The Checkout: Miyoko’s Scores Victory in Labeling Lawsuit; Mizkan Acquires Born Simple

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Miyoko’s Victorious in California Labeling Lawsuit

Vegan cheese producer Miyoko’s was largely victorious in a court case it has been fighting over the last year, with a judge finding the company could continue to use much of its current branding and product terminology.

The plant-based foods maker filed the lawsuit in February 2020 after the California Department of Food and Agriculture (CDFA) Milk and Dairy Food Safety Branch sent the company an enforcement notice stating it could not use terms like “butter” on its vegan butter product. The CDFA said the company had violated FDA labeling regulations which state that butter is “made exclusively from milk or cream, or both…and containing not less than 80 per centum by weight of milk fat.” The notice also asked the company to remove its “Revolutionizing Dairy with Plants” mission statement from its website, as well as images related to animal agriculture, though it has since withdrawn these motions. In response, the company filed a lawsuit claiming that the CDFA’s demands were in violation of its First Amendment rights.

Miyoko’s had already been granted a preliminary injunction that allowed it to continue using the same marketing and labeling while the legal proceedings moved forward. In a statement, Animal Legal Defense Fund Executive Director Stephen Wells called the CDFA’s efforts to restrict the company’s use of these terms “a blatant example of agency capture.”

“The fact that animal-milk producers fear plant-based competition does not give state agencies the authority to restrict one industry in order to help another,” he said.

While Miyoko’s may continue to use terms such as “butter” as well as “lactose free,” and “cruelty free” on its product labeling, the company cannot use the term “hormone free” in reference to its butter because it is not constitutionally protected commercial speech, the judge ruled. The product does contain naturally occurring hormones from plants, the judge noted in his decision, so this claim is “irrefutably false.” The judge also declared the state was unable to provide material evidence that the terms used by Miyoko’s ultimately led to confusion among customers, as it had alleged.

“Here, the State’s sole asserted interest is ‘avoid[ing] consumer confusion.’ Because the record lacks material reasonably supporting the conclusion that removing ‘butter’ from Miyoko’s labeling ‘will in fact’ advance that interest ‘to a material degree,’ the State may not enforce any order to that effect,” he wrote.

Miyoko’s CEO and founder Miyoko Schinner said in a press release announcing the ruling that the use of these terms is “common parlance among consumers in the modern world.” Other brands such as Tofurky and Upton’s Naturals have been involved in similar state level plant-based labeling lawsuits, while the Dairy Pride Act introduced at the federal level this spring, seeks to mitigate issues of plant-based “confusion” nationwide. Speaking to NOSH last week following the company’s $52 million fund raise, Schinner discussed how such lawsuits continue to affect brands in the plant-based industry.

“We need to be able to compete equally on the same grounds as the dairy industry,” she said. “We’re not getting the subsidies, we’re not getting the handouts. We are a private company that has to rely on our own revenues as well as equity, capital infusion, in order for us to succeed. So we do need to be able to market our products in a fair way that consumers understand, and they do understand.”

Mizkan America Acquires Born Simple

Mizkan America (MA), a subsidiary of international food manufacturer the Mizkan Group, announced this week it has acquired organic barbecue sauce maker Born Simple. Born Simple will join MA’s portfolio of sauces including RAGU and Bertolli. Terms of the deal were not disclosed.

Launched last year by Rob Johnson, the former CEO of condiment brand Original Uncle Dougie’s, Born Simple offers four SKUs of barbecue sauce and a line of broth concentrates. The company has sought to differentiate itself by packaging its sauces in plastic pouches and its broth concentrates in squeeze bottles as well as emphasizing its short ingredient list.

“We are curating a brand of USDA-Organic products that will give consumers simple, delicious and healthy options across the grocery store,” Johnson said. “Our partnership with Mizkan will allow us to scale our impact in an incredibly profound way.”

The acquisition will give MA a stronger foothold in the natural food category, while also expanding its reach to more Millennial and Gen Z households, the company said.

“As a leader in the U.S. Pasta Sauce and Vinegar categories, this acquisition takes us into adjacent categories,” MA president and COO Diego Palmieri said in a press release. “We also believe that Born Simple has great potential for expansion and future growth.”

Coconut Secret Sold to Nutiva

Plant-based oil and spread maker Nutiva this week announced it had acquired coconut aminos brand Coconut Secret from parent company Leslie’s Organics. Terms of the deal were not disclosed.

Launched in 2019, Coconut Secret is largely known for its soy-free, low-sodium soy sauce alternatives, which are sold at over 10,000 retailers including Whole Foods, Target and Walmart. The brand has since expanded its portfolio to include sauces and marinades, vinegars and nectars, all which utilize coconut aminos as a core ingredient. Co-owner Leslie Caren said in a press release that she and co-owner Randy Stoler sought to sell the business in order to take the brand “to the next level.”

“Both Randy and I very much enjoyed building the business, but we reached a point where we realized it was time to grow the brand to keep up with rapidly changing consumer trends,” she said.

In a press release announcing the acquisition, Nutiva CEO Steven Naccarato said the company was attracted to Coconut Secret’s “unsurpassed quality and taste,” and felt its products will allow Nutiva to expand into new categories beyond oils, spreads, baking ingredients and plant protein. There are also supply chain synergies among the two brands, as the companies also both source their coconut ingredients from fair trade farms in the Philippines.

“The synergies between our companies allow us to strive to achieve Nutiva’s mission to build a better future by furthering food education, empowering farmers, and providing consumers with the best sustainable and USDA Certified Organic products the market has to offer,” Naccarato said. “We have always admired Coconut Secret and couldn’t imagine a better fit with Nutiva, from its product suite to mission & values.”

Coconut Secret has been integrated into Nutiva’s site, allowing shoppers to purchase products from both brands in one shopping cart.

CPG Veterans Launch Free Mentorship Program for Entrepreneurs

Natural products CPG veterans Greg Fleishman and Mike Fata are joining forces to mentor natural CPG entrepreneurs. The duo’s new program, Fata & Fleishman Mentorship, provides new entrants to the industry free resources across topics such as sales, legal, marketing and finance, as well as recorded classes. The two developed the program after holding several Clubhouse sessions with other CPG leaders. The goal was to offer a way to continue the “mass mentorship” program.

“Being a CPG entrepreneur is exciting and fulfilling,” Fleishman wrote in a LinkedIn post announcing the new website. “Our mission with this community is to help make the journey easier.”

Fleishman, who currently serves as co-founder and CEO of baking brand Foodstirs, has also served on the boards of brands including Lily’s Sweets, Once Upon a Farm and Nuun Hydration. Fata co-founded hemp product maker Manitoba Harvest, where he was chairman of the board and CEO through 2016, and is currently chairman of the board at Sol Cuisine and investor and advisor to Om Mushrooms, Mid Day Squares and Love Food Fats.