Tag Archives: mislabeling

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Food Fraud, Fruit Fraud

By Susanne Kuehne
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Susanne Kuehne, Decernis
Lemon
Find records of fraud such as those discussed in this column and more in the Food Fraud Database.
Image credit: Susanne Kuehne

Even unprocessed fruit can be a target for food fraudsters. Fraudulent fruit does not only damage a company’s brand, but it also may have pesticide and other residue levels above the permitted limit. Counterfeit branding and packaging was used in exports of 2 tons of lemons from China. It is not the first time that such fraud happened and the affected company won a lawsuit earlier this year. To prevent such mislabeling in the future, the company finally registered its brand with Chinese authorities.

Resource

  1. Phil Taylor (August 6, 2020) “Counterfeit Unifrutti lemons seized in China”. Securing Industry.

 

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Botanicals Yes, Glycerol No

By Susanne Kuehne
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Susanne Kuehne, Decernis
Food fraud, gin, ingredients, botanicals
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.

Gin usually consists of re-distillation or addition of a myriad of botanical ingredients to alcohol, but should certainly not contain glycerol and hydrogen peroxide like in this mislabeling case in Australia. This product poses a health risk for consumers, and is under recall for a full refund.

Resource

  1. Apollo Bay Distillery P/L recall (June 8, 2020) “Apollo Bay Distillery SS Casino Dry Gin”. Food Standards Australia New Zealand.
Susanne Kuehne, Decernis
Food Fraud Quick Bites

Spreading False Claims

By Susanne Kuehne
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Susanne Kuehne, Decernis
Food fraud, spread
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.

In India, low-cholesterol or zero-cholesterol claims on product labels for spreads as well as their advertising must follow strict guidelines set by the Food Safety and Standards Authority India (FSSAI). At two Indian companies, nearly $100,000 worth of products was confiscated due to mislabeling. The spreads’ labels and nutrition panels falsely claimed that they were cholesterol free, while containing significant amounts of saturated fats.

Resources

  1. Neo, P. (February 11, 2020). Food Navigator-Asia. “Cholesterol crush: Major Indian dairy firms lose US$100,000 of products over false labelling claims”.
John McPherson, rfxcel
FST Soapbox

Clear Waters Ahead? The Push for a Transparent Seafood Supply Chain

By John McPherson
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John McPherson, rfxcel

The seafood supply chain handles 158 million metric tons of product every year, 50% of which comes from wild sources. Operating in every ocean on the planet, the industry is struggling to figure out how to overcome the numerous obstacles to traceability, which include unregulated fishing, food fraud and unsustainable fishing practices. With these and other problems continuously plaguing the supply chain, distributors and importers cannot consistently guarantee the validity, source or safety of their products. Furthermore, there are limits to what a buyer or retailer can demand of the supply chain. Niche solutions abound, but a panacea has yet to be found.

In this complex environment, there are increasing calls for better supply chain management and “catch to plate” provenance. One problem, however: The industry as a whole still regards traceability as a cost rather than an investment. There are signs this attitude is changing, however, perhaps due to pressure from consumers, governments and watchdog-type organizations to “clean up” the business and address the mounting evidence that unsustainable fishing practices cause significant environmental problems. Today, we’ve arrived at a moment when industry leaders are being proactive about transparency and technologies such as mobile applications and environmental monitoring software can genuinely help reform the seafood supply chain.

A Global Movement for Seafood Traceability

There are several prominent examples of the burgeoning worldwide commitment to traceability (and, by default, the use of new technologies) in the seafood supply chain. These include the Tuna 2020 Traceability Declaration, the Global Tuna Alliance, and the Global Dialogue on Seafood Traceability. Let’s focus on the latter to illustrate the efforts to bring traceability to the industry.

