ConAgra builds inventory to restore service levels

The 1936 Robinson-Patman Act prohibits product manufacturers from offering better prices to large retailers than local mom-and-pops. It has rarely, if ever, been enforced in recent years. That could change based on the objectives of the Biden administration and the current iteration of the Federal Trade Commission (FTC) to enhance competition. To that end, the FTC opened an investigation into Southern Glazer’s Wine and Spirits, the largest distributor of alcoholic beverages in the U.S. Similarly, the FTC opened an investigation into the wholesale pricing practices of Coca-Cola and Pepsi in January. While it’s unclear whether those investigations will result in any penalties or settlements, just the threat of action on a previously dormant law could change consumer goods companies’ pricing practices to make them more compliant with the letter of the law.

FDA hears comments on potentially banning Red No. 3 food dye

Consumer advocacy groups have long wanted to ban food dyes that produce artificial colors. After years of unsuccessful attempts, the Center for Science in the Public Interest may be gaining traction on one dye in particular — Red No. 3. What’s different about Red No. 3 is that it has been banned for use in cosmetics since 1990 after testing on animals in the ’70s and ’80s showed a link to thyroid cancer. At that point, it had already been approved by the Food and Drug Administration for use in foods and has remained in use. The FDA is concerned enough that it is now hearing comments from impacted parties before potentially issuing a ruling. Regulators in California are also looking into the issue with the potential that the standard in the state will be stricter than the national standard, which could complicate CPG supply chains. In 2015 and 2016, numerous CPGs committed to removing artificial flavors and colors before backing off those commitments, citing consumer preferences for original formulas. This time, under possible new FDA regulations, CPGs may actually have to make greater use of natural colors in their supply chains, even if it makes red candy and cereal less vibrant.