News Roundup: JBS Fights National Ad Board Over Net Zero Claims; Flower Foods Acquires Co-Man Papa Pita

JBS Fights The BBB’s National Advertising Division Over Net Zero Claims

The world’s largest meat producer, JBS, appealed a recommendation from the Better Business Bureau’s National Advertising Division (NAD) this week that recommended it stop purporting its goal to reach net zero emissions by 2040, stating the company does not currently have a plan implemented to put it on track to achieve those claims.

The controversy was sparked by a complaint from the Institute for Agriculture and Trade Policy (IATP), a non-profit that focuses on supporting sustainable food and farm systems. IATP published a report last April claiming JBS’ emissions had increased over 50% in the past five years.

In addition to its claim of achieving net zero emissions by 2040, NAD found issues in other emission reduction targets from JBS including specific product callouts that insinuate its bacon, chicken wings and steak products will be net zero and that it is leading the change toward net zero emissions across the food industry.

“Aspirational environmental benefit claims create reasonable expectations on the part of consumers and, as a result, they require substantiation,” the NAD said in the release. “When aspirational claims are tied to measurable outcomes an advertiser must be able to demonstrate that its goals and aspirations are not merely illusory and to provide evidence of the steps it is taking to reach its stated goal.”

After a review of JBS’s current sustainability practices, the NAD found that despite a $1 billion commitment to the goal, announced in March 2021, the company has not implemented a clear plan to put themselves on track to achieve net zero within the specified timeframe.

However, JBS’ appeal claims that its messaging is substantiated by the foundational research and work it has done to date. Additionally, the company highlighted that it still has 17 years to get on track and achieve that goal.

Flower Foods Acquires Co-Man Papa Pita

Georgia-based bakery conglomerate Flower Foods closed on its acquisition of bread producer Papa Pita for an undisclosed sum this week. The deal was announced in late 2022. Papa Pita makes numerous branded products including bagels, tortillas, breads, buns, English muffins and flatbreads.

“Papa Pita has been an important co-manufacturer of Flowers products for many years, and we expect the acquisition to drive further manufacturing and distribution synergies,” said Ryals McMullian, Flowers Foods president and CEO, in a press release. “We’re looking forward to welcoming the passionate Papa Pita team to Flowers.”

According to a press release, Papa Pita will operate as an independent subsidiary of Flower Foods. Founded in Salt Lake City in 1983, Papa Pita now owns numerous other brands including Papa’s Organics, Great Grains Bakery, Bubba’s, Maya’s Tortillas and Wrapido. The company’s current 270,000 sq. ft. production facility was constructed in 2012.

Flower Foods owns 15 bakery brands such as Dave’s Killer Bread, Nature’s Own, Wonder, Canyon Bakehouse and Tastykake. The company was founded in 1919 and now has over 8,900 employees and distributes products to both online and brick-and-mortar retailers across the country.

USDA Policy Center Requests WIC To Update Nutrition Standards

Representatives from the U.S. Department of Agriculture Bipartisan Policy Center’s Food and Nutrition Security Task Force penned a letter to the leaders of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) requesting the organization update food packaging guidelines to better align with the Dietary Guidelines for Americans.

Signed by the task force co-chairs and two former USDA secretaries, Dan Glickman and Ann Veneman, the USDA aims to help increase the value of federal food programs, provide more nutritious food to its recipients and increase the cash value benefit of fresh produce for WIC users.

According to the letter, more than 6 million low-income pregnant and postpartum women, infants and children participate in WIC each year. Last year the task force made a series of other recommendations to WIC in its annual policy brief including expanding access to the program, streamlining the certification process and strengthening nutrition and breastfeeding support.

Thai Union Aims To Execute Red Lobster Turnaround Plan With New CPG Products

Seafood restaurant chain Red Lobster made its first foray into frozen seafood this week with the launch of a new 4-SKU product line which includes Cheddar Bay Biscuit Shrimp, Coconut Shrimp Bites, Parmesan Crusted Garlic & Herb Stuffed Shrimp and Cheddar Bay Biscuit Cod. The extension is intended to complement the company’s existing biscuit mixes.

Red Lobster’s frozen entrees were developed in partnership with Chicken of the Sea; both companies are owned by Thailand-based seafood conglomerate Thai Union Group. The new line will be available at retail stores across the country including Walmart and BJ’s Wholesale. Red Lobster’s reach into CPG is part of its multi-pronged corporate turnaround plan, implemented by Thai Union two years ago after a steady decline in profit.