“What now?” for HFSS regulation

As a result of the Government’s new NHS 10 Year Health Plan, large parts of HFSS restrictions could be repealed. However, learnings from its implementation will be vital for businesses navigating the next chapter of health policy.

New NHS 10 Year Health Plan to tackle obesity epidemic

On 3 July the Government announced a suite of new measures to help tackle the obesity epidemic. “Fit for the Future”, the new NHS 10 Year Health Plan, includes wide-ranging activities, some new, others already planned (for more, read IGD’s health & sustainability team’s coverage).

Mandatory reporting on healthy food sales accompanied by target setting in particular have captured many of the headlines. These new measures could eventually supersede some of the HFSS restrictions that have dominated the health agenda of grocery retailing in England over the last few years.

The Food Strategy Advisory Board, a group of senior leaders from across the food system, will play a role in helping shape next steps for aspects of the plan relating to the industry.

HFSS restriction plans revisited

The Government’s plan outlines that ‘by introducing smarter regulation, focused on outcomes, we expect to repeal legislation restricting volume price promotions and aisle placement’.

Placement restrictions: introduced in October 2022, with potential to be repealed in the future. The restriction of packaged high fat, sugar, and salt products in 13 key categories from prominent locations has influenced store layouts, and been a catalyst for reformulation and NPD. However, lack of enforcement has been one of a range of contributing factors leading to instances of non-compliance.   

Volume promotion restrictions: planned October 2022, rescheduled October 2023, then October 2025, potential to be repealed in the future. The backdrop of the cost of living crisis drove the decision to shift the timeline for restricting multibuy promotions on in-scope products. However, in line with their own health strategies, both Sainsbury’s and Tesco voluntarily implemented changes in line with the 2023 schedule.

Advertising restrictions: originally planned for January 2023, rescheduled for January 2024, then October 2025, and finally January 2026, with voluntary introduction in October 2025. These plans have been reaffirmed within Fit for the Future. They will see in-scope HFSS products banned from advertising from a 9pm watershed for TV and on-demand programming, and a ban of paid-for advertising online.

Implementation of similar restrictions in other parts of the UK:  HFSS regulations restricting locations and promotions are scheduled to launch in Wales (Spring 2026) and Scotland (Autumn 2026).

Implications for industry

• HFSS implementation entailed high levels of time and investment, and as more details of the new policies emerge, the scale of the cost, complexity and regulatory burden of these new policies will be revealed.

• One aspect of this will be the updating of the Nutrient Profile Model (NPM) that underpins which products are classified as unhealthy. IGD’s senior health & sustainable diet manager, Hannah Skeggs, will unpack the implications in an upcoming article (get this in your inbox by signing up to our Health and Sustainability newsletter).  

• While long timelines are required for the scale of effort to deliver on these policies, they may also impede the sense of urgency to act now. On one hand, in areas such as mandatory health reporting, businesses are at different stages of readiness and accessing the data can be complex and expensive. On the other hand, without knowing how long HFSS placement and promotion rules might be in place in their current form, some businesses may be disincentivised to reformulate until there’s more certainty of what comes next  

• The level of consultation with industry needs to be an important differentiator of these policies to previous HFSS legislation. This is something many believed was not given enough consideration for HFSS, for example in helping set timelines, providing guidance to businesses and identifying loopholes.

• Flexibility on how to achieve sales targets will see businesses take different approaches to reach the same goals. Learnings from trials and the implementation of HFSS placement initiatives will be vital as part of developing new strategies.

Strategic freedom at the expense of simplicity?

Greater autonomy in how to achieve healthy sales targets offers industry more freedom to implement strategies and use tools within their own businesses. This will include activation through loyalty programmes, like Nectar’s popular Fruit and Veg Challenge. Setting targets will help health become an area of competitive advantage, and a requirement within teams’ objectives.

This approach should also help retain relevance in the long-term, something HFSS was already struggling with. The industry has shifted significantly in the years from launch of HFSS regulations to present day, for example the landscape of pricing and promotions, and the explosion of retail media in stores and beyond.  

However, the complexity of HFSS was already problematic; lack of data transparency and access was one of the reasons enforcement was so low. Communicating the nuance of rules across businesses was also challenging. As retailers develop and implement their own strategies, suppliers will face into different requirements, potentially increasing the burden on their teams.

Want to know more?

If you would like to stay updated on health news in the FMCG industry and informed about our upcoming report launches on how HFSS impacted purchasing and Levers of Population Diet Change, please sign up to our Health and Sustainability newsletter. 

IGD is acting as a co-secretariat for meetings of the Food Strategy Advisory Board comprised of senior leaders across government and the food system. Supporting the Department for Environment, Food & Rural Affairs with engagement across the food system, acting as a neutral convenor, drawing on its charitable status and commitment to public benefit.