ACCC Begins Court Action against Heinz over Sugary Products

Tuesday 25 July 2017 @ 8.59 a.m. | Legal Research | Trade & Commerce

Legal action against H.J. Heinz Company Australia Ltd (Heinz) commenced on Monday 24 July 2017, with the Australian Competition and Consumer Commission (ACCC) alleging the "Little Kids Shredz" range misleads the public about the nutritional content of the product. The Federal Court has heard that the food for toddlers, marketed as being made almost entirely from fruit and vegetables contains so much sugar it should be deemed confectionery by experts.

Background to the Action

The ACCC launched the legal action in June 2016, after a complaint by the Obesity Policy Coalition about food products for toddlers. The packaging of the Shredz products features images of fruit and vegetables and states it is "99 per cent fruit and veg".

Although the product is no longer on the market, the Shredz range included three varieties - peach apple and veg, berries apple and veg, and strawberry and apple with chia seeds. Heinz has strenuously denied the ACCC allegations and said it complied with Australian labelling and food laws.

The Current Action

Counsel representing the ACCC, Tom Duggan, told the court the "berries, apple and veg" variety contains 68.7 grams of sugar per 100 grams. He said:

"This product has added sugar, as a consequence it is not a nutritious alternative to the fruit and vegetables depicted on the packaging … There are two important differences between the Shredz product and dried fruit, one is the addition of the apple juice concentrate … Accepting that it is a naturally occurring sugar, it is still an added sugar."

Mr Duggan said the court would hear evidence about the use of apple juice concentrate in the product which is an added sugar.  The court also heard the sugar content of the product defies Heinz's own health guidelines.

Reaction from the ACCC

Commenting on the current court action, ACCC Chairman Rod Sims said:

"The ACCC has brought these proceedings because it alleges that Heinz is marketing these products as healthy options for young children when they are not. These products contain over 60 per cent sugar, which is significantly higher than that of natural fruit and vegetables - for example, an apple contains approximately 10 per cent sugar. We also allege that rather than encouraging children to develop a taste for nutritious food, these Heinz Shredz products are likely to inhibit the development of a child’s taste for natural fruit and vegetables and encourage a child to become accustomed to, and develop a preference for, sweet tastes."

Statement from Heinz

In a statement, Heinz said it strongly rejected claims made against it by the ACCC about the packaging:

"The Shredz products were snack foods available in small individually packaged serves appropriate for children aged one to three. The Shredz products had a similar nutrition profile to dried apple or sultanas. Heinz stands behind the Shredz products and their packaging."

The ACCC has previously said it was seeking pecuniary penalties, corrective notices and costs.

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Sources:

ACCC action over Heinz’s Little Kids Shredz snack packaging begins – theaustralian.com.au

Heinz toddler food loaded with so much sugar it should be deemed confectionery, court hears – abc.net.au

ACCC begins court action against Heinz over sugary products – finance.nine.com.au

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