Country of origin branding – the issues and how to leverage
this important asset
Presentation by Ian Harrison, Chief Execu...
Outline of presentation
 A few comments about the Australian Made, Australian Grown
(AMAG) logo, the campaign behind it (...
The AMAG logo in brief
 Certification trade mark created by the federal Govt in 1986:

legally enforceable set of rules ...
Australian Made, Australian Grown logo family

GLOBAL BRAND
DOMESTIC BRAND

??
Campaign growing
1900
1700
1500
1300
1100
900
700
500
02/03

03/04

04/05

05/06

06/07

07/08

08/09

Total licensees

09...
Strong corporate support – Campaign Partners
Logo recognised and trusted
100%

98%

98%

94%

86%

85%

88%

75%

50%

25%

0%

2006

2009
Recognition

2012
Trust
(Roy...
Key marketing messages
 The AMAG logo is the solution for shoppers looking for
genuine Australian products and produce.

...
Domestic Marketing Campaign





TV, radio, print and outdoor advertising to shoppers.
extensive PR.
trade shows and e...
Export promotions
 Ongoing program since 2004.

 Jointly funded by federal Govt, 2004-2010.
 Research  promotions  re...
PARKnSHOP Hong Kong, Feb/March 2010

Seoul Food Expo, South Korea, 2013

Arab Health, Dubai January 2012

Big 5, Dubai Nov...
World Expo, Shanghai China, 2010 - retail bags for Australian pavilion,

Expo 2012
Yeosu, Korea
Australian Pavilion
Asia Fruit Logistica – Hong Kong , Sept 2012

Winter Fancy Foods, San Francisco 2010
(G’Day USA)
NTUC FairPrice Singapore,
September 2013
Overseas registration of the logo
 Registered CTM in USA & China, registered TM in South
Korea and pending CTM in Singapo...
Country of origin branding is important
 Australia has a very strong nation brand
 generally a positive in market places...
The challenge always is how to best let shoppers
know the product is ‘Australian’


The kangaroo works:





Trust iss...
Turning now to the current issues in food labelling
and how the system can be simplified going forward
Quick overview of current requirements


Australian Consumer Law (ACL) sets out definitions and
requirements for claims s...
Overview of current requirements (contd)


The Food Standards Code (FSC) requires a CoO claim on
all packaged foods and u...
Overview of current requirements


An unqualified ‘Made in Australia’ or ‘Australian Made’
claim requires that the produc...
Overview of current requirements


‘Qualified claims’ such as ‘Made in Australia from local
and imported ingredients’ are...
Food labelling reform needs to go further


A country of origin label is required for most foods but
not for some, eg req...
Exclusions - ‘substantial transformation’ of foods


In 2011, AMCL amended the rules for using the logo
with an ‘Australi...
Exclusions - ‘substantial transformation’ of foods
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

packaging or bottling (new)
size reduc...
What needs to happen next


Mandatory country of origin labelling should be
required on all food products.



And, for t...
What needs to happen next


Clear and unambiguous regulations governing CoO
claims for food products should be set out in...
What needs to happen next


The ACL should be amended to include specific
provisions on the use and wording of qualified ...
What needs to happen next


Australia does not have an official symbol that its
businesses can use to signify genuine Aus...
The Australian community working together to promote its
products and produce to the world
What constitutes ‘Australian made’?
Product must meet 2 tests:
 Product needs to have been substantially transformed (not...
‘Product of Australia’
 All the significant ingredients grown in Australia
 All the significant processes undertaken in ...
‘Australian Grown ......’ qualified claim
 ≥50% of cost of production in Australia
 ≥ 90% of total ingoing weight grown ...
‘Australian Seafood’
 Must be a seafood product
 All of the products significant ingredients are
grown/harvested in Aust...
‘Australian’
 Must meet all the criteria of at least one of
the preceding claims
 Only for use on goods sold outside Aus...
Ian Harrison - Australian Made - Country-of-origin branding: the issues and how to leverage this important asset
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Ian Harrison - Australian Made - Country-of-origin branding: the issues and how to leverage this important asset

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Ian Harrison, CEO, Australian Made delivered this presentation at the Food Regulations and Labelling Standards Conference.

Informa's annual Food Regulations and Labelling Standards Conference is now in its 15th year and continually provides a platform to discuss the ongoing issues in food policy

For more information about the event, please visit the conference website: http://www.informa.com.au/foodregs2013

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Ian Harrison - Australian Made - Country-of-origin branding: the issues and how to leverage this important asset

