The Effect of Front of Package Labeling on Food Sales in Israel

Background:
Front-of-package labelling (FOPL) of unhealthy foods and beverages is a strategy thought to reduce consumption of unhealthy foods and halt the soaring rates of non-communicable diseases. It is one of the policy strategies recommended by the World Health Organization and was implemented in Israel in January 2020. There is limited evidence for the effectiveness of FOPL.
Aim:
To assess whether products that were marked as unhealthy by FOPL had lower sales compared to unlabeled products.

Methods:
Longitudinal data on sales of packaged foods and beverages in large food retails throughout Israel was analyzed. Differences in sales between summer 2019, and summer 2020 were calculated. The association between the unhealthy FOPL compared to non-labelling and the difference in sales was assessed in three food categories using a multivariate linear regression model. Additional covariates included geographical area, number of unhealthy labels, price changes, and products targeting children.

Results:
Data on labelling status and sales during both studied periods of time was available for 384 items in the cereals category, 401 items in non-alcoholic beverages category, and 1444 items in the dairy category, representing 83%, 60% and 90% of the market, respectively. In multivariate analysis, unhealthy FOPL was not a predictor of changes in sales between the studied periods.

Conclusions:
Unhealthy FOPL was not associated with reduced sales compared with unlabeled food products. Limitations: FOPL was implemented early in the COVID-19 pandemic, which may have blunted its effect on consumer food choices. This analysis did not assess FOPL effect on basket composition.