Upcoming new EU novel food rules

Starting in February 2025, updates will apply to all novel food applications submitted to the European Commission. The European Commission tasked the European Food Safety Authority (EFSA) with updating the guidance on how to prepare and submit applications to market novel foods in the EU. This update consists of two key documents: 

The first is scientific guidance, detailing the necessary scientific data that applicants must submit. The second, administrative guidance, outlines the step-by-step process for submitting applications, managed by EFSA’s front-desk support team.

These changes are crucial for businesses, including those in the emerging sector of cell culture-derived foods. Since the initial rollout of novel food regulations in 2018, substantial data has been gathered, enabling EFSA to refine its approach and specify clearer definitions and data requirements. This evolution aims to enhance the quality of applications and improve efficiency in the review process.

EFSA maintains a nine-month timeframe for completing risk assessments. By providing more comprehensive guidance at the outset, the hope is to reduce the need for further back-and-forth between applicants and EFSA, thereby expediting approvals.

Once EFSA grants approval, companies will need to consult with the European Commission and relevant national or local authorities to ensure compliance with marketing and labelling requirements.

Retail buying alliances on the rise: Eurocash and EMD expand

Wholesaler Eurocash Group in Poland has set up a purchasing alliance among its local retail chains associates. The alliance is called Równi w Biznesie (Equal in Business) and includes 15,5000 franchise and partner stores.

This move comes in response to the intensifying price competition within the country and the growing dominance of discount chains. By analysing disparities in product offerings between supermarkets, discounters, and local stores, Eurocash aims to empower its partners with stronger negotiating leverage for better trading terms.

On the international front, the European Marketing Distribution (EMD) group has expanded its reach by welcoming South Korean Lotte group as a new associate member. Lotte is one of the largest retailers in South Korea, with branches in China, Indonesia, Japan and Vietnam. It has a turnover of around €50 billion. The retailer is also involved in convenience chain 7-Eleven. 

Lotte wants to further develop its own brand with the help of EMD. For European members of the association, the collaboration offers potential opportunities for the introduction of Asian concepts.

The EMD alliance consists of 14 members and partners, covering 250 grocery retail chains in 18 countries, representing 56,000 points of sales, cumulating a potential consumer turnover of €175 billion in Europe.

Packaging 2025: Navigating the Future of Innovating Solutions

The use of plastic has faced increasing scrutiny across industries as consumer awareness of environmental impacts grows. Nowhere is this more evident than in food and drink packaging, a sector under immense pressure to align with evolving consumer expectations and comply with new governmental standards. To stay competitive, innovation will be crucial in finding practical, sustainable alternatives to traditional plastic.

Eco-Conscious Consumers Shift Buying Behaviours

A report by Mintel highlights that 30% of consumers would be influenced by a rating scale indicating a product's environmental impact. This shift towards sustainability has tangible effects on purchasing habits; in Germany, 36% of shoppers prioritised minimally packaged products in 2024.

Key Packaging Trends Leading Up to 2025:

1. Reducing Plastic Usage

The most straightforward trend centres on cutting down plastic usage in packaging. While a complete ban on plastic is not feasible due to its essential protective and preservative properties, companies are actively redesigning packaging to minimise material use. This approach helps balance sustainability with practical needs, tapping into a growing consumer demand for eco-friendly solutions.

2. Challenges with Circularity and Refill Systems

Circular packaging and refill schemes are gaining traction, yet they come with their own set of challenges. These initiatives demand a significant change in consumer habits, but they present a way for businesses to meet eco-conscious expectations. Recyclable packaging can address plastic waste concerns and bolster brand image. Supermarkets are experimenting with such measures; for instance, Asda’s introduction of refill stations has proven popular, reinforced by a "refill price promise" that makes these products more economical than their pre-packaged counterparts.

3. Tackling Food Waste with Smarter Packaging

While plastic pollution garners significant attention, food waste is another environmental issue that cannot be ignored. Packaging must strike a balance between sustainability and functionality by ensuring products stay fresh for as long as possible. This aspect presents an opportunity for companies to highlight how their packaging contributes to reducing food waste and extending product shelf life. Brands with shelf-stable goods can benefit by better communicating these advantages to consumers.

Looking ahead, industry experts, including Benjamin Punchard, Global Packaging Insights Director at Mintel, will explore these developments in detail at PLMA’s upcoming Packaging Conference on 30 January 2025 in The Hague, offering valuable insights for retailers and manufacturers aiming to stay ahead in the evolving packaging landscape. For more information about the conference click here.

Supermarkets harness the power of TikTok for growth

The rapid rise of TikTok as a marketing tool has transformed how retailers, particularly supermarkets, engage with customers. The platform provides an avenue to highlight unique products, showcase innovative recipes in an engaging format, and even attract tourists to stores abroad that have gained popularity through viral trends.

