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, “one step forward, one step back”—that is, each company in the supply chain only tracking their products from their immediate supplier to their immediate customer—was the standard, but that’s quickly changing.

That’s because only with a complete picture of your goods’ timelines and supply chains can you isolate contaminations and conduct product recalls (see below for more). It’s also necessary if you’re to provide consumers with the information they need to make decisions for their health and safety.

The most significant evolution in FDA traceability regulations, the Food Traceability Final Rule, goes into effect January 20, 2026. It enacts Section 204 of FSMA and requires the recording of Key Data Elements (KDEs) and Critical Tracking Events (CTEs) for the 16 varieties of food on the Food Traceability List.

The EU’s standards are laid out in Regulation (EC) No. 178/2002, specifying that a clear path that links each product to its source must be maintained. The FSS has published a food traceability guide based on the requirements laid out in the Food Safety Act of 1990, which covers basic principles and provides contact information.

Best Practices in Traceability

As traceability is among the most essential components of food manufacturing compliance, you should embrace these best practices:

• Record traceability data digitally and share with trading partners—Remove the room for error or lapses in memory by digitizing and automating data capture, preferably with handheld barcode scanners, and sync it all to a shared database.

• Ensure you’re capturing the right information and making it accessible—Make sure you’re recording not only the data that’s required by traceability regulations, but also characteristics unique to your products, and make it all highly visible.

• Use the dedicated features of an ERP system—The lot and sublot 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 sound food safety plan is effective allergen management. That’s because approximately 220 million people worldwide have food allergies, and while bacterial and viral contaminations are more common causes of foodborne illness, those caused by allergens can be life-threatening.

In the U.S., 2004’s Food Allergen Labeling and Consumer Protection Act established exacting requirements for food and beverage businesses using any of the eight major food allergens (milk, eggs, shellfish, fish, tree nuts, peanuts, wheat and soy). Then, in 2021, the Food Allergy Safety, Treatment, Education and Research Act added sesame to the 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. It named 14 major allergens (all those on the FDA’s list plus celery, mustard, lupin, mollusks and sulphur dioxide/sulphites) and made declaration of their inclusion in products compulsory. The requirements are the same in the UK, as that regulation is one of many that was retained post-Brexit.

Best Practices in Allergen Management

Best practices in allergen management include:

• Segregate and clearly label allergenic materials—Ingredients with allergy concerns should always be stored separately and securely, and clear labels should be applied to make your staff aware that they must be handled with care.

• Schedule production runs involving allergenic ingredients at the end of the day—By timing the manufacture of products with allergen concerns at the end of the working day, you can ensure that surfaces and equipment will be sanitized shortly after (during routine pre-closing cleaning) and minimize the risk of contamination.

• Implement purpose-built functionalities—The ingredient screening and packaging design capabilities of food product lifecycle management (PLM) solutions help you identify allergens and make the appropriate declarations. Meanwhile, the product specifications and labeling modules of food and beverage ERP aid in enforcing the standards you 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.

Labeling

Food and beverage product labels serve a much greater purpose than making the item attractive to potential customers. They’re a critically important source of consumer information, and for that reason, regulatory bodies around the world have created standards for what facts need to be included and how they should be displayed.

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

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

Best Practices in Labeling

Beyond your legal requirements, you should also keep in mind these food packaging and labeling best practices:

• Move more information to the front of the package—Front-of-packaging (FoP) labeling is already common in the EU and UK, and there is currently an FDA proposal to require it in the U.S. It’s a best practice simply because it makes it more likely that consumers will read the information.

• Design your labels to create a hierarchy of information—You can’t assume that every consumer will read your labels from top to bottom, so you need to signify to them through the package design what is most important (like allergen disclosures and other health warnings).

• Make text legible—You’d never intentionally choose a font, size or color that obscured information, but you might find that certain treatments look different from mockups on screens when printed on packaging. Be sure to make prototypes to catch such issues and rectify them.

• Apply purpose-built tools provided by software—Both PLM and ERP systems facilitate compliance with regulations thanks to the aforementioned packaging design and labeling functionalities mentioned in our allergen management section (see above).

Workplace Safety

In any manufacturing industry, food and beverage included, your people are your greatest asset. The work requires consistency, commitment and specialized knowledge, so every team member is valuable. And the fact that ongoing labor shortages makes them so difficult to replace makes it all the more important to keep them safe at work.

Of course, there are also laws that cover employees. The Occupational Safety and Health Act, originally passed in 1970, is still the core law in the U.S. today. It includes standards for everything from chemical exposure and fall protection to personal protective equipment (PPE) requirements and heat safety standards, along with many other specifics for different kinds 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, the Health and Safety at Work Act of 1974 is the main legislation in the UK.

Best Practices in Workplace Safety

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

• Educate workers on risks unique to your operations—Depending upon your production processes and the equipment involved, your employees need to know of any additional risks beyond those inherent to manufacturing settings (like cuts from meat slicers, burns from very hot cooking surfaces, etc.).

• Provide and mandate use of appropriate PPE—Making the right PPE available for your employees is just the first step; you’ve also got to make sure everyone wears it consistently and correctly. Training and regular enforcement go a long way.

• Foster a culture of safety and accountability—When everyone on your team knows the importance of workplace safety and considers it part of their job to keep themselves and their coworkers injury-free, you can expect far fewer incidents at your facilities.

