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Chapter 6: Product Labeling, Regulations, & Label Design & Packaging

Developing your label and package design.

Table of Contents

Introduction

A product label is vital to your food business as it fulfills two functions. It is a sales and marketing tool because it can persuade consumers to buy your product. The label also provides key information for the consumer: what your product is, what ingredients it contains, nutrition information, contact information for your business and more. Labels Unwrapped is a resource that explains all aspects of labeling.

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Source:  www.fda.gov/media/132224/download


Most food products must have labels that follow state and federal laws, but there are exemptions for small food businesses under specific circumstances.

Federal Food Labeling Laws

Over the years, federal lawmakers have enacted food labeling laws to ensure consumers have the information they need to make informed purchasing decisions. These include how the ingredients are listed, net weight/volume, address, nutritional information, and health/nutrition claims and allergen statements. The regulations even dictate the font size of certain information and how the text must be placed on a label. Be sure to review the Guidance carefully.  

If you plan to claim health or nutritional benefits about your product, be sure to understand the rules. Health claims, which describe a relationship between a food component and a disease or health related condition are regulated by FDA. Only certain health claims are allowed on a label.  You can find more information on FDA’s Qualified Health Claims page.  

Allergen declarations are also regulated. FDA requires that food labels identify the food source of all major food allergens used to make the food. The regulations focus on eight major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soybean.  Sesame is being added in 2023. Until that time, you don’t have to list sesame as an allergen, although it will appear in your ingredient statement unless it’s part of a seasoning.  You can find FDA guidance here. In addition, the term  “gluten-free” can be used on food labels if all the requirements of the regulations are met. The statement “organic“ is regulated by USDA. Make sure your copacker is able to process organic products in their facility.

The good news is that food labels are fairly standardized. Consider working with a graphic designer or consultant who has experience creating food labels. For federal rules and regulations, download the Food and Drug Administration’s (FDA) Food Labeling Guide. You may also find FDA’s Food Labeling & Nutrition website helpful. If you are working with a food business incubator, they may be able to support you in designing a label that complies with federal regulations.  

Labeling exemptions for small businesses

Small food companies may qualify for the Small Business Nutrition Labeling Exemption, which means you do not have to have a nutrition facts panel. Typically, you’re exempt if two years of gross sales are less than $500,000 or one year is less than $50,000. You can apply for the exemption via an online form. You can also mail or fax your form. Access it here. Businesses must file annually with the FDA to keep their exemptions. Keep in mind that nutritional labeling can be a marketing asset and that some retailers may require a nutrition panel.

State Labeling Laws

Food producers also need to comply with state labeling laws. Many are the same as FDA rules, but some are in addition to them. Massachusetts has minimum labeling requirements, including open dating, health claims, and food allergens. See them here: Policy Guidelines Minimum Requirements for Packaged-Food Labeling 

You can also download the full regulation: 105 CMR 500.00: Good Manufacturing Practices for Food. Section 500.006 is dedicated to food labeling. 

An image of a UPC code and QR code

An image of a UPC code and QR code

UPC barcodes

As a new food producer, you should consider adding a Universal Product Code (UPC) to your product label. UPC barcodes consist of a twelve-number sequence that identifies a product and its origin. One company, GS1 US (once known at the Uniform Code Council), provides this information. There are other resellers of UPCs but GS1 is the only legitimate source.

If you’re interested in distributing your products to supermarkets,  you’ll likely need UPC barcodes. Most supermarkets require them, and many smaller retailers request them as well. As value-added or specialty food suppliers move their products into wider distribution, UPC barcodes are typically included on the label.

In addition to grocery store scanning, UPCs track supply levels and help with automated ordering systems. You can also use the codes to track your internal inventory.

As you may know, many supermarkets have coded loyalty cards. Scanned during checkout, these cards help retailers track customer buying habits. Shopper profiles reflect the information supplied on card applications, including income level, geographic location, household size, and other data. This information helps retailers order and stock the items customers want. You may be able to access this information which will help in decision making. 

Getting set up in a UPC system is relatively simple

GSI US, a non-profit organization, provides UPC barcodes. First, apply for membership to request codes. After acceptance, GSI US will assign you a six-digit code and specifications about its use. The organization charges users for membership. You can find more information here.

