Environmental and Regulatory Compliance Partner Sherry Jackman participated in the L.A. Times Studios' Food & Beverage Industry Roundtable. Sherry was one of three leading food and beverage industry experts to share her thoughts, insights and assessments regarding the current state of the industry and the various trends she has been observing.
Q: Are there any new regulatory issues that food and beverage companies need to be aware of in 2025?
Extended Producer Responsibility (EPR) is likely the biggest new regulatory issue for food and beverage companies in 2025. States like California and Oregon now require producers selling into those states to take financial and operational responsibility for packaging waste. Companies must register with Producer Responsibility Organizations (PROs), report packaging data, and pay fees based on material type and recyclability. To manage costs and comply, businesses may need to redesign packaging to use more recyclable or sustainable materials.
Q: As a trusted advisor, what are some of the key pieces of advice you have provided to the businesses you work with in terms of managing supply chain in the current climate?
In today's litigious climate, I advise businesses to strengthen supplier, distributor, and retailer agreements with clear risk allocation and robust indemnity provisions. Contracts should require upstream parties to indemnify against claims related to product claims, labeling, or regulatory violations and to carry appropriate insurance. Defining quality standards and dispute resolution mechanisms is essential for compliance and quick response to issues. Solid agreements create predictability and manage risks.
Q: What are the biggest regulatory challenges facing food and beverage businesses in Southern California today, and how are companies adapting?
One of the biggest regulatory challenges is the surge of consumer class actions targeting product labeling and advertising under statutes like the CLRA, UCL, and FAL. Claims often focus on "natural," "clean," and health-related marketing, even when they seem unfounded. Plaintiffs are aggressively pursuing litigation without waiting for regulators, using broad legal tools to seek injunctions, restitution and attorneys' fees. In response, companies are adapting by auditing labels and ads, training staff, substantiating claims with scientific evidence, and closely tracking legal trends to reduce exposure and mitigate risk.
Q: How is food safety impacting the food and beverage industry?
Food safety concerns – especially around heavy metals – are significantly impacting the food and beverage industry. Heavy metals like lead, cadmium and arsenic occur naturally in soil and water, making them difficult to fully eliminate from food ingredients despite strict sourcing and testing protocols. The challenge has grown due to global supply chain disruptions, which have forced companies to rely on alternative or less vetted suppliers. This increases the risk of receiving ingredients with elevated heavy metal levels, potentially exceeding regulatory limits. Such exceedances can trigger recalls, litigation and loss of consumer trust. In response, companies are ramping up testing, tightening supplier oversight and enhancing transparency throughout the supply chain to ensure compliance and protect their brands.
Q: What has changed with food labeling compared to five years ago?
Food labeling has become a major focus of consumer class actions and regulatory scrutiny over the past five years. Companies now face increased legal risk for using terms like "natural," "clean," and "non-toxic" without clear qualification. Ingredient disclosures are under pressure, especially for synthetics, and controversial compounds. Environmental claims, such as "sustainable" or "eco-friendly," are also frequently challenged as "greenwashing." Health claims not backed by strong scientific evidence, misleading pricing tactics like "fake discounts," and deceptive packaging have all become litigation targets. As a result, businesses must approach labeling and packaging with greater precision and legal oversight than ever before.
Resources
- L.A. Times Studios Food & Beverage Industry Roundtable (PDF)
- L.A. Times Studios Food & Beverage Industry Roundtable
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
