A Complete Guide to Compliance in the Food Industry

Why is regulatory compliance in the food industry so vital? As a professional in the field, you can likely cite several reasons, but it’s worth reviewing them briefly to emphasise the point.

Firstly, there is the inherent link between compliance and food safety, which is not only a matter of public health but also essential for keeping your products on shop shelves. The recalls and fines resulting from food safety incidents can be costly, negatively impacting your bottom line.

Then, there is the need to protect your brand reputation from the backlash that comes with being found non-compliant. Appearing in the headlines for the wrong reasons—whether for making someone ill with your food, being negligent in your labelling, or failing to operate sustainably—can seriously erode customer loyalty and popularity.

Lastly, there is the risk of temporary or permanent closure, whether due to a penalty imposed by an enforcement agency or simply the unavoidable economic fallout following a violation. One mistake or lapse in judgement can bring even a relatively well-established business to its knees.

It’s safe to say that the risks of non-compliance are serious. However, whether regulatory compliance is a challenge or a strength for your organisation largely depends on how well-informed and prepared you are to meet food safety standards.

To that end, we’re breaking down compliance in the food industry in detail in this blog post, providing information on the regulations applicable in the United Kingdom, European Union, and United States, along with best practices for each area. Whether you’re looking to fill gaps in your knowledge or simply using this as a refresher, you’ll gain a comprehensive view of the subject from multiple angles.

Food Safety

Ensuring reliable food safety is the objective of many food industry regulations. That’s with good reason, as the World Health Organization (WHO) estimates that 600 million people fall ill and 420,000 die each year due to foodborne illnesses.

Given the complexity of the food industry, there is a lot to cover on this subject—so much so that food safety acts as an umbrella category, with the next three sub-sections all falling under it. You can skip ahead to the specific topic that interests you most, but we recommend at least reviewing the fundamentals here first.

On that note, before we go any further, we should introduce three of the most prominent regional regulatory bodies and their key food legislation. We will be referencing these frequently—some multiple times—in the sections to come. They are:

• The Food and Drug Administration (FDA) of the U.S. and the Food Safety Modernization Act (FSMA) of 2011

• The European Food Safety Authority (EFSA) of the European Union (EU) and Regulation (EC) No. 178/2002

• The Food Standards Agency (FSA) of the UK and the Food Safety Act of 1990

Also relevant are international food safety standards, such as those established by the International Organization for Standardization (ISO), Hazard Analysis and Critical Control Points (HACCP), and WHO. Inspections for these standards are typically carried out by regional authorities.

Best Practices in Food Safety

We’ll be covering many best practices in food safety management below, but here are some high-level measures that every food and beverage business should implement:

• Maintain uncompromising sanitation Every food facility should adhere to strict sanitation procedures, including thorough cleaning of surfaces and equipment, as well as ensuring employee hygiene (frequent handwashing, use of hair and beard nets, etc.).

• Conduct regular internal audits Having your compliance experts or a third party audit your facilities, processes, and products is a wise approach to identifying issues before an inspector finds you in violation of regulations.

• Train and educate staff Whether working on the factory floor or in back-office roles, employees should be familiar with relevant regulations and consistently follow best practices—both those included in this post and any specific to your operations or products.

• Leverage technology We’ll be exploring how purpose-built solutions such as enterprise resource planning (ERP) systems can strengthen food safety efforts in the sections to come, but it’s worth highlighting them here for their automated monitoring and digital record-keeping capabilities.

Traceability

Defined as the ability to track and record the history of an item, traceability is a core requirement for food safety. For many years, the standard approach was “one step forward, one step back”—meaning each company in the supply chain only tracked their products from their immediate supplier to their immediate customer. However, this is rapidly changing.

A complete overview of your goods’ timelines and supply chains is essential for isolating contaminations and carrying out product recalls (see below for more details). It is also necessary to provide consumers with the information they need to make informed decisions about their health and safety.

