Food labelling in South Africa is regulated by multiple government departments, which can make compliance complex. Updating labels to meet new regulations is expensive for manufacturers. While non-compliance can result in fines, some manufacturers and smaller retailers have yet to fully implement the necessary changes. Consumers are increasingly aware of their rights regarding labelling and instances of reported mislabelled products are growing. Industry players need to make a greater effort to understand and follow all applicable labelling rules.

1. an important role in enforcing labelling
legislation.
A matter of interpretation
However, this may prove difficult.“Food
labelling in South Africa is complex due
to food being controlled by a number of
different government departments,” says
Byers.
The Department of Health (DOH),
for example, is responsible for labelling
around additives and contaminants, while
the Department of Agriculture, Fisheries
and Forestry (DAFF) is responsible for
labelling around the Agricultural Product
Standards Act, the Meat Safety Act and the
Liquor Products Act, while the National
Consumer Commission has an overarching
responsibility for any misleading labelling
and advertising.
Furthermore, SABS regulates quantity
declarations for pre-packaged products
subject to legal metrology under the Trade
Metrology Act and the National Regulator
for Compulsory Standards controls certain
compulsory standards for tinned meat and
fish products.
If a manufacturer is labelling pre-
packaged fruit juice, for example,
containing ginseng and added vitamins,
then the label must comply with the fruit
juice regulations under the DAFF, various
regulations under the DOH and SANS 289.
“It comes down to interpretation –
different people interpret certain sections
of the regulations in different ways,” says
Horsburgh.
Some of the requirements conflict and
contradict each other, but in general,
the DAFF overrides.“The DAFF is very
good about providing advice concerning
implementation and interpretation of these
regulations, but the other regulatory bodies
are not accessible for this service,” says
Byers.
Implications of non-compliance
Although food labelling legislation can
be confusing and costly, non-compliance
can have serious implications for retailers
and manufacturers.“If prosecuted, a guilty
party can be fined R20 000 for a first
offence, R40 000 for a second offence, and
R80 000 for a third offence,” says Luterek.
Imprisonment and forfeiture of products
are also possible.“It’s enough to put a SME
out of business,” adds Byers.
Consumers are wising up to their rights as outlined by the CPA and, following the meat scandal,
report more and more incidents of mislabelled food.
It’s time for industry players
to get their cans in a line
By Simone Armer
In March 2012, the new R146 food labelling regulations came into
force and although not without controversy, the changes were largely
welcomed by consumers and retailers alike. More than a year later,
however, non-compliance remains an issue. Many manufacturers and
smaller retailers have still not fully invested in the changes that are
necessary to meet new industry standards.With more regulations on the
way, non-compliance is no longer an option.
Reasons for non-compliance
“Either smaller manufacturers are not
aware of labelling legislation or they
misinterpret certain aspects of it,” explains
Karen Horsburgh, consultant dietician at
Food and Allergy Consulting and Testing
Services (FACTS).“They may also overlook
certain aspects of legislation in order to be
competitive,” she says.
In addition, the cost of compliance is
high – laboratory testing is needed for
nutritional analysis, as is the assistance
of consultants and lawyers with legal
interpretations. Updating and changing
labels is expensive and some manufacturers
seem to only be willing to change their
labels when forced to do so.
“Regrettably, enforcement of R146 is
very poor at best,” says Janusz Luterek,
legal expert in the CPA and partner at
Hahn & Hahn Attorneys. Regulations are
compiled and published at national level,
and enforced at municipal level by local
environmental health officers.
“Unfortunately, they have a heavy
workload, so mislabelling is often not top
of mind,” says Horsburgh.“Training, human
resources and skills are limited at municipal
level and for this reason, enforcement is
poor,” adds Moira Byers, director of Chill-e
Food Consultants.
According to Horsburgh, it is expected
that competitors will report each other and
that this self-policing approach will play
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SUPERMARKET & RETAILER, JULY 2013
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2. 50 per cent of genetically modified (GM)
maize. Neither product was labelled to say
it contained GM food, despite a clause in
the CPA stating GM levels higher than five
per cent must be declared. One thousand
consumers signed a petition against GM-
maize and non-labelling of these products,
forcing the manufacturer to source non-
genetically modified maize for its products.
