HomeMy WebLinkAboutStaff Report 3.C 11/15/2018Agenda Item #3.
DATE: November 19, 2018
TO: Honorable Mayor and Members of the City Council through City Manager®j
FROM: Ingrid Alverde, Economic Development Manager
SUBJECT: Letter to the Food and Drug Administration Responding to a Request for
Comments Regarding the use of the Naives of Dairy Foods in the Labeling of
Plant -Based Products
RECOMMENDATION
It is recommended that the City Council approve and authorize the Mayor to execute the attached
letter.
BACKGROUND
In 2010, Petaluma's Economic Development Strategy found that food manufacturing has the
largest multiplier effect of all Petaluma -based industries. This means that job for job, employees
and their work in food manufacturing support more jobs and economic output than other sectors.
As such, economic development efforts have long focused on supporting and growing the food
manufacturing sector. In 2014, a study found that Petaluma's food manufacturing industry had
an annual, regional economic impact of $1.3 billion. Since that study, the food industry has
grown, bringing new jobs and additional economic growth for Petaluma.
Over the past several years, there has been an emergence and expansion of plant -based products
labeled with names that include the names of dairy foods such as "milk" (e.g., "soyr iilk," ),
"cultured milk (e.g., "coconut kefir" ), "yogurt" (e.g., "soy yogurt"), and "cheese" (e.g., "vegan
mozzarella cheese"). These products are often packaged in the same kinds of cartons, tubs, or
bottles as their dairy counterparts and are sometimes sold in or adjacent to the dairy display in
stores.
The Food and Drug Administration (FDA) is currently seeking input about how consumers use
these plant -based products and how they understand terms including "mills" or "yogurt" when
included in the labeling of plant -based products. As part of this effort, there may be new
regulations and / or enforcement of existing regulations that could change the way plant -based
food companies can label their products.
DISCUSSION
Myoko's is an important new, plant -based food business that relocated to Petaluma in 2017.
They make products such as vegan cheese and butter. Their rapid growth has led to the creation
of 50 jobs (96 total) in Petaluma since they relocated here.
As they ramp up production and distribute their product for broad consumer access, labeling is
an important factor in their success. If the FDA limits Myoko's ability to use words like "mills"
and "cheese" even if modified by words such as "almond" or "vegan" (as in "vegan cheese made
from cashews") Myokos may face costs related to new packaging and marketing that could
hamper their future success.
As this is a national debate about food labeling, the FDA is taking comments from the public on
this topic until November 27, 2018. The attached letter provides support for Myoko's by
requesting that the food labeling rules allow Miyoko's and other similar companies be allowed to
continue using dairy names on their labels. The letter further explains that companies such as
Myoko's could be severely impacted should the FDA choose to limit the use of dairy names on
their labels because of the costs for new packaging and new marketing initiatives to explain to
consumers what made-up terms such as "cultured nut product" might mean.
Some local cheesemakers disagree with this position, pointing out that cheese and butter should
stand alone on store shelves as dairy products to protect their markets and sales.
The attached letter was drafted in support of Myoko's to help protect the 96 jobs provided by
Myoko's to local families. As such your approval of the letter is recommended.
FINANCIAL IMPACTS
There are no calculable financial impacts to the City associated with the recommended action.
ATTACHMENTS
1. November 19, 2018 Letter to the Federal Drug Administration
Attachment 1
UITY OF PETALUMA
POST OrrucLi Box 61
r 8 r $ PETALUMA., CA 94953-0061
David Glass
Maya
November 19, 2018
Chris Albertson
Teresa Barrett
Tvlilce Healy
Mabel Lee
Gabe Kearney
Dave King
Center for Food Safety and Applied Nutrition
Kathy Miller
Food and Drug Administration
Councihneutbers
5001 Campus Dr.
College Park, MD 20740
Re: Docket No. FDA -2018-N-3522 for "Use of the Names of Dairy Foods in the
Labeling of Plant -Based Products."
Dear Ms. Lee,
The purpose of this letter is to provide input towards regulations affecting the use of
the names of dairy foods in the labeling of plant -based products.
On behalf of an important and growing local business, we request that the
Cio, Manager's office
regulations be written such that companies making plant -based foods can use dairy
11 English street
names when making products intended to provide a plant -based alternative to that
Petaluma, CA 94952
food. This would support 96 local jobs and a growing company providing plant -
Phone (707) 778-4345
based alternatives to traditional dairy products.
Fax (707) 778-4479
E -Mail:
clowigr@ei.Petahnna.ea,its
If not allowed to continue to use dairy names such as "milk" and "cheese" even if
modified by words such as "almond" or "vegan", local companies will be forced to
spend thousands of dollars for new packaging and costly marketing needed to
explain what made-up terms such as "cultured nut product" might mean. These costs
will be taken from local employees and our local economy.
Economic Development
Allowing new food companies to provide innovative food alternatives supports the
Phone (707) 778-4549
Fax (707) 778-4586
community and the environment. When consumers can choose which foods they
prefer, within the context of how the food is eaten and where it is typically purchased
HousingDivislon
in the grocery story, they are empowered to make choices about their health and
Phone (707) 778-4555
environmental concerns freely.
Fax (707) 778- 4586
If you have any questions, please feel free to contact Ingrid Alverde, Petaluma's
Information TeelntologipDivision
Phone (707) 778-4417
Economic Development Manager at 707-778-4549.
Fax (707) 776-3623
Sincerely,
Risk Management Divislon
Phone (707) 776-3695
Fax (707) 776-3697
o,aru
David M. Glass, Mayor