1. Food Labelling Modernization (FLM) Presented by: Daniel Miller Executive Director, Food Labelling and Claims Directorate

2. Purpose To provide you with an overview of the Food Labelling Modernization (FLM) initiative, specifically the scope, objectives, engagement strategy, schedule, and next steps, as it relates to the Canadian Food Inspection Agency’s (CFIA) change agenda To encourage your participation in this initiative and seek your consideration on: –Roles and responsibilities –Regulations –Policy and Program Development –Service Delivery –2–2

3. The CFIA has embarked on a change and modernization agenda, propelled by the new Safe Food for Canadians Act (SFCA), with a focus on: stronger food safety rules; more effective inspection; commitment to service; and more information for consumers. The SFCA is the cornerstone of CFIA’s sweeping change agenda, that will help bring about legislative change aimed at promoting safer food and better protection to optimize the health and safety of Canadians and make Canadian businesses more competitive globally. Key change agenda initiatives include: –Inspection Modernization; –Food Regulatory Modernization; –Food Safety Action Plan’s Import Licensing; –Compliance Promotion; and –Food Labelling Modernization –3–3 – CFIA’s Change Agenda

4. Shared Responsibility for Food Labelling (at the Federal Level) At the federal government level, the responsibility for food labelling requirements is shared between: Health Canada - Establishes policies, regulations and standards relating to the health, safety and nutritional quality of food sold in Canada. Canadian Food Inspection Agency - Enforces the policies and regulations that are developed by Health Canada. - Administers and enforces non- health and safety policies and regulations. –4–4

5. Some of the Key Challenges in Food Labelling As it relates to voluntary claims: The CFIA has seen increased usage of voluntary non-health and safety claims by industry The CFIA is also being asked to respond more and more to company-to-company labelling complaints in this area The CFIA has seen focused media attention on these types of claims, which has increased consumers’ awareness and their expectations of companies, the industry and the CFIA Consumers are also expecting more transparency and action from both industry and government The CFIA recognizes that in this area there are diverse views on the respective roles of consumers, industry and government A number of countries are exploring different ways of responding to these types of non-health and safety claims and redefining the roles and responsibilities of consumers, industry and government (see drivers in Annex 1) –5–5

6. FLM Objectives and Focus Objectives: – Develop a modern and innovative food labelling system within the context of CFIA’s priorities and vision and which aligns with the new Safe Food for Canadian’s Act and that – Provides a better understanding of roles and responsibilities and continuous improvement as it relates to partnerships with other government departments such as Health Canada and with consumers and industry – Appropriately responds to consumer and industry needs around food labelling within CFIA’s mandate – Promotes smarter regulations and risk-based oversight by Government – Improves service delivery such as in relation to inquiries and availability of labelling information and tools Focus: – Will include all foods, as well as the review of CFIA food labelling frameworks and regulatory, program design and delivery systems – Will not include food labelling activities that fall under the mandate of other government departments (for example: Health Canada) –6–6

7. FLM Vision: to design an innovative and modern food labelling system, trusted and respected by Canadians and the international community. –7–7 Roles and Responsibilities Regulations Policy and Program Development Service Delivery Improve compliance by effectively balancing the roles and responsibilities between consumers, industry, and government Better protect consumers and support industry innovation by strengthening the regulatory framework, while considering global standards and approaches. Improve compliance by developing effective policies and programs; that are based on risk; facilitate partnerships and support consistency. Improve service delivery by applying standardized inspection approaches based on risk and prevention, and supported by appropriate services and tools. Area of FocusOutcomes Key Areas of Focus for FLM Consultation

8. Engagement Strategy for FLM Objective: Identify and analyze issues that will lead to development of recommendations for a more modern and innovative food labelling system Strategy: 2-phased consultation approach focusing on consumers, industry, government—aiming to achieve a balanced perspective First phase to focus on issues identification Second phase will engage on potential recommendations for modern and innovative food labelling system Will use various approaches to engagement: discussion paper, online questionnaire, face-to-face listening sessions –8–8

