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| Wednesday, 21 April 2004 |
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Impact of new food regulations on consumer food marketing by Shenika Sugathapala, Senior Consultant/Business Strategist, SMI Business and Development Consultants and Allied Services The authorities and the Health Ministry should be commended for the new Food Labelling and advertising Regulations in force from October 1, 2004. As a Marketing/Business Practitioner attached to the Sri Lankan food industry for the last one and a half decades at both consumer level as well as at industrial Level, I fully appreciate the steps taken to protect the Sri Lankan consumer. This move nevertheless, is no doubt a challenge to the Sri Lankan Food Marketing and Advertising fraternity. Serious thought should be given to content of the regulations and its impact on the products, quality aspects, packaging and distribution, channels. Distribution at supermarket or a neighbourhood grocer. Food claims on packaging and advertising It is finally the consumer who feels a sense of security when purchasing food items hence the Health Ministry and its authorised organisations are now going to actively monitor all products and issue approvals based on production of certificates and relevant supporting evidence to such claims. However, this should not be limited to a few paper certificates, it must have direct links to the production of actual products be it local produce or imported products (procedure adopted by the customs with regard to imported products may be used here too, if it's planned in such a manner) Now a days if you visit a supermarket you will see merchandise with various claims. These claims range from life longevity to diet claims and many more. These claims are pre-dominant in nutraceuticals, diet-foods and general foods targeted at healthy lifestyles. "Date of manufacture" - Mandatory in food labelling is an excellent move to ensure the freshness of foods consumed in the country. I know this will be quite a challenge to the Fast Moving Consumer Food (FMCG) Marketing Companies at a later stage, when consumers are educated to look for the date of manufacture specially with the growing trend in supermarkets in the country, which facilitate this by having self-service purchasing. Hence, the message to FMCG Marketing Companies is that they should be ready for the emerging trends and be more active to ensure produce moves fast from the supermarkets and grocer shelves the entire marketing team, factory, stores, field sales force and agents/distributors will need to be geared to cater to such trends, start from the basics, make sure your stores is practising proper First In First Out (FIFO) let your consumer decide which brand moves first from your dealer may be your dealer will facilitate this, how are you going to induce the supermarkets to support you.... Be prepared for the Emerging Consumerism! Role of just-in-time, first-in-first out If more companies are encouraged to practise these concepts in more industries, achievements of freshness in packeted/branded food marketed in the country will be an end result of such concepts/processes. Hence companies have to draw up plans ranging from production, procurement warehousing, marketing, field sales, channel management to form an integrated well orchestrated plan to achieve freshness at the final point of consumption, without limiting to increased promotional activities to achieve high brand recall rates. Test marketing of new products and research and development studies too have a greater role to play in this regard, specially with products carrying short shelf life ie certain fruit drinks and papadam. Manufacturers dealing with end consumers directly such as bakery chains and ice cream parlours can certainly provide fresher food with the practice of relevant productivity enhancement concepts, they will benefit commercially with practices such as Just-in-Time ie purchasing on a weekly/daily basis and corresponding production and sales. Import/export trade and globalisation We witness an array of imported food products in the Sri Lankan market and this scrutiny will ensure that all imported food products are safe and moreover freshness at the point of consumption. These steps will no doubt prepare for globalisation and its positive as well as negative effects. All in all, when it comes to FMCG/Food Marketing/Advertising Fraternity, these changes will be challenges to some and will be inspirations to the 'Creative'; are they problems in your Work/Business life or are they opportunities to stand-ahead. It's your choice. |
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