The worrying reality of health problems such as hypertension, diabetes, overweight and obesity in Mexico has prompted the authorities to implement public policies and legal regulations for producers. At the end of 2020, NOM-051 on the labeling of packaged foods and non-alcoholic beverages came into force in Mexico.
It is true that not all countries have such strict regulations on the labeling of prepackaged products, however, other countries do not find themselves in the same critical reality in terms of health. The purpose of NOM-051 is precisely to attack these issues, however, there is no objective data that determines this problem has been mitigated in other types of products, an example is tobacco consumption that has not been reduced, despite the warnings on the packaging that, since a few years ago, were imposed by the Secretaría de Salud.
The most recent report of the Organización para la Cooperación y el Desarrollo Económicos, Health Outlook 2021: OCDE indicators show alarming numbers in: deaths, health problems and low satisfaction with services:
Law enforcement ain’t even
It is clear that companies will try to avoid some of these sanctions (fines can reach 1,300,000 pesos) and to do so they will have to face additional challenges. One of them, highly relevant, is that the new regulation can “confuse” the consumer in a certain way, by making them believe that packaged products are riskier than those sold in bulk.
For example, a turkey ham served directly from the supermarket counter can have the same amount of nutrients, fats and calories as others that have been packaged in the factory. The difference is that the Mexican NOM-051 requires stamping on the packaged products, but not on bulk products. Therefore, when the consumers go to the supermarket and review both, they might believe that the prepack is less healthy, although this is not necessarily the case.
In summary, the legislation about on front labeling entails important implications and challenges for brands, which still need to understand these changes, from the way they deliver their products, the transformation of their image, the change in sale strategies, communication and even in the formula of contents or that the farewell of their “pets” does not become the forgetfulness of their products.
What implications and perceptions are there with consumers?
However, the response of consumers to the stamps and legends of NOM-051 is still not what promoters expected, since they are not stopping buying products marked with black octagons. Although the warnings modify the perception of the product, they do not directly or indirectly influence the consumer’s purchase intention or their consumption behavior. A national panel study conducted in Mexico and Argentina by Secretos de México® about the law in Argentina / NOM-051 in Mexico; evidences the relevance of the warnings on the packaging at a rational level, but the attitudinal behaviors are not reflected:
Source: National panel study with 1,000 effective cases per Country (Mexico and Argentina)
In this way, the advantage of the labels alerts consumers about non-nutritive properties, assuming that they want a healthy option. However, it is still missing to understand their moments of consumption, personal motivations, or lifestyle. An example of this is when we understand the coexistence or lunch time of a group of masons drinking soda in a work, in this event the warning stamps are useless.
In addition to this, the consumers with less purchasing power are more indifferent to labeling than consumers with greater purchasing power. The first kind of consumers, seek to satisfy their needs with the resources they have, while the second kind of consumers can buy other product options in the same category and choose the one they like best. Therefore, the basis of the NOM, which is to warn with stamps, is not being informative or educating the consumers, it only alarms them.
The seal on the package generates an overpromise and belief that if a product with three seals is stopped, the person will feel healthier and will want to be active, but since that expectation is not met, motivation is lost quickly. And there is a risk of the boomerang effect, where people go back to consuming the same products and especially those that contain more calories, sodium and fats.
In addition, it is necessary to consider that Mexicans do not decide the purchase of a product based on quality, calories or fat, therefore, warning stamps are condemned to be part of the image on the packaging: as everything has stamps, nothing is healthy. The presence of seals barely modifies a single piece of that great decision of consumption and purchase, for this reason we can answer the question: why the warnings on product packaging have not had such an impact?
In Secretos de México, we support interested brands and organizations to delve into these behaviors with applied intelligence, which is supported by numerical information and is available for all our clients.
