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DRAFT FOR CONSULTATION Member s Bill Explanatory note Purpose General policy statement The purpose of this Bill is to provide convenient, relevant and readily understood nutrition information and/or guidance on sugary beverage packs to assist consumers to make informed beverage purchases and healthier drinking choices. Manufacturers will be required to display the total number of teaspoons of sugar within a beverage in a prominent position on the front of the package. Background Standard 1.2.8 Nutrition Information Requirements of the Australia New Zealand Food Standards Code (FSC) already requires most packaged beverages to display a Nutrition Information Panel (NIP), which provides mandatory nutrition information on the average quantity per serve and per 100mL, of energy, protein, total fat, saturated fat, carbohydrate, sugars and sodium. The NIP may also include information on additional nutrients or biologically active substances, as well as information relating to percentage daily intake (%DI) for energy, protein, fat, saturated fat, carbohydrate, sugars, sodium, and dietary fibre, and percentage RDIs (recommended dietary intakes) or percentage ESADDIs (estimated safe and adequate daily dietary intake) for the vitamins and minerals listed in the Schedule of the FSC. The Health Star Rating system is a trans-tasman, Government-backed arrangement developed in collaboration with public health experts, the food industry and consumer groups. Implemented in 2014, the system was intended to complement the NIP by providing interpretive information on the front of packaged food products (beverages included), based on an algorithm that awards a star rating based on the quantity of specific food components within the product.

2 Explanatory note Sugary drinks are the major source of sugars consumed by children and young people in New Zealand. These include any beverage that has added sugar such as carbonated or fizzy drinks, energy drinks, sports drinks, fruit drinks and juices, powdered drinks, cordial and flavoured milk and water products. The consumption of sugary drinks is associated with dental caries, weight gain and obesity. The latter is a leading risk factor for diabetes, cardiovascular disease and some cancers. Nearly two thirds of adults and one third of children in New Zealand are either overweight or obese. Oral health is not only a vital component of general health, but also a basic human right. However, dental caries are a significant health problem in New Zealand; it is not uncommon for children as young as 18 months to be admitted to hospital in need of a general anaesthetic for teeth restoration or removal due to decay or infection. The World Health Organisation strongly recommends that the intake of free sugars be limited to 10 per cent of total energy intake around six teaspoons per day for an adult. However, New Zealanders consume an average of 37 teaspoons of sugar per day each. This Bill would heed the call of public health experts and consumer groups alarmed by the growing amount of sugar hidden in beverages on our supermarket shelves. Main provisions This sugar labelling system has been optimised for application to packaged beverage products presented for retail sale through supermarkets and similar retail outlets. A useful rule of thumb is that if the beverage product carries a Nutrition Information Panel (NIP), the sugar label should be displayed. Further information about which products should and should not use this sugar labelling system is provided. Regulations made under the Bill will provide guidance about the overarching principles of this sugar labelling system and the presentation of the teaspoon of sugar on beverage packages for example, design specifications and scale requirements. Clause 1 is the Title clause. Clause by clause analysis Clause 2 is the commencement clause. The Bill comes into force on the day that is 1 year after the date on which it receives the Royal assent. Clause 3 states the purpose of the Bill, which is to provide for a simple system for visually representing how many teaspoons of sugar are contained in certain labelled, sugary beverages sold in New Zealand, in order to provide consumers with accessible information to enable them to make better informed choices. Clause 4 is an interpretation clause. The key term defined is sugar. A number of other terms are defined by reference to the Australia New Zealand Food Standards Code.

Explanatory note 3 Clause 5 defines beverage for special medical purposes. This definition is closely aligned to the definition of food for special medical purposes in the Australia New Zealand Food Standards Code. Clause 6 defines sugary beverage. Clause 7 ensures that the Act binds the Crown. Clause 8 establishes the key requirement of the Act. All sugary beverages required to bear a label must display a statement that identifies the sugar content of the beverage. Clause 9 provides that contravening the requirement in clause 8 is an offence under section 244 of the Food Act 2014. The relevant provisions of the Food Act will apply to a contravention of clause 8, including the offence and enforcement provisions. Clause 10 authorises the making of regulations specifying the form of the statement required by clause 8. Clauses 11 and 12 make a consequential amendment to the Food Act 2014, in order to ensure that clause 9 is operative.