9. –9–9 Stages FLM & Other Initiatives Safe Food For Canadians Act Stage 2: Analyse Data and Draft Recommendations Stage 2: Analyse Data and Draft Recommendations Stage 1: Launch, Engage and Gather Issues Stage 1: Launch, Engage and Gather Issues Stage 3: Engage on Draft Recommendations & Analyse Data Stage 3: Engage on Draft Recommendations & Analyse Data Stage 4: Finalize Report on Recommendations & Implementation Proposal Stage 4: Finalize Report on Recommendations & Implementation Proposal 3 3 2 2 1 1 Issues Gathered & Engagement Completed Approval of Draft Recommendations Completed Engagement June- December 2013 January - May 2014 June – November 2014 December 2014 – June 2015 Timelines Overview of Food Labelling Modernization – Timeline

10. Path Forward Continue to encourage stakeholders to participate in the Food Labelling Modernization Online Consultation –Closes August 30, 2013 –http://inspection.gc.ca/food/labelling/labelling-modernization- initiative/consultations/questionnaire/eng/1371096847742/1371096850664http://inspection.gc.ca/food/labelling/labelling-modernization- initiative/consultations/questionnaire/eng/1371096847742/1371096850664 Communicate with stakeholders (for example: via e-mail and the FLM webpage about upcoming engagement opportunities) – FLM webpage: http://inspection.gc.ca/food/labelling/labelling-modernization- initiative/eng/1370111174659/1370111346666http://inspection.gc.ca/food/labelling/labelling-modernization- initiative/eng/1370111174659/1370111346666 Continue to align with other CFIA Change Agenda initiatives (for example: Regulator Modernization, Importer Licencing) to co-ordinate engagement and share information – 10

11. Food Labelling Continuum and FLM Areas of Focus: Food for Thought – 11 Food Safety Preventative Health Consumer Values Higher Risk Lower Risk e.g. Allergens e.g. low fat, low sodium (non-health and safety related) e.g. natural Regulations Policy Development Roles, Responsibilities & Partnerships Program Development Service Delivery e.g. Inspection Risk to Health and Safety Composition e.g. highlighted ingredients All comes under section 5.1 of the Food and Drugs Act Re: False and Misleading

12. Please send any comments you may have : By email: CFIA-Modernisation-ACIA@inspection.gc.caCFIA-Modernisation-ACIA@inspection.gc.ca By mail: Strategic Partnerships Division 1400 Merivale Road, Tower 1 Floor 6, suite 218 Ottawa, ON K1A 0Y9 Canada Attn: Food labelling modernization By fax: 613-773-5606 You can also visit the FLM homepage at http://www.inspection.gc.ca/food/labelling/labelling-modernization- initiative/eng/1370111174659/1370111346666 http://www.inspection.gc.ca/food/labelling/labelling-modernization- initiative/eng/1370111174659/1370111346666 – 12

13. Annex 1: Drivers for FLM – 13 Consumers – Drivers Changes in consumer demand Consumers are becoming more aware and knowledgeable about labels on products, to ensure that products meet their needs (e.g. health and safety; getting best value for money) Higher consumer expectations and increased media attention around labelling requires improved transparency and accountability Consumers – Drivers Changes in consumer demand Consumers are becoming more aware and knowledgeable about labels on products, to ensure that products meet their needs (e.g. health and safety; getting best value for money) Higher consumer expectations and increased media attention around labelling requires improved transparency and accountability Industry – Issues Level playing field for domestic and imported products Market access Ability to innovate Modernized regulations to keep up with ingredients and technology Consistency of policy interpretation and enforcement Timeliness and coordination Common names Industry – Issues Level playing field for domestic and imported products Market access Ability to innovate Modernized regulations to keep up with ingredients and technology Consistency of policy interpretation and enforcement Timeliness and coordination Common names Industry – Drivers Global supply chains have significantly changed the way in which products are processed, produced, packaged and sold Manufacturers are finding more innovative and creative ways to communicate their products to consumers Food processing industry has become more competitive to meet consumers’ needs Industry – Drivers Global supply chains have significantly changed the way in which products are processed, produced, packaged and sold Manufacturers are finding more innovative and creative ways to communicate their products to consumers Food processing industry has become more competitive to meet consumers’ needs Consumer – Issues Safety Public health Marketplace Deception Country of Origin Quality Legibility and consistency of information Knowledge of roles and responsibilities of government and industry Consumer – Issues Safety Public health Marketplace Deception Country of Origin Quality Legibility and consistency of information Knowledge of roles and responsibilities of government and industry

