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Author: Publisher: ISBN: 9789276181149 Category : Languages : en Pages :
Book Description
Differences in composition of seemingly identical, branded food products (DC-SIP) occur when a good is marketed in one country as being identical (labelling, and appearance on packaging) to goods marketed in other countries, while that good has significantly different composition. The DC-SIP issue was brought to policymakers' attention in 2017 by tests conducted in several Eastern EU Member States, which showed that some brand owners sell products across the EU Single Market, which are of different composition, despite having the same or similar packaging. The European Parliament and the European Council stressed the importance of tackling the issue of dual quality products, and requested that the European Commission investigate these practices, and find a solution at the European level. As a response to this request, the European Commission's Joint Research Centre (JRC), in collaboration with experts from Member States' competent authorities and stakeholders in the food chain, developed and applied a harmonised methodology in 2018/2019, with the objective of bringing further evidence on whether the composition of various branded food products differed across Member States. A large EU-wide testing campaign confirmed that of the food products which were evaluated, 9% were found to have differences in composition but had identical front packaging, and 22% had differences in composition and had similar front packaging (European Commission, 2019). Further initiatives regarding the relevant regulatory framework were taken by the European Commission to address DC-SIP. Moreover, in April 2018, the European Commission tabled a proposal for the amendment of the Unfair Commercial Practices Directive 2005/29/EC, aimed at introducing more specific rules on the DC-SIP issue. The European Parliament and the Council adopted these amendments on 27 November 2019 (European Commission, 2018, 2019b). Furthermore, at the request of the European Parliament, the JRC carried out an economic analysis of DC-SIP in collaboration with DG GROW, to develop a better understanding of the drivers, and of the impact of this phenomenon. This report summarises the main finding of this pilot project. The specific objectives of this project were to: 1. Explain the rationale for brand owners to offer different versions of identically or similarly branded food products in different markets 2. Analyse the impact of DC-SIP on consumers' choices and welfare 3. Identify the main determinants of the occurrence of DC-SIP across Member States.
Author: Publisher: ISBN: 9789276181149 Category : Languages : en Pages :
Book Description
Differences in composition of seemingly identical, branded food products (DC-SIP) occur when a good is marketed in one country as being identical (labelling, and appearance on packaging) to goods marketed in other countries, while that good has significantly different composition. The DC-SIP issue was brought to policymakers' attention in 2017 by tests conducted in several Eastern EU Member States, which showed that some brand owners sell products across the EU Single Market, which are of different composition, despite having the same or similar packaging. The European Parliament and the European Council stressed the importance of tackling the issue of dual quality products, and requested that the European Commission investigate these practices, and find a solution at the European level. As a response to this request, the European Commission's Joint Research Centre (JRC), in collaboration with experts from Member States' competent authorities and stakeholders in the food chain, developed and applied a harmonised methodology in 2018/2019, with the objective of bringing further evidence on whether the composition of various branded food products differed across Member States. A large EU-wide testing campaign confirmed that of the food products which were evaluated, 9% were found to have differences in composition but had identical front packaging, and 22% had differences in composition and had similar front packaging (European Commission, 2019). Further initiatives regarding the relevant regulatory framework were taken by the European Commission to address DC-SIP. Moreover, in April 2018, the European Commission tabled a proposal for the amendment of the Unfair Commercial Practices Directive 2005/29/EC, aimed at introducing more specific rules on the DC-SIP issue. The European Parliament and the Council adopted these amendments on 27 November 2019 (European Commission, 2018, 2019b). Furthermore, at the request of the European Parliament, the JRC carried out an economic analysis of DC-SIP in collaboration with DG GROW, to develop a better understanding of the drivers, and of the impact of this phenomenon. This report summarises the main finding of this pilot project. The specific objectives of this project were to: 1. Explain the rationale for brand owners to offer different versions of identically or similarly branded food products in different markets 2. Analyse the impact of DC-SIP on consumers' choices and welfare 3. Identify the main determinants of the occurrence of DC-SIP across Member States.
Author: Publisher: ISBN: 9789276143031 Category : Languages : en Pages :
Book Description
The issue of Differences in Composition of Seemingly Identical branded Products (DC-SIP) refers to cases where a good in one Member State is marketed as identical to a good marketed in other Member States, while in reality that good has significantly different composition or characteristics (European Commission, 2019a). The main concern is that "in some parts of Europe, people are sold food of lower quality than in other countries, despite the packaging and branding being identical", as stated by President Juncker (European Commission, 2017b). This report provides a conceptual analysis of whether and how consumer purchasing decisions and welfare are affected by the fact that the same brand owner offers seemingly identical branded food products with different composition in different countries' markets. Based on the conceptual and empirical knowledge developed in the fields of demand theory, behavioural economics, marketing and consumer psychology, this report develops a framework to analyse the formation of consumer quality perceptions, purchasing decisions and welfare. We start from a basic neoclassical utility approach to assess the different possible effects of DC-SIP on consumer purchases and welfare. Given the crucial role of quality perception in determining consumers' valuation of a product, we then perform a more detailed analysis of the factors shaping quality perception, based on the Total Food Quality Model. This sheds light on how food quality perception may differ across countries and individual consumers, and how this relates to the issue of DC-SIP. Finally, the report addresses how information asymmetry regarding DC-SIP may lead to the disconfirmation of consumers' expectations once consumers realise or are informed about differences in composition between product versions. The role of deception and unfairness perception on consumer decision-making and welfare is analyzed in order to understand consumers' reactions to DC-SIP.
