Food Safety Challenges for Startups and Emerging Brands

The hidden perils, pitfalls, and costs that can put your new venture at risk

Food safety is a critical concern for all food companies, regardless of their size or stage of growth. However, startups and emerging brands often face unique challenges in ensuring the safety and quality of their products. Unlike large, well-established food companies with extensive resources, expertise, and robust food safety systems, new food businesses may struggle to navigate the complex landscape of food safety regulations, best practices, and risk management.

(The purpose of this document is to provide background information on this contract topic. Anyone contemplating engaging with a provider must perform their own due dilligence and seek trusted professional business and legal advice.)

One of the primary challenges for startups and emerging brands is the lack of in-house expertise and resources dedicated to food safety. These companies may not have the budget to hire experienced food safety professionals or invest in state-of-the-art testing equipment and facilities. As a result, they may rely on a small team or even a single individual to handle all aspects of food safety, from developing HACCP plans to conducting inspections and training employees. This lack of specialized knowledge and resources can lead to gaps in food safety management and increase the risk of foodborne illnesses, regulatory violations, and other costly incidents.

Another significant challenge for new food companies is food safety regulations’ complexity and ever-evolving nature. Startups and emerging brands must comply with a myriad of federal, state, and local regulations, industry standards and customer requirements. Failure to understand and adhere to these regulations can result in severe consequences, such as product recalls, fines, legal liabilities, and damage to the brand’s reputation. For example, if a company fails to properly label allergens on its packaging or implement adequate food safety controls, it may face regulatory action from the FDA or USDA, leading to costly recalls and loss of consumer trust.

Moreover, the financial impact of food safety errors can devastate startups and emerging brands. Unlike large food companies with deep pockets and established crisis management protocols, new businesses may not have the resources to weather a major recall or lawsuit. A single food safety incident can lead to significant financial losses, including the cost of recalling and destroying products, compensating affected consumers, and defending against legal claims. In some cases, a severe food safety crisis can even force a startup to shut down permanently, as the damage to its reputation and finances may be irreparable.

Given these challenges and risks, startups and emerging food brands must prioritize food safety from the very beginning. One effective strategy is to partner with experienced contract manufacturers who can provide the expertise, resources, and infrastructure needed to ensure the safety and quality of their products. Contract manufacturers can offer a range of services, from product development and testing to production and packaging, all while adhering to strict food safety standards and regulations.

By working with a reputable contract manufacturer, startups and emerging brands can leverage their partner’s knowledge and experience in food safety management. Contract manufacturers often have dedicated food safety teams, state-of-the-art facilities, and robust quality control systems in place. They can guide new food companies through the complex process of developing and implementing food safety plans, conducting risk assessments, and ensuring compliance with relevant regulations. This support can be invaluable for startups that may not have the internal resources or expertise to handle these critical tasks on their own.

In addition to providing short-term support, contract manufacturers can also be long-term allies in a new food company’s growth and success. As the business scales up and expands into new markets, the contract manufacturer can adapt and grow with them, ensuring consistent quality and safety across all products and production runs. This partnership can help startups and emerging brands build a strong foundation of food safety that will serve them well as they navigate the challenges and opportunities of the competitive food industry. Food safety is a critical concern for startups and emerging food brands, who often face unique challenges and risks due to their limited resources and expertise. By partnering with experienced contract manufacturers, these companies can access the knowledge, infrastructure, and support they need to ensure the safety and quality of their products, both in the short-term and as they grow and evolve. Ultimately, prioritizing food safety and building strong partnerships with experts in the field can help new food businesses thrive in a complex and demanding industry.

By Carl Melville Managing Partner, TMG and Founder of CoPack Connect