EU lawmakers push to ban term 'veggie-burger'

EU lawmakers have voted to ban terms such as 'veggie-burger' and 'vegan sausage,' limiting descriptors like 'steak' and 'sausage' exclusively to meat-containing products, a measure intended to bolster traditional farmers. Passed by a 355-247 vote, this proposed regulation, which still requires final negotiations, mirrors existing restrictions on dairy alternative labeling and could significantly impact branding, marketing, and market penetration for plant-based food companies operating within the EU.

Analysis

BRUSSELS, Oct 8 (Reuters) - EU lawmakers voted on Wednesday to ban the use of the term "veggie-burger" and limit food descriptions such as steak, escalope and sausage to products containing meat, part of a proposed EU law to protect farmers. Lawmakers at the European Parliament voted by 355 to 247 in favour of an amendment to a regulation designed to give farmers a stronger negotiating position so that powerful companies in the food supply chain do not impose unfavourable conditions. Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here. Advertisement · Scroll to continue The text of the final regulation will follow negotiations between representatives of the Parliament, EU governments and the Commission, with the Parliament backing a ban of terms such as "veggie-burger" or "vegan sausage". Its meat-only list also includes "hamburger", "egg yolk" and "egg white". The EU has already defined dairy items milk, butter, cream, yoghurt and cheese as "products secreted by mammary glands", meaning that what might otherwise be called oat milk is instead generally referred to as oat drink. EU lawmakers in 2020 voted against a proposal to ban the use of meat-related terms for plant-based alternatives. Reporting by Philip Blenkinsop, editing by Ed Osmond Our Standards: The Thomson Reuters Trust Principles. EU lawmakers have voted by a margin of 355 to 247 to ban the use of terms such as "veggie-burger" and "vegan sausage," restricting descriptors like "steak" and "escalope" exclusively to meat-containing products. This legislative move, primarily aimed at protecting traditional farmers and bolstering their negotiating position within the food supply chain, represents a significant regulatory shift. This decision follows a previous vote in 2020 where lawmakers rejected a similar ban, indicating a notable change in legislative sentiment. The final regulation will emerge from subsequent negotiations involving the Parliament, EU governments, and the Commission, mirroring existing EU regulations for dairy alternatives which mandate terms like "oat drink" instead of "oat milk." The proposed ban, carrying a 'mixed' sentiment and a 'market impact score' of 0.4, directly impacts the branding, marketing, and market penetration strategies for plant-based food companies within the European Union. This legislative action highlights increasing regulatory scrutiny on alternative food product labeling, potentially necessitating significant rebranding efforts and influencing consumer perception of plant-based options.

Key Decisions for Investors

• Investors in plant-based food companies should closely monitor the ongoing negotiations between the Parliament, EU governments, and the Commission regarding the final implementation and scope of these labeling restrictions.
• Evaluate EU-exposed plant-based food companies for their reliance on now-restricted terms and estimate potential rebranding costs and marketing adjustments required to comply with new regulations.
• Assess how this regulatory environment might influence long-term investment in the EU plant-based food sector, potentially favoring companies with established non-meat-descriptor branding or those focused on non-EU markets.