The Global Dialogue on Seafood Traceability. The GDST, or the Dialogue, is “an international, business-to-business platform established to advance a unified framework for interoperable seafood traceability practices.” It comprises industry stakeholders from different parts of the supply chain and civil society experts from around the world, working together to develop industry standards to, among other things, improve the reliability of information, make traceability less expensive, help reduce risk in the supply chain, and facilitate long-term social and environmental sustainability.

On March 16, 2020, the Dialogue launched its GDST 1.0 Standards, which will utilize the power of data to support traceability and the ability to guarantee the legal origin of seafood products. These are guidelines, not regulations; members who sign a pledge commit themselves to bringing these standards to their supply chains.

GDST 1.0 has two objectives. First, it aims to harmonize data standards to facilitate data sharing up and down the supply chain. It calls for all nodes to create Electronic Product Code Information Services (EPCIS) events to make interoperability possible (EPCIS is a GS1 standard that allows trading partners to share information about products as they move through the supply chain.). Second, it defines the key data elements that trading partners must capture and share to ensure the supply chain is free of seafood caught through illegal, unreported and unregulated (IUU) fishing and to collect relevant data for resource management.

Why Transparency Is Critical

By now it’s probably clear to you that the seafood sector is in dire need of a makeover. Resource depletion, lack of trust along the supply chain, and the work of global initiatives are just a few of the factors forcing thought leaders in the industry to rethink their positions and make traceability the supply chain default.

However, despite more and more willingness among stakeholders to make improvements, the fact is that the seafood supply chain remains opaque and mind-bogglingly complex. There are abundant opportunities for products to be compromised as they change hands over and over again across the globe on their journey to consumers. The upshot is that the status quo rules and efforts to change the supply chain are under constant assault.

You may ask yourself what’s at stake if things don’t change. The answer is actually quite simple: The future of the entire seafood sector. Let’s look at a few of the most pressing problems facing the industry and how transparency can help solve them.

Illegal, unreported, and unregulated fishing. IUU fishing includes fishing during off-season breeding periods, catching and selling unmanaged fish stocks, and trading in fish caught by slaves (yes, slaves). It threatens the stability of seafood ecosystems in every ocean.

According to the Food and Agriculture Organization of the United Nations, IUU fishing accounts for as much as 26 million tons of fish every year, with a value of $10–23 billion. It is “one of the greatest threats to marine ecosystems” and “takes advantage of corrupt administrations and exploits weak management regimes.” It occurs in international waters and within nations’ borders. It can have links to organized crime. It depletes resources available to legitimate operations, which can lead to the collapse of local fisheries. “IUU fishing threatens livelihoods, exacerbates poverty, and augments food insecurity.”

Transparency will help mitigate IUU fishing by giving buyers and wholesalers the ability to guarantee the source of their product and avoid seafood that has come from suspect sources. It will help shrink markets for ill-gotten fish, as downstream players will demand data that proves a product is from a legal, regulated source and has been reported to the appropriate government agencies.

International food fraud. When the supply for a perishable commodity such as seafood fluctuates, the supply chain becomes vulnerable to food fraud, the illegal practice of substituting one food for another. (For seafood, it’s most often replacing one species for another.) To keep an in-demand product flowing to customers, fishermen and restaurateurs can feel pressure to commit seafood fraud.

The problem is widespread. A 2019 report by Oceana, which works to protect and restore the Earth’s oceans, found through DNA analysis that 21% of the 449 fish it tested between March and August 2018 were mislabeled and that one-third of the establishments their researchers visited sold mislabeled seafood. Mislabeling was found at 26% of restaurants, 24% of small markets, and 12% of larger chain grocery stores. Sea bass and snapper were mislabeled the most. These results are similar to earlier Oceana reports.

Consumer health and food safety. It’s difficult to guarantee consumer health and food safety without a transparent supply chain. End-to-end traceability is critical during foodborne illness outbreaks (e.g., E. coli) and recalls, but the complex and global nature of the seafood supply chain presents a particularly daunting challenge. Species substitution (i.e., food fraud) has caused illness and death, and mishandled seafood can carry high histamine levels that pose health risks. Consumers have expectations that they are eating authentic food that is safe; the seafood industry has suffered from a lack of trust, and is starting to realize that the modern consumer landscape demands transparency.

