Discussions with Food Manufacturers and Restaurant Chains on Food Product Characteristics and Labeli

1
Discussions with Food Manufacturers and
Restaurant Chains on Food Product Characteristics
and Labeling
Presented atFAMPS Economics of Obesity
Conference Washington, DC March 11,
2004 Presented by Mary K. Muth, RTI David Zorn,
FDA Katherine Kosa, RTI
P.O. Box 12194 3040 Cornwallis Road
Research Triangle Park, NC 27709Phone
919-541-7289 Fax [phone]
muth_at_rti.org www.rti.org RTI International is
a trade name of Research Triangle Institute.
2
Motivation and Background

• FDA and DHHS were interested in obtaining
  information from food manufacturers and
  restaurant chains about what FDA could do using
  labeling, claims, or other incentives to
  influence the characteristics of foods produced
  or served in the context of weight management
  goals.
• This project was one of several short-term
  studies funded by DHHSs Office of the Assistant
  Secretary for Planning and Evaluation.
• The results from this project provided
  information to support the Obesity Working Group
  formed by FDA Commissioner Mark McClellan on
  August 11, 2003.

3
Methodology for Discussions

• Developed lists of discussion topics through
  several iterations with DHHS and FDA
• Identified food manufacturer contacts with the
  assistance of Dr. Bob Smith (former head of RD
  at Nabisco)
• Medium-to-large food manufacturers, including
  ingredient suppliers
• Identified restaurant chains using an on-line
  database, Chain Restaurant Operators
• Quick service, casual dining, fine dining
• Kept identity of all participants confidential

4
Limitations of the Study

• Discussions were qualitative and open-ended.
• Discussions were not intended to be
  representative of the industry as a whole.
• Contacts were based on convenience not on
  random sampling.
• Some discussions were based on input from several
  people in the company, and others were based on
  one persons input.
• Implications Information from the discussions
  should be viewed as suggestive but not
  representative.

5
Economic Concepts

• Decisions to offer foods consistent with weight
  management depend on whether producers believe
  the expected private benefits of offering such
  foods will exceed private costs for
• Reformulating existing foods
• Creating entirely new foods, including line
  extensions
• Expectations about private benefits and private
  costs depend on
• One-time costs of formulating or reformulating
• On-going costs of production
• Consumer responses to product formulation and
  labeling attributes
• Expectations about competitors reactions

6
Food Manufacturers Areas of Discussion

• Current food offerings and technical product
  formulation issues
• Effects of labeling regulations on food offerings
• Consumer use of labeling information
• Policy suggestions for FDA

7
Food Manufacturers Product Characteristics and
Reformulation

• Most companies consider taste and other
  characteristics to be more important than calorie
  targets in product formulation decisions.
• Several companies are actively evaluating the
  nutritional profile of existing and new products,
  including setting nutritional guidelines for
  product characteristics.
• Challenges in reformulating foods to contain
  fewer calories include the following
• Consumer expectations for taste and texture of
  foods need to be maintained.
• Certain signature foods cannot be changed
  without negative consumer responses.
• Products, especially entrees, must provide some
  level of satiation.

8
Food Manufacturers Reformulation Barriers

• A few companies have encountered barriers to
  marketing products with lower fat and calories
  because of standards of identity (SOI).
• Manufacturer suggestions
• Modify SOIs to allow for innovation in product
  development, especially for recipes.
• Allow gradations for claims other than low or
  reduced to help some companies produce SOI
  products with fewer calories.
• Costs, availability, functionality (taste and
  texture), and side effects of sugar and fat
  substitutes are barriers in their use.
• Manufacturer suggestions
• Improve the approval process (faster and easier)
  for sugar and fat substitutes.
• Advocate use of sugar and fat substitutes.

9
Food Manufacturers Low- and Reduced-Calorie
Claims

• Currently, foods must have 40 or fewer calories
  to be labeled as low calorie.
• Manufacturer suggestion Allow 80 to 90 calorie
  foods to be labeled low calorie to encourage
  development of more products in this range.
• Many companies will reduce or would reduce
  incrementally the level of fat or calories in
  existing products, but their incentives are
  reduced because they cannot include a claim about
  the reduction.
• Manufacturer suggestion Allow claims for small
  (5 to 10 percent) caloric reductions OR for x
  percent caloric reductions when x lt 25 percent.

