Priorities in The Philippines

Edith de Leon

Philippines Food Chamber

EDITH A. DE LEON President, PH Food Chamber

06 September 2012

Jakarta, Indonesia

PCFMI: Philippine Chamber of Food Manufacturers, Inc.

a.k.a. PH Food Chamber

Established and incorporated by some of the leading F&B companies in the PH on December 5, 1959, or about 52 years ago

Remains to be the biggest and most trusted and most respected voice of the food industry in the PH

Ajinomoto Philippines Inc.. • A. Tung Chingco Trading Inc. • BNC Ingredients Corporation • Coca-Cola Export Corporation • Commonwealth Foods Inc. • Cornell Ingredients Corporation • Del Monte Philippines Inc. • Edward Keller Philippines Inc. • Essentiel International Ingredients Corporation • Fonterra Brands Philippines Inc. • Gardenia Bakeries Philippines Inc. • Genosi Inc. • Handyware Philippines Inc. • International Flavors & Fragrances Phil. Inc. • Intertek Testing Services Phil. Inc. • Jollibee Food Corporation • Kawsek Inc. • King Sue Ham & Sausage Factory • Kraft Foods Philippines Inc. • La Frutera Inc. • Leslie Corporation • LNA Management Group Corporation • Mead Johnson Nutrition Philippines • Monde Nissin Corporation • Monsanto Philippines • Nestle Philippines Inc. • Newton Food Products • New Zealand Creamery • Nutriasia Inc. • Oriental Tin Can & Metal Sheet Manufacturing • PepsiCo • Promesso Business Solutions • Reno Foods Inc. • RFM Corporation • San Pablo Manufacturing Corporation • San Miguel Corporation • San Miguel Foods Inc. Sensient Philippines Inc. • Sentrotek Corporation • Splash Corporation • Sysu International Inc. • Trully Natural Food Corporation • Unilever Philippines • Universal Robina Corporation • Wyeth Philippines Inc.

1. Health and Nutrition

◦ Building a Healthy Nation: Helping addressing the health and nutrition issues of the country

Product reformulation, food fortification, consumer education for a healthy lifestyle, responsible communication

Multi-stakeholder partnerships

2. Food Safety, Food Security

◦ Access to safe, high quality nutritious food for a healthy life

Food standards, GMP, sustainability and defense, the responsible use of environment and natural resources

Effective communication of scientific information and consumer education towards a healthy lifestyle

3. Advocate, Promote and Protect Fair Trade Practices ◦ From farm to fork

◦ Serve as voice of industry in the establishment of or amendments to food regulations, ensuring these are harmonized with international guidelines, to remove trade barriers while ensuring availability of nutritious safe food and utmost consumer protection

4. Training, Development and Support

o Sharing of best practices among members

Signed August 18, 2009, IRRs signed March 14, 2011

Renamed BFAD to FDA

Objectives: Enhance and strengthen the admin and technical capacity of the FDA in the regulation of establishments and products

Causes: ◦ Lack of resources from the PH FDA

◦ Differing interpretations of the laws and guidelines

Impact: ◦ Delays in new product launches

◦ Challenges in imports-exports due to increased / unclear documentation requirements

◦ Lost sales, out-of-stock or overstock situations

Provided temporary manpower assistance to the PH FDA for administrative work

Dialogue with national government to help expedite release of funds to support the building up of manpower and other resources needed by the PH FDA

Regular dialogue with the authorities to better understand the new or revised requirements

Training Partnerships

Date of expiration 46.0%

Nutrition facts 45.8%

Ingredients 38.3%

* Multiple responses

Nutrition content 73.4% Calorie per serving 26.1% Amount per serving 10.5%

Consumers seek for trustworthy information.

Mandatory for:

• For food for special dietary use

• Food with nutritional claims

• Fortified or enriched foods

Nutrients to be listed:

• Energy

• Fat

• Carbohydrates

• Protein

• Other fortified nutrients

Allows Nutrient Content Claims

Uses local Nutrient Reference

Value (RENI)

Lack of harmonized regulation in ASEAN countries necessitates use of different labels for each export country ◦ Costly

◦ Higher risks of non-compliance by distributors

◦ Logistical issues

◦ Longer registration leadtimes

Need to negotiate with FDA

Need to support labeling claims with strong evidence

GDA not yet accepted as front-of-pack

PH DOH commissioned two NGOs to come up with a local version of the FOP ◦ NDAP – Nutritionists Dieticians of the Philippines

◦ PCP – Philippine College of Physicians

WISE EAT seal:

NDAP PCP

DOH

Sugars Fat Sodium Cholesterol

<5g / 100 kcal <5g/ 100 kcal <134mg / 100kcal <16.7mg / 100kcal

To have the logo, a product must satisfy all criteria for NORMAL levels

(based on Recommended Values per 100 kcal of the product)

….must satisfy AT LEAST ONE of the following conditions based on Codex

Nutrient Max. level to claim “low in”

Fat 3g /100g; 1.5g/100ml

Saturated Fat 1.5g / 100g solids; 0.75g/100ml;equal to less than 10% of calorie content

Cholesterol 0.02g/100g; 0.01g/100ml; equal to or less than 0.005g/100g

Sodium Equal to less than 0.12g (Low), 0.04g (Very Low) or 0.005g (Free) / 100 g

Sugars Equal to or less than 5g /100 g or 2.5g/100ml (Low) or 0.5g/100g or 0.5g/100ml (Free)

Source of Fiber: 3g/100g or 1.5g/100kcal

High in Fiber: 6g/ 100g or 3g/100kcal

and

“Flagging” a food as healthy could be misinterpreted as okay for unlimited consumption.

Focus on individual foods rather than the context of the total diet

Based on 100 kcal portions, rather than what people normally consume.

Has not been thoroughly tested for its effectiveness.

The scheme could be viewed as a barrier to trade, given there is no use of a similar scheme in the ASEAN region.

• There are no “good” food or “bad” food.

• All food and beverages can be part of an active, healthy lifestyle that includes a sensible, balanced diet and regular physical activity.

• People consume many different foods and beverages, so no

one single food or beverage alone is responsible for people being overweight or obese. • Individual foods as part of a total diet

• Calories consumed = Calories expended

Science-based / Fact-based / Portion-based ◦ gives best guidance from a nutritional point of view, based on overall diet, not

on consumption of an individual product.

Simple and easy to implement

Useful to consumers

In line with fact-based approaches being applied on voluntary basis in most parts of the world

Past: Import finished counterfeit products. Big local distributors.

Present: Import packaging, print and pack locally. Multiple distribution points via the small stores and wet markets. Harder to crack down.

PH FDA, together with the PH IPO and local police collaborating to solve the issue

PH Department of Justice issued an opinion that the FDA has the mandate and authority to prohibit the use of any trademark if this contains claims which are not allowed by the FDA or if this can mislead consumers.

Working closely with the Department of Trade and Industry – IPO to further clarify the basis for the opinion of the DOJ

PHILIPPINE FOOD INDUSTRY:

Our Priorities 06 September 2012

Jakarta, Indonesia

Working together with stakeholders for a better, healthier nation.