Why Seafood Traceability Supports the Whole Supply Chain

Most seafood supply chain actors are well-intentioned companies. They regard themselves as stakeholders of a well-managed resource whose hardiness and survival are critical to their businesses and the global food supply chain. Many have implemented policies that require their buyers to verify—to the greatest extent possible—that the seafood they procure meets minimum standards for sustainability, safety and quality.

This kind of self-regulation has been an important first step, but enforcing such standards has been hampered by the lack of validated traceability systems in a digital supply chain. Of course, it costs money to implement these systems, which has been a sticking point, but industry leaders are starting to realize the value of the investment.

Suppliers. A key benefit of traceability for suppliers (i.e., processors and manufacturers) is that it allows them to really protect their business investments. Traceability achieves this because it demonstrates to consumers and trading partners that suppliers are doing things the correct way. Traceability also gives them better control over their supply chains and improves the quality of their product—other important “indicators” for consumers and trading partners.

These advantages also create opportunities for suppliers to build their brand reputations. For example, they can engage with consumers directly, using traceability data to explain that they are responsible stewards of fish populations and the environment and that their products are sustainably sourced and legitimate.

The bottom line is that suppliers that don’t modernize and digitize their supply chains probably won’t be able to stay in business. This stark realization should make them embrace traceability, as well as adopt practices that comply with the regulations that govern their operations. And once they “get with the program,” they should also be more inclined to follow initiatives and guidelines such as the GDST 1.0 Standards. This will invariably create more trust with their customers and partners.

Brands (companies) and distributors. These stakeholders also have a lot to gain from traceability. In a nutshell, they can know exactly what they’re purchasing and have peace of mind about the products’ origins, sustainability, and legitimacy. Like suppliers, they can readily comply with regulations, such as the U.S. Seafood Import Monitoring Program (SIMP), a risk-based traceability effort that requires importers to provide and report key data about 13 fish and fish products identified as vulnerable to IUU fishing and/or seafood fraud.

And, of equal importance to their own fortunes, brands and distributors can use traceability to bolster their reputations and build and solidify their relationships with customers. Being able to prove the who, what, when, where, how, and why of the products they’re selling is a powerful branding and communications tool.

The end of the supply chain: Retailers, food service groups/providers, and consumers. High-quality products with traceable provenance mean retailers and food service companies will have better supply chain control and more “ammunition” to protect their brands. As with the stakeholders above, they’ll also garner more customer loyalty. For their part, consumers will know where their seafood comes from, be assured that their food is safe, feel good about being responsible buyers, and be inclined to purchase only products they can verify.

Transparency, Technology, Trust and Collaboration

The seafood industry is at a critical point in its very long history. It’s not a new story in business: Adapt, adopt and improve or face the consequences—in this case, government penalties, sanction from environmental groups, consumer mistrust and abandonment, and decreased revenues or outright failure.

There is one twist to the story, however: What the industry does now will affect more than just its own interests. The health of all fish species, the environment, and the future of the food supply for an ever-growing population hang in the balance.

But as we’ve demonstrated, there is good news. Supply chain transparency, driven by international initiatives and new technologies, is catching on in the industry. Though companies still struggle to see transparency as an investment, not a cost, their stances seem to be softening, their attitudes changing. The writing is on the wall.

The message I want to end with is that supply chain stakeholders should know that transparency is attainable—and it needn’t be painful. Help is available from many quarters, from government and global initiatives like the GDST to consumers themselves. Working with the right solution provider is another broad avenue leading to supply chain transparency. Technology is at the point now that companies have solid options. They can integrate their current systems with new solutions. They can consider replacing outdated and expensive-to-operate systems with less complicated solutions that, in the long run, do more for less. Or they can procure an entirely new supply chain system that closes all the gaps and jumps all the hurdles to transparency.

