Consumer Brands Association

Champion growth and innovation for the industry whose products consumers depend on every day.

Powering every day.

The $2 trillion consumer packaged goods industry supports 20 million American jobs and is home to some of the most iconic brands in the world. It is our privilege to positively impact the lives of every American, every day.

We’re creating a better future for consumer packaged goods by executing a bold agenda.

E N H A N C I N G PA CK A G I N G SU STA I NA BI L I T Y

CREATING FRIC TIO NLESS SUPPLY CHAINS

1.

Establish the industry as a thought leader and change agent.

1.

Expose how flawed public policies create inefficiencies in the supply chain and result in higher consumer costs.

2.

Advance solutions that are bold and impactful for the long term and can be scaled nationally.

2.

Leverage the power of brands to drive pro-growth supply chain policy.

3.

Create an environment of shared responsibility to ensure all relevant stakeholders contribute to creating favorable packaging sustainability outcomes.

C H AM P I ON I N G S M A RT R EG U L AT I ON

1.

2.

3.

Advance smart regulatory policies that protect public health and open pathways for industry innovation and growth.

Expose the consequences of patchwork regulations for the industry and the consumers it serves.

Develop credibility as the preeminent source of policy intelligence and an essential gateway to regulators.

3.

Supplement advocacy efforts with the pursuit of marketplace solutions – regularly convening retailers and manufacturers.

B UILDING TRUST IN CP G

1.

Leverage the power of brands to demonstrate shared values with American consumers on health and sustainability.

2.

Drive forward-looking and inclusive conversations that highlight the industry’s strengths and position it as a leader in innovation.

3.

Grow consumer confidence in products by showcasing the system of standards that go into their development and innovation.

Shaping the Industry Narrative We champion the industry’s story, from the 20 million jobs it supports to the future it will shape. Our narrative focuses on the people and products that power every day.

Consumer Brands Association

2 0 1 9 EC O N OM I C I M PA CT REPO RT

The Economic Contributions of the U.S. Consumer Packaged Goods Industry The CPG industry is the largest manufacturing employer in the United States. The food, beverage, household and personal care products that the industry makes have a positive impact on the lives of every American, every day.

E M P LOYM E N T

L A BO R INCO ME

VALUE ADDED

20.4 M $1.1 T $2.0 T American jobs

in American salaries, wages and benefits

contributed to U.S. GDP

The jobs supported by the CPG industry make up 10.4% of total U.S. employment – one in every 10 American jobs.

The total labor income supported by the CPG industry represents 9.3% of all U.S. labor income.

The CPG industry’s total contributions represent 10% of the national GDP.

Powering every day.

CO N S U M E R B RA N D S ASS O C I AT I O N

Board of Directors Jeff Harmening (Chair) Chairman and Chief Executive Officer General Mills, Inc.

Howard Friedman President and Chief Executive Officer Post Consumer Brands

Ryals McMullian President and Chief Executive Officer Flowers Foods, Inc.

Carolyn Tastad (Vice Chair) Group President - North America and Chief Sales Officer The Procter & Gamble Company

Beth Ford President and Chief Executive Officer Land O’Lakes, Inc.

Fred Penny President Bimbo Bakeries USA

Bob Gamgort Chairman and Chief Executive Officer Keurig Dr Pepper

Linda Rendle Chief Executive Officer The Clorox Company

Louie Gentine Chief Executive Officer Sargento Foods Inc.

Alfredo Rivera President, Coca-Cola North America The Coca-Cola Company

Bill Gisel Jr. Executive Vice Chairman Rich Products Corporation

Gregg Roden Senior Vice President, PepsiCo North America Supply Chain PepsiCo, Inc.

Billy Cyr (Treasurer) Chief Executive Officer Freshpet, Inc. Heather Anfang Senior Vice President, U.S. Dairy Foods Land O’Lakes, Inc. Roger Bird Senior Vice President U.S. Nutrition Abbott Nutrition Andy Callahan President and Chief Executive Officer Hostess Brands, LLC Paul Chibe President and Chief Executive Officer Ferrero NA, Inc. Mark Clouse Chief Executive Officer Campbell Soup Company Sean Connolly Chief Executive Officer Conagra Brands, Inc. Patrick Criteser President and Chief Executive Officer Tillamook County Creamery Association Stanley Dunbar President and Chief Executive Officer Moody Dunbar, Inc. Drew Facer President and Chief Executive Officer Idahoan Foods, LLC Matt Farrell Chairman, President and Chief Executive Officer Church & Dwight, Co., Inc. Jean-Luc Fischer President, North America and Global Sustainability Colgate-Palmolive Company Geoff Freeman President and Chief Executive Officer Consumer Brands Association Seth French President Lassonde Pappas and Company, Inc.

