Supermarket chain Coles will no longer stock Capilano Honey's Allowrie product in a bid to support Australian production.
Capilano has been criticised by local beekeepers as its product is believed to contain honey sourced from China and Argentina.
Allowrie labels state the product contains 30 per cent Australian ingredients.
Capilano is believed to be working with Coles on replacement products that contain 100 per cent Australian honey.
The Australian Honey Bee Industry Council has previously raised concerns about the use of imported honey, and Coles’ recent decision could see other honey companies moving to use more Australian ingredients.
Country of Origin Labelling, which came into effect on 1 July, has seen food businesses become more transparent about where their ingredients are produced, grown, made or packed.
The Australian Government gave businesses two years to change food labels to comply with the new law, which sees businesses communicate what percentage of their ingredients come from Australia.
“As an Australian company producing home-grown fruit and vegetables from Victoria’s Goulburn Valley, SPC welcomes the regulation changes,” SPC GM marketing and innovation Simone Coté said.
“As well as making it easier for consumers to reach for Australian produce, these new changes signify a levelling of the playing field for Australian producers as well as provide additional support for farmers, local production and jobs.
“SPC supports the transparency these regulations bring, with Australians often misled by the impression that certain packaged products are Australian, when in fact they’re not.”