1 Trans-Border Reformulation: US and Canadian Experiences with trans Fat Executive Summary

Food managers are engaged in altering the nutritional quality of diets. They do so directly through product innovation strategies (food manufacturers) and the selection of products available in stores (grocers and restaurants) and indirectly through distribution and promotion strategies and prices. Decisions to alter products, menus, shelf-sets and marketing strategies are drivers of supply which interact with consumer demand to impact the nutritional quality of food made available, purchased and eventually consumed. This paper explores the decision process of managers in a holistic approach integrating several strands of the literatures of diffusion of innovation, health belief and firm strategy. A conceptual model is then applied to the case of product reformulation in response to food policy. Voluntary actions of snack food manufactures in the US and Canada to respond to the impetus to reduce the use of trans fat in cookies illustrates our discussion. We present evidence of desirable reformulations in light of the standardization of label information in both nations. We also suggest differences in the response of managers responsible for product strategies in this dynamic category, with implications for food policy makers and consumers alike. Industry efforts to improve the nutritional quality of cookies offered for sale have generally been successful, however it is uncertain if there has been a concomitant change in consumption patterns.