The most significant development in FDA traceability regulations, the Food Traceability Final Rule, will come into effect on July 2028. It enacts Section 204 of FSMA and mandates the recording of Key Data Elements (KDEs) and Critical Tracking Events (CTEs) for the 16 food categories listed on the Food Traceability List.

In the EU, traceability standards are outlined in Regulation (EC) No. 178/2002, which requires that a clear link between each product and its source be maintained. The Food Standards Scotland (FSS) has also published a food traceability guide based on the requirements set out in the Food Safety Act 1990, covering fundamental principles and providing relevant contact information.

Best Practices in Traceability

As traceability is one of the most essential components of food manufacturing compliance, the following best practices should be adopted:

• Record traceability data digitally and share it with trading partners – Minimise the risk of errors or lapses in memory by digitising and automating data capture, preferably using handheld barcode scanners, and synchronising all data to a shared database.

• Ensure you are capturing the correct information and making it accessible – Record not only the data required by traceability regulations but also any characteristics unique to your products, ensuring all information is highly visible.

• Use the dedicated features of an ERP system – The lot and sub-lot management capabilities of industry-specific food ERP solutions allow you to drill down to the individual item level and inspect key traceability elements with just a few clicks.

Allergen Management

Another critically important element of a robust food safety plan is effective allergen management. This is because approximately 220 million people worldwide have food allergies. While bacterial and viral contaminations are more common causes of foodborne illness, those caused by allergens can be life-threatening.

In the UK and US, legislation has been introduced to regulate the handling and labelling of allergens. In the United States, the 2004 Food Allergen Labelling and Consumer Protection Act established stringent requirements for food and beverage businesses using any of the eight major food allergens (milk, eggs, shellfish, fish, tree nuts, peanuts, wheat, and soya). In 2021, the Food Allergy Safety, Treatment, Education and Research Act added sesame to this list.

The key food allergen legislation in the EU is Regulation (EC) No. 1169/2011, also known as the Regulation on Food Information to Consumers. This legislation identifies 14 major allergens (all those listed by the FDA, plus celery, mustard, lupin, molluscs, and sulphur dioxide/sulphites) and makes it mandatory to declare their inclusion in products. These requirements remain in place in the UK, as the regulation was retained post-Brexit.

Best Practices in Allergen Management

Best practices in allergen management include:

• Segregate and clearly label allergenic materials– Ingredients that pose an allergy risk should always be stored separately and securely, with clear labels applied to ensure staff are aware that they must be handled with care.

• Schedule production runs involving allergenic ingredients at the end of the day– By scheduling the manufacture of products containing allergens at the end of the working day, surfaces and equipment can be sanitised shortly after (during routine pre-closing cleaning), thereby minimising the risk of contamination.

• Implement purpose-built functionalities – The ingredient screening and packaging design capabilities of food product lifecycle management (PLM) solutions help identify allergens and ensure appropriate declarations are made. Meanwhile, the product specifications and labelling modules of food and beverage ERP systems assist in enforcing the standards set.

Recalls

On the rise in the U.S., EU and UK (not to mention Canada, Australia and New Zealand), recalls are a major cause of illness, expense and negative publicity. You hope you're never in the unfortunate position of having to withdraw thousands of products scattered across your supply chain, but you've got to be prepared in the case that you must. It’s just part of proper risk management, and it’s required by law.

The passage of FSMA in 2011 first gave the FDA the authority to mandate a recall, but the USDA still oversees recalls for meat, poultry and processed eggs, as the latter group has primary jurisdiction over those foods. The specifics of required recall procedures are in Title 21 of the Code of Federal Regulations (CFR), issued by the agency to enforce FDA policies.

Regulation (EC) 178/2002—specifically, Article 19 thereof—sets the requirements for food and beverage recalls in the EU, including responding immediately, informing authorities, issuing warnings and ceasing distribution. The UK’s set of recall regulations is based on the EU legislation, but amended with additional regulations in 2004 and 2011.

Best Practices in Recalls

These best practices are critical for recall preparedness and effectiveness:

• Establish a plan ahead of time and practice it—Creating an official step-by-step plan, with all responsibilities delegated ahead of time, and practicing it with mock recalls, gives your company the best chance to execute when it counts.

