Ole Mexican Foods competes with Gruma Foods in the low-carb tortilla market, among other markets. Both companies’ tortillas are made of fiber-based carbohydrates. The body metabolizes fiber differently, and fiber can replace carbohydrates in products ordinarily made with carbohydrates. Low-carb products can advertise zero or low carbs by subtracting fiber from the carbohydrate count on the label.
In the National Advertising Division of the Better Business Bureau, a private self-regulatory body, Ole challenged labeling claims about carbs, fat, and sugar on Gruma’s Mission brand Zero Net Carbs Sundried Tomato Basil tortillas, Mission brand Zero Net Carb Original tortillas, and Guerrero brand Zero Net Carb tortillas in Original and Chipotle. Claims on the labels for these products said that the tortillas had “zero sugar” or “0g sugar,” “1.5G Total Fat Per Serving,” and zero net carbs. These claims were based on a single-tortilla serving size, 18 grams.
At issue in the challenge was whether the claims were misleading. The Food and Drug Administration creates and regulates serving sizes, and according to the FDA, the standard serving size is 54 grams, or three tortillas. Does size matter?
NAD Serves Up Decision
Labeling claims from competitors, including Ole, were based on the FDA’s three-tortilla serving size. The NAD found that since the carb and fat claims, and some of the sugar claims, were based on the smaller size, consumers couldn’t accurately compare or evaluate competing products. Because of that, it found the claims were misleading.
Gruma argued that the labeling claims were accurate even in the larger size, so the NAD considered whether the zero net carbs and zero sugar claims were supported when the serving size was changed to 54 grams. It found that the zero net carbs claim was supported, but recommended that Gruma discontinue or modify its net carb calculation to reflect the larger serving size. It also found the sugar claims supported for both Guerrero products and the Mission Original product, but recommended that Gruma discontinue the sugar claim for its Mission Sundried Tomato Basil tortillas. NAD did not consider the fat claim for the larger size at all, because the claimed 1.5 grams of fat would logically triple when the serving size was tripled. It recommended that Gruma discontinue the fat claims as well.
In a highly competitive marketplace, advertisers and marketers must ensure that they understand the full context in which they make their claims–and the context in which their customers review those claims. Where the average consumer makes a decision on tortillas based on nutritional value, it necessarily includes size. A consumer survey could be used in a dispute where a measure of consumer perception of serving size was needed. Those who are unaware of industry standards and practices can face costly challenges. MMR Strategy Group offers reliable advertising claim substantiation and proper claims calculation, so you can publish your ads with confidence that your claims are well supported.