Whatever path the industry decides follow, the time to act is now.

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Another Seafood Fraud: The Cephalopod Edition

By Susanne Kuehne
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Susanne Kuehne, Decernis
Squid, Portugal
Find records of fraud such as those discussed in this column and more in the Food Fraud Database.
Image credit: Susanne Kuehne.

For more than three years, more than 100,000 pounds of giant squid from Peru was imported into the United States by a father-son duo who owned two Long Island food processing and distribution companies, and then marketed the squid as the more expensive octopus. The mislabeled seafood was worth over $1 million, and 10 grocery stores were defrauded during this time period. This kind of fraud carries steep fines and a possible five-year prison sentence.

Resource

  1. The United States Department of Justice (November 25, 2019). “New York Food Processing and Distribution Companies and Owners Plead Guilty to Seafood Sales Fraud”. Retrieved from Department of Justice, Office of Public Affairs, Press Release Number 19-1307.

 

Production line, NiceLabel

Farm-to-Fork Transparency: How Digitized Labeling Can Prevent a Major Allergen Recall

By Lee Patty
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Production line, NiceLabel

For consumers and brands alike, the damaging impact of mislabeling or neglecting to clearly outline an allergen can be colossal. Therefore, to prevent a health and business disaster, best practices around allergen labeling must be top of mind. Luckily, technology can help, and the farm-to-fork transparency provided by a centralized and digitized modern label management system can ensure organizations improve responsiveness and accuracy while reducing costs beyond those saved by mitigating recalls.

No one wants to face a recall, but have you done enough to prevent one from happening to you? More than 650 food products were recalled last year in the United States alone. And one of the leading causes might just be the easiest to prevent: Undeclared allergens.

According to the Q2 2019 Stericycle Recall Index, undeclared allergens are the leading cause of U.S. food recalls, accounting for 48.4% of food recalls from the FDA and 62.9% of food pounds recalled by the USDA. This statistic becomes more alarming considering that roughly 11% of US adults have a food allergy, according to JAMA.

Enacted in 2004, the Food Allergen Labeling and Consumer Protection Act (FALCPA) stipulates that all packaged food regulated under the Federal Food Drug and Cosmetic Act (FFD&C) comply by listing major food allergens. “Major allergens” refers to milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soybeans, and for nuts and shellfish, the species must be declared.

For brands, the damaging impact of mislabeling or neglecting to clearly outline an allergen can be colossal, resulting in costly recalls or litigation. However, the impact to consumers can be even greater when one small mistake can cause serious illness, or worse, death. To prevent a health and business nightmare, best practices around allergen labeling must be top of mind.

However, with constantly changing legislation, this can be easier said than done. For instance, in a move that outpaced the FDA, Illinois issued a state law requiring sesame labeling. And in the UK, Natasha’s Law was recently introduced, requiring companies to label all food ingredients on fresh pre-packaged food after 15-year-old Natasha Ednan-Laperouse died of a sesame allergy from a sandwich that didn’t list all the ingredients.

The need for optimal allergen labeling is clear, so how can organizations ensure allergens are clearly labeled on their products and meet existing standards while preparing for future requirements?

Though the underlying principle behind a clear label is simple, the process of designing such labels can be multifaceted and difficult to streamline—especially if labels are designed, printed and managed by separate users across a franchise or store network. And this challenge is multiplied further when products reach across international boundaries. But technology can help, and the farm-to-fork transparency provided by a centralized and digitized modern label management system can ensure organizations improve responsiveness and accuracy while reducing costs beyond those saved by mitigating recalls.

Disorganized Sprawl: A Major Hurdle to Effective Labeling

When implemented properly, modern label management can cost-effectively centralize labeling, reducing inefficiencies and human error. However, before this can happen, there are a few common roadblocks that may make standardizing the labeling process challenging.

