In July, CAOBISCO, the Association of Chocolate, Biscuit and Confectionery Industries of Europe, published its policy manifesto for the European Union (EU). Detailing its 2024-2029 EU policy cycle, its manifesto is built on the collective needs of the 14,300 confectionery companies in Europe, 99% of which are SMEs.
And as the new European Parliament members take their seats, the industry association has set out its calls for action over the next five years. These come as the EU’s new legislative term officially began on July 16 2024, after 185 million voters across 27 EU countries cast their votes in June. This prompts the start of a five-year term that will affect policy and shape the European confectionery sector.
Today, the EU confectionery, chocolate and biscuit sector has an annual turnover of €59.5 billion. It creates a total of €3.3 billion in import value and €15.6 billion in export value.
CAOBISCO asserts that ensuring confectionery policies encourage open strategic autonomy, fair competition and create sustainable supply chains is a central component of helping companies and the industry as a whole thrive. With these at the core of its five-year manifesto, the association hopes that by collaborating with policymakers and the wider sector, it can create a resilient and prosperous future for the European confectionery industry.
So, what’s in CAOBISCO’s five-year policy manifesto?
In its hopes for the near future of Europe’s policy priorities, CAOBISCO puts forward three core areas that it’s calling on the new European Parliament to address: Strengthen the EU’s free and fair trade, build sustainable supply chains and create accountable systems backed by science.
Here, we take a closer look at these three core areas of CAOBISCO’s manifesto.
1. Give new life to free and fair trade in the EU
CAOBISCO is conscious of the importance of keeping the EU’s reputation for high-quality and popular products around the globe. It therefore highlights the critical presence of family-run businesses and SMEs in the European economy and their contribution to wider supply chains through imports and exports. It also urges that amid today’s climatic, social, economic and geopolitical challenges, none of this can be taken for granted.
As a result, the association is looking to policymakers to support the EU’s confectionery sector by promoting a proactive trade agenda. It believes that solid bilateral and multilateral trade agreements are essential for facilitating the import of raw materials and inputs while allowing the EU’s confectionery companies to export high-value added products. These agreements also play a crucial role in establishing common rules and ensure a fair global playing field, vital for promoting fair competition and safe confectionery product manufacturing.
CAOBSICO highlights that ongoing negotiations with Ukraine, MERCOSUR, Thailand and Australia are very important for the confectionery sector and help grow Europe’s wider economy.
The association also believes confectionery companies need secure access to competitively priced, sustainably produced raw materials. Restrictions on sugar production and imports are causing artificial shortages and impeding the sector’s ability to meet product demand. It also holds that import tariffs on raw materials should not compromise its competitiveness in domestic and global markets and that it’s important to help provide a diverse range of supply sources to achieve food security.
Updates to the Preferential Rules of Origin on CAOBISCO products are also vital to ensure exporters and the European economy can benefit from preferential trade agreements. Currently, the requirement that at least 40% of the weight of a product be comprised of European-origin sugar hinders the export of products where the majority of added value is European, the association puts forward, highlighting that it’s rarely economically viable to meet this burden of proof.
CAOBISCO suggests the EU considers implementing value-based rules of origin similar to the UK or Swiss model. Emphasising creativity and value-added production would be more beneficial than the origin of a single ingredient.
2. Achieve sustainable supply chain
CAOBISCO shares that its members have been leading sustainability initiatives at both national and European levels for many years. As an association representing numerous multi-generational family-run companies in Europe, it advocates the importance of long-term thinking and commitments to upholding the EU’s focus on environmental protection and human rights.
To push the needle on sustainable development, CAOBISCO believes that the EU needs to make its laws more straightforward and easier for people to understand. It is completely behind the goals of new regulations concerning deforestation, due diligence and the safeguarding of environmental and labour rights.
However, the difficulty lies in the complexity and potential for inconsistent application, it argues. CAOBISCO highlights that the association and its members are ready to offer its knowledge and help in creating more effective approaches for promoting sustainability in supply chains. Clear guidance, communication and input from the industry on implementation are crucial.
Supporting the development and access to relevant data is crucial. A significant amount of data is necessary for evaluating and disclosing the environmental and human rights effects within supply chains. This poses a significant challenge, particularly for SMEs.
The EU needs to supply companies with useful data, as it does in certain sectors, to help them meet due diligence responsibilities and develop a sustainable economy. Consistency, trustworthy data and cooperation are essential for ongoing progress in sustainability, CAOBISCO puts forward.
To streamline processes, it’s important to minimise excessive bureaucracy and redundant reporting, particularly for SMEs in the EU. Implementing a ‘one in, one out’ principle and establishing a uniform reporting system would help achieve this goal, the association details.
CAOBISCO wants to see the EU encourage strong partnerships with third countries. It’s crucial to work towards achieving a globally unified approach that producing countries can adhere to, while ensuring consistency in other consumer markets. It urges the European Commission to persist in and scale its efforts to engage with others.
3. Harness trust, transparency, science-based approaches and good governance
It’s important that policymakers and stakeholders engage in responsible dialogue to develop well-informed regulations. The confectionery industry is committed to supporting evidence-based policymaking, CAOBISCO says.
The most effective policies and regulations are those that are rooted in factual evidence, have clear objectives, are scientifically tested, include input from all stakeholders, undergo thorough impact assessments and take practical considerations into account. It’s therefore important to avoid bias and politicisation in this process, the association adds.
It’s also vital to promote mutual respect and understanding among political, scientific, civil society and business sectors. Equally, it’s crucial to listen to all stakeholders’ views and consider the facts. CAOBISCO puts forward that its common goal is to guarantee that European products are produced to high standards, are safe and are sustainable.
In EU policy discussions, it’s crucial to recognise the unique nature of chocolate, biscuits and confectionery products, as they are primarily intended to be enjoyed as treats
CAOBISCO
The association is encouraging transparent, bottom-up policymaking where stakeholders are involved from the beginning. Creating an environment where they listen and understand their perspectives to establish trust and mutual appreciation of desired outcomes and limitations is vital. This will lead to practical solutions and the successful implementation of well-thought-out policies.
In EU policy discussions, it’s crucial to recognise the unique nature of chocolate, biscuits and confectionery products, as they are primarily intended to be enjoyed as treats. Therefore, acknowledging the role these products play in people’s daily lives is essential, and for EU policies to promote healthy lifestyles and balanced diets.
Unlike staple foods which are mainly for nutrition, treats are all about providing pleasure and enjoyment, offering people small moments of indulgence. Responsible production should be accompanied by mindful consumption, CAOBISCO argues. Yet, the sector also needs to ensure its products are not unfairly treated.
The association wants the EU to move towards sound risk management. It holds that being overly cautious can lead to unnecessary disruptions and expenses. Sound decision-making involves taking calculated risks and ensuring that life’s simple pleasures remain safe and enjoyable for consumers.
CAOBISCO asserts that the European sector needs to ensure the single market operates smoothly. Having one set of clear rules for everyone creates fairness and predictability, which is especially crucial for SMEs that work across borders, which applies to most of the 14,300 companies it supports.