07.01.05
According to a new Duke University study, standardized nutrition labels may actually dampen market competition by helping large food manufacturers gain an even sharper edge over their smaller rivals. The study appears in the spring issue of Marketing Science, a publication of the Institute for Operations Research and the Management Sciences. The study found that the standardized food label disclosures created by the Nutrition Labeling and Education Act (NLEA) of 1990 resulted in a higher percentage of companies with low market share exiting various food categories after the law took effect in May 1994. The researchers also found that food industry leaders enjoyed a greater product distribution advantage over their smaller rivals after May 1994.