Proposed rules regarding food labelling could mean bad news for many of the UK’s small businesses, according to the Forum of Private Businesses.
The new rules would force producers to make nutritional information clearer on packaging and comes as lobbyists step up attacks on food contaianing high levels of fat, salt and sugar.
However, the FPB says proposed rules governing the promotion of and packaging of food, pharmaceuticals and drinks would cause problems for smaller manufacturers.
The new rules would mean companies would have to scientifically substantiate any health benefits claimed on the packaging of their product.
While larger manufacturers may be able to invest the time and money to do this, smaller businesses could struggle and may be left with no alternative other than closing down.
“It’s a sledgehammer to crack a nut. These ridiculous proposals will place an impossible burden on the UK’s small food producers and may force many out of business”, said Bob Salmon, FPB food advisor.
“They go way too far and could prove disastrous for small businesses, who could be faced with costs of between £25,000 and £250,000 to scientifically prove health benefits for their products.”
A vast amount of health foods and supplements are manufactured through small operations, often with little money left to spend on marketing and packaging.
Although the FPB has no problem with substantiating claims, it is worried that the level of scientific proof required from small producers will be way out of their budget and capability.
“Larger providers will be able to invest in scientifically verifying the claims, whereas the smaller producer won’t and will be frozen out of the market”, added Salmon.