One issue may be a sprawl of legacy equipment that is not integrated into a cohesive network. For instance, a legacy labeling system may only support certain label printers while certain manufacturers of direct marking equipment may only support their own propriety brand of printers. In another sense, a lack of standardization can also make it difficult to efficiently integrate labeling with other business solutions like manufacturing execution systems (MES) and enterprise resource planning (ERP) systems.

A damaging impact of sprawl is adoption of a wide range of different labeling applications across various facilities. This will result in inconsistent label formatting, the need to create the same label multiple times, and the need to accommodate different systems and printers. Consequences of this may be a lack of centralized storage when everything is saved locally, complex user training encompassing many software programs, an increased burden on IT, and a great deal of extra administration and human intervention to maintain and update labels.

Another problem with a disorganized ecosystem for labeling is that quality assurance inevitably suffers because tracing a label’s history or implementing standardized approval processes can be difficult or impossible. To accurately track labeling, it’s necessary to have a production log stating where and when labels were produced and who produced them. Having such a log and using it effectively requires centralization or else it can become difficult to track different versions or enforce universal approval processes for altering templates.

Implementing Modernized Labeling to Improve QA

Modern label management systems can help suppliers and manufacturers standardize and control marking packaging or label production across an entire organizational ecosystem. These solutions feature a central, web-based document management system and provide a reliable storage space for label templates and label history. This will enable changes and updates to be tracked centrally, so local facilities can access uniform and accurate templates to produce labels.

An ideal label management system can also interface with a multitude of direct marking and labeling printers, even if they are from different manufacturers, and it can integrate labeling and direct marking with a business system’s master data, which eliminates manual data entry errors. This decreases upfront capital expenditures in more costly efforts to standardize equipment, provides a system that is easy to integrate with partners, saves costs generated from having to discard product or rework labels, and increases a company’s ability to implement unified, organization-wide labeling processes.

Centralized Labeling is Easily Delivered Through Cloud

To many, the thought of migrating legacy labeling to a centralized system or investing a large sum of resources into centralizing labeling may seem inordinate or daunting. However, cloud technology makes migrating to a modern label management system feasible for organizations of all sizes.

With the cloud, designing labels and ensuring quality assurance becomes far more accessible. Additionally, the software-as-a-service (SaaS) model doesn’t require the capital investments or operations and maintenance upkeep associated with costly IT infrastructure and is easily scalable depending on business needs. This is a game changer for small to medium sized businesses who can now benefit from a centralized labeling system because of the cloud.

The Benefits of a “Single-source-of-truth”

In addition to other benefits, integrating a modern label management solution with other business systems allows users to access a “single-source-of-truth.” This allows for enforceable, specific user roles with logins for each user as well as traceability and transparency across all factories that produce products. The traceability from being able to monitor a “single-source-of-truth” is a critical component to farm-to-fork transparency because it can provide an accurate production log overviewing label versions and changes, so companies can pinpoint the locations and causes of labeling inaccuracies and fix them instantly.

A modern label management system also enables organizations to nimbly respond to new regulatory requirements because alterations only need to be made in one location, new templates can be previewed before going to production, and nutrition and allergen functionality can be easily formatted so that it is clear and stands out to the consumer. This increases labeling consistency and accuracy, and saves time when rules change and when new products need to be incorporated during a merger or acquisition.

Futureproofing and Ensuring Consumer Safety with Allergen Labeling

In today’s world, food and beverage manufacturers must rise to the challenge of changing regulations while meeting the call of shifting customer demands and integrating themselves within greater business ecosystems and extended supply chains. In the case of allergen labeling, this may mean preparing labels for different countries, which have varying standards for labeling allergens like sesame, royal jelly, bee pollen, buckwheat and latex, or ensuring labels can be altered quickly when new products are rolled out or when bodies like the FDA revamp standards.