Fernando Gonzalez President, NA Consumer Business Georgia-Pacific LLC Louis Gottsponer Jr. President Morgan Foods, Inc. Henk Hartong III Chairman Sunny Delight Beverages Company Gavin Hattersley Chief Executive Officer Molson Coors Beverage Company Tom Hayes President and Chief Executive Officer Ocean Spray Cranberries, Inc. Chris Hood President, Kellogg North America Kellogg Company Lawrence Kurzius Chairman, President and Chief Executive Officer McCormick & Company, Inc. Mauricio Leyva President, International and Business Development Keurig Dr Pepper Kris Licht President, Health and Chief Customer Officer Reckitt Benckiser LLC

Mark Schiller President and Chief Executive Officer The Hain Celestial Group, Inc. Todd Siwak Chief Executive Officer Ferrara Mark Smucker President and Chief Executive Officer The J. M. Smucker Company Dimitrios Smyrnios Chief Executive Officer Schwan’s Company Jim Snee Chairman of the Board, President and Chief Executive Officer Hormel Foods Corporation Nick Vlahos Chief Executive Officer The Honest Company Glen Walter Executive Vice President and President, North America Mondelez International, Inc. Dave Wenner Interim President & CEO B&G Foods, Inc. Thomas Werner President and Chief Executive Officer Lamb Weston Holdings, Inc.

Dylan Lissette Chief Executive Officer Utz Brands, Inc.

Al Williams President and Chief Executive Officer Bush Brothers & Company

Greg Longstreet President and Chief Executive Officer Del Monte Foods, Inc.

Alan Wolpert President and Regional Head, Laundry & Home Care, North America Henkel Corporation

Powering every day.

Consumer Brands Association Members Core Members

Retailer Members

AB World Foods USA Inc.

Keurig Dr Pepper*

Albertsons Companies

Abbott Nutrition*

King’s Hawaiian Holding Company

Amazon.com, Inc.

ACH Food Companies, Inc.

Lamb Weston Holdings, Inc.*

Target Corporation

Advanced Food Products, LLC

Land O’Lakes, Inc.*

Azuma Foods International Inc., USA

Lang Pharma Nutrition, Inc.

Supplier Members

B&G Foods, Inc.*

Lassonde Pappas and Company, Inc.*

Eastman

Big Island Candies, Inc.

McCain Foods USA, Inc.

Tetra Pak, Inc.

Bimbo Bakeries USA*

McCormick & Company, Inc.*

Bush Brothers & Company*

McIlhenny Company

Partners

ButcherBox

Milo’s Tea Company, Inc.

Accenture

Campbell Soup Company*

Molson Coors Beverage Company*

Coyote Logistics

Church & Dwight, Co., Inc.*

Mondelez International, Inc.*

PwC

The Clorox Company*

Moody Dunbar, Inc.*

The Coca-Cola Company*

Morgan Foods, Inc.*

Ally Members

Colgate-Palmolive Company*

Morton Salt

Acosta Sales & Marketing Company

Conagra Brands, Inc.*

Nando’s PERi-PERi USA, Inc.

AmeriCold

Del Monte Foods, Inc.*

The New Primal

CJ Logistics America

Dole Packaged Foods, LLC

Nissin Foods Co. Inc.

CROSSMARK

Drink Recess, Inc.

Ocean Spray Cranberries, Inc.*

Covington & Burling

Ferrara*

PepsiCo, Inc.*

Deibel Laboratories

Ferrero NA, Inc.*

Peravia Industrial S.A.

Digimarc Corporation

Flowers Foods, Inc.*

The Perfect Puree of Napa Valley, LLC

FourKites

Freshpet*

Post Holdings, Inc.*

HP Inc.

General Mills, Inc.*

The Procter & Gamble Company*

Inmar Intelligence

Georgia-Pacific LLC*

Reckitt Benckiser LLC*

Instacart

Giorgio Foods, Inc.

Rich Products Corporation*

JOH

Goya de Puerto Rico, Inc.

Ripple Foods

Label Insight

Goya Foods Great Lakes

Sargento*

project44

Hain Celestial Group*

Schwan’s Company*

Scanbuy, Inc.

Henkel Corporation*

Simpson Imports Ltd.

Seafood Products Association

The Honest Company*

Sun-Maid Growers of California

Sensitech, Inc.

Hormel Foods Corporation*

Sunny Delight Beverages Company*

Thomas, Large & Singer Inc.

Hostess Brands, LLC*

Talk O’ Texas Brands, Inc.

Vector

Idahoan Foods, LLC*

Tillamook County Creamery Association*

The J. M. Smucker Company* Johnson Foods, Inc. Kellogg Company*

Utz Brands, Inc.* Vanee Foods Company

*denotes a board member Bold denotes a new member since January 2020 List current as of February 18, 2021

Powering every day.

Member Benefits Champion growth and innovation for the industry whose products consumers depend on every day.

     

Integrated federal and state advocacy 50-state legislative and legal surveillance Industry narrative and storytelling SmartLabel digital disclosure tool Work with customers/value chain partners Large companies entitled to board seat

     

Regulatory compliance and counsel Access to our staff of industry and policy experts Peer-to-peer information exchange Access to customizable consumer research Education on technical and policy issues Events with industry leaders and colleagues

Powering every day.