One prime example is a simple cucumber salad recipe that amassed over 15 million views, leading to a surge in demand and cucumber shortages in supermarkets. Marks & Spencer (M&S) has also seen significant traction on TikTok, notably with its Big Daddy chocolate bar. Individual M&S stores across the UK have delighted audiences by participating in popular TikTok challenges, including lip-syncing and dancing during working hours, offering a glimpse into store culture and boosting brand visibility.

Rossmann has created a special channel for its popular own brand Isana: @isana_rossmann. The new face of the TikTok presence, which will significantly shape the channel as a content creator, is now being sought. The search for the new Isana Face is closely accompanied via the social media platform. This form of recruiting as well as the created vacancy are unique in the industry to date.

Tesco has taken a strategic approach, incorporating TikTok trends into its in-store features, such as salad creation stations and “High in Protein” displays, mirroring the platform's healthy eating fads. “This trend is driven by younger consumers, particularly on social platforms like TikTok and Instagram, where influencers share protein-rich recipes and highlight their nutritional benefits,” a Tesco spokesperson noted.

TikTok has revolutionised product discovery for Gen Z shoppers, reinforcing its role as a powerful driver of marketing success. Retailers have an opportunity to engage this audience not just with food but with experiences, novelties, and recognising that young consumers want to feel seen. In addition, many have let their store staff to post authentic relatable content.

Danish non-food chain accelerates expansion

Søstrene Grene had its strongest financial result in the company’s history in the latest financial year, according to its CEO, Mikkel Grene. The Danish company increased sales by 22% and profit went up 15%.

Its stores offer a wide assortment of home interiors, kitchen items, hobby articles, beauty, travel items, party supplies, gift wrapping, stationery, toys as well as seasonal items. Every week, new products land in stores. Prices are low, most products are sold under 10 euros.

The concept is different from other non-food discounters in that the atmosphere in the stores is special, focused on aesthetics and ambience, appealing to the customers’ senses. Goods are on wooden shelves and wicker baskets, with warm light and delicate colours. The layout draws the consumer into the depths of the store, while the sense of time is quickly lost. Almost all the items in the store are own brands.

After the strong results of the past 52 weeks, the company now wants to take the opportunity of the momentum and expand its network of over 300 stores to a targeted 500 stores within the next three years. The company operates stores and web shops in 16 European countries.

Countries, big brands strike out at popular Nutri-Score

Despite its widespread appeal, Nutri-Score has faced pushback in several countries, including Italy, Romania, Greece, Cyprus, the Czech Republic, and Hungary. Authorities in these nations argue that the system unfairly penalizes traditional products, such as those commonly found in the Mediterranean diet. Critics contend that Nutri-Score oversimplifies food evaluations by focusing on select nutritional factors, which can distort consumer understanding of a product’s overall health value.

In addition to governmental objections, major brands like Danone, Heineken, Unilever, and Arla Foods have expressed reluctance to adopt Nutri-Score on their product packaging. These companies argue that the algorithm used to calculate the scores doesn’t align with their national dietary guidelines, or that recent changes to the system have downgraded their products to lower categories, resulting in what they believe to be unfairly low scores.

Nutri-Score, a front-of-pack label (FOPL) system, uses a color-coded, traffic-light-like design to rate the nutritional quality of packaged foods based on their fat, sugar, salt, and calorie content per 100 grams or millilitres. A “Green A” signals the healthiest option, while a “Red E” represents the least nutritious.

Recent revisions to the Nutri-Score system have reclassified dairy and plant-based beverages. For example, solid yogurt, considered a meal food, is classified differently from drinkable yogurt, which is viewed as a beverage often consumed between meals, moving it from the general food category to the beverage category. This shift had a significant impact on product ratings, as the algorithm applies different nutritional criteria depending on the product category. As a result, certain dairy products that previously held high ratings of “A” or “B” dropped to lower ratings of “D” or “E,” largely due to their sugar content or the use of alternative sweeteners.

In the beverage category, only water maintains the top rating of a “Green A.”

Packaging at crossroads

The forthcoming EU Packaging and Packaging Waste Regulation (PPWR) is set to reshape the packaging landscape across Europe. The new legislation aims to drastically reduce packaging and packaging waste and will be implemented gradually starting mid-2026. It establishes ambitious goals for manufacturers and retailers, impacting both branded products and private label.

A turning point for packaging! A new era for packaging! Revolutionary! Game-Changing! Experts keep on finding new words to express what an immense change this law will bring. The final version of the law is expected to be published before the end of this year, officially setting the timeline for implementation. So, how will the PPWR impact the private label sector? The answer is clear: it will significantly alter how packaging is designed, consumed, and disposed of throughout the entire EU value chain. Businesses need to be ready.

