Marketing Report
HFSS rules reduce short-term sales impact of food ads

HFSS rules reduce short-term sales impact of food ads

The research found that while short-term sales performance has declined, long-term brand-building effectiveness has remained broadly stable

Advertising restrictions on high fat, salt and sugar (HFSS) products introduced in January 2026 have reduced the short-term sales potential of advertising across affected food categories by an average of 8.3 percent, according to analysis by creative effectiveness platform System1.

The research found that while short-term sales performance has declined, long-term brand-building effectiveness has remained broadly stable, suggesting many brands have adapted their creative strategies to maintain brand equity despite the tighter advertising rules.

Short-term sales impact varies by category

Analysing advertising across HFSS-affected sectors, System1 found that its Spike Rating, which predicts short-term sales potential, declined by an average of 8.3 percent compared with 2025 levels.

The largest declines were recorded in the confectionery and convenience sectors. Convenience brands also experienced lower brand recognition scores, alongside bakery brands, based on System1's Fluency Rating.

According to the analysis, brands have found it more difficult to replace the sales-focused creative techniques that traditionally encouraged immediate purchases while continuing to build long-term brand strength.

Emotional creative emerges as key strategy

System1's findings indicate that brands achieving stronger results are shifting towards more emotionally engaging advertising, using storytelling, humour, recurring characters and distinctive brand assets to support both long-term brand growth and short-term commercial performance.

The company's Test Your Ad platform evaluates long-term brand-building potential through its Star Rating, predicts short-term sales potential using Spike Rating, and measures brand recognition with Fluency Rating.

Andrew Tindall, Chief Growth Officer – Advertising, System1: "HFSS has made it harder to rely on the traditional tricks of food advertising: mouth-watering product shots, price promotions and direct calls to action. Those cues have always been brilliant at driving short-term sales.

"The brands adapting best haven't stopped selling. They've simply become more entertaining. Tesco's The Fruit Giant tells a memorable story while making the brand impossible to miss. Uber Eats uses Gordon Ramsay to amplify its distinctive assets, not replace them. And Warburtons proves that years of building a consistent brand world are more powerful than any single promotion.

"The rules have changed, but the objective hasn't. The brands that stay memorable and distinctive will stay competitive."

www.system1group.com

 


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