Later in May, another story concerning
food labelling made headlines in a local
community newspaper.A consumer alleged
that the sell-by date labels on a sandwich
she purchased from a forecourt had been
swapped.The manufacturer’s sticker stated
that the sell-by date was 14 May while the
forecourt’s sticker covering it claimed that
the product would be fit for consumption
up until 18 May.
PACKAGING, LABELLING,
BAR-CODING & SCALES
In terms of the R146 regulations, a label has to
contain the name of the foodstuff, the name
and address of the manufacturer, instructions
for use, a list of ingredients, special storage
conditions and the net contents of the
container.
In addition to the cost of compliance,
incorrectly labelled products may be
stopped at Port Health resulting in the
expiration of perishable products. Some
of the larger retailers are also starting to
refuse products that do not comply with
the regulations.
Careful with consumers
Consumers are also wising up to their rights
as outlined by the Consumer Protection Act
(CPA). Following the meat scandal, reports
citing mislabelled foodstuffs are becoming
more and more common.
In May, laboratory tests showed that two
popular baby foods contained more than
In June, a supermarket chain had to
publicly apologise after a consumer fed
her grandson a meal that was labelled
halal but whose contents showed the
product contained 49% pork.The matter
was investigated and it was found that the
food sold was halal but had been labelled
incorrectly.
The role of the CPA
The CPA is enforced through the National
Consumer Commission (NCC) and
the various accredited Ombudsmen.
Registration for accreditation is currently
pending for the Consumer Goods Council
and Services Ombudsman as well as the
Advertising Standards Authority (ASA)
Ombudsman, both of which would have
potential jurisdiction over labelling issues.
28
SUPERMARKET & RETAILER, JULY 2013
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Forthcoming regulations will introduce the concept of nutrient profiling
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In addition, there are provincial Consumer
Protectors and, in some provinces,
Consumer Courts.
“A consumer can lodge a complaint
with one of these bodies who would then
investigate the complaint. If it cannot be
resolved, the NCC has the power to charge
the offender before the National Consumer
Tribunal (NCT).The NCT can raise a fine of
up to 10% of the annual company turnover
in extreme cases,” says Luterek.There is
also the possibility of imprisonment of up
to 12 months for failing to comply with a
CPA compliance order.
In addition, the DAFF has inspectorates in
all provinces and has the power to order
the removal of non-compliant products
from sale and to prosecute offenders
criminally.The NRCS also has the power
to remove products from sale and to
prosecute offenders.
“We operate in a litigious society where a
philosophy of ‘guilty until proven innocent’
prevails and thus accurate labelling is vital
for retailers and manufacturers,” says Byers.
“The CPA does not favour the manufacturer
or the retailer,” she says.
The importance of the R146
Protection from liability and legal action
should be a significant motivation for
retailers and manufacturers to become
compliant, but the new labelling legislation
has additional advantages.
“Labelling legislation levels the playing
fields so that all manufacturers can make
the same claims,” says Horsburgh.“The new
regulations do not allow for misleading
claims and half-truths, and consumers
are therefore better protected than in the
past,” she says.
“It’s a standardised method of conveying
information to consumers. It allows for fair
comparisons between products and ensures
that information is not misleading or
ambiguous. Informed customers are happy
customers,” says Byers.
Positive impact
The implementation of the new legislation
has had a positive impact on some
companies, creating new opportunities for
them in the food industry.
“The new legislation allows us to partner
with our clients to develop and implement
a cost effective, accurate and reliable
method of goods identification,” says Karin
Parker, senior marketing executive of Zetes
South Africa.
Zetes has developed ZetesAtlas, a
manufacturing solution that gives clients
the important functionality of tracking and
tracing items throughout the supply chain.
“It is important for us that Zetes’ clients’
brands are protected and trusted by the
consumer. However, not everybody has
made the required changes as yet and a lot
of companies are still thinking of how to
do it, so it will take some time to roll out,”
she says.
29
SUPERMARKET & RETAILER, JULY 2013
Proposed amendments to dairy regulations
and recent amendments to fruit juice
regulations in the Agricultural Standards
Act are aimed at better alignment with
regulations falling under the DOH.
Updating and changing labels is expensive
and some manufacturers seem only willing to
change their labels when forced to do so.
