Dive Brief:
- The new mandatory GMO labeling law may have ignited a revolution centered around more aggressive transparency efforts across the food and beverage industry.
- Passing this law demonstrates that policymakers and manufacturers better understand the role of both ingredients and processes in the health and safety of the food supply. Consumers increasingly demand information about both for the products they buy.
- The GMO labeling law could open the doors for more transparency around many other aspects of food ingredients, sourcing, production and company policies, such as animal welfare, labor practices, antibiotics and pesticides.
Dive Insight:
Manufacturers will likely feel mounting pressure to embrace transparency as more companies share more information with consumers. Whether through SmartLabel and QR codes or on-package labeling, manufacturers will be able to select their method of information sharing, but the expectation of transparency from consumers will increase.
After Campbell announced it would label GMO ingredients across its portfolio, it didn't take long for more companies to jump onboard. The mandatory GMO labeling bill hadn't been passed yet, but once one major company embraced the trend, several others followed in turn.
Transparency may ultimately become a necessity to remain competitive. If companies don't get ahead of this trend, they could look like they have something to hide, which could put their brands at a disadvantage. Manufacturers may find risk in sharing certain information, but consumers are more likely to embrace a company's willingness to be upfront, even when that information may not all be positive.