Companies that implement modern label management solutions position themselves to adapt to competition and regulations quickly, implement solutions that can easily be integrated with partners in a supply chain, and streamline quality control. This can help improve productivity, reduce labeling errors, increase collaboration, and prevent product recalls. But most importantly, it helps ensure the safety of consumers everywhere.

Nuts, tree nuts

Q3 Hazard Beat: Nuts, Nut Products and Seeds

By Food Safety Tech Staff
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Nuts, tree nuts

The following infographic is a snapshot of the hazard trends in nuts, nut products and seeds from Q3 2019. The information has been pulled from the HorizonScan quarterly report, which summarizes recent global adulteration trends using data gathered from more than 120 reliable sources worldwide. For the past several weeks, Food Safety Tech has provided readers with hazard trends from various food categories included in this report. This week’s hazard snapshot concludes the series.

Nut hazards, HorizonScan
2019 Data from HorizonScan by FeraScience, Ltd.

View last week’s hazards in Milk & Dairy Products.

Susanne Kuehne, Decernis
Food Fraud Quick Bites

It Is Natural, So It Is Good For You – Or Not?

By Susanne Kuehne
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Susanne Kuehne, Decernis
Pills, food fraud
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.

In a large study of nearly 6000 products, more than a quarter (27%) of herbal medicines and foods sold in 37 countries on six continents was found to be deliberately or accidentally adulterated. In this study, the products, which came in a variety of forms such as softgels, tea and more, were analyzed with high throughput DNA sequencing and showed mislabeling, added fillers, substituted ingredients or contaminants. Such fraud can be a harmful to consumer health and safety, and must be monitored and tracked closely.

Resource

  1. Ichim, M.C. (October 24, 2019). “The DNA-Based Authentication of Commercial Herbal Products Reveals Their Globally Widespread Adulteration”. “Stejarul” Research Centre for Biological Sciences, National Institute of Research and Development for Biological Sciences, Piatra Neamt, Romania. Frontiers in Pharmacology. Retrieved from https://www.frontiersin.org/articles/10.3389/fphar.2019.01227/full.
Susanne Kuehne, Decernis
Food Fraud Quick Bites

The Hellcat of Pet Food

By Susanne Kuehne
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Susanne Kuehne, Decernis
Food Fraud, pet food, cat food
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.

Pet food is a highly profitable business. Global pet food sales hit a record $90 billion in 2018, and adulterated or mislabeled feed is not uncommon. In the United States, the FDA ensures correct labeling and adherence to quality standards in pet food. Over the course of six years, a processing facility in Texas shipped low quality, mislabeled ingredients such as feathers and by-products, labeled as premium single ingredients, to pet food manufacturers and distributors. The guilty party had to pay $4.5 millions in restitution to the fraud victims, and the defendant is on a five year probation.

Resources

  1. Department of Justice, U.S. Attorney’s Office, Western District of Missouri (October 24, 2019). “Texas Manager Pleads Guilty to Pet Food Fraud, Company Pays $4.5 Million Restitution”. Retrieved from The United States Department of Justice.
Susanne Kuehne, Decernis
Food Fraud Quick Bites

I Have a Beef with You

By Susanne Kuehne
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Susanne Kuehne, Decernis
Food Fraud, Decernis, Prime beef
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne

Over the course of three years, wholesale meat fraudsters in Brooklyn, NY, removed the USDA stamp on “Choice” beef and applied a counterfeit USDA “Prime” stamp to sell the fraudulently labeled meat at a premium price. A conviction can get the defendants a prison sentence of up to 20 years, even public health was not endangered, however, the USDA is taking integrity and quality of food very seriously.

Resources

  1. John Marzulli, U.S. Attorney’s Office (September 24, 2019). “Two Defendants Charged in Scheme to Sell Fraudulently Misbranded Beef Products”. Department of Justice, U.S. Attorney’s Office, Eastern District of New York