With a rise in food and drink related businesses we thought now was the time to write a blog on the same. The last two years have seen massive growth in this industry, especially when it comes to small independent businesses. We help businesses in this industry regularly but it is also an area we are really interested in. Not just because we both appreciate a decent glass of wine!
Food and drink business and where to start
Well, it can certainly seem daunting, that’s for sure. First of all, we recommend you take a look at our blog “Start-up Obligations”.
Today’s blog is about the specifics of food and drink related businesses. So we will deal with the additional points here. If you would like a more in-depth overview of the laws behind food and drink take a look at the legislation around it. The main points are dealt with under The Food Safety Act 1990.
Registration
Before you start trading you must register with your local Council. Whilst the estimated processing time is 28 days we advise registering sooner rather than later. Sometimes, depending on the Council, this can take longer especially given the present circumstances. So plan ahead.
If your business is a home-based business do not forget you may have obligations to notify your mortgage provider. Similarly, the same will apply to your landlord if you are renting. Certainly in the cases of mortgage providers, if you aren’t having customers visiting your home, they seem to be taking a more flexible approach and agreeing to the same. However, it is important that you speak to your own mortgage company to check they consent.
How will you be selling your products?
You need to give careful consideration to who you are selling to and how you plan on selling. If you are aiming to be an e-commerce business (that is to sell online) then you will need to ensure you have Terms of Sale in place. It is important that before anyone purchases from your website, or social media platform, they are afforded the opportunity to review your Terms of Sale. Failing to provide them with this information before their purchase could render the terms invalid.
Consumers are afforded a lot more protection compared to business to business transactions. Therefore, it is important to establish your customer base from day one and to ensure you have your Terms of Sale drafted accordingly. Where you fail to give a consumer information prior to purchase the penalties can be detrimental and costly to your business. An example of this is the cooling off period of 14 days. It is for this exact reason, amongst others, that we recommend you have Terms of Sale drafted by a legal professional. If we can assist you with this please do feel free to drop us a message.
Cooling off period
We talked about the cooling-off period above and you might be wondering what it is. Put simply, it is so a consumer has an opportunity to change their mind and return the goods within 14 days. But note, this scenario only applies to contracts that take place at a distance. Face to face onsite purchases are not included.
A consumer is allowed to change their mind, cancel the contract and return the goods to you for a full refund. Failing to notify a consumer of this right could result in them being afforded 12 months to return the same.
There are some exceptions to this rule namely perishable goods, personalised goods, or for hygiene reasons. If the goods can be returned in a sealed condition or perhaps have not been dispatched the consumer will have the right to cancel the contract. If you are in any doubt over consumer rights speak to a professional.
Recent changes and why they are important
There has always been legislation in place which requires transparency in the industry. More recently, perhaps due to how we as a nation live our lives, there has been a greater need for change. Yes, allergies have always been here but it certainly seems recently that they have increased. Perhaps it is because we are more aware due to having an allergy child. Or perhaps it’s because recently it has had more press. There are no firm statistics on exactly how many allergy sufferers there are in the UK. But it is thought it is around 2-3 million who suffer. It is therefore vitally important that you as a business owner get things right.
One of the recent changes has been Natasha’s law which came into force on 1st October 2021. This law followed the sad death of Natasha, a young girl who passed away due to eating a baguette with sesame seeds in. Her parents are campaigning for clearer labelling hence why Natasha’s law is now part of our legislation.
What is Natasha’s law?
The legal name for Natasha’s law is the UK Food Information Amendment. It covers England, Scotland and Northern Ireland.
Natasha’s law means that if you offer food and drink pre-packaged for direct sale, then you must include a full list of all the ingredients. Allergen information must be highlighted in bold and easy to find. For further information on the requirements, and labelling, you can read the guidance from the Food Standards Agency.
We have written this blog to give you some “food for thought” and to give you a general idea of where to start. Prior to venturing into a food and drink related business, we recommend you seek professional advice. Legal advice must be tailored to your business and accordingly, this blog only provides guidance and a general overview. If you would like specific legal advice or drafting please contact us for assistance.