Food Systems

Silver Spring, MD, USA - June 25, 2022: The FDA White Oak Campus

On March 10, 2025, the U.S. Department of Health and Human Services (HHS) announced that U.S. Secretary of HHS Robert F. Kennedy Jr. directed the U.S. Food and Drug Administration (FDA) to explore closing the GRAS self-affirmation “loophole” for additives in food products.

In the statement issued by HSS, Secretary Kennedy claimed that “[i]ngredient manufacturers and sponsors have exploited a loophole that has allowed new ingredients and chemicals—often with unknown safety data—to be introduced into the US food supply without notification to the FDA or the public.”

To succeed in the growing functional beverage industry, understanding key legal issues is crucial. As new functional beverage brands continue to emerge, business owners need to consider a variety of legal issues, including (1) proper product categorization, (2) appropriate advertising and marketing claims, (3) engaging with influencers, (4) working with contract manufacturers, (5) ensuring adequate IP protections, and (6) selecting the appropriate corporate entity structure.

Whether at 7-11 or at your local grocery chain, functional beverages line the aisles, touting their nutritional and health benefits. The functional beverage industry is becoming big business, but as this industry bubbles up, emerging brands need to think about the best corporate structure to hold their product.

Below, we have provided some pros and cons of three (3) standard corporate structures often considered by early-stage businesses: limited liability companies, S corporations, and C corporations.

Hands of a meat factory worker gathering packed meat on a convey

On October 16, the U.S. Occupational Safety and Health Administration (OSHA) announced expanded guidance for animal slaughtering and processing industry inspections (NAICS 3116). Notably, this new guidance document supersedes OSHA’s previous inspection guidance specific to a subset of this NAICS, poultry slaughtering and processing establishments (NAICS 311615).

OSHA states that the goal of the update is to significantly reduce injuries and illnesses resulting from occupational hazards through a combination of enforcement, compliance, assistance, and outreach.

Showcase meat raw products in a supermarket

On August 28, 2024, the U.S. Department of Agriculture (USDA) released an updated guidance document regarding the substantiation of all animal-raising and environment-related claims on meat and poultry packaging. This new guidance marks the first update regarding these types of claims since 2019. The guidance provides establishments with information on how to use and substantiate…

Cows eating grain from a trough in a field during autumn

On August 2, 2024, the Association of American Feed Control Officials (“AAFCO”) announced that its Memorandum of Understanding 225-07-7001 (the “MOU”) with the U.S. Food and Drug Administration (“FDA”) outlining the AAFCO ingredient review process would not be renewed on October 1, 2024 when the MOU is set to expire. The MOU, which has been in effect for the last 17 years, established guidelines by which AAFCO reviews the safety and efficacy of new animal feed ingredients under the guidance of FDA. 

In an industry full of buzzwords, “adaptogens” and “nootropics” are current standouts within the beverage industry.

The beverage industry experienced a significant shift in consumer preference following the COVID-19 pandemic, as consumers’ proclivity for nutrient-rich foods stimulated a rise in beverages designed to provide added health benefits, such as increasing energy, decreasing stress, and improving overall mental health. The increased popularity of these “functional beverages” (i.e., beverages that provide added health benefits) is more than a fleeting trend, as the industry is projected to reach $62 billion by 2027.

Marketers of yogurt products may celebrate the latest approval by the Food and Drug Administration (“FDA”) of a new qualified health claim related to the consumption of yogurt and type 2 diabetes. However, producers of such products should also be cautious in presenting these claims on product labeling so as not to run afoul of limitations imposed by FDA related to this new qualified health claim.