Marketing and Advertising

You’ve just created what’s sure to be the next big hit product in your niche, now to whip up a marketing campaign and advertisements to go with it . It’s a wonderful opportunity to get creative and distinguish your brand—not to mention a vital way to stimulate sales—but you must balance all that with being truthful and complying with the law.

Outside of the labeling laws we’ve already discussed above, it’s vital that you familiarize yourself with the food and beverage-related sections of Federal Trade Commission Act of 1914 and Children’s Online Privacy Protection Act of 1998 if you’re based in the U.S. The former covers unproven health claims, endorsements and comparative advertising, while the latter protects children under 13 with additional restrictions and precautions.

In the EU, Regulation (EC) No. 1169/2011 lays out some basics, but the Nutrition & Health Claims Regulation, Misleading & Comparative Advertising Directive, Unfair Commercial Practices Directive and more add to the list of stipulations and prohibitions. The UK retained (and then amended) many of these laws post-Brexit and recently created additional restrictions for advertising high fat, sugar and salt products.

Best Practices in Marketing and Advertising

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

• Always check with legal—All of your marketing and advertising materials, from written copy to video scripts, must be reviewed and approved by your legal experts before anything is greenlit. As you learned above, the law here can be complicated, so it’s a good idea to consult with those who know it best.

• Stick to the facts—It's not hard to go over the line when making a claim about your product, in part because you’re likely proud of it and think it’s good, but also because the line is so fine. As much as possible, use a fact-based approach to put your offerings in the best light.

• Be particularly careful with products targeted at children—Minors have additional protections under the law, and several have to do with how commercial products are presented to them in marketing and advertising. Consult with your legal team early in the process to understand the restrictions ahead of time.

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 the same as individual consumers do. Except your organization ends up owing a lot more than any one person, in part because of the additional taxes, tariffs, duties and levies specifically for operators in your industry.

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

The EU has 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 isn’t much different in the UK, with a VAT on food; levy on soft drinks with sugar; alcohol and tobacco duties; import tariffs; and a plastic packaging tax.

Best Practices in Taxes and Tariffs

• Don’t consider this professional tax advice, but the following should be givens:

• Trust your accounting professionals—If your business has an accountant (or an accounting department), you’re likely set. You know you’ve got at least one honest and experienced professional on-hand to take charge of the matter.

• Double-check your facts and figures—You or your accountant(s) should of course double-check the accuracy of your return, as well as tricky elements like variable rates, deductions, credits and withholding.

• Ask for a second opinion if you have doubts—This is an area where it’s best to play it safe. Consult with an outside accountant before you finalize your numbers if you’re not fully confident the work is accurate.

Sustainability

Depending upon where your business operates, sustainability is likely either a goal you’re shooting for or a norm you’re working hard to maintain. The truth is that most food and beverage companies are somewhere in between, but no matter where your organization is in the journey, you’ve got to make sure you’re complying with the law.

Beyond the federal regulations like 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 any state-level sustainability laws (California’s are the most numerous; New York, Washington and Oregon have one or more).

Many more sustainability requirements exist in the EU, including 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 regulations are likewise extensive, targeting carbon emissions (UK Climate Change Act of 2008), waste reduction (Environment Act of 2021), farming (Agriculture Act of 2020) and more.

Best Practices in Sustainability

These are some good ways to do better by the planet:

Source materials responsibly —Evaluate each of your trading partners on their sustainability practices and make changes if necessary. If you can choose and afford to buy directly from suppliers that are environmentally friendly, whether that’s through hydroponic farming or recyclable packaging, do so.

Use or design more sustainable packaging—New materials are being imagined into food and beverage packaging all the time, like cornstarch becoming bioplastic bottles. You may not be able to go with the latest new innovation, but you can likely cut back on materials or use something recyclable to make a difference.

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

Transportation

The final leg in the supply chain is distribution to the customer, and it’s a sufficiently complex and distinct practice that logistics is its own industry. A whole new set of expectations—and laws—are involved when vehicles are on the roadway, and there are even more for those businesses carrying food and beverage products.

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

The set of food and beverage transportation laws in the EU is similar, covering the areas of 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 tachographic rules for monitoring driver compliance and the EU emissions standards for trucks from the Euro 6 Regulations.

Even more regulations are at play in the UK, but they generally still deal with the same matters within safety and sustainability. The Food Hygiene Regulations of 2013 cover temperature controls and sanitation, and the Carriage of Dangerous Goods Regulations of 2009 cover hazardous materials. London is an ultra LEZ, and other designated clean air zones exist, which can mean higher fees for older diesel vehicles. The EU laws on driver hours, tachographs and truck emissions were retained.

Best Practices in Transportation

A few best practices in transportation and distribution are:

• Establish data visibility across all stops in the supply chain—Due to how challenging it can be to orchestrate food distribution operations across splintered supply chains and changing timelines, it’s crucial that you and your trading partners share as much data as possible to coordinate and ensure compliance.

• Create contingency plans—Be they the result of worker strikes, weather events or something else altogether, disruptions are much more frequent today. It’s a prudent move to find alternative suppliers and establish contingency plans while taking into account any compliance considerations that might come with them.

• Utilize transportation management solutions—Advanced routing software can help your business meet sustainability standards while also offering resource management functionalities to ensure plans fall within driver hour stipulations.

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.