Liz Lalor, Sydney, Bord Bia – Irish Food Board
Australia is in the midst of an obesity crisis, with two thirds of adults and a quarter of children overweight or obese (obesity statistics). Australia and New Zealand have introduced the health star rating (HSR) scheme to help tackle this problem. The food and drink industry can also play a role in tackling this issue, through product innovation and using the HSR to provide a clear simple health ranking of their product. Is there an export business opportunity for Irish products to fit in with the consumer lifestyle trends of busy on-the-go millennials wanting convenient healthy food and beverage options?
The Australian beverage sector is one which has been receiving attention in connection with the obesity battle. Sugar reduction and reformulation is at the heart of the healthy beverage sector. The HSR provides consumers with an at-a-glance overall health rating of packaged beverages. This helps take the guess work out of shopping and make smarter choices when it comes to buying packaged food & drink products. The voluntary system uses stars, from half to five stars and is in its’ fifth year of implementation.
The scheme is definitely a step in the right direction, however there are areas for refinement. Products which receive a low star rating, can choose not to include it on their packaging. Therefore, the fact it remains optional, delays the implementation of what could be a useful measure for customers. In addition, the calculations for each food category and each product do not take into account ingredients such as preservatives, additives, colours and flavours. A 500ml bottle of fruit juice can contain almost 12 teaspoons of sugar, for the average person this can equate to your total daily intake of sugar in one drink. Under this Australian and New Zealand scheme fruit juices can receive a five star rating. This is concerning and misleading for customers purchasing juices very high in sugar.
When it comes to healthy and nutritious drinks that don’t compromise on taste, the product offering in Australia is very small. Some products claiming to be healthy still contain 5 teaspoons of sugar per serve. The giants of the industry are trying to compete with the shifts in consumer trends and create innovative product offerings to fit in with healthy life-styles. In Australia beverage companies have committed to reducing sugar across portfolios by 20% by 2025, with Coca-Cola being one of them. In Australia Coca-Cola company have acquired Australia’s Organic & Raw Trading Co., which produces organic kombucha beverages. This is the first time Coca-Cola have acquired full ownership of a brand in the kombucha category, which is the fastest growing beverage sector in Australia.
The link between what you eat and drink and how your body performs is now at the forefront of mind for many. With such rapid changing trends due to the plethora of digital information available, NPD cycles which are on the long side may be deemed too risky to invest in, without proof that the trend is here to stay in the long term. Smaller more agile companies are likely to play a key role in business offerings due to their ability to react quickly to shifts in the market. There is an opportunity for Irish producers to tap into this market. Particularly if they can utilise the HSR to stand out on the shelf and gain that competitive edge.