• Maintain bidirectional traceability and open communication with trade partners—Generally, having as much traceability data at your fingertips as possible should enable you to more efficiently execute a recall. Frequently communicating with trade partners and ensuring both parties’ needs are met are also essential.

• Deploy a food ERP and streamline the process—Advanced food and beverage ERP systems have product tracing capabilities that enable you to start isolating the source of the contamination with just a few clicks. Plus, the lot and status management functionalities make withdrawing affected products much easier.

Labelling

Food and beverage product labels serve a much greater purpose than simply making an item appealing to potential customers. They are a critically important source of consumer information, and for that reason, regulatory bodies around the world have established standards for what details must be included and how they should be displayed.

Title 21 of the CFR sets the labelling requirements for food and beverage products in the United States, with the five essential elements being: the common name, net quantity, ingredient list, nutrition information, and both the name and location of the manufacturer, packer, or distributor (see Part 101 of Subchapter B of Chapter 1). The FDA based these regulations on the FSMA, as well as the Nutrition Labelling and Education Act and the Fair Packaging and Labelling Act.

The aforementioned Regulation (EC) No. 1169/2011 includes the most up-to-date set of stipulations for food and beverage product labelling in the EU, and it continues to apply in the UK as one of the retained EU laws. Its list of mandatory components is very similar to that of US law, but it also requires the inclusion of a “best before” date.

Best Practices in Labelling

Beyond your legal requirements, you should also consider these best practices for food packaging and labelling:

• Move more information to the front of the package– Front-of-pack (FoP) labelling is already common in the EU and UK, and the FDA is currently proposing to mandate it in the US. It is considered best practice as it increases the likelihood that consumers will read the information.

• Design your labels to create a hierarchy of information– You cannot assume that every consumer will read your labels from top to bottom, so you need to indicate, through the packaging design, what is most important (such as allergen disclosures and other health warnings).

• Make text legible– While you would never intentionally choose a font, size, or colour that obscures information, certain design treatments can appear differently when printed on packaging compared to mock-ups on screens. Be sure to create prototypes to identify such issues and resolve them.

• Apply purpose-built tools provided by software– Both PLM and ERP systems help ensure compliance with regulations thanks to the aforementioned packaging design and labelling functionalities mentioned in the allergen management section above.

Workplace Safety

In any manufacturing industry, including food and beverage, your people are your greatest asset. The work requires consistency, commitment, and specialised knowledge, making every team member invaluable. Ongoing labour shortages make it even more crucial to keep employees safe at work, as they are increasingly difficult to replace.

Of course, there are also laws in place to protect employees. The Occupational Safety and Health Act, originally passed in 1970, remains the core legislation in the United States today. It includes standards covering everything from chemical exposure and fall protection to personal protective equipment (PPE) requirements and heat safety regulations, along with many other specifics for different types of incidents and injuries.

Article 153 of the Treaty on the Functioning of the European Union established a variety of measures to protect the health and safety of workers on the job, and it is currently being supplemented by the EU Strategic Framework on Health and Safety at Work 2021-2027. Meanwhile, in the UK, the Health and Safety at Work Act 1974 remains the primary legislation governing workplace safety.

Best Practices in Workplace Safety

Regardless of where your business operates, you should follow these best practices for workplace safety:

• Educate workers on risks unique to your operations– Depending on your production processes and the equipment used, employees must be aware of any additional risks beyond those inherent in manufacturing settings (such as cuts from meat slicers, burns from very hot cooking surfaces, etc.).

• Provide and mandate the use of appropriate PPE– Supplying employees with the correct PPE is only the first step; it is equally important to ensure that they wear it consistently and correctly. Training and regular enforcement play a key role in achieving compliance.

• Foster a culture of safety and accountability– When every team member understands the importance of workplace safety and views it as part of their role to keep themselves and their colleagues injury-free, the likelihood of incidents at your facilities is significantly reduced.

