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On the Agenda
The Ad Industry Softens Towards HFSS Regulations
The King's Speech confirmed that the Labour Government will move forward with food ad restrictions as planned, but is the industry ready?
25 July 2024
Rules around the advertising of food and drinks high in fat, salt and sugar (HFSS) will be introduced next year despite a new UK Government being in place, with the advertising sector on notice for 1 October 2025. And while the rules will never be popular with the industry, executives appear to have mellowed in their views to it over time.
Originally proposed in 2019 by the former Government, the much-criticised restrictions have been repeatedly delayed; now last week's King’s Speech confirmed that Prime Minister Kier Starmer intends to see them finally introduced next autumn.
The measures include a restriction on the promotion of HFSS products by volume price - buy one, get one free and multi-buy offers - as well as the introduction of a 9pm watershed for TV and online ads for HFSS products. Similar restrictions are currently also under review in Scotland and Wales, with consultations launched in recent months too.
Initially, the announcement of the planned rules was unsurprisingly heavily criticised by the advertising sector, with HFSS brands being traditionally some of the highest-spending advertisers. And there was a clear defence: the evidence for the restrictions improving health was not robust. Now the industry is getting ready to deal with the reality of the restrictions the changes to come.
A surprisingly welcome response
Welcoming the confirmation in the King’s Speech, Stephen Woodford, CEO of the Advertising Association, says that it shows that the new administration is taking “swift action” having listened to industry concerns around the need for clarity on the regulations.
“The introduction of secondary legislation will enable the Advertising Standards Authority to create guidance on what can and cannot be included in advertisements from 1 October 2025. It will also provide important information including the full list of products in the scope of the restrictions. All of this will help ensure that businesses are compliant from day one,” Woodford says.
"Our role is to help our brands reach their audiences in a responsible way and support them through their change efforts."
Jessica Tamsedge, CEO of Dentsu Creative
The Internet Advertising Bureau (IAB) has been particularly critical of the measures proposed, although it has been positive around the delays that were made available.
“The fact that all of the evidence suggests that it will achieve next to nothing in reducing childhood obesity is by-the-by to a Government that has chosen to pursue the easy option over smarter solutions that would actually work,” IAB CEO Jon Mew has stated on several occasions.
Mew has also claimed the cost of the online ban to the ad industry directly to be circa £1 billion, while the wider cost to the UK economy has been estimated at £2.3 billion.
The IAB this year also proposed an exemption for audio content including content accessed via an app or website with visual or audio-visual support. And Mew has also been more positive with each postponement to support industry implementation.
Agencies Manage to see some positives in the measures
Chris Mellish, group CEO of Unlimited and TMW, also offers a positive perspective that the measures will work while pushing brands to evolve their product offerings to remain relevant to consumer needs.
He explains that insights from Unlimited's Human Understanding Lab has been helping brands to tailor their messages and their offers to meet consumer desire in the moment, while also enhancing engagement and loyalty - proof that agencies are ably supporting clients around the incoming measures.
"Creating meaningful experiences and rituals around their products will help foster deeper connections with consumers," Mellish reckons, "whilst the most successful brands will ensure that their distinctive assets are front and centre. But recognising that not all product categories are alike in consumption habits is crucial; some products are impulsively purchased, while others form integral parts of daily routines or rituals. By understanding these contexts and consumer needs better, brands can effectively communicate their value propositions via the right channels at the right time."
Jessica Tamsedge, CEO of Dentsu Creative, says that her agency has been working with its HFSS clients to prepare them for the change, continuing to build brand love and trust no matter the limits.
“Our role is to help our brands reach their audiences in a responsible way and support them through their change efforts," Tamsedge explains. "'Change' means anything from reformulation to portfolio strategy, to messaging that encourages portion control, and sharing moments." Though Tamsedge admits there's still “a lot of ambiguity” around the rules.
The industry is hoping that ambiguity is overcome when the government releases secondary legislation that will include any exemptions and further details around marketing limitations.
“As always, the devil is in the detail," Tamsedge adds. "For example, the rules draw a distinction between paid and organic social so we have been working hard on the role of organic social to build community and trust in our clients’ brands. And we have been doing the same in the first-party data space, creating games and experiences that invite audiences to build relationships with brands. All this is not to circumnavigate the spirit of the law but to reinforce brand trust at a time when many of our clients will be innovating and launching new, healthier products or entering adjacent categories."
And of course, some brands and marketers are more optimistic than others. Take Sam Maguire, UK head of marketing for food and drinks brand Rude Health, who believes that the implementation of the rules should see businesses and government work together in a bid to improve the health of the nation.
“Whilst this regulation won’t solve Britain’s over-reliance on HFSS foods and drink, it is a step towards encouraging a more balanced diet for the population: a point of view that Rude Health has strongly held since it started 18 years ago,” Maguire says.