Archives for October 2015

Label Accuracy Matters: Brew-HaHa Over Misleading Label

October 20, 2015 By

How costly can an improperly labeled product be? Just ask the makers of Beck’s beer.

The company this week was ordered to pay a $20 million settlement to American beer drinkers who were under the impression the beer was still a German import when, in fact, the beer is now bottled in St. Louis, Missouri.

The company was ordered to pay the settlement over deceptive packaging.

The lawsuit was filed in 2013 by Beck’s drinkers who noticed the beer’s label was somewhat ambiguous. While there was no “Made in the U.S.A.” on the label, the packaging stated that the beer was brewed in St. Louis.

Instead, the label boldly emphasized the beer’s “German Quality,” and stated that the beer was made under the “German Purity Law of 1516” and originated in Bremen, Germany.

Supports of the lawsuit said they’re paying an import price on a domestic beer.

According to ABC News, “There was some U.S.-made language on the packaging and bottles, but it was difficult to find. For example, a Beck’s drinker had to turn a 12-pack upside down to find the country of origin on the box’s bottom. Still, U.S. regulators approved the designs.”

Anheuser-Busch InBev purchased Beck’s in 2002– until then, the beer had been brewed in the Beck’s brewery since 1873. Because of cost, after purchasing Beck’s, Anheuser-Busch moved the brewing for the beer to the U.S. in 2012.

Anheuser-Busch tried to have the lawsuit thrown out; however, the company ultimately agreed to settle and denied any wrongdoing.

“We reached a compromise in the Beck’s labeling case,” said Jorn Socquet, Anheuser-Busch vice president for marketing. “We believe our labeling, packaging and marketing of Beck’s has always been truthful, transparent and in compliance with all legal requirements.”

Every household that purchased Beck’s is eligible for a settlement payment. The settlement payments do not apply to those who purchased Beck’s at bars or restaurants.

Ultimately, this case sends a clear message to companies: consumers are reading your labels and they’re holding you accountable for the claims your labels make.

Make sure your labels are transparent, accurate and honest.

Filed Under: Labels Tagged With: ,

Product Labels: Be Wary Of Making Claims

October 4, 2015 By

These days, it’s tempting to dress up your copy by using trendy terms, such as healthy, organic, GMO-free, etc, but be wary of making claims you haven’t done due diligence to back up.

Consumers are growing more and more wary of marketing claims and doing their homework to make sure they’re feeding their families is what companies are proclaiming, and if they’re not, they’re airing their grievances on social media and sometimes worse.

What’s worse, if consumers don’t investigate your claims, the FDA might.

In the last couple of weeks, Coca-Cola, the makers of Vitaminwater, has agreed to remove health benefit claims and add the words “with sweeteners” in two places on its label in order to settle a class action suit filed against parent Coca-Cola in 2009 by the Center for Science in the Public interest (CSPI).

Recently, two parents sued Welch’s Food, Inc., the makers of Welch’s Fruit Snacks, for claiming their snacks contain real fruit.

“The two women leading the legal dispute say pictures of fresh fruit and catch phrases on the packaging deceived health-conscious parents who purchased the fruit snacks,” Think Progress reports.

The women sued Welch’s, claiming the packaging is deceiving.

“Welch Foods has deceived shoppers by engaging in a deceptive marketing campaign to convince consumers that Welch’s Fruit Snacks contained significant amounts of the actual fruits shown in the marketing and on the labeling of the products, were nutritious and healthful to consume, and were more healthful than similar product,” the lawsuit claims.

Either this month, Kashi paid $3.9 million to settle a lawsuit that claimed Kashi’s labeling was misleading when it claimed its products were “all natural” when, in fact, the product contained “bio-engineered, artificial and synthetic” ingredients.

When labeling your product, resist temptation and be as honest as possible. Don’t make claims you can’t support. Consumers appreciate honest companies.

Be wary, your claims could come back to haunt you.

Filed Under: Labels Tagged With: ,