Marketing and Advertising

You’ve just created what is sure to be the next big hit product in your niche—now it’s time to develop a marketing campaign and advertisements to go with it. This is a fantastic opportunity to get creative and differentiate your brand—not to mention a crucial way to drive sales—but it must be balanced with honesty and legal compliance.

Beyond the labelling laws already discussed above, it is essential to familiarise yourself with the food and beverage-related sections of the Federal Trade Commission Act of 1914 and Children’s Online Privacy Protection Act of 1998 if you are operating in the United States. The former covers unproven health claims, endorsements, and comparative advertising, while the latter includes additional restrictions and precautions to protect children under 13.

In the EU, Regulation (EC) No. 1169/2011 sets out some basic requirements, but the Nutrition & Health Claims Regulation, Misleading & Comparative Advertising Directive, Unfair Commercial Practices Directive, and other laws further expand the list of stipulations and prohibitions. The UK retained (and later amended) many of these regulations post-Brexit and has recently introduced additional restrictions on advertising products high in fat, sugar, and salt.

Best Practices in Marketing and Advertising

Here are some best practices for marketing and advertising food and beverage products:

• Always check with legal– All marketing and advertising materials, from written copy to video scripts, must be reviewed and approved by your legal experts before anything is given the go-ahead. As mentioned above, the legal framework can be complex, so it is always advisable to consult with those who know it best.

• Stick to the facts– It is easy to cross the line when making claims about a product, not only because you are likely proud of it, but also because the line can be very fine. As much as possible, take a fact-based approach to showcasing your offerings in the best light.

• Be particularly careful with products targeted at children– Minors have additional protections under the law, including specific regulations on how commercial products are marketed and advertised to them. Consult with your legal team early in the process to ensure you understand the restrictions in advance.

Taxes and Tariffs

Benjamin Franklin said it best: “Nothing in this world is certain except death and taxes.” Food and beverage businesses like yours pay them just as individual consumers do—except your organisation typically owes much more than any one person, partly due to the additional taxes, tariffs, duties, and levies specific to your industry.

Food and beverage companies in the United States are responsible for paying excise taxes on alcohol, sugar, and tobacco; tariffs on imported ingredients; commodity-specific taxes, such as those on USDA-monitored foods; and state-specific food sales taxes.

The EU applies a value-added tax (VAT) on food; excise duties on alcohol, soft drinks, and tobacco; Common Agricultural Policy fees for farmers; and import tariffs. The list is not much different in the UK, where businesses face a VAT on food; a levy on soft drinks with sugar; alcohol and tobacco duties; import tariffs; and a plastic packaging tax.

Best Practices in Taxes and Tariffs

This is not professional tax advice, but the following should be considered standard practice:

• Trust your accounting professionals– If your business has an accountant (or an accounting department), you are likely well covered. Having at least one honest and experienced professional in charge of financial matters is essential.

• Double-check your facts and figures– You or your accountant(s) should always verify the accuracy of your tax return, along with complex elements such as variable rates, deductions, credits, and withholding.

• Ask for a second opinion if you have doubts– This is an area where it is best to play it safe. If you are not fully confident in the accuracy of your tax calculations, consult an external accountant before finalising your numbers.

Sustainability

Depending on where your business operates, sustainability is likely either a goal you are striving towards or a standard you are working hard to maintain. The reality is that most food and beverage companies fall somewhere in between, but no matter where your organisation is on the journey, you must ensure compliance with the law.

Beyond federal regulations such as the Clean Water Act and Clean Air Act, U.S. food and beverage businesses are also subject to the sustainability provisions of FSMA, the Federal Trade Commission’s Green Guides for marketing, and various state-level sustainability laws (California’s are the most extensive, while New York, Washington, and Oregon also have one or more).

The EU has a far broader range of sustainability requirements, including the European Climate Law, the European Green Deal, corporate reporting directives, legislation on packaging and packaging waste, and regulations for deforestation-free products. The UK’s sustainability regulations are similarly extensive, addressing carbon emissions (UK Climate Change Act 2008), waste reduction (Environment Act 2021), farming (Agriculture Act 2020), and more.

