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It’s a Food Fraud Fight and Businesses are Mad

March 31, 2010

”Food fraud” has been documented in fruit juice, olive oil, spices, vinegar, wine, spirits and maple syrup, and appears to pose a significant problem in the seafood industry. Victims range from the shopper at the local supermarket to multimillion companies, including E&J Gallo and Heinz USA. Such deception is getting new attention as more products are imported and a tight economy heightens competition. And the U.S. food industry says federal regulators are not doing enough to combat it. “It’s growing very rapidly, and there’s more of it than you might think,” said a senior partner at A.T. Kearney Inc., which is studying the issue for the Grocery Manufacturers Association, which represents the food and beverage industry. An expert on food and packaging fraud at Michigan State University estimates that 5 to 7 percent of the U.S. food supply is affected but acknowledges the number could be greater. “We know what we seized at the border, but we have no idea what we didn’t seize,” he said. The job of ensuring that food is accurately labeled largely rests with the Food and Drug Administration. But it has been overwhelmed in trying to prevent food contamination, and fraud has remained on a back burner.

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