Food Industry Set To Become Its Own Judge And Jury

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The food industry has decided to set up its own nutrition labeling system. The President’s wife and FDA wanted the federal government do this. The Grocery Manufacturers Association, which represents more than 300 food and beverage companies, decided the FDA approach is not to its liking.

The GMA said, “America’s leading food and beverage manufacturers and retailers today announced the launch of Nutrition Keys, a new voluntary front of pack nutrition labeling system that will help busy consumers make informed choices when they shop.”

The organization added “The Nutrition Keys program will change the look of the vast majority of the country’s most popular food and beverage products by placing important nutrition information (calories, saturated fat, sodium and total sugars content) on the front of packages.”

Almost all industries would rather police themselves than have the government do it. The banking industry worked that way to a large extent before the credit crisis.

It is hard to imagine that the food industry is anxious to label its most unhealthy food as fatty and full of the things that can help cause obesity and diabetes. Of course, the sector may have decided that its past sins can be remedied. Americans may be thinner and healthier in the future, all due to the actions of GMA members.

Government regulation can be expensive and ineffective. The GMA argued that it can label food better than the FDA. The decision may be the start of a war between the government and the industry. The government usually wins these wars particularly if the Administration and Congress want to display their power. The GMA is begging for a fight.

A year or so from now the GMA initiative will probably be dead, steam-rolled by Michelle Obama, the FDA and their allies. The organization can look back and say it tried to make a compromise. The compromise may gain it some leverage in its next round of negotiations with those who would further regulate it. But, that is all the GMA plan is–an attempt to set a stake in the ground so that it is not buried.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618