Tag: Made in USA

Challenges of Selling Made in USA

BY NORA CALEY To make products domestically, manufacturers have to overcome sourcing, labor costs and other issues.

While there has always been a demand for U.S.-made products, this trend has seemed to surge over the past few years as consumers become more aware of where and how certain products are sourced. As the shady manufacturing methods of some overseas companies continue to make headlines, pet owners in the U.S. are turning to their home soil for safer alternatives. Although manufacturers and retailers alike are eager to meet this demand, there’s a few hurdles they encounter on the way.

One of the biggest obstacles is all of the regulations that surrounds Made in USA claims. There are several entities that play a role in this, including the U.S. Food and Drug Administration (FDA). According to the FDA’s website, “the Federal Food, Drug, and Cosmetic Act (FFDCA) requires that all animal foods, like human foods, be safe to eat, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled.”

Labeling is where it can get especially tricky, as labels must follow FDA regulations that include identification of the product, net quantity and a list of all ingredients from most to least, based on weight. Individual states also have labeling regulations, and many are based on a model provided by the Association of American Feed Control Officials.

That said, the FDA doesn’t lay down all the guidelines on its own. Enter the Federal Trade Commission (FTC), which has authority to act against deceptive business practices and controls Made in USA, Made in America and other similar claims about a product’s U.S. origins. The FTC requires that “all or virtually all” of a product be made in the U.S. to use the Made in USA claim, and contain “no—or negligible—foreign parts.”

That means it’s not enough if the product’s final assembly or processing takes place in the U.S., as the FTC considers other factors, including how much of the product’s total manufacturing costs can be assigned to the U.S.

The “no—or negligible—” standard gets complicated because sometimes certain ingredients—such as exotic proteins and spices—just aren’t available in the U.S., and although overseas manufacturers may have sourced those items responsibly and adhered to their own country’s strict guidelines, U.S. manufacturers that utilize those products are unable to label their products as Made in USA… even if it’s only that one element.

“You have to be very careful with your claims now,” says Lynda Winkowski, president of Sunrise, Fla.-based Angels’ Eyes. “The consumer likes that it’s Made in USA. They prefer that, and they prefer natural, and they like certain kinds of buzzwords.”

With all that red tape in place, “it takes a lot of effort to find a company that can produce your product,” explains Janet Reyniers, vice president of Python Pet Products.

When her late husband, company founder Lance, came up with the idea for the Python Hook, which is used for refilling the water in an aquarium, it took the company a year to find a company that could produce it.

Reyniers explains that Python went through the process of contacting a company close to them, who referred them to someone else, who referred them to another person, who then referred them… well, you get the idea. After looking into manufacturers in several states, Python ultimately found the one in its own backyard.

Reyniers explains that partnering with a manufacturer in the company’s home state of Wisconsin helps it maintain and oversee quality control. If there’s ever a problem, Python is able to address it immediately and, if necessary, meet with the supplier the same day.

In the end, all that leg work was, “well worth it, because the quality can’t be beat,” says Reyniers. “I’m glad Lance never gave up because he believed the consumer deserves the best.”

As an alternative, manufacturers also have the option of cutting out the middle man and purchasing their own facility. It’s in a similar vein to Python’s method of partnering with a production plant in the same state, but it allows the company to be completely hands-on in all aspects of production, enabling it to confidently speak about its sourcing and manufacturing process.

This is the tactic Dr. Bob Goldstein, co-founder of Earth Animal, employed when he was developing Wisdom, a line of dog food slated to launch in January. Two years ago, Dr. Goldstein decided he wanted to formulate Wisdom only with ingredients that came from the U.S.

In its search for a production facility, Earth Animal contacted several private label and other manufacturers. The company was not confident that these manufacturers could meet its specifications for high-quality, safe and made in the U.S. ingredients, which lead to it looking into other options. Luck and timing intervened when Dr. Goldstein found out that the manufacturer of the company’s baked treats was facing a financial hardship.

“They were having a little bit of a struggle, so we sat down with them and we said, ‘We’ll purchase you, you will continue to run the plant for us and we want to make sure we control everything,” explains Goldstein. “They said, ‘You’re on.’”

By owning its manufacturing facility, Earth Animal is able to oversee the sourcing of all ingredients. There are no brokers or intermediaries, and the company gets meats and other ingredients directly from U.S. farms. This allows the company to, “control everything from farm to finished product, and guarantee everything [it does] is Made in USA.”

Dr. Goldstein does acknowledge that Earth Animal “went to the extreme, purchasing a very expensive plant,” which may not be feasible for most manufacturers.

Penny Pinchers

The main deterrent against purchasing products that are made in the U.S. is cost. Items that are Made in USA do come at higher price points, which makes sense: Josh Wiesenfeld, founder and CEO of Boxiecat, explains that this is because, “wages, and other overhead costs, are higher in the U.S.,” as companies have to adjust their production costs in order to pay their workers a livable wage.

