The proposed tax on foods with high fat, salt and sugar in Hungary is to go before parliament in the next few weeks with the law set to come into force by 1 September.
A tax of HUF 10 (3p) will be levied on products containing "too much" salt, sugar or fat, and the sales tax on spirits and soft drinks will rise 10%. (Phil Cain, The Grocer)
In a world where we are taxed and then taxed again news of a fat tax is going to have us running for the hills
(if you are a said fat guy then you are welcome to take a slow amble up the hill with me)
The many FMCG firms now have yet another headache.
Do we review recipes and reduce the 'bad' stuff? yes where possible, but damn the bad stuff makes it taste good and last a lot longer
(the Duracell bunny clearly eats a high sugar high salt diet)
The second option is to make our products smaller but how small can you go?
(Kraft i'm still angry that the the drum playing monkey ate one of the Dairy Milk chunks)
I'm not sure when our products went bite size but when i go shopping now, a pair of baggy jeans and a basket does the job of the once iconic 4 wheeled mean machine.
Lastly and the most likely option is for the FMCG to review their packaging.
Get the packaging right and the consumer will be less likely to take out a viral war on your brand. how does the brand and marketing managers do this?
1) Upgrade your packaging; if you want to stay at a new higher price point then up spec your packaging to get 'luxury' buy in from the consumers is an important step. This can take many forms such as pack format changes, new substrates, print finishes and full redesigns. Consumers will always buy 'perceived' quality, there's a snob in each of us.
2) In a pack that contains far to much of what you shouldn't have then being the master illusionist is imperative
(illusion - a distortion of the senses,the emphasis on visual illusions occurs because vision often dominates the other senses - Wikipedia).
Get your pack message right and the wheel of death flashing red on the front of your pack will not matter one iota to the taste conscious consumer. To do this you must understand your message, no product can be tasty, healthy, premium and eco friendly in one hit, remember we are tired from running up the hill, so do us a favour and be clear with message.
3) Colour Harmonisation; Brand managers struggling to hit their retail targets for the second year running know that they have to swallow the new tax..but how?. Stripping needless costs from your packaging supply chain is one option, new ways of working like colour harmonisation will produce your product cheaper,smarter and faster. It's win win all round....heck there's even a green saving to be had.
With sugar salt and fat set to stay is packaging and packaging design about to get even more important?
Packaged, wrapped and slightly opinionated
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