This article discusses the recent ruling by the FDA, regarding plant based beverages that include the word “milk” on their label. First, let’s get into the language of the FDA ruling and who’s been part of the debate for the past couple decades. The debate has been between The National Milk Producers Federation and FDA requesting enforcement of a 1999 ruling on the definition of “milk”.
You can read more on the definition of milk at Codex Standard 206-1999. The ruling has been in debate for 2 decades, so why has it taken the FDA so long to make the recent, formal statement on the definition of milk as defined in Title 21 Section 133.3 food code and great question. Here’s a recent article on Treehugger.com, dated July 18, 2018 on the crackdown announcement on plant based, non-dairy beverages currently labeled as milk.
Title 21 and 21CFR133.3
Defines milk as the following. Milk means the lacteal secretion, practically free from cocostrum, obtained by the complete milking of one or more healthy cows, which may be clarified and may be adjusted by separating part of the fat therefrom; concentrated milk, and dry whole milk. Water, in a sufficient quantity to reconstitute concentrated and dry forms, may be added.
Consider the impact this announcement would have been and making a much greater deal, when plant based beverages were first introduced and on the grocery shelf. Back then, most consumers didn’t know much about almond milk and what the benefits were. The big deal now, is a popular brand now having to figure out an alternative “milk-like” name and finding the marketing department having to work overtime (yeah right).
If the FDA truly enforces the announcement, then all manufacturers of plant based beverages will need to spend millions of dollars on a new label name and package change. However, don’t feel to sorry for the companies, as eventually they’ll probably pass down the cost to their loyal customer base, instead of absorbing themselves.
Not Good or Bad Milk
This is not about the good or bad health factors when consuming milk, but rather on the ruling itself and why many plant based companies effectively ignored Truth in Labeling principles and used a word already legally spoken for. I believe popular brands actively took a calculated risk and used “milk” in the name in order for the customer to better relate to new style products faster. I’d say the strategy worked very well as witness to the time-lag the FDA took to actually announce they would enforce. The plant based beverage business grew while the dairy and agri-organizations heavily lobby for a term that is legally theirs. In 2017, Milk Alternative Sales were at $2.1 billion and sure using milk in the brand sped things along right from the beginning,
Fair Packaging Labeling Act
I mention to clients, the importance to label a product, what is today and into the future. For the companies affected by the announcement decide to ignore or drag their feet to eliminate milk in the name, then they’ll probably realize a greater loss by the FDA warning the grocery chains to immediately pull product from the shelf in order to avoid fines.
Basically, the FDA could treat the claw-back of product the same as a product recall if the industry does not respond in a certain period of time. In my estimation, I suggest the drop date will be one year to change out all labels. If you weren’t aware of Truth in Labeling, then read the Fair Packaging Labeling Act.
The US is not the only country that has been dealing with the milk term issue. In 2017, the EU court of justice confirmed a ban on products of a ‘purely plant-based substance’ using milk, cream, butter, cheese or yoghurt as a marketing tool – terms reserved by EU law for milk of animal origin or products directly derived from bovine milk. Read about it at The Farmers Guardian.
US agribusiness successfully lobbied and made the same argument on “milk” which is similarly defined in the EU language. One of the strongest arguments made to the FDA, was the definition of the word milk, which plant based beverage companies have used as a marketing tactic to confuse the customer on what they are buying.
I Can’t Believe It
Companies have and will continue to use terminology in order for the customer to better identify and relate to a product and in this case, it is plant based beverages. Remember the oil based spread called “I can’t believe It’s not butter”, well Unilever was challenged and forced to change the name to “I can’t believe it’s so good for everything”.
The point is, large companies sometimes tinker with product names in order to sell more products and when they get their hands slapped, they simply make a name change.
Today the consumer is much more informed about plant based beverages, than when soy milk was first introduced. Back then people thought, what the heck is soy milk, I heard it is good for you (that message later changed, but not the name).
Plant Based Name Calling
So what the heck is Soy Milk, Almond Milk, Cashew Milk and Coconut Milk going to be called, my guess is “milk-like beverage” will be included somewhere on the label. Today the consumer tends to be much more aware of the products they’ve come to enjoy, so will continue to purchase a product, without hesitation and no matter what the name is changed to. So expect to see other interesting names on a label, because companies launching new brands see how the marketing strategy works and once challenged, can simply change the name.
Global companies already use specific terms for everyday non-dairy products for the purpose of the consumer to identify it’s intended use. For example, you have a choice in coconut of oil,cream, milk and water, Wow. The manufacturer intentionally uses several terms to make it easier for the customer to identify with the intended use of drinking, baking, cooking or applying.
With the Food and Drug Administration saying it plans to prohibit makers of almond milk, soy milk, rice milk, cashew milk, flax milk, rice milk, oat milk and other non-dairy alternative beverages from labeling their products as “milk”, it will be interesting to see how fast they actually act. Read more on the subject at Sacbee.com.
Advising The Client
If I was consulting with a major corporation, selling millions of gallons of plant based beverages, I would recommend to the CEO to take the opportunity of turning lemons into lemonade. By reaching out to the loyal customer base, apologize for not accurately naming the product and then ask for suggestions on a new plant based name.
It could truly be a social media extravaganza and win win for the consumer and brand, but alas large companies have huge egos and would distance themselves from such nonsense. Even though a corporation will bear the cost burden to relabel and re-brand, the sales ship will sail without the value the loyal consumers opinion.
No Pun Intended
For now with the ruling, companies from both sides of the argument have their lawyers busy arguing to stay or reverse the ruling, but I doubt anything will change and stay it will be. Consider the corporate chatter up on the top floors where questions of what to do with the existing trademark names or what should we call our family of almond beverage or should we create new graphics to compliment the new brand name?
A complete nightmare for plant beverage makers and rightfully so, as they’ve been milking the system for way too long and now find themselves in a udder bad situation. Hank Aaron once said, “you can only milk a cow so long, then you’re left holding the pail”.
Contact Darryl to know the consequences of calling a product that it’s really not. Doing it right at first, will save you future headache and cost.
- Ethics In Using Madagascar Vanilla - November 21, 2023
- Money To Start Your Business - July 9, 2023
- Top 25 Common Myths About Ice Cream Co-Pack Manufacturers - April 22, 2023