Understanding Canada's New Packaging Regulations

Welcome to our newsletter, Market Basket Musings.? Did you know that one of the most impactful government initiatives aimed at reshaping the American diet took place during the 1940s — a time when meat was scarce? The American Government partnered with anthropologist, Margaret Mead, to lead a Committee on Food Habits, tasked with identifying and overcoming the reluctancy of Americans towards organ meats.? Pork and beef were sent overseas to feed soldiers while domestic households were encouraged to use organs, previously disregarded as mere byproducts. This shift influenced the dietary habits of Baby Boomers, who were raised in an era where offal consumption was normalized.

Fast forward to today, where a Canadian Government campaign is underway that aims to protect consumers from foods that are high in sodium, sugars, or saturated fats. Studies have shown that consuming foods that are high in these three categories could put you at risk of obesity, heart disease, stroke, type 2 diabetes, high blood pressure, and some forms of cancer. ?This initiative presents a pivotal moment for brands, particularly those that have opted for alternatives like coconut oil over canola oil. They are going to have to make some crucial business decisions: either revert to less favourable ingredients or prominently display the new Front-of-Package (FOP) symbol.

Health Canada quietly introduced these regulations on July 20, 2022, but the industry has been given until January 1, 2026, to ensure compliance.? We anticipate that these regulations will significantly impact brands, stressing the importance of preparation and discussion before bottlenecks emerge in the industry.? With deadlines looming, brand owners are urged to avoid last-minute rushes to printers, designers, and consultants which could lead to non-compliance at the deadline.

After sharing a brief post on March 16th, we recognized the importance of digging a little deeper into the intricacies of these regulations through a detailed newsletter.? The gist of it is this: If your product has 15% or more of the daily recommended value (DV) of sodium, sugar, or saturated fat, you will have to display a front of package symbol on the top 50% of your packaging. ?However, there are two scenarios where exceptions apply:

• For prepackaged products with a?reference amount (which we will describe in more depth later) equal to or less than 30 g or 30 mL, the symbol must appear when the amount of saturated fat, sugars and/or sodium is greater than or equal to 10% of the applicable DV.
• For prepackaged?main dishes?with a reference amount equal or greater than 170 g (when intended solely for children one to four years) or equal to or greater than 200 g (when intended for children and/or adults), the symbol must appear when the amount of saturated fat, sugars and/or sodium is equal to or greater than 30% of the applicable DV.

There are a few categories that are prohibited from displaying the symbol which include:

• Products intended solely for infants six months of age or older but less than one year of age
• Human milk fortifiers
• Human milk substitutes (infant formula)
• Foods represented as containing a human milk substitute
• Formulated liquid diets
• Meal replacements
• Nutritional supplements
• Foods represented for protein-restricted diets
• Foods represented for low (naming the amino acid) diets
• Foods represented for use in a very low energy diet

In order to determine whether you need a FOP symbol or not, you will need consult the government’s reference amount for your specific product category and compare it to your serving size.? Utilize the greater of the two amounts for calculations. For instance, if the government’s reference amount is 250ml but your product’s serving size is 355ml, base your percentages on the larger serving size. However, when the reference amount is small (under 30g or 30mls), then the threshold is reduced to 10% of your DV, irrespective of your serving size.? For example, if you have a 45g beef jerky stick, but the government reference amount is 30g, your threshold reduces to 10% but you must still use the 45g to calculate your daily values.

There are two primary categories of exemptions under these regulations:

1.????? Full Exemptions: These encompass items deemed too small (less than 15cm2) to accommodate the FOP symbol, goods packaged in shipping containers not intended for direct sale to consumers, food intended for commercial use as ingredients or in dishes, products sold solely as sweeteners or salt, milk packaged in glass containers, fats and oils, and military rations.

2.????? Conditional Exemptions: This category typically applies to items already exempt from displaying a nutritional facts table, including alcoholic beverages, raw single-ingredient meats and fish, retail products requiring preparation beyond water addition, goods sold exclusively at farmer's markets, individual servings intended for immediate consumption, products with retail packaging featuring stickers and a display surface of less than 200cm2, or those with available display spaces of less than 100cm2. Additionally, certain items like frozen, canned, or dried vegetables, liquid or powdered animal milk, eggs, nuts, seeds, and butters with less than 30% of their total fat as saturated fat, vegetable or marine oils containing less than 30% of their total fat as saturated fat, or marine animals fall under conditional exemptions. However, these exemptions may be nullified if specific ingredients, such as salt in canned beans or flavored syrups in yogurt, are added to the products.

The government provides precise guidelines regarding the placement of the symbol on your product, with detailed specifications available here. The Principal Display Panel (PDP) serves as the focal point for the symbol's placement. As a general rule, the FOP symbol should occupy the upper 50% of your PDP, especially when the height equals or exceeds the width. This ensures visibility of the symbol and compliance with regulatory standards.

Now that you understand the basic premise of the regulations, let’s run through some examples, shall we?

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Single Serve Bag of Chips:

Let's analyze our bag of chips: weighing in at 42g, it boasts 1.5g of saturated fat (8% DV), 290mg of sodium (13% DV), and 0g of sugar. At first glance, these levels seem compliant, but hold on – the Government's reference amount for a bag of chips is 50g. This necessitates converting our figures accordingly. To do so, divide the sodium content (290mg) by the serving size (42g) to yield 6.90mg per gram. Then, multiply this by the reference amount (50g), resulting in a revised sodium level of 345.24 mg. Comparing this against the government issued daily values (2300mg), our new sodium percentage stands at 15.01%. Consequently, the sodium levels surpass the threshold, requiring us to display the symbol on the front of our package. Moving on to saturated fats, the recalculated total comes to 9%, falling below the declaration threshold. Therefore, our FOP symbol will solely indicate the elevated sodium content.

Beef Jerky Stick:

Let's revisit our beef jerky stick example, which weighs 45g. Given that the government's reference amount is 30g, our threshold is adjusted to the 10% level. With a sodium level of 300mg (equivalent to 13% DV) for the 45g serving, it becomes necessary to feature the FOP symbol denoting high sodium content. Additionally, our product contains 3g of saturated fat. In comparison to the government's 20g recommendation, our product exceeds the threshold, representing 15% of the daily recommended value for saturated fat. Consequently, our symbol must convey "high in saturated fat | sodium."

Now, you have grasped the concept of reference amounts vs serving size amounts and how to calculate your thresholds, let’s consider the principal display panel and how it would apply to your product.

Frozen Waffle Box:

Let’s explore the scenario of a box of waffles, which can be positioned either vertically or horizontally in the freezer. ?The brand needs to determine what side constitutes the PDP, in this case it would likely be the horizontal format, and affix the symbol accordingly.? It needs to be on the side of the package that is “displayed under customary conditions of sale”. Since the height of the PDP is less than the width, the symbol will appear on the right-hand side of the product.

There are hundreds of other specific examples that are beyond the scope of this newsletter. If you have specific questions, we suggest you reference the government website pages at:

Labelling Guide

Table of Daily Values

Compendium of Nutrition Symbol Formats

While the new Front-of-Package (FOP) regulations might seem overwhelming initially, rest assured that with the guidance provided in this newsletter and by referring to specific examples on the Government’s website, you’ll be able to navigate them effectively.

We trust that you found value in this edition of Market Basket Musings, where we explore interesting topics in the CPG world. If you think this new regulation is going to affect a brand you are familiar with, please share this information with them. Follow our LinkedIn page for more industry news, information, and tips: Salud Brand Management LinkedIn.