The US food and beverage industry faces a number of product safety challenges and risks, including balancing innovative products with regulatory compliance. In this article, we explore what these risks are, how companies can prepare, how the recall landscape is evolving and our predictions for the future.
What Do You See as the Biggest Product Safety Challenges and Risks Facing the Food and Drink Industry?
Risks From Novel Foods and Health Claims
The Food and Drug Administration (FDA) in the US continues to issue warning letters for food products containing novel ingredients, such as CBD. A food additive is any substance added to food and must be submitted for pre-market review and approval, or generally recognized as safe by qualified experts (GRAS). CBD is not generally recognized as GRAS or FDA approved for use in food; therefore, food with CBD is prohibited from entering interstate commerce. In addition, some companies submit product claims that imply treatment/alleviation of disease or effects on body structure/function – thereby qualifying the food as a new drug or dietary supplement. Entities seeking to enter the US CBD market, for human or animal food products, should carefully assess the risks and engage legal counsel to review the products and claims being made. use.
Food and beverage businesses in the US are increasingly trying to cater to health-conscious consumers with claims such as “gluten-free,” “dairy-free,” or emphasizing the absence of artificial flavors, etc. Industry participants should be aware that all these claims may be subject to FDA regulation. Consumers with allergies or dietary restrictions need to be able to rely on the veracity of such claims. For example, FDA is expected to release guidance on the Labeling of Plant-Based Milk Alternatives: Draft Guidance for Industry. The question of whether plant-based products, such as almond and oat milk, can be classified as “milk” as part of their identity statement is a hotly contested issue in the US.
Infant Formula Shortage Highlights Supply Chain Risks in the US
The shortage of infant formula in the US has highlighted risks in the food supply chain when a market relies on a few manufacturers – particularly for specialty products for individuals with food allergies or sensitivities. The shortage also highlights the risks of delaying or postponing safety inspections due to the COVID-19 pandemic. In February 2022, FDA inspected the production facility of a major infant formula manufacturer in Michigan and found possible contamination with chronobacter sakazaki, among other violations. The manufacturer initiated a voluntary recall of the suspect products on February 17, 2022. When the factory was closed, the market could not keep up with the demand and FDA did not issue guidance allowing the import of formula from other countries until the 16 May, 2022. Although the manufacturer issued a Consent Decree to reopen the facility in May 2022, close to six months later, there is still a shortage of formula across the country, which was compounded by the plant’s second closure flood crop in June 2022.
E-commerce is a thriving industry in the United States, but it comes with risks and safety concerns. From the “pink sauce” that went viral on video sharing application TikTok, to cyber security concerns, entities looking to sell their products online need to familiarize themselves with the regulations and risks relevant that comes with the world wide web. Although some states have passed “cottage food” laws regarding the intrastate sale of certain products, typically shelf-stable, non-hazardous products such as baked goods, jams and jellies, FDA regulates interstate food sales in the US. Startup food and beverage companies should be familiar with the applicability of both state and federal law and seek advice before selling their products across state lines.
Additionally, businesses looking to sell food and beverage products online should implement cybersecurity policies, including implementing strong passwords and phishing training. In September 2021, the FBI issued a notice regarding ransomware attacks targeting food and agricultural sector operations. The announcement highlighted several examples of these ransomware attacks in 2021, including a US bakery that lost access to its server, files and applications, shutting down the company for a week, and a US farm which lost US$9 million when cybercrime gained an administrator. -level of access to its servers. Just a year ago, JBS USA, one of the world’s largest meat processing plants, paid the equivalent of US$11 million in ransom to end a cyber attack on its operations. While implementing robust IT and protocols may have an upfront cost, the risk of outages and reputational damage from these attacks is worth the investment.
What Should Companies Be Doing to Prepare for These Challenges and Risks?
Companies should review and assess their standard operating procedures (SOPs) for compliance with FDA regulations and guidance, including the Food Safety Modernization Act. Companies should also assess entities in their supply chain, including as required under the Foreign Supplier Verification Program. This may include remote and on-site inspections of new suppliers, review of supplier SOPs, advisory and legal review of product labeling, and periodic assessment of claims against updated FDA guidance.