Best Practices in Sustainability

Here are some effective ways to improve your environmental impact:

• Source materials responsibly– Assess each of your trading partners on their sustainability practices and make changes where necessary. If you can choose and afford to buy directly from environmentally friendly suppliers—whether through hydroponic farming, recyclable packaging, or other green initiatives—do so.

• Use or design more sustainable packaging– Innovations in food and beverage packaging are constantly emerging, such as cornstarch-based bioplastic bottles. While adopting the latest technologies may not always be feasible, you can likely reduce material usage or opt for recyclable alternatives to make a positive impact.

• Take advantage of technology– ERP systems designed for food and beverage manufacturers can help reduce waste with expiration management features, while overall equipment effectiveness (OEE) software allows you to monitor performance in real time, track production losses, and implement continuous improvement plans.

Transportation

The final stage in the supply chain is distribution to the customer, and it is a sufficiently complex and specialised practice that logistics has become its own industry. A whole new set of expectations—and laws—come into play when vehicles are on the road, with even stricter regulations for businesses transporting food and beverage products.

The key regulations for U.S. food and beverage transporters include FSMA, which mandates temperature controls, sanitary practices, and more; and the Federal Motor Carrier Safety Administration’s rules, which cover hours-of-service limits and electronic tracking of driver breaks. Also applicable are the Hazardous Materials Regulations and state-level rules such as California’s clean trucking standards and low-emission zones (LEZs).

In the EU, food and beverage transport regulations are similar, covering general food hygiene (Regulation (EC) No. 852/2004), temperature controls (No. 37/2005), driver hours and rest (No. 561/2006), and hazardous materials (ADR agreement). There are also tachograph rules for monitoring driver compliance and EU emissions standards for trucks, as defined in the Euro 6 Regulations.

The UK also has numerous transport regulations, primarily concerning safety and sustainability. The Food Hygiene Regulations 2013 cover temperature controls and sanitation, while the Carriage of Dangerous Goods Regulations 2009 regulate hazardous materials. London has been designated an ultra-low emission zone (ULEZ), and additional clean air zones exist across the UK, leading to higher charges for older diesel vehicles. The UK has retained the EU laws on driver hours, tachographs, and truck emissions.

Best Practices in Transportation

Here are some best practices for transportation and distribution:

• Establish data visibility across all points in the supply chain– Given the complexities of food distribution across fragmented supply chains and fluctuating timelines, it is essential that you and your trading partners share as much data as possible to coordinate operations and ensure compliance.

• Create contingency plans– Whether due to worker strikes, extreme weather, or other disruptions, supply chain issues are increasingly common. It is wise to identify alternative suppliers and develop contingency plans while considering any compliance requirements that may arise.

• Utilise transportation management solutions – Advanced routing software can help your business meet sustainability standards while also providing resource management functionalities to ensure that plans remain within driver hour regulations.

Simplify Food and Beverage Compliance With Aptean Technology

That wraps up our complete guide to compliance in the food industry. There’s a lot to know and prepare for when it comes to this subject, but hopefully reading this post has you feeling better equipped to handle such a complicated matter. The best practices in food industry compliance management that we’ve outlined above should have you pointed in the right direction.

A best practice that’s worth reiterating is to leverage purpose-built business technology in your compliance efforts. We’re the experts at that, having served the food and beverage market for decades while developing one of the most robust and comprehensive ERP solutions for food safety and compliance on the market, Aptean Food & Beverage ERP.

Our cutting-edge food ERP software offers unique, industry-specific technology built on the Microsoft Dynamics 365 Business Central platform, which offers ease of use and full system configurability with world-class cybersecurity. Opting for a flexible cloud deployment can expedite your implementation, not to mention provide the broader accessibility and improved business continuity your business needs.

At Aptean, we’re AI-powered and cloud-first, committed to keeping our customers on the cutting edge of technology. When you choose to work with us, you’re establishing a long-term partnership and can expect our complete dedication to a future of mutual success.

Contact us today for more information. You can also request a personalized demo to see any of our solutions in action.