Next, assign a number to each of your products. The number assigned to each product should not contain specific characteristics, such as the weight, size, or color of that product. The codes should be somewhat random. Keep careful records of the UPCs and avoid assigning duplicates.

Post a list of the codes prominently for all employees to access it. You can use the codes on invoices, shipping labels, packing lists, and more.

QR codes on food packaging

The pandemic helped make the QR code a familiar tool in restaurants, easily read by mobile devices and tablets.   The QR code (quick response) was invented in 1994 to track auto parts but was soon adapted for other industries. 

On food packaging and other point-of-sale material, the QR code can help customers understand your brand.  Customers can access detailed information about your product including recipes, videos, or promotional offers for example, to be able to make informed buying decisions.

The difference in appearance between a QR code and a UPC bar scan is physical dimensions.  Barcodes contain information about a product, scanned in a single line and often required for retail and wholesale food customers. 

QR codes are usually at least 2 x 2 centimeters in size, consisting of black squares and dots that represent information. The QR code can be read both vertically and horizontally and can contain large amounts of information.   

If you’re considering a QR code for labels or other materials, here is additional information from Penn State Extension.

Label Design & Packaging

Food labels serve as a sales tool, enticing consumers to buy your product. Your label design is as important as recipe development. In some cases, it may be more valuable. A label is your best advertising opportunity and helps convey your product’s personality and the story behind your brand. 

This chapter provides an overview of the steps involved in creating food packaging. You’ll likely need to work with a graphic designer as federal and state laws dictate food labeling. You might choose a designer who has experience designing food labels to make the design process go smoothly. 

If you’ll be working with a co packer, don’t print a final label until you’ve discussed it with them, as their labeling equipment may only work with certain label specifications.

Check out the competition

Before embarking on label design, study your competitor’s packaging. You can research the competition’s food labels online or visit stores that carry similar products. If you’re visiting stores, check out the labels of non-competitor foods. You might find some new ideas.

Packaging changes constantly with innovations in tamperproof, recyclable, and reusable containers. It’s also helpful to see how labels look on the shelf next to each other. Noting what gets your attention might influence how you treat the design of your label. You can also learn about package and label trends at trade shows. Industry publications, such as Packaging Digest, discuss trends in food labeling. The Specialty Food Association also publishes articles about food packaging. 

Consider the consumer

Next, think about the target consumer you identified during your market research phase. Keep this profile in mind as you design your package and your label. Packaging should appeal to your target consumer and convey what’s inside through the type of packaging, i.e., box, jar, bottle, plastic jug.

 Your market will also determine the package. Specialty products sold primarily as gifts require a slightly different presentation than a product sold alongside mass-marketed products. Also, packaging should give consumers an idea of the cost of your product. If you have a higher retail price, your packaging should convey it. The way consumers will use your product may influence the flexibility, size, closure, and other considerations.

Consider package options and the packaging equipment

For packaging in general, consider recyclable materials and ease of opening and closing the package. It makes sense to source containers and materials that are readily available and don’t have to be custom made, at least to start. Glass containers can be expensive to ship. Based on the equipment your product will be processed on, you might have a square or a round jar, or a label that wraps instead of a front-and-back two-piece label. Some caps for closures take special equipment to apply and not all are designed to make a hermetic seal. Labor considerations should also be taken, such as how long it takes to seal a cap, apply a tamper-proof band, or dip a cap in wax. 

Availability and shipping costs are other concerns. Address the weight of the container and special handling needs, especially if you’re selling via ecommerce. 

Think about store display 

Shelf space is limited, and some grocers and retailers will have requirements for your product. If your package deviates from the standard shelf height for similar products, it may be hard to get your product into certain stores. Talk to retailers, grocers, and distributors, and packaging manufacturers about these issues.

Naming your business and brand 

There’s a good chance you’ve already thought of a name for your brand. Now’s the time to reconsider your business and brand name. Make sure it sounds right. Also consider how it translates visually to logos and point-of-sale materials. Your name serves as your brand’s identity. It conveys what the brand is all about and its personality

Many specialty food producers name their products for the person who created the recipe or where it’s manufactured. Perhaps you name your brand after a farm, country inn, restaurant, or state. These types of names lend a personal touch to your product and help to establish its uniqueness.  