Author: Publisher: ISBN: 9789276142454 Category : Languages : en Pages :
Book Description
Over the last few years, practices relating to differences in the composition of seemingly identical branded food products (DC-SIP) observed across different Member States (MS) have been under intense scrutiny from policymakers and stakeholders in the European Union. Communications by the European Parliament (European Parliament, 2013; European Parliament, 2017; European Parliament, 2018) and the European Council (Council of the European Union, 2016) have stressed the importance of tackling the issue of DC-SIP, and requested the European Commission to investigate these practices and to find a solution at European level. The objective of this report is to provide potential explanations for the occurrence of DC-SIP across MS. More specifically, the report utilises data from the EU wide campaign testing differences in the components of various products (European Commission, 2019b), in combination with economic data collected from various statistical sources (e.g. Eurostat, Eurobarometer, World Bank, Global Dietary Database), to examine economic drivers of DC-SIP in the European Union. The final dataset covers 19 different MS and 127 products. Econometric estimation - Probit estimator - is performed on this combined dataset to quantitatively identify economic drivers of DC-SIP. Potential economic drivers of DC-SIP are identified from economic literature, and factors related to consumer demand (Colen, Chryssochoidis, Ciaian, & Di Marcantonio, 2020), production, and specific MS (Russo, Menapace, & Sansone, 2020) are included. The following factors are considered in relation to consumer demand: differences in GDP per capita, dietary index, attitude index, and price level between countries. The following factors are considered in relation to production: shared official language, shared border, distance, company size, product complexity (product with three ingredients or fewer).
Author: Publisher: ISBN: 9789276601760 Category : Languages : en Pages : 0
Book Description
Differences in composition of seemingly identically branded food products, also known as dual food quality, occur when a good is marketed as identical (i.e. under the same brand and with the same or similar package), but its composition differs substantially across Member States. In this context, what makes consumers perceive goods as identical based on their presentation and, in particular, front-of-pack design remains an open question. The present study addresses this knowledge gap by collecting data on consumers' perceptions of the front-of-pack designs of seemingly identical branded food products. The purpose is to understand how variation in the front-of-pack of a seemingly identical branded food product affects consumers' ability to perceive packages as different, whether this translates in believing that products are different, and their ability to take informed transactional decisions. The study uses primary data collected through an online survey to provide insights on two fronts. First, it gives information about whether, and under what circumstances, the front-of-pack presentation allows consumers to identify versions of products; second, it indicates whether these differences translate into consumers believing that the products are different. Overall, the results indicate the influence of front-of-pack design elements on the perception of package and product differences and on consumer choices; however, these differ between design elements and products, highlighting the need for a case-by-case assessment. This suggests that noticeable changes in some packaging elements do not convey differences in the product. Overall, claims about the origin of ingredients, changes in package colour and images and logos making a claim about the quality of the product show the largest impacts. The findings could provide authorities and interested stakeholders dealing with this topic with useful insights.
Author: Publisher: ISBN: 9789276150329 Category : Languages : en Pages :
Book Description
Differences in composition of seemingly identical branded (food) products (DC-SIP) has been a source of growing concern in the EU in recent years. In 2013, the European Parliament drew attention to the fact that findings of various surveys show that "on a long-term basis consumers are concerned about possible differences in the quality of products with the same brand and packaging which are distributed in the single market" (European Parliament 2018). In 2016, leaders of the EU Member States (MS) brought up the issue of DC-SIP in the European Council and agreed to investigate the existence of the practice further and to eventually finding a solution at European level., During his State of the Union Address in 2017, President Juncker explicitly referred to the issue of companies selling seemingly identical products with a different composition in different MS. To provide a snapshot into how widespread this situation was in the EU, in close collaboration with experts from Member States' competent authorities and stakeholders of the food chain, the Joint Research Centre (JRC) developed a harmonised methodology for the comparative testing of DC-SIP in food across MS (European Commission, 2018). The result of the application of this methodology to different products found that 9% and 22% of evaluated food products had differences in composition but had identical or similar front packaging, respectively. The rest of the food products evaluated were either identical (33%), had similar compositional characteristics (9%) or had a different composition and also a different front package (27%) (European Commission 2019). This report aims to contribute to the existing studies on differences in composition of seemingly identical branded (food) products (DC-SIP) by verifying whether the presence of DC-SIP influences consumer preferences and willingness to pay for a different version of the same branded product. The study used two different methodologies, an (online) discrete choice experiment (DCE) and a sensory testing experiment (referred to as "lab experiment"), in six MS (i.e. Germany, Hungary, Lithuania, Romania, Spain, and Sweden) with a total of 10,600 respondents so that the following could be analysed: (i) consumers' willingness to pay (WTP) for different versions of the same branded food products, and (ii) the impact of information on DC-SIP on consumer preferences for domestic or other-country versions of a product.
