Key Takeaways From the 2021 Food & Agribusiness National Conference: Food Manufacturing, Processing and Distribution – JD Supra

Faegre Drinkers 2021 Food & Agribusiness National Conference assembled speakers from global, market-leading companies from across the industry to discuss major issues and trends of note from across market segments and product categories. In the first in a series of alerts recapping the event, well take a look at key takeaways from panel discussions on topics related to food manufacturing, processing and distribution.

The volume of class actions filed over food labeling practice has remained high for years and that trend has shown no signs of slowing. However, the specific claims are always changing, and understanding the issues plaintiffs (and plaintiffs attorneys) are targeting for lawsuits is important for stakeholders to keep in mind. In a panel discussion on The Latest Watch Out Labeling and Marketing Claims That Plaintiffs Are Challenging, panelists examined the types of claims they have observed recently and their approaches to managing litigation risk.

The panel identified the following notable targets for plaintiffs attorneys:

To mitigate litigation risk, panelists advised that companies first and foremost ensure their products comply with the latest regulations. However, they also underscored the need to consider the labels holistically, and to ask themselves whether the overall impression the label creates tracks with what the product is offering.

As the FDA and USDA pivot away from the COVID-19-centric inspection and enforcement practices that have shaped the last 18+ months, new regulatory and enforcement developments have emerged to demand industry attention. A panel of industry leaders discussed these new issues at length in a discussion on The Latest FDA and USDA Regulations and Enforcement Trends.

The panelists discussed several issues of importance impacting food manufacturers and facilities, including:

Accelerating a trend that began before the pandemic, in 2020, the dietary supplement category experienced its highest growth rate since 1997. One recent survey found that 77% of consumers said that personal health was more important to them than it was a year ago driving many to vitamins and dietary supplement products and suggesting that COVID-19 has prompted consumers to take a greater emphasis on personal health. In a discussion on Manufacturing and Marketing of Dietary Supplements: How the Two Interplay More Than You Might Think, a panel of industry leaders assessed this growth and other ways in which the pandemic has impacted this category.

Panelists noted that the sales growth has required companies to ramp up production and modify their approach to inventory over the last 18 months. This has been particularly challenging in light of persistent supply chain disruptions and a heightened consumer interest in complete supply chain and sourcing transparency for these products. As noted by the panel, to meet both consumer demand and consumer quality expectations, companies must be focused on supply chain agility and creating a diverse pipeline of suppliers without sacrificing quality control measures.

Unsurprisingly, the pandemic also accelerated the rise in e-commerce players in this category, including many that established their brands and products on social media. These new market entrants operate in less scrutinized spaces than traditional players, and making sure they abide by the same standards of advertising and product quality control will be important for the industry as a whole, especially as consumers continue to express an interest in transparency.

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Key Takeaways From the 2021 Food & Agribusiness National Conference: Food Manufacturing, Processing and Distribution - JD Supra