ARTICLE
11 September 2024

The Importance Of Transparent Vegan Labelling And The Risk Of Greenwashing In The Chocolate Industry

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Potter Clarkson

Contributor

Potter Clarkson is one of Europe’s leading full-service IP law firms. Our IP attorneys and solicitors maximise the value of our clients' innovation by providing the experience, vision and clarity required to create, protect, leverage and defend their ideas in the most commercial and strategic ways all over the world.
The demand for vegan products has surged, but challenges in labelling, misleading marketing (veganwashing), and lack of standardization undermine consumer trust, especially in industries like chocolate.
United Kingdom Food, Drugs, Healthcare, Life Sciences

In recent years, the demand for vegan products has surged, driven by growing consumer awareness of animal welfare, environmental sustainability, and personal health.

However, with this increase in demand comes the challenge of accurately labelling vegan products, not to mention the associated risk of greenwashing, the term used to describe companies falsely marketing products as being more environmentally friendly than they are. The chocolate industry has become a focal point for these issues.

LABELLING CHALLENGES FOR PLANT-BASED FOODS

Terms like 'vegan' and 'plant-based' are now frequently used on packaging and in marketing in a bid to attract health-conscious and ethically minded consumers.

However, despite their widespread usage, there is no legal definition for what constitutes vegan or plant-based food. This lack of standardisation poses significant challenges for both consumers and producers.

Currently, to market a food item as 'vegan', it is generally understood that the product should not contain any animal-derived ingredients. However, without a legal framework, the term is open to interpretation. This can lead to inconsistencies in labelling. The principles of 'fair information practices' dictate that the information provided to consumers should be accurate and not misleading.

VEGANWASHING

The term 'vegan' does not automatically equate to being healthy or environmentally sustainable. For example, some vegan foods can have a high carbon footprint due to agricultural practices, processing, packaging, or transportation. In some cases, a highly processed vegan diet might even have a greater environmental impact than a diet that includes sustainably produced animal products.

Greenwashing can mislead consumers, including those with specific allergies, and can undermine the development of truly sustainable and ethical practices in food production. Regulatory bodies like the Advertising Standards Authority (ASA) have had to intervene in cases where companies have made false or exaggerated claims about the health benefits or environmental sustainability of their vegan products.

In 2020, the ASA upheld a complaint against Burger King's ads for the plant-based 'Rebel Whopper' burger. The tagline "100% WHOPPER. NO BEEF" led consumers to believe the burger was entirely free of animal products. However, the patty was cooked on the same grill as meat, and the burger included egg-based mayonnaise, making it unsuitable for vegans or vegetarians.

In February 2023, the ASA criticised fitness brand Huel for making exaggerated health claims about its vegan shakes without sufficient evidence, deeming the marketing as "irresponsible."

THE THREAT OF INTRANSPARENT LABELLING AND GREENWASHING IN THE CHOCOLATE INDUSTRY

In April, a dairy intolerant Australian woman suffered an allergic reaction after consuming chocolate labelled as vegan. The manufacturer explained that while their chocolate is made without milk, the labelling includes a precaution due to potential cross-contamination at the supplier's facility. Following the incident, the company decided to remove the vegan label.

The chocolate industry has regularly been criticised for both veganwashing and healthwashing, the practice of exploiting consumer trends like sustainability and health to enhance the product's image despite not having taken any real steps towards achieving these goals.

In fact, because of the volume of vegan, health, and greenwashing, the term 'chocolate washing' has entered the food and drink lexicon. As you'd expect, it describes any deceptive marketing of cocoa products as sustainable or ethically sourced when there does not appear to be evidence to support these claims.

CERTIFICATION PRACTICES IN THE CHOCOLATE INDUSTRY

The practices of veganwashing have led to widespread doubt about the authenticity of certifications that claim chocolate products are sustainably produced.

Certification programs like Fairtrade, Rainforest Alliance, and UTZ aim to ensure sustainable and ethical chocolate production. However, the 'mass balance' production approach, which mixes certified and non-certified cocoa, prevents meaningful traceability. As a result, companies are able to market their products as supporting sustainability without guaranteeing that the final product contains only certified cocoa. This leaves concerned consumers uncertain about the true origins of their chocolate.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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