SPECIAL REPORT - November 2004
If your mandate plate isn't full enough, don't fret. The Food Allergen and Consumer Protection Act (FALCPA) was signed into law by President George W. Bush in August 2003 and will take effect January 1, 2006. The FALCPA legislation requires that food manufacturers identify, in plain, common language, the presence of any of the eight major food allergens (see sidebar) on their product labels. This is the first major overhaul of nutrition labels in more than a decade. In addition, FALCPA requires food labels to indicate the presence of major food allergens used in spices, flavorings, additives and colorings, which had previously been absent from allergen labeling.
Who Is Affected? In essence, any food or beverage manufacturer or processing company is affected by the FALCPA legislation. One provision requires that anyone in the food supply chain provide the allergen information required to their downstream customers. The other requires that food products sold to consumers be labeled if any of the "Big Eight" allergens are present. "This means that a company that sells food to consumers is responsible for the accuracy of the label," says Steve Phelan, senior vice president, Formation Systems. "But suppliers are responsible for the accuracy of the data that rolls up to the end product label."
Formation Systems' Optiva software solution allows food companies to track ingredients automatically as they move through the production chain, so that the end product can be labeled appropriately. The software provides unique functions that enable companies to meet FALCPA requirements, including ingredient tracking down to the raw material level, automated allergen checks and automated generation of label content. Optiva can also adjust the label to meet American or European regulatory standards, which often differ.
The Cost According to the U.S. government, labeling restrictions cost the industry from $1.4 billion to $2.4 billion over a 20-year period. Industry costs often fall hardest on smaller, low margin manufacturers. Technology like Formation's Optiva tool can lessen the FALCPA headache for manufacturers by helping collect the ingredient data for the materials used in the end product. As a next step, the label data can automatically be generated from the ingredient data. This simple, effective process guarantees the accuracy of the label data, assuming that the ingredient data from the vendor is also accurate. Ultimately, this means that the approval time for new products (and even existing products when the rules change) is greatly shortened. One of the most intractable problems in new product development is the time inherent in communication during the approval process. Since technology like Optiva automates that process, the entire development and approval cycle is shortened.
Hidden Benefits Once this process is in place, it is possible to review existing products in order to make an allergen claim that has never been made before. For example, the existing database of candy formulas can now be examined to determine which ones are wheat free, and then label them as such. Thanks to robust technology, some consumer goods firms are making marketing claims in advance of the FALCPA date of January 1, 2006. Some are now also making transfat claims before their competitors. "In short, the FALCPA rules open up the market of allergic people to allergen-free marketing," says Phelan.