Business Bites: FDA, FTC crack down on copycat cannabis snacks

In a sweeping crackdown on five companies, the U.S. Food and Drug Administration (FDA) and Federal Trade Commission (FTC) are targeting delta-8 tetrahydrocannabinol (THC) products marketed as “spoofs” of well-known snacks.

In other news, former PepsiCo executive Todd Kaplan gears up to join Kraft Heinz North American as chief marketing officer (CMO), promising fresh ideas for navigating the company’s challenges, and the Biden-Harris administration announced a $110 million investment to strengthen America's meat processing industry, reflecting a broader effort to bolster the traditional food and beverage sectors.

All that and more in this week’s Business Bites.

Regulators weed out illegal copycat delta-8 THC foods

FDA and FTC have sent joint warnings to five companies for illegally selling products infused with delta-8 THC, the illegal part being that these products’ labels mimic popular snacks. Companies like Hippy Mood, Earthly Hemps and others are accused of marketing these products in packaging that could confuse consumers, especially children. But given that they’re using product names like “Double Stuff Stoneos” and “Trips Ahoy,” hopefully we can all agree that this news is, at the very least, hilarious.

The not-funny part is that FDA has received over 300 adverse event reports related to consumption of these products, with many cases requiring medical intervention, which highlights another ongoing problem in the wide world of weed: Rampant market growth combined with a confusing regulatory landscape can lead to serious safety oversights. Even so, failure to comply could result in serious legal consequences, such as product seizures.

In unrelated news, FDA and FTC employees are currently experiencing an unexplained surge in “the munchies,” resulting in widespread cafeteria and vending machine shortages.

Former Pepsi marketer Todd Kaplan becomes Kraft Heinz NA CMO

On August 5, former PepsiCo CMO Todd Kaplan will step into the CMO role for Kraft Heinz North America, despite leaving Pepsi with a parting message on LinkedIn that implied he was moving onto bigger and better things, not just the same thing for more money. (He used a rocket ship emoji and everything.)

In his “new” role, Kaplan will helm a $22 billion portfolio of iconic brands such as, you guessed it, Kraft and Heinz, but also Oscar Mayer, Velveeta and Jell-O, though hopefully not all at once, because no one wants cheesy-hotdog-flavored Jell-O. He’ll also be responsible for The Kitchen, an in-house content studio, and partnerships with NotCo and Just Spices.

He’s arriving as the company revamps its product lineup, contemplates the sale of Oscar Mayer, and navigates the publicity fallout from the contaminated Lunchables debacle. Kraft Heinz is set to reveal its second-quarter earnings on July 31, which could highlight how Kaplan’s arrival will reshape the company’s long-term strategy.

Biden-Harris administration invests $110 million in meat processing

The U.S. Department of Agriculture (USDA) has unveiled a new investment strategy under the Biden-Harris administration’s American Rescue Plan to reinvigorate the country’s food supply chains. With an infusion of nearly $110 million — channeled through the Meat and Poultry Processing Expansion Program and the Local Meat Capacity Grant Program — this initiative will enhance meat and poultry processing capabilities by creating jobs and cutting food costs.

The goal, of course, is to cultivate a more competitive and resilient agricultural system. That means investing in independent processors in 15 states, sparking advancements in local food production and bolstering rural economies. Time will tell whether $110 million will be enough to do all that. Detailed information about these efforts, along with specific examples of where this money will be going, can be found on USDA’s website.

Kellanova introduces waffle-flavored Eggo Coffee

The minds at snack giant Kellanova are hoping to re-energize breakfast by putting waffles in your cup. Eggo Coffee, the result of a collaboration between Kellanova and Two Rivers Coffee, will hit stores (online and otherwise) in mid-August as Keurig K-Cups with flavors like Maple Syrup Eggo, Cinnamon Toast Eggo, Chocolate Chip Eggo and more. Because when I drink coffee, what I really want is to taste moist bread.

And yet the coffee industry just won’t stop growing, so perhaps this was a good move by Kellanova. The launch strengthens not only Eggo’s brand reach but also its identity in a crowded marketplace dominated by Starbucks and Nescafe.

Danone, Nestlé join over 130 companies to advocate for biodiversity

The 17th Conference of the Parties (COP) is coming up, and you know what that means: It’s time for the people in power to once again come together, make a bunch of promises about the environment so that everyone feels better for a while, and then go back to arguing about which of them is worse until we’re all forced to choose the lesser evil.

But now more than 130 global companies, including industry leaders like Nestlé and Danone, are joining the fray to convince world leaders to take urgent action on biodiversity loss. Evidently, they overlooked the fact that global corporations played a sizeable role in the state of the environment today, which is why those same world leaders have long been pressuring said companies about meeting their environmental goals. The whole ordeal sounds like a circular logic problem from an Intro to Economics class.

These corporations are advocating for rapid implementation of the 2030 Biodiversity Plan — signed by 196 countries but not the U.S. — to enhance conservation and promote sustainable agriculture. These changes would call for stronger regulations but also financial incentives (naturally) to accelerate the shift toward sustainable practices like mandatory water usage reporting.

I wonder if, when all the animals are gone and Earth’s rivers have run dry, someone, somewhere, will look back at this era and think, hey, at least we created a ton of shareholder value.

Business Bites will take next week off because yours truly will be attending Tales of the Cocktail. Expect a recap of that event instead, with a focus on nonalcoholic beverage innovations.