How Do You See the Food and Drink Recall Landscape Changing or Evolving in the Future?
The Evolving Food and Drink Recall Landscape in the US
FDA is likely to be paying increased attention to the company’s policies on internal audits and recalls due to the infant formula shortage. In fact, the FDA finalized guidance in March 2022 titled Voluntary Recall Initiative under 21 CFR Part 7, Subpart C, encouraging companies to be “ready for a recall” and to “have adequate product coding and records maintain distributions to facilitate faster and more accurate recalls.” Companies should be prepared in advance to handle product safety recalls and have policies and procedures in place – including a recall communication plan. Also, employees should be trained upon hire and receive periodic updates. Attempting to deal with the reporting requirements and documents in the middle of an internal investigation may cause unnecessary delays and even endanger consumer safety.
Section 204 of the Food Safety and Modernization Act provides for the tracking and tracing of food. In September 2020, the FDA issued a proposed rule requiring additional record keeping for certain high-risk foods. The final rule is expected by November 7, 2022. Examples of foods currently on the list include cheeses, shellfish, leafy greens and finfish. As proposed, entities subject to the rule will need to keep records to support accurate and timely traceability of food – for reasons such as potential contamination.
The proposed rule includes the development of a traceability program that requires tracking of key data elements, critical tracking events and a traceability shipment code that follows the product through the supply chain. The traceability lot code would be established and assigned when a food entity originates, transforms or creates a food on the Food Traceability List (FTL). In the case of food growers, it is proposed to include records of the coordinates of the growing area. In practice, for this information to be available to a business at the request of an agency, electronic records will be required.
The FDA is also “leveraging technology and other tools and approaches to create a safer and more digital traceable food system” through its Food Safety Roadmap for a New Era, which was first announced in July 2020. There are four key elements in the blueprint: technology-enabled traceability; smarter tools and approaches to outbreak prevention and response; new business models and retail modernization; and food safety culture. Looking to new technology, FDA is exploring the use of artificial intelligence (AI) to improve food safety. Examples of AI uses include AI-based horizon scanning and machine learning to predict which imported food shipments are most at risk of being breached. In fact, FDA launched a pilot study in 2020, with a second phase in 2021, using AI to inspect imported seafood.
What Predictions Do You Have for the Future of the Industry?
Looking Forward
Legislative efforts to address safety and sustainability concerns related to food packaging continue at the state and federal levels in the US. A particular focus is on Extended Producer Responsibility laws, which tend to place the burden on packaging manufacturers to ensure that their products are recycled or otherwise disposed of appropriately. That could force manufacturers to invest in updating their content to meet them – costs that could be passed on to consumers in the form of higher prices for packaged food and drinks.
In addition to sustainability efforts, the safety of food packaging materials is an area of focus for lawmakers. The FDA regulates food contact substances, which means a substance intended to be used as a component of materials used in the manufacture, packing, packaging, transportation or storage of food. The agency is updating guidance on food packaging made from recycled materials in recognition of the potential for contaminants that remain after recycling. At the state level, chemicals of particular concern include PFAS, a class of chemicals that are widely present. California has passed a law banning paper-based food packaging using PFAS chemicals as of January 1, 2023, and other states are expected to consider or pass similar laws.
The uncertainty also comes about the future of the US agricultural economy – most farmers are reaching retirement age and young people are not filling the gap. With rising costs for land, fertilizer, fuels, seeds, chemicals and equipment (a new combine can cost between US$300,000 and US$500,000), startup capital could be the boost US agriculture needs.
Many consider the current process of obtaining credit to be “cumbersome and slow”. On July 14, 2022, the House Agriculture Committee met to discuss the state of credit for young producers, beginning producers and underserved producers. Potential solutions from the hearing may appear in the 2023 Farm Bill.
Finally, companies are under pressure to reduce their carbon footprint and desire sustainability, focusing global attention on food security. In response, companies look to other proteins as a way to increase food independence and diversify food sources. As a result, plant-based protein is likely to gain more market share in the coming years. Companies exploring alternative proteins for their products must consider affordability, environmental trade-offs (eg, energy demand and land use comparisons), sustainability assessments and nutritional equivalence to animal protein.
