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Just Mayo vs. Mayonnaise: How the FDA restricts food innovation

The FDA established Standards of Identity for many products so that consumers were protected from mislabeled food product. But consumers today are more educated about ingredients.

November 14, 2014 by Darrel Suderman — President, Food Technical Consulting

Every chef and food scientist around the world understands that mayonnaise is the top selling condiment in the food industry. It is the building block for innumerable flavored dressings that we enjoy eating on a daily basis. And everyone knew that sooner-or-later, a food company would develop a comparable spread which is better-for-you.

Hampton Creek

And that’s just what the Hampton Creek food company started three years ago, supported by Microsoft co-founder Bill Gates and other investors who contributed $30 million. Josh Tetrick, CEO of Hampton Creek, had a vision of making plant-based substitutes for common egg-based products that he says are healthier and more environmentally friendly. Josh developed a product he called Just Mayo which uses yellow peas instead of eggs, and he also makes several flavors of Just Cookies. According to the Wall Street Journal (November 11, 2014), Just Mayo has landed shelf space in major retailers such as Whole Foods Market and Wal-Mart Stores.

Not so fast, says Unilever

But Unilever filed a lawsuit on October 31, 2014, accusing Hampton Creek Inc. of false advertising for calling eggless spread “mayo.” Unilever is also demanding Hampton Creek change the label of its Just Mayo product for unspecified damages. The Wall Street Journal comments that this lawsuit marks the latest battle between established food companies and the emerging natural- and organic-food producers that are luring skeptical consumers away from traditional packaged foods. Tetrick said “We’re competing directly with a company that hasn’t had real competition in decades.”

The real issue is government barricades to new product innovation

Years ago, the FDA established Standards of Identity for many products so that consumers were protected from mislabeled food product. But consumers today are more educated about food ingredients, and are demanding ingredients in food products like Just Mayo that are Non-GMO verified, all natural, organic, gluten-free, from cage-free eggs, and less saturated fats to name a few. To me, the FDA’s Standards-of-Identity are nothing more than a barrier to new food innovation that is no longer needed. It reminds me of President Reagan walking to the Berlin wall, and asking Russian President Gorbachev to “Tear this wall down.”

I believe the FDA needs to tear down the barriers to entry in the food business – and become an enabler of new products and not a prevention to new product development.

But, is this a hypocritical position since Unilever sells a product called " Can’t Believe It’s Not Butter?"

Food Technical Consulting will offer its next 10 PILARS OF FOOD INNOVATION in Denver, March 17–19. This course is based on several Harvard Business Press books that have been applied to the food industry. It has been taught internationally, and used by private equity personnel to critique existing restaurant menu strategies. To pre-register or to volunteer your company as a host site, contact me at dsuderman@foodbevbiz.com or 303-471-1443.