Business Bites: Oil controversies shine a global light on food safety concerns

The kids aren’t oil right — at least, not in the food and beverage industries, where edible oil–related scandals and crimes are dominating the headlines. First, the U.S. Food and Drug Administration (FDA) has banned brominated vegetable oil (BVO) for use in foods and beverages, citing research about health concerns, despite removing it from the generally recognized as safe (GRAS) list in 1970. Second, authorities in southern Italy seized literal tons of counterfeit olive oil. And finally, several Chinese companies stand accused of failing to clean shipping tankers between transporting cooking oil and coal. Yikes. All that and more in this week’s Business Bites.

BVO banned in all foods and beverages in the U.S.

FDA has revoked the regulation that permitted the use of BVO, typically used to stabilize citrus flavorings in beverages by adding bromine to vegetable oil to make it denser than water. The agency cited safety concerns after several new studies highlighted potential adverse health effects, but BVO was removed from the generally recognized as safe (GRAS) list in 1970 and regulated as a food additive ever since, so FDA clearly knew something was up.

Enforcement will begin on Aug. 2, with a compliance deadline of one year later, which gives brands plenty of time to reformulate products and phase out existing ones containing BVO. The FDA's decision reflects its ongoing efforts to reassess food ingredients as new data emerges, then take decisive action five decades later.

Fraudulent olive oil seized in southern Italy

Italian authorities in the Puglia region have dismantled an oily scheme involving the sale of counterfeit extra virgin olive oil, capturing more than 40 tons of oil valued at nearly $1 million (that’s a lot of fancy metal tins) and arresting seven individuals. The operation targeted 18 garages and warehouses where the oil, some already packaged for sale, along with 71 tons of an “oily substance,” were found. Investigators also discovered 623 liters of chlorophyll, which can apparently be used to mimic the properties of extra virgin olive oil, alongside equipment for packaging and labeling the fraudulent products. Additionally, 174 bottles of possibly fake champagne were confiscated for “testing.” No comment from Italian police on whether the testing process will require a long weekend.

This crackdown comes as incidents of olive oil fraud continue to rise, the reasons for which are twofold: first, the popularity of the Mediterranean diet, and second, climate change.

Oil scandal in China amplifies food safety concerns

The Chinese government is currently investigating allegations that companies have been cutting costs by not cleaning fuel tankers between shipments of cooking oil and coal. Ick.

Beijing News brought the issue to light, and the controversy has been described by other news outlets as a well-known tactic in the industry. This adds to China's troubled history with food safety, including a 2008 scandal where contaminated infant milk powder affected 300,000 babies and led to six infant deaths.

Despite efforts to strengthen regulations, struggles persist due to insufficient monitoring and the prevalence of counterfeit products. I suddenly feel a newfound appreciation for FDA and everything it does for the U.S. food system.

New stevia composition delivers flavor closer to sugar

Finally, I can stop fighting off the urge to make oil puns. They’re just so crude.

In other news, Tate & Lyle is introducing a new stevia-based sweetener called Optimizer Stevia 8.1, which, in my opinion, sounds just science fiction enough to instill confidence rather than dread.

Touted as a groundbreaking innovation with a taste profile close to sugar but at a lower cost compared to other premium sweeteners, this product was developed through a proprietary process that uses neglected parts of the stevia leaf and is suitable for many applications, ranging from nutrition bars to functional beverages.

The launch of Optimizer Stevia 8.1 is indicative of a larger trend among ingredient manufacturers, which are investing heavily in research and development to cater to the global demand for sugar reduction, because, well, too much sugar is bad for you, but consumers still want sweet treats.

New LDC facility boosts presence in edible oils and animal feed

In late June, Louis Dreyfus Company (LDC) kicked off the construction of a cutting-edge soybean processing facility in Upper Sandusky, Ohio, which should be operational by March 2026. Each year, this new plant will crush 1.5 million metric tons of soybeans and churn out 320,000 metric tons of soybean oil, which seems like an unfortunate conversion rate (maybe with upcycling potential). This strategic expansion not only bolsters LDC’s footprint in the booming edible oil and animal feed markets but also opens doors to the renewable energy sector. The facility will create more than 100 local jobs and strengthen partnerships with Ohio's soy farmers.

Bryan Beasley Photography

SupplySide West registration is now open

Looking to network with more than 20,000 professionals from the dietary supplement, food and beverage, and personal care industries? SupplySide West, held Oct. 28-31 in Las Vegas, has everything you’ll need and more, including exhibitors ranging from ingredient suppliers to contract manufacturers. You’ll also have the chance to enjoy more than 135 hours of educational programs (some of them moderated by yours truly). Register now.