Heinz misled consumers over health benefits of children's snack
Justice White said on Monday he would "in due course" declare Heinz engaged in misleading or deceptive conduct by representing that the snacks were beneficial to the health of children aged 1-3 when they could not be described as such. He will hear from the parties before making a formal declaration.
He noted the nutritional panels on the products indicated that approximately two-thirds of each product was sugar and "an analysis carried out in March 2016 at the request of the ACCC solicitors indicated that the products comprised, respectively, 62-63 per cent, 66 per cent and 62 per cent sugar".
"The ingredients information and the nutrition information on the boxes were in a relatively
small font and, in particular, in a font which was smaller than all the other printing on the
front and rear of the boxes," Justice White said.
He said he was satisfied that nutritionists working with Heinz "ought to have known that a representation that a product containing approximately two-thirds sugar was beneficial to the health of children aged 1-3 years was misleading".
However, he was satisfied that each of the witnesses who had appeared for the company had "endeavoured to carry out their roles in the development of the products and of their packaging in a conscientious and diligent way" and "had adopted a generally conservative approach to the claims which should be made" on the packaging.
Justice White rejected the ACCC's argument that Heinz had made two further representations, namely that products were of "equivalent nutritional value" to the natural fruit and vegetables depicted on the boxes and encouraged the development of healthy eating habits.
He said those claims were not conveyed by the packaging.
ACCC Acting Chair Delia Rickard said the watchdog was "particularly concerned by Heinz’s conduct because the Shredz products were marketed as being beneficial for young children".
The sugar content of the products, was "significantly higher than that of natural fruit and vegetables", Ms Rickard said.
"An apple in comparison contains around 10 per cent sugar," she said.
In a statement, Heinz Australia managing director Bruno Lino said the company was "disappointed with the outcome but respects the decision that has been made".
He said the products had not been sold in Australia since May 2016 and it was "committed to providing high-quality food products and to communicating clearly and transparently with consumers on its packaging".
"We are presently reviewing this matter carefully to see if there are any further learnings which
can be applied going forward," Mr Lino said.
During the trial, the ACCC's barrister Tom Duggan, SC, asked Justice White to taste one of the toddler snacks, made from dehydrated fruit and vegetables, fruit juice and puree. Justice White declined on the basis his conclusions would be subjective.
Michaela Whitbourn is The Sydney Morning Herald's Legal Affairs and Investigations reporter.
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