Author: Publisher: ISBN: 9789268058169 Category : Languages : en Pages : 0
Book Description
This annex aims to provide a conceptual understanding of how businesses active in the European single market may react to the recently added provision of Directive 2005/29/EC - the Unfair Commercial Practices Directive (UCPD) - concerning differences in composition of seemingly identical branded food products (DC-SIP). The analyses employ a theoretical approach to investigate this issue. More specifically, first, this annex attempts to explain theoretically the potential responses of companies to the amended UCPD by building on the previous work done in the field. Second, this annex provides a detailed theoretical analysis of the role of consumers' trust and brand equity and their implications for companies' potential responses to the amended UCPD. The purpose of this annex is to develop more comprehensive theoretical insights into companies' potential responses to the amended UCPD and to provide a conceptual basis for the empirical analyses carried out for this report based on the online company surveys. The theoretical analyses presented in this annex serve as a basis to identify relevant relationships, reduce biases when interpreting the empirical results and deploy related knowledge available in the literature when deriving and analysing the implications of the amended UCPD for companies' potential actions on DC-SIP. This annex builds on previous studies analysing DC-SIP (Colen et al., 2020; Di Marcantonio et al., 2020; Russo et al., 2020; Nes et al. 2021). For example, this includes the study of Russo et al. (2020), which investigated the factors incentivising brand owners to market different versions of the same product in different Member States and the market implications of different regulatory options. This also includes the reports of Colen et al. (2020) and Di Marcantonio et al. (2020), which investigated DC-SIP from the consumer's perspective by looking at the potential impact on consumers' purchasing decisions and welfare. Relevant for this analysis is also the study of Nes et al. (2021), which empirically estimated the economic factors and drivers (from both a producer's and a consumer's perspective) affecting the incidence of DC-SIP across Member States. Finally, this annex builds on previous studies that are indirectly related to the topic but can improve our understanding of the economic aspects of DC-SIP (e.g. Melewar and Vemmervik, 2004; Grunert, 2005; Schmid and Kotulla, 2011; Passarini et al., 2017; European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, 2020). This annex, along with the rest of this report, analyses the differences in the composition of branded food products offered in different Member States. These compositional differences should not be interpreted as quality differences, because differences in the composition of a product do not necessarily affect its quality. In addition, the theoretical analyses conducted in this annex do not investigate whether the DC-SIP practices constitute a misleading practice within the meaning of the UCPD. This type of legal analysis is out of the scope of this annex and would require case-by-case assessment by competent national authorities. Moreover, the analyses in this annex are hypothetical in nature and do not have legal implications as such.
Author: Publisher: ISBN: 9789268053614 Category : Languages : en Pages : 0
Book Description
The Joint Research Centre (JRC) collaborated with EU Member States' competent authorities to investigate the extent of compositional differentiation of seemingly identical household and personal care products sold in the Single Market. Front-of-pack images and ingredient data of 58 branded household and 79 personal care products were collected from 20 EU Member States following a harmonised methodology. The products were grouped into classes with 'identical' or 'different' ingredients and 'identical', 'similar' or 'different' front-of-pack appearances. The results indicated that 8 % of products had an identical front-of-pack but differed in declared ingredients, while 25 % of products with differences in the listed ingredients showed also certain variations in their front-of-pack appearance. Brand owners cited reasons such as reformulation and asynchronous product launches for variations in composition and front-of-pack. No clear trend of product differentiation was observed across geographical regions of participating Member States. It is important to note that the survey results do not reflect the situation for the entire range of products offered in the Single Market, and the compositional differences found in the survey do not necessarily constitute a difference in product quality. The generic framework for selecting, sampling, and testing food products can be adapted for household and personal care products, and information technology can provide tools to support the collection and analysis of product content data. The report also concludes that it is possible for Member States, industry representatives and NGOs to monitor composition differences across the Single Market by using ICT solutions. In case that such an observatory is indeed created, its purpose, remit, and governance structure must be defined, including a funding mechanism.
Author: Anna Rogala Publisher: Taylor & Francis ISBN: 1003833322 Category : Business & Economics Languages : en Pages : 253
Book Description
The food industry is experiencing a digital transformation across the entire supply chain, from farm to fork. This book offers comprehensive insights into the challenges and opportunities faced, specifically examining the application of the Internet of Things. The authors analyse the benefits and the related threats from the perspective of the participants of the entire supply chain, including consumers. Taking the reader on a journey, this book begins with an analysis of technology use in farming, production, logistics and retailing before delving into the use of digitalization in educating consumers on sustainable consumption practices. The multifaceted analysis of the Internet of Food potential combines science and practice, enriching theoretical analysis with case studies. This book will be of interest to those researching and studying supply chain management, logistics, innovation and technology management and consumption, with a particular interest in the food industry.
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Author: Anna Rogala
Author: Ruth H. Matthews