Danone, Kellogg, Kraft, Nestle and PepsiCo have agreed to repackage their products to include information on recommended daily amounts of ingredients such as sugar, fat and salt.
The label will show the product as a percentage of the Guideline Daily Amount (GDA). However, proposals from the UK food watchdog recommended a color coding system that would have clearly marked out certain products as unhealthy.
The companies, which manufacture many familiar UK brands such as Kelloggs Corn Flakes and Walkers Crisps, say that the system will give consumers clear nutritional information to make an informed choice.
Speaking on behalf of the five manufacturers, Martin Glenn, CEO of PepsiCo's UK and Ireland operations, said, "We know from our customers that they don't want to be told what they can and can't eat. However, they do want easily accessible information to guide their choices."
The Food Standards Agency has been pushing for an industry-wide nutritional labeling system to help consumers make healthier choices. The agency has developed a traffic light color coding system, with red representing a product high in fat, salt or sugar and green signifying a healthier product.
Although the agency welcomed the adoption of the new labeling, it was cautious, stressing the importance of consistency in labeling. "Consumers tell us they want a straightforward labeling scheme, established by an authoritative and trusted source, which will show them at a glance if a food contains high, medium or low amounts of fat, saturated fat, salt or sugar."