New Legislation and Partnerships Amongst Food & Bev Giants Follow Socially-Conscious Trends

Last Week’s Moves

BLS Cash Index  588.52 (-0.35%)         BLS Industrials Index 610.61 (-0.14%)        

BLS Foodstuffs Index 557.58 (-0.67%) BLS Fats and Oils Index 821.23 (-0.59%)   

BLS Livestock Index 730.77 (-0.09%)

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Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, the FAST Act heads to its state Senate, an ice cream brand and a chocolatier take humanitarian action, and a new breakfast item hits the shelves. Let’s dig in.

The fast-food industry (and labor rights) may see a significant overhaul, starting in one state

Over 550,000 fast-food workers live in California; this month a vote in the state’s Senate may help improve working conditions, bolster rights for Californian fast-food workers, and make an impact beyond the state alone. The bill, known as the FAST Recovery Act, was passed by the California Assembly this January and requires a full vote in the state Senate. The bill would create a new state council to set minimum working standards for fast food restaurants across California. 

• Accountability avails… The bill also would establish a legal responsibility to corporations like McDonald’s (MCD)  and Pizza Hut (YUM) for any labor violations at individual stores, regardless of if said stores are franchisees. No such liability currently exists for corporations’ if their franchisees break labor laws. 
• Not reinventing the wheel… The FAST Recovery Act parallels an approach used in European countries known as sectoral bargaining, where unions negotiate working standards that apply to workers across a holistic industry, not just one company. Sectoral bargaining is illegal in the US, but the bill has a similar concept. 

Food and Beverage partnerships are creating socially-conscious synergies

Plant-based partners… ADM has announced its partnership with New Culture to advance ADM’s production and commercialization of alternative dairy products. The combination of ADM’s (ADM) manufacturing capabilities with New Culture’s innovations in animal-free casein and animal-free cheese, the partnership will focus on joint production development and expansion into the foodservice market. 

• Complementary competencies… New Culture differentiates itself from other animal-free products by creating its animal-free cheeses using traditional cheesemaking methods and food science. ADM is aiming to bring New Culture’s cheese to pizzerias by 2023.
• Broad benefits… ADM will also bring New Culture new opportunities to use its animal-free casein into a wider variety of products, accelerating New Culture’s commercialization efforts.

Partners for the people… Ben & Jerry’s has partnered with the socially-conscious confectioner Tony’s Chocolonely to end modern slavery and child labor in the chocolate industry. According to the companies’ statement, Ben & Jerry’s (UL) will follow Tony’s Open Chain of sourcing principles created to improve working conditions for farmers. 

• Spread the wealth… These principles include paying an additional premium to producers for cocoa beans so they can earn a living income, as well as transitioning to exclusively using fully-traceable cocoa beans. 
• Steps in the right direction… Majority of cocoa production takes place in the Ivory Coast and Ghana in West Africa; the industry has faced long-standing environmental concerns and allegations that companies depend on child labor and haven’t done enough to extinguish it from supply chains. 

Other stories…

• Copy cat… With many western food and beverage brands leaving Russia, some uncanny knockoffs are filling the void.
• Move over Toucan Sam... After the release of his latest single “Bad Decisions,” Snoop Dogg has announced his entry into the breakfast cereal game with his new product Snoop Loopz.  
• Record recalls… The US is tracking to break the record for the most products recalled in a single year, with the current number of recalls already sitting at 1 billion. Food and beverage recall events are up 9.1% from Q1 of 2022.  

That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input. 

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