Food Packaging Basics for Small Businesses

Food packaging can be really fun to design but unless you know the FDA's regulations you could be getting yourself into hot water. Not all businesses are required to meet the strict rules for food packaging. The rule is as follows:

"The nutrition labeling exemptions found in 21 CFR 101.9(j)(1) and 21 CFR 101.36(h)(1) apply to retailers with annual gross sales of not more than $500,000, or with annual gross sales of foods or dietary supplements to consumers of not more than $50,000. For these exemptions, a notice does not need to be filed with the Food and Drug Administration (FDA). The nutrition labeling exemptions for low-volume products found in 21 CFR 101.9(j)(18) and 21 CFR 101.36(h)(2) apply if the person claiming the exemption employs fewer than an average of 100 full-time equivalent employees and fewer than 100,000 units of that product are sold in the United States in a 12-month period. For these exemptions, a notice must be filed annually with FDA."

These can be confusing but basically, if your business sales are under a certain threshold or your product is made in small enough quantities you may be exempt from the labeling requirements for foods and drugs. Nutrition labeling may not be required if your business meets the rules for exemption but there are some things you can do that are simply best practice. Having your product labels look professional goes a long way toward consumer trust. And with trust comes repeated purchases!

I see a lot of packaging errors on food products. My day job is as a packaging specialist for a large retailer so I am well aware of what is required for FDA compliant packaging. Below are some of the most common mistakes I see in packaging - especially on small business packaging. The punishments by the FDA for misleading or false labeling start with warning letters but can go all the way up to large fines and criminal prosecution. Correcting these issues will ensure your customers are safe and that your products and business are safe from legal action.

Statement of Identity: The statement of identity should should always be on the primary display panel (PDP) which is the panel that will face the customer as it is displayed. The statement of identity should include the product name as well as any additive descriptors or flavor callouts in prominent type. This information is typically put under the brand name toward the top of the panel. Some people like to reinvent the wheel when they design packaging but placing information where consumers expect to find it is actually best practice.

Net Wt.: The net wt. of contents must appear in the bottom 30% of the PDP and must be expressed in weight, measure, or numeric count. It is common to express hard foods in weight (oz. and g.) and liquids in fluid measure (fl. oz.). The quantities must be shown in both Metric and U.S. Customary System. One of the trickiest things that catches people is that the size of the type is required to meet a minimum point size depending on the area of the PDP (height x width). For example, a PDP that is between 5 sq. in. and 25 sq. in. will require a minimum net wt. type size of 1/8 in which is about 9pt. These size requirements are listed on the FDA's website.

Nutrition Facts Table: The nutrition facts table (NFT) is required to be on the panel to the right of the primary display, or, PDP. If there is no panel to the right then it can be on the back side of the product. Nutrition facts tables are required to meet a minimum size requirement and cannot be shrunk down to fit a space. There are specific formats for small labels which must be followed. There are certain instances where specific nutrients or information from the table can be omitted but there are complex requirement for such cases.

Ingredient Statement: The ingredient statement must follow directly below or to the side of the nutrition facts table with no intervening material. This means that there can be no other information, logos, images, or other elements between the NFT and ingredient statement. Ingredients are usually listed in order of volume and should be as transparent as possible.

Allergens: It is vital that all major allergens be listed on the package so that customers with food allergies can remain safe. The allergen statement must be listed directly below the ingredients with no intervening material. The major allergens to note include milk, egg, fish, crustacean shellfish, tree nuts, wheat, peanuts, soybeans, and sesame. If the product itself does not contain any ingredients with one of those major allergens but is made in the same kitchen or shares equipment with products that do you should list that they "May Contain:..." the allergen in question. Some people have such a strong sensitivity to an allergen that even trace amounts can make them sick. It is also a good idea not to claim a product is gluten-free unless you know for a fact that no gluten containing ingredients are in your products or came near any of your products or equipment. If you produce gluten-free cookies along side regular cookies you can still make customers very sick even from something as simple as handling the different products with the same gloves.

Distribution Statement: The distribution statement is required to be on all food and supplement products directly below the ingredients/allergens with no intervening materials. This means that the official, legal name of the business and the place of business must be listed including the business address unless the company can be found easily in a directory.

There are many, many, many more rules and requirements for labels but these basics to look over can help you get moving in the right direction. These rules are complex and can sometimes change if the FDA decides to do things a new way. If you have a small business selling consumable products such as foods or supplements and want to know if your labels are correct, contact me! I can do a branding and labeling audit for a fee and see what areas you need to work on. Or, if you're feeling ready to take the next level, reach out to me and I'll help design brand new, compliant labeling for your small business!

The above information and much more can be accessed by downloading the FDA's Food Labeling Guide here.