  1. 1. Country of origin branding – the issues and how to leverage this important asset Presentation by Ian Harrison, Chief Executive, Australian Made Campaign Food Regulations and Labelling Standards Conference 2 December 2013
  2. 2. Outline of presentation  A few comments about the Australian Made, Australian Grown (AMAG) logo, the campaign behind it (Australian Made Campaign Ltd or AMCL) and the logo’s use in Asia  Why is country of origin branding important  What are the current issues in food labelling and how can the system be simplified
  3. 3. The AMAG logo in brief  Certification trade mark created by the federal Govt in 1986:  legally enforceable set of rules govern its use  products must be registered with AMCL to use it.  Assigned to Australian Made Campaign Ltd (AMCL) in 1999  not-for-profit, public company set up for that purpose by the business community through the ACCI  not a branch of Government.  Ownership of logo transferred to AMCL in 2002  binding management deed in place with federal Government → the federal Government is the beneficial owner of the AMAG logo.  Campaign is funded by licence fees  1/10th of 1% of sales of ($300$25K pa, + gst)  not funded by Government
  4. 4. Australian Made, Australian Grown logo family GLOBAL BRAND DOMESTIC BRAND ??
  5. 5. Campaign growing 1900 1700 1500 1300 1100 900 700 500 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Total licensees 09/10 10/11 11/12 12/13
  6. 6. Strong corporate support – Campaign Partners
  7. 7. Logo recognised and trusted 100% 98% 98% 94% 86% 85% 88% 75% 50% 25% 0% 2006 2009 Recognition 2012 Trust (Roy Morgan Research)
  8. 8. Key marketing messages  The AMAG logo is the solution for shoppers looking for genuine Australian products and produce.  When shoppers see the logo, they can buy with confidence  clean, green, healthy, fresh, etc  high standards, good value, fitness for purpose, readable instructions, warranties, etc.  Buying Aussie products puts $s back into the local economy  jobs, training opportunities, wealth, etc.  Focus is on where the is product made/grown/processed, not on who owns the shares in the company  Ownership important, but can be distraction from CoO.
  9. 9. Domestic Marketing Campaign     TV, radio, print and outdoor advertising to shoppers. extensive PR. trade shows and expos. comprehensive website and social media strategy:  developing our online community into a marketplace for shoppers and licensees.  enormous support from major retailers.
  10. 10. Export promotions  Ongoing program since 2004.  Jointly funded by federal Govt, 2004-2010.  Research  promotions  research  USA, Canada, Dubai, HK, Bangkok, China, Singapore and UK  worked closely with Austrade (incl secondment)  selected retail & trade promotions continuing.  Extensive research clearly establishes the success of the logo as Australia’s global product symbol.
  11. 11. PARKnSHOP Hong Kong, Feb/March 2010 Seoul Food Expo, South Korea, 2013 Arab Health, Dubai January 2012 Big 5, Dubai November 2009
  12. 12. World Expo, Shanghai China, 2010 - retail bags for Australian pavilion, Expo 2012 Yeosu, Korea Australian Pavilion
  13. 13. Asia Fruit Logistica – Hong Kong , Sept 2012 Winter Fancy Foods, San Francisco 2010 (G’Day USA)
  14. 14. NTUC FairPrice Singapore, September 2013
  15. 15. Overseas registration of the logo  Registered CTM in USA & China, registered TM in South Korea and pending CTM in Singapore.  Establishes formal presence of the logo in each country.  Provides legal framework in each jurisdiction for protection of the logo and therefore the products carrying it.  Plans for further 7 Asian countries.
  16. 16. Country of origin branding is important  Australia has a very strong nation brand  generally a positive in market places everywhere for a product or service to be recognised as ‘Australian’  and this can generate a much-needed premium for Australia’s exporters and import-competitors alike.  In an environment where increased costs and a high $AUD have seriously undermined the competitiveness of many Australian products, country of origin is an asset we should be driving much, much harder.  The alternative? - the loss of more processing and manufacturing capacity.
  17. 17. The challenge always is how to best let shoppers know the product is ‘Australian’  The kangaroo works:    Trust issue with ‘Australiana’ labelling. The AMAG logo is seen as official. With Australia’s strong nation brand, it is a powerful global marketing tool as well as a CTM.
  18. 18. Turning now to the current issues in food labelling and how the system can be simplified going forward
  19. 19. Quick overview of current requirements  Australian Consumer Law (ACL) sets out definitions and requirements for claims such as ‘Made in Australia’, ‘Grown in Australia’ and ‘Product of Australia’.  The ACL is policed by the Australian Competition and Consumer Commission (ACCC).  The ACCC has in the past published guidelines on CoO claims in general, and a range of specific industries including food and beverage.  The ACL does not require any product to carry a CoO claim, but if it does, it must be truthful.
  20. 20. Overview of current requirements (contd)  The Food Standards Code (FSC) requires a CoO claim on all packaged foods and unpackaged seafood, fruit, vegetables and most, but not all (?), meats  includes fresh, frozen, cooked, pickled, cured, dried and smoked product.  The FSC relies on the CoO definitions of the ACL.  Food Standards Australia & New Zealand is responsible for the FSC, but not for enforcement  this rests with a range of national, state, territory and local government bodies.  Too many players?