Jamie Strange Member s Bill Contents Page 1 Title 2 2 Commencement 2 Part 1 Preliminary provisions 3 Purpose 2 4 Interpretation 2 5 Meaning of beverage for special medical purposes 3 6 Meaning of sugary beverage 4 7 Act binds the Crown 4 Part 2 Labelling requirements 8 Statement of sugar content must be displayed 5 9 Offence involving breaching or failing to comply with requirement 5 10 Regulations 5 Part 3 Amendment to Food Act 2014 11 Amendment to Food Act 2014 5 12 Section 244 amended (Offence involving breaching or failing to 5 comply with requirement) 1

cl 1 The Parliament of New Zealand enacts as follows: 1 Title This Act is the Sugar) Act 2018. 2 Commencement This Act comes into force on the day that is 1 year after the date on which this Act receives the Royal assent. 3 Purpose Part 1 Preliminary provisions The purpose of this Act is to provide for a simple system for visually representing how many teaspoons of sugar are contained in certain labelled, sugary beverages sold in New Zealand, in order to provide consumers with accessible information to enable them to make better informed choices. 4 Interpretation (1) In this Act, unless the context otherwise requires, beverage for special medical purposes has the meaning given to it by section 5 code means the Australia New Zealand Food Standards Code, adopted under section 397 of the Food Act 2014 cordial means a concentrated non-alcoholic fruit syrup to which water is intended to be added at the point of consumption flavoured milk means milk that is prepared from milk and sugar, and may also contain other ingredients flavoured water means water that is prepared from water and sugar, and may also contain other ingredients food has the same meaning as in section 9 of the Food Act 2014 formulated supplementary beverage for young children means a formulated supplementary beverage for children aged 1 to 3 years Minister means the Minister of the Crown who, under the authority of a warrant or with the authority of the Prime Minister, is responsible for the administration of this Act package has the same meaning as in section 8 of the Food Act 2014, and packaged has a similar meaning powdered beverage means a powder to which water or milk is intended to be added at the point of consumption 2

Part 1 cl 5 single retail package means the smallest single package in which a sugary beverage is offered for retail sale to consumers sugar means one or both of the following: monosaccharides and disaccharides; and sugars that are naturally present in honey, syrup, and juice sugary beverage has the meaning given to it by section 6 sugary beverage required to bear a label means a sugary beverage that is required to bear a label in accordance with the code syrup means fruit sugar syrup teaspoon means a spoon capable of containing 4 grams of white granulated sugar. (2) In this Act, the following terms have the meanings given to them by the code: (c) (d) (e) (f) (g) (h) (j) brewed soft drink: cream: fruit drink: honey: infant formula product: juice: kava: milk: non-alcoholic beverage: standardised alcoholic beverage. 5 Meaning of beverage for special medical purposes (1) In this Act, unless the context otherwise requires, beverage for special medical purposes means a beverage that is (c) specially formulated for the dietary management of individuals by way of exclusive or partial feeding, who have special medically determined nutrient requirements or whose capacity is limited or impaired to take, digest, absorb, metabolise or excrete ordinary food or certain nutrients in ordinary food; and whose dietary management cannot be completely achieved without the use of the beverage; and intended to be used under medical supervision; and represented as being a beverage for special medical purposes; or 3

Part 1 cl 6 for the dietary management of a disease, disorder or medical condition. (2) Despite subsection (1), a beverage is not a beverage for special medical purposes if it is formulated and represented as being for the dietary management of obesity or overweight; or an infant formula product. 6 Meaning of sugary beverage In this Act, unless the context otherwise requires, sugary beverage (c) means a beverage includes (iii) (iv) (v) (vi) (vii) to which the manufacturer has added sugar; or which naturally contains sugar; and a non-alcoholic beverage; and a brewed soft drink; and a fruit drink; and a juice; and a flavoured milk; and a flavoured water; and a cordial; and (viii) a powdered beverage; and does not include (iii) (iv) (v) (vi) (vii) a standardised alcoholic beverage; or kava; or milk or cream; or 7 Act binds the Crown an infant formula product; or a formulated supplementary beverage for young children; or packaged water; or a beverage for special medical purposes. This Act binds the Crown. 4

Part 3 cl 12 Part 2 Labelling requirements 8 Statement of sugar content must be displayed (1) All sugary beverages required to bear a label must display, in accordance with regulations made under this Act, a statement that identifies the sugar content of the beverage. (2) Sugar content means the total quantity of sugar contained in a single retail package of the sugary beverage required to bear a label. 9 Offence involving breaching or failing to comply with requirement A person who contravenes section 8(1) contravenes section 244(1) of the Food Act 2014 and the provisions of that Act apply accordingly. 10 Regulations (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for the purpose of specifying the form that the statement referred to in section 8(1) must take. (2) Without limiting subsection (1), the regulations may require that the statement (c) (d) take the form of a graphic representation of a teaspoon; and include one or more numeric digits that identify the total number of teaspoons of sugar contained in a single retail package of the sugary beverage; and be displayed on the front of the label or, if the label does not have a front, on a prominent part of the label; and be of a size, font, and colour that make the statement clearly legible to an ordinary consumer. 11 Amendment to Food Act 2014 Part 3 Amendment to Food Act 2014 This Part amends the Food Act 2014. 12 Section 244 amended (Offence involving breaching or failing to comply with requirement) (1) In section 244(1)(d), after this Act, insert ; or. (2) After section 244(1)(d), insert: (e) a requirement in the Labelling of Sugary Beverages (Displaying Teaspoons of Sugar) Act 2018. 5