Wednesday, August 10, 2016

Is this a pro-health initiative? It could be a pro-profit initiative in disguise.

Bloomberg reported today that the U.S. Food and Drug Administration (FDA) recently ordered up new nutrition labels that will list not just how much sugar is inside, but whether that sugar was naturally occurring or added later.  Initially, this seems like a great thing.  When we purchase a granola bar with fruits and nuts, we will be able to discern see how much sugar was naturally in the dried fruits versus how much sugar was added after the fact to make the bar.  We would also be able to see that although an apple has the same amount of sugar as a candy bar, that the apple has all natural sugar versus all added sugar.

There was a prediction made by health advocates that this legally mandated disclosure would be followed by companies offering less-sugary foods; they were correct.  One well known company, Kind, has already introduced well-advertised, less-sweet fruit and nut bars in response to this new initiative.  It is likely that other companies will follow shortly, especially ones that have built their brand and reputation on being healthy or healthier than their alternatives.

But, is this really an initiative that helps consumers make better choices?  This does not provide any new news.  There are numerous studies out there that blatantly state any sugar is still sugar, regardless if its natural, raw, or refined.  Those same reports inform consumers that a apple, for example, still has a lot of sugar, although natural, and individuals that are focusing on sugar-less or minimum sugar diets should still avoid apples.  (We can debate this claim of course - it is an entirely different, debatable topic.)  In this same example, consumers should know that any food bar has added sugar which is obviously not natural.  So from the consumer end, maybe seeing it on the label will finally prompt smarter choices.

However, the untold truth here is that most consumers are blissfully satisfied with what is marketed instead of doing their own careful research. When the products that they've always purchased (regardless of whether they are healthy or unhealthy, full of sugar or not) will now push a campaign to advertise a new version that has less or reduced sugar, some consumers could very well eat more.  The result I foresee is that the consumers that didn't care before, still will not care.  The consumers that cared before and didn't buy may now purchase the newer, healthier product.  The consumers that cared before but still bought anyway will still buy and perhaps buy more.  In considering that there is less sugar (less cost), sales and profits could very likely increase for these companies as a result.

This is most likely not the intention of the FDA, but instead, a very likely outcome.