  21. 21. Overview of current requirements  An unqualified ‘Made in Australia’ or ‘Australian Made’ claim requires that the product be ‘substantially transformed’ in Australia, with 50% or more of the cost of producing or manufacturing the product being incurred in Australia.  The ACCC guidelines which provided more information about what may or may not be considered ‘substantial transformation’ have now been withdrawn.  The guidelines needed review, but not withdrawal  examples of change needed - bacon, crumbed fish, roasted coffee beans, blended fruit juices, etc
  22. 22. Overview of current requirements  ‘Qualified claims’ such as ‘Made in Australia from local and imported ingredients’ are allowed, but not covered anywhere in the legislation.  No administrative mechanism to allow a business to obtain a definitive answer as to whether it may safely claim that a product is ‘made in Australia’  may hesitate to make a CoO claim for fear of prosecution.
  23. 23. Food labelling reform needs to go further  A country of origin label is required for most foods but not for some, eg required for beef but not for kangaroo  inconsistent and confusing.  The rules for ‘Australian made’ include ‘substantial transformation’, which is unclear and subject to interpretation.  No access to a definitive answer as to whether a product meets the ‘Australian Made’ criteria.  Food Standard in CoO labelling was revised in July this year, but still does not cover all unpackaged foods.  The ACCC has withdrawn its guidelines for food.
  24. 24. Exclusions - ‘substantial transformation’ of foods  In 2011, AMCL amended the rules for using the logo with an ‘Australian Made’ claim on food products to specifically exclude a number of processes from meeting the ‘substantial transformation’ test.  Further amendments to the Code are currently before the ACCC, including additions to this list of exclusions.  The full list of processes currently nominated by AMCL as not meeting the ‘substantial transformation’ test for using the Australian Made logo on food products is:
  25. 25. Exclusions - ‘substantial transformation’ of foods • • • • • • • • • • • • • • • • packaging or bottling (new) size reduction – cutting, dicing, grating, mincing, etc. (new) reconstituting – e.g. of fruit juice concentrate (new) freezing, canning or simple preserving processes associated with packaging mixing or blending of food ingredients, where the resulting product is not substantially different to the separate ingredients juicing – extraction of juice from fruit homogenisation pasteurisation (new) seasoning marinating coating – as in crumbing prawns or battering fish fillets pickling (new) dehydrating/drying (new) fermentation – e.g. in the production of wine, cider or salami (new) curing – the treatment of meat with curing salts, as in ham or bacon roasting or toasting – e.g. of coffee beans, nuts or seeds.
  26. 26. What needs to happen next  Mandatory country of origin labelling should be required on all food products.  And, for the benefit of both businesses and consumers, the rules should be consistent, clear and as simple as possible with:  one set of rules for all States and Territories  one set of rules for all types of products (food and otherwise)  rules to apply equally to all types of food products
  27. 27. What needs to happen next  Clear and unambiguous regulations governing CoO claims for food products should be set out in a specific consumer product information standard under the ACL.  Regulations should be considerably tighter than the current guidelines in the area of what processes are considered to constitute substantial transformation  the AMAG Logo Code of Practice could be used as a starting point.  Manufacturers should be able to apply to an official body to obtain a ruling on whether their product meets the criteria for a particular country of origin claim.
  28. 28. What needs to happen next  The ACL should be amended to include specific provisions on the use and wording of qualified claims.  These should include a prohibition on the use of the words ‘Made in ...’ or equivalent, where the product does not meet the unqualified ‘Made in ...” test  ‘processed in’, ‘blended in’, etc., but not ‘made in’.
  29. 29. What needs to happen next  Australia does not have an official symbol that its businesses can use to signify genuine Aussie products  the AMAG logo is obviously the de-facto occupier of this space.  Australia should have such a symbol and it should be the AMAG logo  nothing wrong with a bit of consistency  e.g. Canadian maple leaf  New political climate – hopeful for action on a number of fronts, including food labelling.
  30. 30. The Australian community working together to promote its products and produce to the world
  31. 31. What constitutes ‘Australian made’? Product must meet 2 tests:  Product needs to have been substantially transformed (not simple assembly or packaging) in Australia AND  50% or more of the cost of production must have been carried out in Australia. Both tests must be met
  32. 32. ‘Product of Australia’  All the significant ingredients grown in Australia  All the significant processes undertaken in Aust ‘Australian Grown’  All the significant ingredients grown in Australia  Not exported and re-imported  All the significant processes undertaken in Aust
  33. 33. ‘Australian Grown ......’ qualified claim  ≥50% of cost of production in Australia  ≥ 90% of total ingoing weight grown in Australia  ≥ 50% of total ingoing weight must be the specified goods (eg apples & pears)  100% of specified ingredients (apples & pears) grown in Australia  Specified ingredients (apples & pears) not exported and re-imported APPLES & PEARS
  34. 34. ‘Australian Seafood’  Must be a seafood product  All of the products significant ingredients are grown/harvested in Australia  All, or nearly all, of the processing has been carried out in Australia
  35. 35. ‘Australian’  Must meet all the criteria of at least one of the preceding claims  Only for use on goods sold outside Australia  Must not give a misleading impression as to the origins of the major ingredients or components of the product

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