Jeb Gleason-Allured, Editor
Abstract: WFFC/NAFFS event highlights regulatory challenges and threats to intellectual property. During the Women in Flavor and Fragrance
Commerce/National Association of Flavors and Food Ingredient Systems joint seminar on food safety and supply chain, John Cox (John H. Cox PLLC) spoke about the dilemma smaller flavor companies face as
they struggle to build the kind of regulatory departments larger organizations have. Cox noted that the need for regulatory capabilities will only grow as customers’ needs expand—organic and natural claims (this is particularly due to a lack of universal standards) and pharmaceutical excipient residue rules.
He added that vague “green” concepts will steadily give way to calls for sustainability from ingredient and flavor suppliers. This, he explained, “will increase pressure on ingredient suppliers to say certain things about their ingredients—this is going to be time consuming.”
Simultaneously, flavor companies are facing increasing pressure to reassure customers about safety and compliance, while also taking steps to protect intellectual property, primarily consisting of proprietary formulas, business practices and supply chain. “It is the most valuable asset that your companies have,” said Cox. Intellectual property enhances the profitability of companies and provides numerous competitive advantages. “It’s the intangibles that make the difference,” he continued. “When your customer asks where you got an ingredient, this is proprietary. Your customers and your customers’ customers want to know more about your flavors and ingredients. And because the environment is so competitive, it’s more important than ever to protect this information.”
Other topics discussed: Country of origin; Strategies for limited formula disclosure; Knowing your sources