The BBB Programs National Advertising Division (NAD) issued a decision regarding Ole Mexican Foods, Inc.’s carbohydrate-related claims for its low-carbohydrate tortillas. While NAD upheld some of Ole’s claims, it recommended discontinuation of others, particularly those containing “0 net carbs” and “Carb Lean” messaging.
Low Carb Advertising
Ole Mexican Foods, Inc. and Gruma Corporation both manufacture low- or no-carbohydrate tortillas. Low-carbohydrate diets have fluctuated in and out of popularity for over a century and remain a significant consumer trend. The global market for low-carb products is projected to reach $10.93 billion by 2029.
For consumers following The Zone, Atkins, or other low-carbohydrate regimens, including individuals managing insulin-related conditions, tortillas remain a highly desired staple. When dozens of brands compete for consumers, advertising claims play a role in consumer decision-making.
Gruma challenged Ole’s labeling on its La Banderita and Xtreme Wellness tortillas, focusing on how net carbohydrate counts were displayed. “Net carbs” are calculated by subtracting sugar alcohols and dietary fiber, both of which have minimal impact on blood sugar, from the total carbohydrate content.
NAD Findings
The Food and Drug Administration (FDA) permits a variance of up to 20% in the declared carbohydrate content on labels. The NAD determined that Ole had a reasonable basis for its stated net carbohydrate levels and carb-effective calculations.
However, the NAD found Ole’s use of the “0 net carbs” (or “keto net zero”) calculation, as well as the term “Carb Lean,” to be problematic. The NAD found that without a clear explanation of the methodology behind these claims, consumers may take them at face value, creating potential confusion and an unfair competitive advantage. It recommended discontinuing or amending these specific claims.
Consumer Surveys, Claim Substantiation, and Food Labels
Whether marketing claims describe food as low-carb or high-protein, how those claims are communicated affects competitive positioning and revenue. Claim substantiation should be an integral part of your go-to-market strategy. Invest in research and claim substantiation before launching advertising campaigns to mitigate regulatory risk and protect profitability.
Advertising Claim Substantiation for Your Case
IMS Legal Strategies designs and conducts consumer surveys to substantiate advertising and marketing claims. Whether pursuing broad health-related claims or narrowly targeted product health advantages, we provide the evidence to defend your claims against competitors’ challenges.
If you are preparing to launch claims in the $10 billion low-carbohydrate market, or in any other regulated category, contact IMS Legal Strategies to ensure your claims can stand up to scrutiny.
