2021. 80% of students at the end of year 8 are able to cook a healthy meal.

Recommendation 27: Companies are encouraged to prioritiseidevelop programmes or
content relevant and accessible to 'at risk' populations such as in low decile school areas (it
not aiready doing so. and as appropriate) in order to reach low socioeconomic communities.

Recommendation 28: Companies encouraged to prioritiseideveiop culturally relevant
programmes to Maori and Pacific as appropriate.
Recommendation 29: Industry to develop strategies to increase the number of companies

supporting NGOs in areas affecting obesity such as through partnering or social responsibility
investment.

Food industry Taskforce Final Reportto Ministers 20 Dec 2018

58

Recommendatjon 30: Associations to develop strategies to increase the number of
companies educating consumers online through their company websites.

Recommendatjon 31: Where initiatives are evaluated, companies form summaries which are
made public in order to show the levei of impact and as a means of encouraging others to
undertake similar programmes.

Food and Beverage Marketing

Recommendation 32: Amend the ASA Children and Young People?s Code to restrict fixed-
site outdoor advertising (digital, billboard. sandwich board etc) of high saturated fat, salt and
added sugar products within 300 metres of the main gate of Primary and Intermediate schoois
by 30 June 2019.

?accmmendation 33: Review with television broadcasters opportunities to expand the band
of afternoon viewing restrictions for high saturated fat, salt and added sugar food and
beverage outside school hours pre-Bpm by June 2019.

Recommendation 34 The Association of NZ Advertisers and companies to identity and
encourage adoption of best practice for controlling placement and targeting on
digitalfonlinefsocial media channels such asiuse of ?age gate? mechanisms and use of white
lists across the industry to limit inadvertent exposure to young audiences. ANZA to report on
progress mid and end 2019.

Recommendation 35: Industry to develop with convenience store representatives a policy for
store branding on convenience stores within a defined distance from Primary and Intermediate
schools by December 2019.

Recommendation 36: Industry to present an annuai report to Ministers and other
stakeholderson compliance with the ASA Code, both media placement and creative.

Recommendation 37: The Association of NZ Advertisers to develop a ?certificate of
compliance? recognising companies that complete accredited training and have in place
mitigation policies to ensure compliance with the ASA Code by 30 June 2019. This might
include training programmes completed by companies and their advertising agencies, use of
externai pre-vetting and mitigation and compliance steps taken in marketing-

Recommendation 38: ASA (lead), industry and the Government to proceed with a review of
the Food and Beverage Classification System in order to design a fit-forupurpose system within
12 months (2019) taking into account any impact from the outcomes of the HSR 5-year review.

Recommendation 39: New advertisements that may have high attractioniappeal to children
be subject to pre-vetting to ensure compliance, particularly where internal compliance
assessment may not be available, by 30 June 2019.

Recommendation 40: Industry, the Ministry of Health and the Ministry of Education, to
develop a policy on school sponsorship (sports, cultural, events} by December 2010.

Recommendation 41: Encourage companies to publish advertising and marketing policies

by 30 June 2019. The measure to be the number of companies with published advertising and
marketing policies.

Food industry Taskforce Final Report to Ministers 20 Dec 2018

59

Recommendation 42: The Association of NZ Advertisers to develop a template of responsible
advertising and marketing policy for those companies, particularly SMEs, that do not have
such a policy by 31 March 2019.

Recommendation 43: Companies with multiple checkout lanesto report on their
undertakings to provide confectionery free checkout lanes by December 2019.

Recommendations for Labelling and Rollout of Health Star Rating System

Recommendation 44: Industry to identify actions, in conjunction with MPI, to encourage
greater uptake of HSR. This should encompass measures to encourage application on all
eligible products within a company's product range rather than selecting a limited range. This
is intended to build further consumer familiarity and broaden application on supermarket
shelves. The measure to be the increase in uptake annually.

Recommendation 45: Industry to consider further actions necessary or applicable after the
outcome of the HSR 5-year review is announced in the latter half of 2019.

Recommendation 46: The Government to resource a further promotion and awareness
campaign for HSR commencing as soon as possible to build on the campaign that conciuded
mid-2018.

Recommendation 47: and industry to review the regulatory provisions for menu labelling
in various Australian States and Territories with a view to voluntary application of the best
elements in New Zealand. This review to be complete for implementation end 2019.

Recommendation 48: Fast food outlets to agree a voluntary approach to provide customers
with guidance on healthier eating options(both on menus and if asked} and nutrition
information by December 2019. Evidence of this might include reference in frontiine training.

Recommendation 49: Companieslassociations to voluntarily add-nutrition information to
recipes they publish on-line. A baseline survey is necessary in order to assess progress in this
over time.

Recommendation 50: Industry to take on the recommendations that might result from the
developments of the Australia and New Zealand Ministerial Forum on Food Reguiation
Labelling of Sugars on Packaged Foods and Drinks review.

Other Comments

Recommendation 51: The Taskiorce develop a checklist of the recommendations to be
undertaken by industry for companies to self-check and report against annually forthe
Government.

Food Industry Final Report to Ministers 20 Dec 2018

60

References

Advertising Standards Authority (2018) 201? Annual Report Released. ASA, Wellington,
2018. 

 

Advertising Standards Authority (2017) Decisions 201? 

Advertising Standards Authority (2016} Submissions received for the review of the Children's
Code of Advertising Food and the Code of Advertising to Children. Advertising Standards
Authority website 

Australian Bureau of Statistics. (2014) Australian Heaith Survey Netionat Nutrition and
Physicai Activity Survey Component. ABS, Canberra, Australia.

Berge JM, Wall et al. (2015) The Protective Role of Family Meals for Youth Obesity: 10-
Year Longitudinal Associations. Journai of Pediatrics 166(2) pp296?301. DOI:


Brammer S, Miliington A, Rayton B. (2005) The contribution of corporate social
responsibiltyto organisational commitment. Working Paper Series 2005. School of
Management, University of Bath, UK.

Children?s Codes Review Panel. (2016) Report on the review of the Chiidren?s Code for
Advertising Food and the Code for Advertising to Chiidren. Advertising Standards Authority,
Wellington.

Ciarke B, Svanaes S. {2014) Literature review of research on oniine food and beverage
marketing to chiidren: produced for the Committee of Advertising Practice (CAP). Family
Kids and Youth, London, UK.

Clements M, Feehan et al. (2016) Calories on menus and that ?Friday feeling?.
Proceedings of the Nutrition Society E89. 

Colmar Brunton. (201B) industry uptake of the heaith star rating system: a 
exptoration. Colmar Brunton, Wellington.

Commercial Approvals Bureau. (2018) CAB Classification


Doonan R, Field P. (201?) How nutrition sensitive are the nutrition policies of New Zealand
food manufacturers? A benchmarking study. Nutrients, 19: 9(12) pii: 
doi:10.3390inu9121373

Douglas FE, Williams SJ et al. (2014) Overcoming calorie calculation challenges for fried
foods within MenuCal?. Proceedings of the Nutrition Society E77

MAT, Douglas FE et at. (2014} Developing MenuCal? - a system to enable food
businesses to put calories on their menus. Proceedings of the Nutrition Society 
E92

Food Regulation Secretariat. (2018) CurrentActivities, Canberra, Australia
(accessed
24 October 2018)

Food Industry Taskforce Final Report to Ministers 20 Dec 2018