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4. 30
SUPERMARKET & RETAILER, JULY 2013
PACKAGING, LABELLING,
BAR-CODING & SCALES
However, Marc Fryer, sales manager at Mettler Toledo Retail
Scale Division, says that scaling equipment has the ability to print
anything the client wants.“The possibilities are endless, from
recipes for food, to advertising and specials,” he says.
The demand for bigger labels is low, however, as it is costly for
manufacturers to move to a bigger size.“Until the market decides
that that is what it wants, it will remain stagnant,” says Fryer.“The
market is reactive, not proactive, so it is largely dictated by the
consumer – until they know more about their rights, it will be a
slow process,” he says.
Cutting costs
The area in which it costs retailers and manufacturers the most to
comply with labelling regulations is also an area in which they can
cut costs. Switching from coated to uncoated labels, for example,
can bring reasonable savings in the fresh produce department.
“It wouldn’t make sense in the butchery as the packaging is wet
and would probably have to be re-labelled, resulting in an even
higher price,” says Fryer. Coated labels do have a better shelf life,
but in departments where this is not a priority, the change could be
beneficial for retailers and manufacturers.
Although small, such savings will become increasingly important
as retailers and manufacturers are forced to find creative ways to
comply with food labelling legislation while also keeping customers
happy.“The costs of compliance will ultimately be passed on to the
consumer,” says Fryer.
Nutrient profiling
A second forthcoming phase of food regulations is expected to be
published for comment by the DOH in the near future.
“The new regulations will introduce the concept of nutrient
profiling as a means of limiting the types of foods and drinks
for which claims can be made.This already has been extensively
discussed with all affected parties and has generally been well
received.” says Nigel Sunley, owner of Sunley Consultants
Food labels
The new legislation has, however, affected food labelling itself.“The
demand for more nutritional information limits the visual
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Swapping coated labels for uncoated wouldn’t make sense in the
butchery, as the packaging is wet, but could save manufacturers quite
a bit in fresh produce.
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5. 31
SUPERMARKET & RETAILER, JULY 2013
displays unless bigger labels are used.The quality of the labels is
often the last decision and not necessarily a priority,” says Parker.
According to the DOH, nutrient profiling is the science of ranking
foods based on their nutrient composition.The process aims to
benefit both the consumer and food manufacturers by ensuring
that claims do not mask the overall nutrient content of food
products.
“We believe that the requirement for manufacturers to comply
and retain the trust of the consumer will increase when the ability
to identify, validate and trace ingredients in products becomes
imperative. Recent enquiries highlight the urgencies and accuracy
the nutrient profiling scheme requires.An example of lack of
traceability is the recently exposed ‘meat scandal’,” says Parker.
Future landscape
“What is a complete unknown, and a cause for some trepidation,
is the nature of the mechanisms that will be put in place to assess
the acceptability of the claims themselves,” says Sunley.
It is not known whether the authorities will develop a system
specifically for South Africa or whether they will simply choose
to adopt an existing system such as that of the European Food
Safety Authority (EFSA), which has a reputation for using extremely
stringent and demanding approval criteria, according to Sunley.
“Whatever the proposals from the DOH may be, the food
industry is hoping that a proper process of consultation regarding
the new regulations will be undertaken.The process followed for
phase 1 of the regulations gave rise to considerable dissatisfaction,”
says Sunley.
Additional regulations
Other forthcoming regulations are the proposed amendments to
the Dairy regulations and recently promulgated amendments to the
Fruit Juice regulations in the Agricultural Standards Act. Many of
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Laboratory testing in terms of nutritional analysis is costly
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these with a view to improving the current
regulatory systems.
It is essential for retailers and
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Scales today are capable of printing anything from recipes for food to advertising
and promotions, but few retailers take full advantage of it.
PACKAGING, LABELLING,
BAR-CODING & SCALES
these are aimed at better alignment with
regulations falling under the DOH.
This is to be welcomed by the industry
having to comply with different labelling
requirements from different government
departments.
“There is a much needed rationalisation
of both the regulatory systems themselves
and, very importantly, their related enforce­
ment processes which are currently dis­
jointed and often ineffective,” says Sunley.
The bottom line
Despite costs of compliance, the
lack of enforcement and the risk of
misinterpretation, the food labelling
regulations are here to stay.
The recent furore over meat species
identification has prompted a broad-based
government initiative to review the current
status of food regulations in South Africa.
A major workshop was recently held in
Pretoria at which government and industry
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