Up to one in four Irish food and drink companies will stop investing in their brands due to new labelling laws and regulations, a new survey by Amarach Research has found.
New EU labelling laws compel food producers to provide more detailed nutritional information on packaging. Many companies have complained that the level of detail, and the compliancy requirements, are excessive, and that the costs associated will impact on their competitiveness against international rivals.
The survey was conducted with more than 100 senior decision makers in a cross section of indigenous food and drink manufacturers.
In addition, 15% of companies say legislative and regulatory change will force them to transfer manufacturing to other locations while over half said they would look to export markets to expand instead.
75% of respondents said compliance with legislation has resulted in significant additional costs such as labelling and staff training, while 33% expect new requirements for calorie counting and nutritional listings to be a big source of change in the future.
The Chairman of Amarach Research, Gerard O’Neill, said the research showed that the Irish business community is worried about the impact excessive regulation, and in particular threats to Intellectual Property, will have on their brands and their businesses.
Mr O’Neill was addressing more than 200 business leaders, IP professionals and brand managers at a major international conference on Intellectual Property in Dublin.