Food Policy: Check the List of Ingredients

• Published in: Amber waves 2009-06, Vol.7 (2), p.16-21
• Main Authors: Golan, Elise, Mancino, Lisa, Unnevehr, Laurian
• Format: Article
• Language: English
• Subjects: Agricultural policy; Americans; Brand image; Commodities; Commodity prices; Competition; Consumer protection; Consumers; Consumption; Descriptive labeling; Diet; Dietary guidelines; eating healthy; Food; food policy; Food prices; Food processing industry; Grain; Health care; Information policies; Ingredients; Labels; Manufacturers; Market positioning; Nutrition; nutrition information; nutrition labeling; Nutrition research; nutritional adequacy; Prices; Product quality; Production costs; Public health education; Public policy; Regulation; Subsidies; Trade restrictions; Trans fats
• ISSN: 1545-875X; 1545-8741; 1545-875X

Policies designed to improve the diet quality and health of Americans may sometimes hit their target through an indirect means -- those who make the foods that people eat. Food manufacturers may respond to policy by reformulating their products to better appeal to health-conscious consumers. If the change in how products are made is widespread, then improvements in diet quality will extend to many consumers, even those who do not care about eating healthy. Manufacturers, unlike consumers, may react strongly to commodity price changes. Even small changes in unit input prices could have relatively large effects on aggregate production costs and on a manufacturers bottom line. As a result, policies affecting commodity prices could result in product reformulation to less expensive inputs. Competition over brand reputation reinforces incentives to reformulate. To build a brand's reputation for wholesomeness, healthfulness, and social responsibility, manufacturers may reformulate products and make well-advertised investments in new healthier ingredients and processes.