14. Roles, Responsibilities & Partnerships In Focus Examining the roles and responsibilities that consumers, industry and government play in food labelling within the CFIA’s mandate – 14 In Focus All food – including imported, domestic, retail; consumer packaged or bulk, further manufacturing Annex 2: Overall Focus: – It will include all foods, as well as CFIA food labelling frameworks and regulatory, program design and delivery systems. Examples:

15. Regulations In Focus Labelling regulations under CFIA’s responsibility ‐list of ingredients - placement of information - standards of identity ‐ingredient class names - grade marks - net quantity ‐best before date - common name - country of origin marking ‐type size - dealer name and address Administering labelling requirements for imported and domestic products that fall under CFIA responsibility in the following legislation: - Food and Drugs Act /Food and Drug Regulations - Canada Agricultural Products Act and its regulations - Fish Inspection Act /Fish Inspection Regulations - Meat Inspection Act /Meat Inspection Regulations - Consumer Packaging and Labelling Act/Consumer Packaging and Labelling Regulations – 15 Policy and Program Development In Focus Examining policies and guidelines, such as local, that are within the mandate of the CFIA, and that: ‐no longer respond to industry and consumer needs, ‐contain gaps, or ‐are not harmonized with international standards or agreements Examining CFIA’s process for developing and delivering policies, programs and frameworks.

16. – 16 Service Delivery In Focus Examining inspection activities and tools related to labelling and advertising of food under the responsibility of the CFIA ‐inspection approach and strategy ‐training materials ‐IM/IT tools ‐guidance materials (for example: Guide to Food Labelling and Advertising, Nutrition Labelling Toolkit) ‐labelling website information Enforcing labelling requirements for imported and domestic products as they pertain to: -Food and Drugs Act /Food and Drug Regulations -Consumer Packaging and Labelling Act/Consumer Packaging and Labelling Regulations -Fish Inspection Act /Fish Inspection Regulations -Meat Inspection Act /Meat Inspection Regulations -Canada Agricultural Products Act and its regulations

17. Roles, Responsibilities & Partnerships Out of Focus Transferring legislated responsibilities to other government departments – 17 Out of Focus Food for export/ sale outside of Canada Out of Focus: – Does not include food labelling activities that fall under the mandate of other government departments (such as Health Canada).   Examples:

18. Regulations Out of Focus Examining labelling regulations under Health Canada’s responsibility ‐nutrition labelling and health claims requirements - food additives ‐allergen labelling requirements - fortification ‐genetically modified foods, novel foods - foods for special dietary use ‐food safety related labelling requirements - aspartame and sugar alcohols Labelling regulations under other government department’s responsibility, for example: ‐Industry Canada - Office of the Official Languages ‐Competition Bureau - Measurement Canada Examining recently developed or revised labelling regulations and policies under CFIA’s responsibility, for example: ‐Organic Products Regulations - icewine standard ‐cheese regulatory amendments - Guidelines on Product of Canada Examining labelling regulatory changes under CFIA’s responsibility that would make them inconsistent with international standards such as the Codex General Standard for the Labelling of Prepackaged Foods – 18    

19. Regulations Continued Out of Focus Examining regulations and policies under CFIA responsibility that are not related to labelling of food, for example: ‐animal and plant health ‐microbiological standards ‐agricultural inputs (for example: feed, fertilizers) Examining labeling regulations and policies under provincial and territorial responsibility, for example ‐provincial standards and requirement ‐Nova Scotia Liquor Standards Corporation ‐Ontario Milk Act Requirements for bilingual labelling Metrification in relation to net quantity declaration – 19    

20. – 20 Service Delivery Out of Focus Examining inspection activities and tools under CFIA responsibility that are not related to labelling of food, such as related to: ‐animal and plant health ‐microbiological standards ‐agricultural inputs (for example: feed, fertilizers) Labelling Recipe and Registration Unit   Policy and Program Development Out of Focus Examining policies and guidelines that are outside the mandate of the CFIA 