According to the Bureau of Labor Statistics’ May 2018 numbers, the average hourly worker in the U.S. makes $14.13 per hour, compared to CNBC’s 2017 report outlining the $3.60 per hour of Chinese workers and $0.50 per hour of Sri Lankan laborers.

Because of this, consumers believe that if a product is Made in USA, the cost will automatically be higher, says Eric Johnson, CEO of VetiOx, a brand of ReliOx Corporation. That’s where retailers have to lay out the cost versus the benefits.

“Specific to odor elimination, there are few in the industry who understand the chemistry and physiology of animal odor and its control,” Johnson says. “Our product cost may be a little higher as compared to products that are mass produced outside the U.S., or that work to generally cover up odors, however, since you use less and get a more effective and immediate result with VetiOX, ultimately it is not [more expensive].”

As a bonus, Johnson adds that higher margins provide retailers with an excellent profit opportunity.

On the positive side, Made in USA can also be a key differentiator for both sustainability and safety features. Wiesenfeld says local production supports U.S. economies and provides an Earth-friendly element.

“Making our products in the U.S. not only has a positive impact on the environment—since our products do not have to travel as far—but also adds jobs in the U.S.,” Wiesenfeld says.

Although the size of the company’s carbon footprint and safety standards are influential, shoppers are still going to be reluctant to hand over a couple extra dollars for U.S.-made products.

“Many clients request Made in USA but are not always willing to pay the price that goes along with it,” explains Barbara Ratner, founder and owner of Boca Raton, Fla.-based Holistic Pet Cuisine. “As explained to our clients, Made in USA products may be [more expensive] than expected due to the safety net of the FDA.”

She points out that an aspect of safety that some manufacturers might want to be aware of is the packaging they use for their goods, as many bags contain high levels of carcinogens. For its K9Crisps treat offering, Holistic Pet Cuisine bags them in safe, U.S.-made packaging.

Creating and selling U.S.-made products can, at times, be discouraging. There’s a lot of hurdles to clear, and it’s true that Made in USA won’t outsell other products on patriotism alone. Some customers consider it a necessity, while others simply view it as a perk or a tie-breaker. That’s why retailers need to be aware of just how much leg work and time manufacturers put into getting their products the Made in USA claim, and relay that information to customers along with the economical and sustainable benefits these products provide. A little bit of knowledge will go a long way.  PB

 

 

 

Source: http://www.petbusiness.com/November-2019/Challenges-of-Selling-Made-in-USA/

FTC Defense Attorney on Made in USA Compliance

The Federal Trade Commission’s bread-and-butter mission is to prevent deception and unfairness in the marketplace.  FTC CID investigation lawyers have the power to investigate and agency staff also brings law enforcement actions against false or misleading claims that a product is of U.S. origin.

Consistent with applicable FTC Made in USA compliance standards, marketers and manufacturers that promote products as Made in USA must meet the “all or virtually all” standard.  Additionally, as with most other advertising claims, a manufacturer or marketer may make any claim as long as it is truthful and substantiated.

The agency has issued an Enforcement Policy Statement on U.S. Origin Claims to provide guidance to marketers that want to make unqualified Made in USA claims under the “all or virtually all” standard and those that want to make qualified Made in USA claims.

The Enforcement Policy Statement applies to U.S. origin claims that appear on products and labeling, advertising, and other promotional materials.  It also applies to all other forms of marketing, including marketing through digital or electronic mechanisms, such as Internet or email.

When Must U.S. Content be Disclosed on Products Sole in the U.S.?

U.S. content must be disclosed on automobiles and textile, wool, and fur products.  No law requires most other products sold in the U.S. to be marked or labeled Made in USA, or have any other disclosure about their amount of U.S. content.

However, manufacturers and marketers that make claims about the amount of U.S. content in their products must comply with the FTC’s Made in USA policy.

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New Louis Vuitton Handbags to Boast ‘Made in USA’

LVMH is following through on a pledge to create more U.S. manufacturing jobs, part of a plan by Bernard Arnault, chairman of the French luxury conglomerate, to hedge against trade tensions and build on the rapport he’s established with President Donald Trump.

Louis Vuitton Petite Boite Chapeau Toile Monogram handbags at the company workshop in Beaulieu-sur-Layon, France. Photographer: Balint Porneczi/Bloomberg

Trump and his daughter Ivanka are set to open a new Louis Vuitton factory with a ribbon-cutting ceremony in Texas on Thursday alongside Arnault, who is LVMH’s leading shareholder, and Michael Burke, the chief executive officer of its best-known brand.

In 2017, Arnault was one of the first CEOs to visit the president following his election, making the trip to Trump Tower along with his son Alexandre at a time when most fashion executives were paralyzed over how to approach the new commander-in-chief. Fashion was caught between threats of tariffs on foreign suppliers and concerns that consumers opposing Trump would boycott brands that supported the new administration.

