Consumers are increasingly scrutinizing ingredient lists, as expectations for transparency, natural ingredients, and clean labels rise. A recent survey revealed that natural ingredients and clean labels are now the top priorities for consumers when making purchases, surpassing brand recognition and product descriptions. In response to this evolving demand, consumer packaged goods (CPG) companies are revising their labels and product formulations to showcase the simple, natural ingredients that shoppers desire. However, skepticism towards these claims is growing among consumers.
The legal action against Post is not the only lawsuit filed this April related to CPG companies’ use of the term “real cocoa.” Spencer Sheehan from Sheehan & Associates in New York, who represents the plaintiff in the Post case, has also initiated lawsuits against Mondelez for claiming its Oreo cookies are “always made with real cocoa,” and against General Mills, alleging that its Chocolate Cheerios lack real cocoa. The lawsuit against General Mills argues, “No reasonable consumer would expect that a product promoted as containing ‘real cocoa’ or ‘100% real cocoa’ would also contain or be made with alkalis, as ‘real’ is understood to mean the ingredient in its most simplified form.”
However, alkalized cocoa powder, also known as Dutch process cocoa powder, is a well-established form of cocoa. It is widely used for both home baking and large-scale production due to its ability to dissolve easily in liquids. Its pH level prevents it from reacting with alkaline leavening agents like baking soda. Labeling it as “real cocoa” can create confusion. Some may interpret “real” to mean an unprocessed powder, appealing to consumers aiming to minimize their intake of processed foods. Yet, cocoa powder is inherently processed. This situation is further complicated by the fact that this ingredient is included in a sugary cereal that contains both “natural and artificial chocolate,” which may undermine the argument that consumers are seeking a wholesome, natural, and nutrient-rich alternative for indulgent snacks.
The difficulties are not limited to cocoa manufacturers; companies across the board are struggling with label claims as consumer demand shifts towards more natural products. Reformulating can be an expensive endeavor, as more natural ingredients typically come with a higher price tag. Additionally, as seen with General Mills’ Trix cereal, consumers may not actually prefer the reformulated products, forcing manufacturers to reconsider their strategies.
While the lawsuits concerning cocoa are still pending, Post should exercise caution with its label claims. Consumers might hesitate to purchase products while legal determinations are underway. The Federal Trade Commission has previously taken action against food manufacturers for dubious labeling practices, and it would certainly be wise for Post to avoid further scrutiny during this period.
As for the 21st century calcium citrate petites, they might offer a potential angle for brands aiming to appeal to health-conscious consumers. By integrating such innovative ingredients into their product lines, CPG companies could enhance their appeal while also addressing the growing demand for transparency regarding health benefits. However, they must ensure that their claims about these ingredients are substantiated to avoid legal repercussions.