Sherry Jackman, an Environmental and Regulatory Compliance Partner, recently joined the L.A. Times Studios Food & Beverage Industry Roundtable to discuss key trends and challenges in the industry. Here are some insights from her conversation.
New Regulatory Challenges for 2025
One major upcoming issue is Extended Producer Responsibility (EPR). In states like California and Oregon, food and beverage companies must now take responsibility for packaging waste. This means registering with Producer Responsibility Organizations (PROs), reporting packaging data, and paying fees based on the materials used. To comply with these rules, companies may need to redesign their packaging to be more sustainable.
Advice for Managing Supply Chains
In today’s market, it’s crucial for businesses to strengthen their agreements with suppliers and distributors. Jackman advises clear risk allocation in contracts, including detailed indemnity provisions. This ensures that upstream parties take responsibility for any issues related to product claims or regulatory violations. Establishing quality standards and effective dispute resolution can also reduce risks, making operations smoother.
Regulatory Challenges in Southern California
Food and beverage companies in Southern California face increasing consumer class actions, particularly concerning product labeling and advertising. Claims often revolve around terms like “natural” and “clean,” even if they lack merit. Businesses are responding by auditing their labels, training staff, and backing up claims with scientific evidence. Staying updated on legal trends is essential to minimize risks.
Impact of Food Safety Concerns
Food safety issues, particularly relating to heavy metals like lead and cadmium, are affecting the industry. These metals are naturally present in soil and water, complicating efforts to eliminate them from food. Supply chain disruptions due to global events increase the risk of sourcing from less reliable suppliers, leading to potential regulatory violations. Companies are responding by enhancing testing protocols and improving supplier oversight to maintain consumer trust.
Changes in Food Labeling
Over the past five years, food labeling has come under increased scrutiny. Legal risks are rising for companies using terms like “natural” without clear definitions. The call for transparency extends to ingredient disclosures and environmental claims, with businesses needing to be more precise in their labeling to avoid legal challenges. This shift underscores the importance of a well-thought-out marketing strategy that aligns with regulatory expectations.
Keeping tabs on these evolving trends can help food and beverage companies navigate the complex landscape of regulations, ensuring compliance and building consumer trust.
For more detailed insights, check out resources from organizations like the [Food and Drug Administration (FDA)](https://www.fda.gov) and other industry reports to stay informed about ongoing changes in regulations and market expectations.