The consumer watchdog has called for food giant Heinz to be hit with a $10 million fine after misleading consumers by claiming one of its snacks, marketed for toddlers, was beneficial for young children.

In a hearing in the Federal Court in Adelaide on Wednesday, counsel for the Australian Competition and Consumer Commission, Tom Duggan, said the penalty imposed on Heinz had to be sufficient to act as a deterrent against similar conduct by the company and others operating in the food industry.

Looking healthy: A box of Heinz Little Kids Fruit and Veg Shredz

"If it's not big enough in the end it simply doesn't represent a sufficient deterrent," Mr Duggan told the court.

Heinz is opposed to the $10 million penalty but has not suggested an alternative figure, the court heard.