DISCUSSIONS, BLOGS, TOPICS OF
INTEREST
January
2007: The
GST Status of Cranberry Juice
Many retailers and consumers are unaware that pure juices such
as Cranberry Juice become subject to GST ( in any size of container) when
the label instructs the end user to dilute it with water or spring or mineral water.
Black River Juice and other brands have made changes to their presentation of
this product over the past year, removing references to diluting with water in
the belief that GST tax improperly inflates the cost of this already costly juice.
Some brands, however, have retained the references to diluting with water, and
retailers who sell such brands without charging GST are placing themselves at
risk if they were to be audited. While the rules and interpretations for this
product category are generally not appropriate in our opinion since they were
designed to target lower quality sugar sweetened concentrates, they are as they
are for the time being.
Brands that continue to include such instructions enjoy a slight advantage over
those that don't, because it can create an erroneous impression that that brand
has more value than one that does not mention water dilution. We advise all retailers
to follow carefully the rules of taxation for the products they sell.
Please note the following two
memo's for further information:
Keith Wallace,
President of Black River Juice
January 23, 2007
August 2006: New Product Naming
Regulations
It will soon not be possible to use the word "Nectar" to
describe blends of various fruit juices as we have done for over two
decades. Gradually, customers will see our product names change. For
example, instead of MANGO NECTAR, it will be MANGO 100 % Juice Blend,
followed by a description of what juices are in the blend. Health Canada
is acting on complaints supposedly received that a name like "MANGO
NECTAR" is deceptive. We wonder just how many complaints were
actually received ? No complaints of this nature were ever received
over a 20 year period at Black River ! The new names are not especially
any easier to understand, in our opinion, but many brands are now using
this approach to name their products, so perhaps consumers will become
familiar with it over time.
"The Dirt on Organics"
from The Toronto Star
Wed, August 22, 2001
Do You Know What "Dehydrated, crystallized cane syrup" is?
How About "Evaporated Organic Cane Juice?"
You are likely to find either of these statements or some variation
thereof in the ingredients list of juices and drinks commonly sold . In
many cases these products are represented as being natural, organic,
healthy and the latest trend in beverages. The plain truth is that cane
sugar, no matter how creatively described, is the SAME WHITE TABLE
SUGAR that many of us spoon into our morning coffee. You can find many
creative ways of describing SUGAR, all of which fall technically within
the boundaries of the law for ingredients listings. Many average
consumers have no idea what these statements mean; obviously, the
manufacturers of these products must be uncomfortable about hitting the
nail on the head and admitting that their products are made with sugar.
Sugar is cheap and great for making profit margins better, but at some
point the question of playing fair and square must arise, so that
choices made are informed choices.
The next time you shop for a juice or beverage that appears to hold
itself out as natural / healthy, check the ingredients list for "cane
juice/syrup" items and ask yourself why they are being described that
way, and whether you feel good about your choice.
July 2006: Word
has it that new regulations will soon be forthcoming forbidding the use of this
construction in an ingredients list. The packer must either say "Sugar" in
front of the other words or in brackets after, so that it is clear what the substance
is. Watch for compliance, or might we even hope for voluntary compliance before
it becomes mandatory?
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