Continue reading “New Louis Vuitton Handbags to Boast ‘Made in USA’”

 

 

 

 

 

 

 

 

 

https://www.ftc.gov/news-events/events-calendar/made-usa-ftc-workshop

EVENT DESCRIPTION

On September 26, 2019, the Federal Trade Commission (“FTC” or “Commission”) hosted a public workshop to enhance its understanding of consumer perception of “Made in the USA” and other U.S.-origin claims, and to consider whether it can improve its “Made in USA” enforcement program.

Though the Commission has not issued regulations specifically covering “Made in USA” and other U.S.-origin claims, its 1997 Enforcement Policy Statement On U.S. Origin Claims (“Policy Statement”)[1] provides guidance on how the Commission applies Section 5 of the FTC Act, 15 U.S.C. § 45(a), to the use of such claims in advertising and labeling. Based on consumer research and thousands of public comments, the Policy Statement states that when a marketer makes an unqualified “Made in USA” claim, the marketer should, at the time of the representation, have a reasonable basis for asserting that “all or virtually all” of the product is, in fact, made in the United States. The Policy Statement also provides guidance to marketers on how to make appropriately qualified claims.

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Made In America 2019

BE AMERICAN. BUY AMERICAN MADE.

MADE IN AMERICA 2019 will come alive at the Indiana Convention Center on October 3rd-6th, 2019. We’ll be hosting over 30,000 people intent on aligning with the goal of raising the economic importance of American Manufacturing. Anyone can attend by registering here or inquire to showcase as a U.S. Manufacturer or American Made brand.

There will also be a slate of cutting-edge educational sessions, high-level keynote addresses, and panel discussions featuring manufacturing specialists and professionals from key segments of the manufacturing community. Made In America 2019 will have an audience of consumers, media, industry professionals, government, advocates, all bringing together 800 manufacturers & brands.

 

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MADE in USA Fraud in the Promotional Products Industry

June 07, 2019 Cheyenne WY, Washington DC USA

Verity | TRUTH MATTERS™

MADE in USA Fraud Claims on the Rise.

If you are in the Promotional Products Industry and are claiming to be Made in USA we can help with Validation and Certification, we have been in the Made in USA Business Since 2003. PPAI, ASI, SAGE, Distributor Central

CHINESE Tariffs, USMCA | NAFTA, Buy American Act, and the Executive Order (EO):13788 all Make the Made in USA Claim that much more Valuable all claims must to be validated and checked and VERITY has the solution. 

FRAUD, COUNTERFEIT, PROVENANCE and FOOD SAFETY
are the problems we solve.

Back Ground

The Verity Seal Validates TRUTH to Consumers, Retailers, Manufacturers and Producers, by validating Made in USA, Product of USA, USMAC | NAFTA, health, halal, kosher, country of origin, supply chain and marketing claims of components and on products are TRUE.

Made in USA and Product of USA Certified®” and all COOL claims Tags,

Made in USA Certified®, Product of USA Certified, PPAI, ASI, SAGE, Distributor Central

USMCA | NAFTA and PROVENANCE Needs to be validated VERITY has the solution

The Verity Seal Validates TRUTH to Consumers, Manufacturers, and Producers by validating USMCA | NAFTA, health, religious, country of origin, supply chain and marketing claims on components and products are TRUE.

Release
June 30, 2019 Cheyenne WY, Seattle WA USA

Verity | TRUTH MATTERS

The USMCA | NAFTA and PROVENANCE Needs to be validated  VERITY has the solution.

FRAUD, COUNTERFEIT, PROVENANCE and FOOD SAFETY
are the problems we solve.

Back Ground

Our Verity Seal Validates TRUTH to Consumers, Retailers, Manufacturers and Producers, by validating health, halal, kosher, country of origin, supply chain and marketing claims of components and on products are TRUE.

Source documents:

The Agreement between the United States of America, the United Mexican States, and Canada[1] is a signed but not ratified free trade agreement between Canada, Mexico, and the United States. It is referred to differently by each signatory—in the United States, it is called the United States–Mexico–Canada Agreement (USMCA); in Canada, it is officially known as the Canada–United States–Mexico Agreement(CUSMA) in English[2] (though generally referred to as “USMCA” in English-language Canadian media)[original research?] and the Accord Canada–États-Unis–Mexique (ACEUM) in French;[3] and in Mexico, it is called the Tratado entre México, Estados Unidos y Canadá (T-MEC).[4][5] The agreement is sometimes referred to as “New NAFTA”[6][7] in reference to the previous trilateral agreement it is meant to supersede, the North American Free Trade Agreement (NAFTA).

VERITY has an exclusive agreement with Chinese Wholly Owned Company EPEM: https://www.1p1m.cn to provide all Country of Origin Labeling “COOL” verification and validation services regarding imports into China with “Made in USA and Product of USA Certified®” claims, to help balance out and provide transparency for the U.S. | China Trade deficit and all COOL claims Tags, Made in USA Certified®, Product of USA Certified®, Made in China Certified™, President Donald Trump, President Xi JinPing, U.S. China Trade Deficit, Amazon.

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