Food Industry Firms' Economic Incentives to Provide Nutritional Information to the Market: European Breakfast Cereals,Snacks, and Soft Drinks Industries

Information asymmetries between producers and consumers exist with respect to nutritional characteristics of foods and beverages. This article aims to analyze firms' methods to supply nutritional information, focusing on 3 specific food industries: breakfast cereals, snacks, and soft drinks. A theoretical model is developed and tested empirically on European firm-level data obtained from company websites. Firms' incentives to provide nutritional information are positively related to their products' healthfulness, to firm size, and to firms' degree of international orientation. These insights may have important implications for the design of regulations to increase efficiency in the supply of nutritional information to consumers.