Thursday 3 July 2014

THE NATURAL FOOD DEBATE CONTINUES - What are your views?

The ‘Natural’ Debate
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Amid a maelstrom of class-action lawsuits, use of the seemingly simple word “natural" is one of the most risky
decisions today’s beverage innovators can make. Whether a product claims to be free of genetically modified organisms (GMOs) or gluten, or identifies itself as a beverage or dietary supplement, marketing and labeling issues have hit a whole new level of complexity.

In the free report, “The ‘Natural’ Debate and Other Regulatory Obscurities," a panel of experts shared an update on the controversial nature of natural, along with practical insight for the future.

Justin J. Prochnow, attorney and shareholder at Greenberg Traurig LLP, detailed some of the key regulatory and legal issues facing beverage and liquid dietary supplement companies. He also explained the threat of a class-action lawsuit has become one of the biggest concerns for brand holders. The lawsuits, frequently positioned as false or deceptive advertising actions, have covered a wide range of issues, with “all-natural" or “100-percent natural" claims leading the way.

Despite the shaky ground, Mark Rampolla, founder and former CEO of ZICO® Beverages, acknowledged the stakes are more lucrative than ever. Not only does “natural" represent a fundamental shift in what consumers are looking to drink, it also constitutes one of the fastest-growing segments of the beverage industry—one that’s birthed a number of mega brands.

In fact, according to Peter Leighton, founder of Abunda, more products on store shelves are using the term “natural" in some manner to help ingratiate the brands to consumers. As such, it’s important for marketers to provide clear information about a brand’s environmental and nutritional advantages.

The silver lining of the litigious environment, as pointed out by Eric Skae, CEO of The Bricktown Group, is that brands must reconsider what’s in their products. Additionally, it’s made the USDA organic and verified non-GMO seals much more relevant for beverages.

To read the full report, visit SupplySide Beverage Insights.

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