Natural Products Insider

SEP-OCT 2016

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

Issue link: http://digital.naturalproductsinsider.com/i/726849

Contents of this Issue

Navigation

Page 138 of 178

128 INSIDER September/October 2016 SupplySide West Preview The "clean label" movement continues to expand in complexity and application, driven by demanding (but always right) consumers who leave industry feeling nostalgic over those simpler "organic," "non-genetically modifi ed organism (GMO)" and "pure" discussions. Recently, an overwhelming number of new concepts have launched under clean label, and its application is spilling into the cosmetic, dietary supplement and restaurant businesses. At the heart of these new concepts are claims related to global supply chain transparency. On top of easily pronounceable ingredient names, consumers now want industry to address global supply chain issues such as sustainability, foreign verifi cation procedures and fair trade practices. The more extreme end of the spectrum relates to claims addressing renewable energy, specifi c origin of ingredients and carbon emissions. Supply chain transparency claims, just like "organic" or "non-GMO" claims, require increased care and investment before they can make their way onto a product label or be included in marketing materials. The product manufacturer typically uses available technology to communicate these concepts, either by posting food policy statements on company websites or using any possible space on product packaging. However, the legal consequences of communicating inaccurate information, or being unable to substantiate the clean-label claim due to a complex global supply chain, exposes companies to class-action plaintiff attorneys who view food litigation as the next asbestos or tobacco frontier. Fortunately, companies can employ strategies to mitigate these risks. FSMA Concepts to Substantiate Clean-Label Claims All importers of human food in the United States now must have a foreign supplier verifi cation program (FSVP) in place as mandated by the Food Safety Modernization Act (FSMA) and FDA implementing regulations (unless an exemption applies). FSVP requires that U.S. importers of human food verify their foreign suppliers are producing food in a manner that provides the same level of public health protection as the preventive controls or safety regulations found in the United States. The verifi cation regulation requires importers to create their own verifi cation plans that include on-site audits of foreign suppliers' facilities, sampling and testing, and review of relevant food safety records. FSVP alone allows companies to gather a substantial amount of information on their foreign suppliers, helping to substantiate concerns in the supply chain. However, required investment under FSVP brings forth the opportunity to expand upon these verifi cation procedures to address other areas that may not be required under FSVP, but can easily and cost-effectively be added to mitigate other risks, such as clean-label claim substantiation. It is important to understand how FSVP can be expanded upon to collect and verify certain information from foreign suppliers in order for the fi nal end-product manufacturer to make those clean-label claims. Questioning Foreign Ingredient Suppliers Product manufacturers must work with their ingredient suppliers to ensure they understand the end-product and, most importantly, any claims associated with the end-product. For example, if the product will include clean-label claims such as "organic," "non-GMO," "natural," "sustainable," etc., then business agreements should refl ect this understanding. Further, foreign ingredient suppliers should show a commitment to sourcing and process ingredients in a way that adheres to the end-product manufacturer specifi cations, so as to not render clean-label claims untruthful or misleading. Such protections may make it easier to recover costs, damages and/or fi nes associated with any non-compliance in the supply chain. When You Can't Verify the Supply Chain Some ingredients have complex supply chains, making it diffi cult to track the chain of custody. Product manufacturers must know which ingredients in a supply chain cannot be traced, and have open discussions with suppliers. For clean-label purposes, the inability to trace even one ingredient's chain of custody will likely prevent the product manufacturer from making many lucrative clean-label claims. Many risks are associated with using untraceable ingredients; however, other clean-label marketing and verifi cation solutions do exist in this situation. At this junction, it is critically important to help all actors in the global supply chain understand the pressures and requirements they all must work under, and how they all must work together in order to ensure increasingly complex clean-label claims are truthful and not misleading. Ryan Fournier is an international trade attorney at Armstrong Teasdale LLP (armstrongteasdale.com) in St. Louis. He routinely represents domestic and foreign companies in international corporate, trade and regulatory matters, including regulations promulgated by FDA. Clean Label—A Global Supply Chain Perspective by Ryan Michael Fournier Scan Here Ryan Ryan Michael Fournier will be speaking about supply chain Michael Ryan Michael Fournier will be speaking about supply chain Fourn Ryan Michael Fournier will be speaking about supply chain ll Ryan Michael Fournier will be speaking about supply chain be Ryan Michael Fournier will be speaking about supply chain speaking Ryan Michael Fournier will be speaking about supply chain about supply chain considera considerations including ingredient sourcing, costs, testing and luding considerations including ingredient sourcing, costs, testing and ingredient sourcing, costs, testing and verifi cation, and global compliance during the Supply Chain fi verifi cation, and global compliance during the Supply Chain catio verifi cation, and global compliance during the Supply Chain lobal verifi cation, and global compliance during the Supply Chain compliance during the Supply Chain Considerations and Solutions panel at the Delivering on the siderations Considerations and Solutions panel at the Delivering on the and Considerations and Solutions panel at the Delivering on the Solutions panel at the Delivering on the Clean Label Expectation All-Day Summit on Wednesday, an Clean Label Expectation All-Day Summit on Wednesday, Label Expectation All-Day Summit on Wednesday, Oct. Oct. 5, at SupplySide West 2016. 5, at SupplySide West 2016. Visit supplysideshow.com to register to attend. Clean Label at SupplySide West

Articles in this issue

Links on this page

Archives of this issue

view archives of Natural Products Insider - SEP-OCT 2016