This article was originally prepared by Nick Hughes, together with Footprint Media Group and is also available here.
Efforts to simplify and streamline EU rules via Omnibus proposals are impacting the implementation of regulations designed to deliver greater sustainability and transparency in areas like sourcing and labour. The EU Deforestation Regulation also saw last minute simplification in December.
Meanwhile, a UK-EU deal to align on phytosanitary standards as part of a more frictionless future trading arrangement continues to progress at a snail’s pace.
In January, in partnership with Footprint, we held the latest legal briefing in which we shared insights relating to key developments in the legislative sphere with relevance to hospitality and foodservice businesses.
A new year health kick
It’s been a busy start to the year for health policy implementation, albeit some of the policies themselves have been years in the making.
The UK’s ban on advertising food and drink products high in fat, sugar and salt (HFSS) formally came into force on January 5th, marking a significant milestone following several years of delays and consultations.
The UK-wide ban introduces two primary restrictions: advertisements for HFSS foods will be banned from appearing on TV and on-demand between 5.30am and 9pm, while paid-for online advertising of HFSS products will be banned at all times. This includes social media, search engines, display banners and paid influencer marketing.
The scope of the new rules has been the subject of fierce debate. Campaigners have argued that an exemption allowing companies to advertise their macro brands without identifying specific HFSS products will create a loophole that is all too easily exploited.
The new rules are complex and the wording of the regulation is challenging to navigate. Future test cases will help bring much-needed clarity to how regulators intend to interpret and enforce the rules.
The waters have been further muddied by a change to the way in which HFSS products are assessed. For the past 20 years, the UK Government’s 2004/05 nutrient profiling model (NPM) has been the basis for rules governing advertising restrictions and those restricting volume and location-based promotions of HFSS products, which have already come into force. In January, ministers confirmed their intention to adopt a revised 2018 NPM that is based on more up-to-date nutritional science. The 2018 model, which was consulted on under the previous government but never adopted, is stricter on nutrients like sugar and salt and will bring far more products into scope of advertising and promotion restrictions once adopted. The 2018 NPM is not yet “applied to policy” (including HFSS restrictions), with a further consultation due later this year to consider its policy application.
Finally, the soft drinks industry levy (SDIL) is to be extended through the addition of milk-based and milk substitute drinks with a high sugar content. For milk based drinks, a ‘lactose allowance’ will be introduced to account for the naturally occurring sugars in milk. The impact will mostly be felt by pre-packed products with unpackaged sugary drinks served outside of the home remaining beyond the scope of the SDIL. This includes open cup milkshakes served in cafés and restaurants. The threshold at which the levy applies has also been reduced from 5g to 4.5g.
Dairy denominations up for debate
Leading plant-based milk brand, Oatly, has lost a long-running legal challenge concerning its use of the word “milk” in connection with oat-based food and drink products. The UK Supreme Court has ruled that Oatly's “Post Milk Generation” trademark is invalid for use in relation to those products in the UK, following a challenge by trade association Dairy UK, which argued that the mark contravened the rules protecting reserved dairy terms.
The court confirmed that “milk” is a legally protected designation, defined in legislation as the “normal mammary secretions” of animals, and that using it as part of a trademark for oat-based food and drink is prohibited under the regulatory regime governing dairy terms.
The decision is expected to have significant implications for plant-based brands operating in the UK. While the regulatory framework contains a limited exception for clearly descriptive uses of dairy terms, such as statements intended to indicate that a product is “milk-free” or “dairy-free”, using protected dairy terms like milk, yogurt, or cheese as part of branding or trademarks for non-dairy products carries significant legal risk. One roundtable attendee also noted potential implications for hybrid products containing dairy and non-dairy ingredients , a small but growing segment of the market.
The language used to describe meat and dairy alternatives is also an issue of live debate across the EU and beyond. Last year, the EU parliament voted to ban the use of terms such as “veggie burger”, with the proposal currently in trilogue negotiations between the EU Commission, Parliament and Council. There have also been moves at national level to ban the use of descriptors like “burger” and “sausage” for plant-based products. The Vegetarian Butcher has been subject to litigation in France but has so far successfully defended its use of the terms which don’t have the same legal protection as “milk”.
Green claims regime gathers pace
2025 was a landmark year for food businesses making environmental claims as the Digital Markets, Competition and Consumers Act 2024 (DMCCA) came into force, giving the Competition and Markets Authority (CMA) the ability to fine businesses up to 10% of their global turnover for giving false or misleading information to consumers, including about their green credentials.
The CMA recently announced the first use of its new powers by issuing a £473,000 fine to Euro Car Parks for repeatedly failing to respond to an information request. That represents 75% of the maximum possible fixed charge of 1% of turnover for an administrative breach of the rules and shows the importance of having systems in place to ensure compliance with the new rules.
The CMA has also started its first investigations into unfair practices under the DMCCA with eight new enforcement cases initiated and 100 advisory letters sent to businesses. The initial focus has been on businesses promoting misleading offers, adding extra charges or drip pricing by online retailers.
Perhaps of most relevance to hospitality and foodservice businesses is new guidance issued by the CMA on getting green claims right, across the supply chain. Businesses are expected to adhere to six principles under the Green Claims Code. Claims must be truthful and accurate; clear and unambiguous; not hide important information; only make fair comparisons; consider a product’s full lifecycle; and be substantiated.
The guidance makes clear that liability exists across the supply chain and that a business may be deemed to be repeating an environmental claim where it stocks a product which carries a claim from the supplier. Businesses therefore need to take steps to ensure that any environmental claims they make (whether directly, indirectly or by passing information from others on to consumers) are accurate and not misleading. This creates a risk of companies being held responsible for something that in reality they have little or no control over.
In practice, the CMA is likely to target enforcement action against the business it deems most responsible for the misleading claim. Within the guidance, it provides several example scenarios; for each one it explains which party it would be most likely to pick up the complaint with based on their duties, even where more than one business may be technically liable.
Packaging set for major shake-up
Packaging regulations within the EU are in the midst of a huge overhaul. The Packaging and Packaging Waste Regulation (PPWR) officially entered into force on February 11th 2025 with the majority of provisions applying from August 12th 2026.
The aim of the regulation is to harmonise packaging requirements across the EU and decrease country divergence in order to drive improved sustainability outcomes. Among its most relevant provisions for the hospitality and foodservice sector are new targets for the takeaway sector to encourage a shift towards reusable and refillable packaging. By February 2027, hospitality, restaurant and catering companies offering takeaway will need to provide a system for consumers to be able to bring their own containers. By 2028 they’ll need to have the option of obtaining products in reusable packaging and have an associated system of reuse, and by 2030 final distributors will need to endeavor to offer 10% of products in reusable packaging. One key outcome is likely to be growing pressure on packaging suppliers to provide reusable and refillable packaging to end distributors.
The regulation also establishes updated requirements for extended producer responsibility, and for an EU-wide deposit return scheme by January 2029, designed to help member states meet a target of 90% collection for single use plastic beverage bottles and single use metal beverage containers.
Chemicals are also in the EU’s crosshairs. The PPWR prohibits the placing of food contact packaging on the market if it contains PFAS (per- and polyfluoroalkyl substances) above specific safety thresholds from August 12th 2026 with no transition period.
UK-based businesses trading with the EU will be impacted by the new rules but so too will those trading in Northern Ireland, with many (but not all) of the PPWR provisions applying in NI due to the Windsor Framework.