As part of the EU Green Deal, the regulation has three core objectives: to reduce packaging waste, promote high-quality recycling, and establish uniform rules across all member states. While there was previously an EU directive on packaging waste, it allowed individual countries considerable flexibility. Now, with this regulation, standardized guidelines will apply across the board, with stricter enforcement.

To address these changes, PLMA will hold an in-depth conference on all aspects of packaging on 30 January 2025. The event will not only focus on the new PPWR legislation, but will feature a diverse range of packaging related presentations, covering topics such as private label packaging trends, innovation, creative design, sustainability, a look into the future, and consumer perception. It is a must-attend for anyone in the private label industry. For more information, click here.

Come and go in Everest Alliance: Aura Retail in, Super U out

In a surprising turn of events, Cooperative U, operator of the Super U supermarket chain, is set to part ways with the international purchasing alliance Everest, as well as the Epic alliance. The retailer joined the alliance only two years ago, partnering with the other members Edeka, Picnic and Jumbo. The split is reportedly due to internal disagreements among the partners, potentially around strategic approaches or negotiations. Everest negotiates purchasing prices for its partners with more than 50 multinationals. Epic Partners includes Edeka, Jumbo and Picnic, as well as Migros Group, Jerónimo Martins and Esselunga. Epic negotiates with major suppliers for top-quality conditions for international marketing campaigns.

Just days after Cooperative U’s departure was announced, Everest and Epic welcomed a significant new member: Aura Retail, a French food purchasing powerhouse. Aura Retail stated that it wants to negotiate the best pricing conditions with the biggest multinational manufacturers, thus allowing more advantageous prices for its customers. With Aura Retail now onboard, Everest is expected to rival the size and influence of Eurelec, a key alliance between E. Leclerc, Rewe, and Ahold Delhaize.

Meanwhile, Aura Retail, Everest’s new partner, recently published details of this new partnership forged between Intermarché, Auchan and Casino. The French alliance comprises five operational structures offering purchasing partnerships between the three groups for an initial period of 10 years. For food purchases, Aura Retail will be made up of three central purchasing units managed by Intermarché. For non-food purchases of national brands, two structures have been set up by Aura Retail and managed by Auchan. Private label is part of the portfolio of the alliance.

With the departure of Cooperative U and the entry of Aura Retail, Everest is undergoing a significant transformation. The evolving makeup of these international purchasing alliances reflects the increasingly complex and competitive nature of global retail. As large retailers seek to enhance their negotiating power with multinational suppliers, these alliances will continue to shift in response to both internal dynamics and external market pressures.

The inevitability of AI in retailing never more apparent

Artificial intelligence is increasingly being integrated across various functions within retail businesses. Carrefour recently demonstrated how it leverages AI to enhance its commercial offerings and optimize stock management, both in stores and warehouses. AI tools assist store managers in making data-driven decisions about product placement, quantities, and shelf arrangement. These algorithms consider factors such as location, weather, and population demographics, providing precise insights for decision-makers. Additionally, AI is now being used for pricing and promotions, tailored down to the store and product level. Data from loyalty cards or apps plays a crucial role, offering models real-time, customer-specific purchasing behaviour.

Tesco is another retailer harnessing the power of AI. It has announced plans to utilize AI to introduce a new initiative: using loyalty card data to encourage customers to choose healthier and more affordable alternatives. By analysing customer shopping habits, the AI will provide personalized product suggestions aimed at delivering greater value to shoppers.

Albert Heijn has introduced a new feature in its app, called "Scan & Cook," aimed at helping customers reduce food waste. The feature allows users to snap a photo of items in their fridge or pantry and upload it to the app. Using this technology, which will be further enhanced throughout the year, the app then transforms the ingredients into personalized, delicious recipes with just one click. This is one of the Generative AI applications that Albert Heijn has developed, implemented, and is now rolling out.

Here come the robots...maybe

A report by Rabobank about the food industry shows that robotization will be the focus of food manufacturers in the coming years. Almost all food manufacturers the bank spoke to indicate that the lack of qualified personnel is one of the main reasons for robotization. In addition, working conditions, production costs, sustainability and flexibility are considerations to look into robotization.

Now that the tight labour market will remain a problem in the years to come, robotization offers the opportunity to achieve turnover growth without having to expand the workforce accordingly, do more with the same amount of people. In addition, robots can be deployed for specialist functions where there is a lack of skilled staff. Using robots for, for example, quality control, product placement or recipe dosing can lead to a smaller margin of error and hence, more consistent quality.

Besides the above-mentioned advantages, there are reasons not to invest in robots. The biggest barrier seems to be the current production process. The human production factor brings a lot of flexibility to the work floor. In order to earn back the investment in robots on a specific production line, certain minimum production volumes are often required. Private label producers in particular will have to examine the long tail in their range (recipes, packaging, etc.). Some manufacturers are reluctant to commit to certain product ranges or production volumes by investing in specific robots because contracts with buyers are often no long-term agreements.