© Copyright 2022 Squire Patton Boggs (US) LLP National Law Review, Volume XII, Number 242
What are the 4 main sectors of hospitality and tourism?
The 11 sectors of the hospitality industry:
- Accommodation. The Accommodation sector includes everything from small local Bed and Breakfasts, to hotels and hostels, and some houses such as Airborne and Couch-surf. …
- Food & A drink. …
- Travel & Transport. …
- Tourism. …
- Meetings and Events. …
- Tourist attraction. …
- 7. Entertainment. …
- Hobbies.
What are the 4 sectors of the hospitality industry? The hospitality industry is huge and can be broken down into distinct sectors. The top four sectors are; ‘Food and Drink’, ‘Accommodation’, ‘Travel and Tourism’ and ‘Entertainment and Recreation’.
What are the 5 sectors of hospitality?
Although the hospitality industry covers a number of different services, it can be broadly defined through five different sectors. These sectors include food and beverage, accommodation, leisure, travel and tourism, and meetings and events.
What comes under hospitality sector?
The hospitality industry is a broad category of fields within the service industry that includes accommodation, food and beverage service, event planning, theme parks, travel and tourism. It includes hotels, tourist agencies, restaurants and bars.
How many sectors are in hospitality?
The hospitality industry is huge and can be broken down into distinct sectors. The top four sectors are; ‘Food and Drink’, ‘Accommodation’, ‘Travel and Tourism’ and ‘Entertainment and Recreation’. Although the industry is fragmented, there is significant overlap in improving the customer experience.
What are the 5 main tourism sector?
So far we have learned about the five tourism sectors: transport, accommodation, food and drink, recreation and entertainment, and travel services.
What are the 5 main components of tourism products?
Medlik and Middleton (1973) refer to tourism products as “a set of activities, services, and benefits that make up the total tourism experience.” This measure has five components: destination attractions, destination amenities, accessibility, images, and price.
What is the sector in tourism?
The tourism industry, also known as the travel industry, is concerned with the idea that people travel to other places, domestically or internationally, for leisure, social or business purposes.
Does FDA regulate Coca Cola?
The Food and Drug Administration (FDA) ensures that carbonated soft drinks are safe, sanitary, and honestly labeled.
Who controls soft drinks? 2, Non-Alcoholic Beverages and Brewed Soft Drinks, defines several products and sets out certain compositional requirements for packaged water, electrolyte drinks, brewed soft drinks, and beverages [6]. In the United States, soft drinks are regulated by the Food and Drug Administration (FDA).
Is Coca Cola approved by the FDA?
ATLANTA, GEORGIA and PURCHASE, N.Y.
What products are approved by the FDA?
The FDA regulates a wide range of products, including foods (except for aspects of some meat, poultry and egg products, which are regulated by the U.S. Department of Agriculture); human and veterinary drugs; vaccines and other biological products; medical devices intended for human use; electronic radiation emitting …
Does FDA regulate beverages?
The Food and Drug Administration (FDA) regulates all food and beverages distributed in the United States except for products regulated exclusively by the US Department of Agriculture (USDA).
What companies does the FDA regulate?
The FDA is responsible for protecting public health by regulating human drugs and biological products, animal drugs, medical devices, tobacco products, food (including animal food), cosmetics, and electronic products that emit radiation.
What are the 3 main categories the FDA regulates?
Drugs, including: prescription drugs (both brand name and generic) non-prescription (over the counter) drugs.
Does the FDA regulate everything?
Products and Facilities Regulated by FDA FDA regulates about 78 percent of the US food supply. This includes everything we eat except meat, poultry, and some egg products. Over 20,000 prescription drug products are approved for marketing. FDA oversees more than 6,700 different medical device product categories.
Does FDA regulate beverages?
The Food and Drug Administration (FDA) regulates all food and beverages distributed in the United States except for products regulated exclusively by the US Department of Agriculture (USDA).
Is soda regulated by the FDA?
What You Should Know About Carbonated Soft Drinks. The Food and Drug Administration (FDA) ensures that carbonated soft drinks are safe, sanitary, and honestly labeled.