When naming a brand, think about your market. If your product will be purchased primarily as a gift, you may want to use a location in the name to make a nice souvenir for travelers to keep or give to friends. If you intend your primary market to be specialty food stores, a catchy name that shows innovation may be in order. Try out some names with family, friends, and people willing to give you honest opinions. Gauge the response to each.

After you’ve chosen a name, check that another food company doesn’t already own it. The food industry is competitive, with multiple brands offering similar products. Obtaining a trademark for your brand protects your company’s identity, differentiates you from the competition, and prevents consumer confusion. 

According to the United States Patent and Trademark Office (USPTO), “A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others.” 

You can apply for a trademark in your state or get nationwide protection by filing with the USPTO. You can learn more about filing for a trademark in Massachusetts here.  It makes sense to trademark your logo so that you can begin to establish your brand before registering.

Confirm that your desired brand name is available by performing a Massachusetts Trademark search and check the USPTO’s online database. After research name availability, you can begin the trademark application process. There are state and federal fees for trademark registration. You may also consider hiring a trademark attorney for this process. 

Label copy

Label copy presents an opportunity for conveying your brand’s personality in addition to your name. If you have space, connect with consumers emotionally by sharing a bit about the story behind the brand. Note where it’s from and who makes it. Your brand personality is a strong selling point and makes specialty products appealing to consumers. Consider including information on using the product. It helps broaden product appeal to people who may not know how to use your seasoning, sauce, or condiment. 

 Hang tags

If your package only provides room for a label, a hang tag can be added for sales copy.  This small tag hangs off the neck of bottles and jars. It can suggest recipes and convey a brand. If you have a family of products, it’s the place to mention each one. Consider labor costs when applying special items to your packaging, such as hang tags.

 Designing your packaging

Consider hiring a graphic designer or design firm. A well-designed label makes your product easier to sell to consumers, retailers, brokers, and distributors. A designer with food packaging experience makes a good choice because of their familiarity with the nuances of food labeling laws and space constraints. You can search for a graphic designer online or ask other specialty food producers or associations for recommendations.

Contact a few designers and ask to see portfolios of their work, and references. Many graphic designers have online portfolios. Discuss fees and expenses. Then determine whom you feel most comfortable hiring. Base your decision on your response to their design portfolio, your feelings about how well you would work together, and your budget. Remember that your chosen designer must produce a label and logo that will capture the essence of your brand. 

Graphic design fees

Some designers will work for a flat fee. Others will charge hourly, and some may work for a fee plus royalties. In the interviews, share your design budget. Be sure the contract clearly describes the terms of the graphic design work. It should spell out who retains the rights to the artwork, the work parameters, the billing structure, and whether royalties are to be paid. 

 Working with a graphic designer

At your initial graphic design meeting, provide your package sizes, the number of colors available for printing, and the necessary copy (including nutritional labeling formats, and net weight information).

Discuss who your competition is and where you plan to sell your product. If your product is mass-marketed, the label will have a different look than a product available only at gourmet food stores and retail shops. Your designer may visit stores to get an idea of where your product will sit on the shelf.

A graphic designer can suggest printers and work with one to get print specifications and information on dies (shaped labels) for use in the design.

Redesigning existing packaging: To redesign an existing package, discuss what you like and dislike about the current graphics. You may want to carry over some aspects of the existing artwork into the new design so consumers can quickly identify your product. The same holds true for introducing a new addition to your family of products. Keeping your brand identity consistent for all products is a best practice for retaining consumer brand loyalty.

After signing a contract for graphic design work, the designer will present you with package concepts. Sometimes it’s hard to choose which design you like best. If that’s the case, consider showing the sketches to family, friends, retailers, brokers, or distributors who are willing to share their opinions. You’re so close to the product that it’s possible to overlook some aspect of the design or presentation of information. The designer will make revisions and provide a final design for approval. Consider sharing a copy of the proposed design with your printer to ensure there are no printing challenges or additional charges.

 A final checklist before printing:

  • Double check the nutritional panel information.
  • Make sure labels are easy to apply. Try one out to be sure it wraps and sticks to the container without effort or wrinkling. Refrigeration/freezing is important to consider.
  • Check trademark notations where applicable.
  • Confirm that the label includes all required legal language.
  • Have a new set of eyes review the final artwork before it goes to a printer.

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