The holiday season is already a busy time for the manufacturing industry, with increased retail demand, seasonal staffing variability, shifting consumer preferences, weather-related supply concerns, and pressing foreign competitors. And now packaged food manufacturers have a new pressure to bear: amended US Food and Drug Administration (FDA) labeling regulations.
The FDA guidelines, originally published in May 2016, will have to be enforced by January 1, 2020. The original enforcement date of 2018 was pushed back once to 2020, however it looks to be enforced this year. These amended guidelines attempt to convey the latest scientific research into health and give consumers more transparency in what they eat. While these regulations have been on the horizon for 4 years and are well publicized by the FDA, it still gives manufacturers a short runway to make this switch .
And as any manufacturer knows, FDA regulations need to be taken seriously. Depending on the act, the FDA can inflict such penalties as warning letters to untitled letters all the way to recall and market withdrawals .
On the bright side, these new regulations are not in every packaged food manufacturer’s holiday gift list. The 2020 deadline is only for companies making $10M or more in revenue, with smaller companies having to comply by January 1, 2021. This gives small companies the ability to see how things go and to ease the expense .
Even if your company will be ringing in the new year with new labels, the wise manufacturer can use this change to its advantage. In an industry where execution seldom provides competitive differentiation, such changes benefit the agile company that can make the changes to production and move inventory as soon as possible.
If your products do not move as fast as needed for these label changes and you are feeling the heat, Midas Exchange can help. As industry-leading experts in corporate trade programs and a wholly owned subsidiary of WPP, Midas Exchange can relieve these holiday pressures and let you focus on your other end-of-year concerns. As Midas Exchange’s customers can attest, your company will receive a customized trade program that moves your inventory, restores full book value to your assets and gives you trade credits within the largest media conglomerate in the world. Find out more by contacting firstname.lastname@example.org or calling 212-474-0083 to learn how Midas has helped over 95 companies uncover value from their underperforming assets.