How does the FDA regulate food and beverages?
FDA experts review the results of appropriate tests conducted by companies to ensure that the food additive is safe for its intended use. An approved food additive must be used in accordance with its approved uses, specifications and restrictions.
How does the government regulate the food industry?
The Food and Drug Administration (FDA) is responsible for ensuring that domestic and imported food products are safe, sanitary, nutritious, wholesome and properly labeled. The primary statutes governing FDA activities are the Federal Food, Drug, and Cosmetic Act (FFDCA) and the Public Health Service Act.
What is the government’s relationship with the food industry? Governments play a key role in setting policy and providing legislation that sets minimum food safety or marketing standards that food businesses must meet. Governments must then ensure that food businesses meet these requirements – through training, inspection and enforcement.
Why are government regulations important in the food industry?
Regulation of the agriculture and food industry is justified as a means of protecting public health and safety. There is legislation to protect existing farmland; provide different public assistance to farmers as needed; and favorable tax classification for farmers, their products, and their market practices.
Why are food safety regulations necessary?
The general objectives of US food law are to minimize the risk of unsafe food (it is too expensive to ensure that food is safe) and that consumers have the information they need to make an informed decision.
Why is government regulation important?
Regulations are essential to the proper functioning of economies and societies. They create the ‘rules of the game’ for citizens, business, government and civil society. They underpin markets, protect the rights and safety of citizens and ensure the delivery of public goods and services.
How does the government regulate food?
US federal food law applies to all food in “interstate commerce”; foods “not in interstate commerce” are governed only by state law. However, most foods meet the definition of interstate commerce because they are moved across a state line, or an ingredient has been moved across a state line.
Why does the government regulate food production?
Legislation and enforcement of food regulations aim to prevent unfair competition, protect public safety and health, and avoid consumer fraud. These regulations also extend to agricultural activities, such as beekeeping, soil cultivation, lumber activities and storage of agricultural products.
What regulates the food industry?
Food Businesses Subject to FDA Regulation FDA regulates all foods and food ingredients introduced or offered for sale in interstate commerce, with the exception of meat, poultry, and certain processed egg products regulated by the U.S. Department of Agriculture. SA (USDA).
What regulates the food industry?
Food Businesses Subject to FDA Regulation FDA regulates all foods and food ingredients introduced or offered for sale in interstate commerce, with the exception of meat, poultry, and certain processed egg products regulated by the U.S. Department of Agriculture. SA (USDA).
Is food a regulated industry?
The US food processing sector is extensively regulated by state and federal agencies. The federal agencies are in charge of regulatory oversight: USDA FSIS for the meat and poultry processing businesses and FDA for all other food processing businesses.
What part of government regulates food?
USDA is responsible for regulating meat and poultry, egg products, and catfish, but the US Food and Drug Administration (FDA) oversees food safety for almost all other foods.
What does the food and beverage industry consist of?
The food and beverage industry is all the companies involved in the processing, packaging and distribution of raw food materials. This includes fresh prepared foods as well as packaged foods, and alcoholic and non-alcoholic beverages.
What are the 3 main parts of the food and drink industry? The entire supply chain of the industry includes food processing, packaging and distribution.
How many parts does the food and beverage industry have?
Coming from the agricultural industry in our definition, the food and beverage industry is divided into two continents. Those two segments are the production and distribution of edible goods.
What are the 4 sectors of the food industry?
The main sectors of the food industry are the farm service sector, the producer sector, the processor sector and the marketer sector.
What are the 5 sections of food and beverage department?
There are many different types or procedures of food and beverage service, but the main category of food service is 1) Plate Service, 2) Cart Service, 3) Plate Service, 4) Buffet Service and 5) Family style Service.
What is included in the food and beverage industry?
What is included in the food and drink industry? The food and beverage market consists of fresh, prepared or packaged food as well as alcoholic and non-alcoholic beverages. It also includes manufacturing, packaging, and distribution to meet consumer demand.
What are the 5 sections of food and beverage department?
There are many different types or procedures of food and beverage service, but the main category of food service is 1) Plate Service, 2) Cart Service, 3) Plate Service, 4) Buffet Service and 5) Family style Service.