10
Food Manufacturers Nutrition Facts Panel and
Caloric Balance

• NFP has too many lines devoted to fat, causing
  consumers to focus more on fat than calories, and
  does not indicate a daily value for calories.
• Manufacturer suggestion Modify NFP to focus
  more on calories, including adding a daily value
  for calories.
• Consumers do not understand the relationship
  between weight gain and excess caloric intake.
• Manufacturer suggestion (a few) Allow
  pictorials on packages to illustrate caloric
  balance.

11
Food Manufacturers Serving Sizes

• Many companies believe
• Consumers consider some multiple serving packages
  to contain a single serving.
• Serving sizes are not realistic and are not
  equivalent to what most people eat.
• Different serving sizes across categories of
  foods make comparisons difficult.
• Manufacturer suggestions
• Require number of servings on front of package.
• Require packages that appear to be a single
  serving to be labeled as one serving.
• Modify serving sizes to be more equivalent to
  what people eat and to allow for more direct
  comparisons across product categories.

12
Food Manufacturers Food Product Claims

• Some companies believe
• Consumers prefer nutrient content and
  structure/function claims rather than health
  claims on foods.
• Nutrient content claims related to calories on
  the front of packages would likely affect
  consumers purchasing decisions.
• Manufacturer suggestions
• Expedite the claims approval process.
• Allow more flexibility in use of nutrient content
  claims related to weight management.
• Allow use of clear and direct structure/function
  claims (without excessive disclaimers) related to
  weight management.

13
Food Manufacturers Other Policy Suggestions

• FDA should form partnerships with CDC and USDA to
  develop a unified weight management message.
• Develop a government Web site that provides
  information to consumers about appropriate food
  choices.
• FDA should encourage manufacturers to
• make small incremental reductions in caloric
  content of foods and
• promote physical activity directly on packaging.

14
Restaurant ChainsAreas of Discussion

• Current food offerings and technical product
  formulation issues
• Nutrition information on menus and effects of
  customer responses
• Policy suggestions for FDA

15
Restaurant Chains Menu Items and Calorie
Content

• Many restaurants offer lower-calorie menu items
  but often do not identify them.
• Most restaurants rarely consider calorie content
  when determining menu offerings.
• Challenges in offering lower-calorie menu items
• Fats and sugars provide flavor in foods, and
  customers prefer a lot of flavor when dining out.
  
• Customers want value at restaurants thus,
  restaurants provide large portions.
• Signature food items cannot be reformulated
  without adverse customer reaction.
• Customers do not want fat and sugar substitutes.
• Restaurants do not manufacture their own foods.
• Restaurants need to work with existing space and
  equipment for any new menu offerings.

16
Restaurant Chains Methods of Providing
Nutrition Information

• More than half of restaurants already provide
  nutrition information in some format.
• Some restaurants offer guidance for particular
  types of weight loss diets or medically
  restricted diets.
• Restaurants said that menus would be too large,
  and menu boards would be too overcrowded if
  information was required in these formats.
• Also, some restaurants have frequent (up to
  daily) menu changes.
• Restaurant suggestion If nutrition information
  is required, allow restaurants to provide
  nutrition information in a variety of
  formatsbrochures, printed receipts, posters,
  notebook at counter, hand-held server device, 800
  number with phone in restaurant

17
Restaurant Chains Methods of Determining
Nutrition Content

• Use of different food suppliers in different
  parts of the country means nutrition content
  varies.
• Software for estimating nutritional content does
  not contain all ingredients used, especially for
  ethnic foods.
• Individual serving amounts at restaurants vary
  substantially.
• Many customers customize their orders.
• Restaurant suggestion Provide guidance on how
  to determine nutrition content, including
  acceptable labs and analysis procedures.

18
Restaurant Chains Other Policy Suggestions

• Focus on educating consumers about eating in
  moderation, caloric balance, and ability to
  customize orders.
• Emphasize that small changes help.
• Some restaurants said they would help FDA
  distribute education materials.
• Allow flexibility in how different types of
  restaurants respond to requirements for nutrition
  informationfine dining restaurants should not be
  categorized with quickservice restaurants.