What’s in a name? For food makers, potentially billions of dollars.
The Food and Drug Administration is currently taking steps toward modernizing its framework for labeling dairy products, and Petaluma – home to a multi-million-dollar food industry – has found itself torn between both sides of an ongoing debate.
In September, the FDA submitted a national request for comments, hoping to get insight on how consumers use plant-based alternatives and how well they understand terms like ‘milk’ and ‘cheese’ when it’s used to label them despite a soybean or nut derivative, for example.
The Petaluma City Council last week stepped into the discussion on behalf of a local plant-based producer, writing a letter to the FDA advocating for standards that would allow traditional dairy names to continue being modified with words like “almond” or “vegan.”
Although, the decision to speak up received pushback from multiple councilmembers that felt uneasy about taking a public stance. In an unusual turn for council letters, a vote was taken, resulting in a 5-2 verdict to proceed with councilmembers Kathy Miller and Chris Albertson dissenting.
“I just think, given that we have all different types of food industries in town, I don’t think we should be perceived as favoring one over the other,” Miller said. “That was my concern.”
According to a 2014 study, Petaluma’s growing food manufacturing industry provides a regional economic impact of $1.3 billion each year.
City officials said the decision to write the letter, which was done on behalf of Miyoko’s Kitchen, a vegan cheese producer that moved to Petaluma last year, was to voice support so the company could avoid losses related to new packaging and marketing to explain the new labels – efforts they believe could hinder future success.
“A big piece of our economic development program here has been to try to diversify the economy and capitalize on our food production industry,” outgoing City Manager John Brown said at the Nov. 19 meeting. “I think we’ve been pretty successful at that. That’s included supporting some of the more traditional members of the food production industry – some of the dairies and creameries – but also some that are up and upcoming. … Miyoko’s is a pretty significant addition to the economic family here, and this is of concern to them.”
In January 2017, the so-called “Dairy Pride Act” was introduced to the U.S. Senate, aiming to standardize the legal definition of products like milk, cheese and yogurt. Even though it never passed, it called for greater enforcement of the FDA’s “standards of identity,” which would curb the use of traditional dairy terms by plant-based manufacturers.
According to the Center for Responsive Politics, at least 17 organizations have registered to lobby on both sides of the bill since it was first introduced, making it one of the most contentious issues currently facing the food industry.
Miyoko Schinner, founder and CEO of Miyoko’s Kitchen, believes the effort to standardize definitions is an attempt by the dairy industry to stifle the growth of plant-based producers that have been rapidly gaining a market share over the last few years.
Research shows the market for milk-alternative beverages is expected to reach $10.9 billion by 2019, reflecting a compound annual growth rate of over 13 percent.