Membership Dues T I E R E D F O R M U L A ( D U E S BAS I S -TOTA L SA L E S )

Total Sales

Membership Dues

Under $200,000,000

$35,000

$200,000,000—$999,999,999

$70,000

$1,000,000,000—$1,999,999,999

$150,000

$2,000,000,000—$5,999,999,999

$200,000

$6,000,000,000—$9,999,999,999

$300,000

$10,000,000,000—$19,999,999,999

$400,000

$20,000,000,000—$29,999,999,999

$500,000

Over $30,000,000,000

$750,000

Powering every day.

OU R M I SS I ON

Champion growth and innovation for the industry whose products consumers depend on every day.

B EN E F I TS OF M E M BE RS HIP  Integrated federal and state advocacy  50-state legislative and legal surveillance  Industry narrative and storytelling  SmartLabel digital disclosure tool  Work with customers/value chain partners  Large companies entitled to board seat

CO R E SE RVI CES

 Regulatory compliance and counsel  Access to our staff of industry and policy experts  Peer-to-peer information exchange  Access to customizable consumer research  Education on technical and policy issues  Events with industry leaders and colleagues

P O LICY PRIO RITIES

Regulatory & Technical Affairs

Enhance Packaging Sustainability

Commercial Engagement

The CPG industry has meaningfully stepped up with unprecedented commitments to sustainable packaging, but the lack of a functioning recycling system undermines what we can accomplish. We will establish the industry as a change agent, engaging all stakeholders to advance long-term, workable solutions.

• Best source of regulatory and policy intelligence.

• Passionate promoter of national standards.

• Leader on federal regulatory compliance.

• Ongoing compliance with Proposition 65.

• Facilitator for Codex Alimentarius engagement.

• Facilitate industry-wide collaboration with retail executives through the Trading Partner Alliance.

• Lead industry benchmarking research on commercial topics including customer service and supply chain.

• Convene annual CEO Forum, in cooperation with McKinsey & Company, to immerse leaders in leading research and peer-to-peer dialogue.

Champion Smart Regulation Patchwork state regulations hurt consumers, undermine public health and cost the U.S. economy billions each year. We will advocate for smart regulatory frameworks that maintain affordability, promote choice and build consumer trust.

Industry Events

Create Frictionless Supply Chains

• Leadership Forum September 10-11, 2020, Colorado Springs, CO The preeminent gathering of CPG industry leaders, including CEOs and executives from sales, supply chain, sustainability, government affairs and legal.

The supply chain is incredibly complex, made up of thousands of processes and decisions that are invisible to consumers but essential to getting them the things they rely on every day. We will work to remove barriers and create opportunities in the supply chain to ensure access and affordability of CPG products.

• Legal Forum February 25-26, 2020, Rancho Mirage, CA • Science Forum April 21-23, 2020, Washington, D.C.

Powering every day.

Build Trust in CPG With a barrage of information available to consumers today, brands are increasingly susceptible to misinformation about their products and processes. Trust in CPG is essential to success.

We will build trust by convening thought leaders and driving forward-looking conversations that show the impact of industry innovation and progress on health and sustainability.

COVID-19: Strategic Advocacy Framework I M P E R AT I V E Strengthen our industry during the pandemic and advance lasting change that mitigates risk and creates a more certain operating environment to prepare us for what may come next.

OBJECTIVES Drive Federal Clarity on Emerging Policy Issues Call for clear, consistent federal guidance to empower state and local governments to implement policy in the most consistent manner possible and guard against frivolous litigation.

Achieve Meaningful, Lasting Policy Reforms Leverage learning from changes made during the crisis to permanently implement proven policy reforms.

Maintain and Build Upon Enhanced Consumer Trust

Leverage Opportunity to Unite CPG Industry

Build upon increased levels of trust in the industry. 43 percent of Americans say their trust has increased and another 48 percent say it has been maintained based on the industry’s response to COVID-19.

Capitalize on industry collaboration and effectiveness of association response during the pandemic to unite the CPG industry around advocacy, education and other areas of shared interest.

Communicate the industry’s commitment to worker safety, changes made to ensure longterm supply chain stability and innovations to move forward in a post-COVID world. Identify emerging threats to trust – such as higher product costs in-store and lack of awareness about the substantially increased costs that CPG companies have assumed – and develop methods to address.

Aggressively promote what a united industry can accomplish when working together. Create new opportunities for industry to learn from one another, implement best practices and emerge from the COVID-19 crisis in a stronger position.

A P P R OAC H Expose wildly different stateby-state approaches – as well as examples of how consistent local application of clear federal guidance improves the industry’s ability to provide essential products to consumers.

Powering every day.

Release and promote 10 critical changes needed in policy, regulatory, structural and technical areas to strengthen CPG operations and ensure the U.S. supply chain performs more strongly in the future, especially during times of crisis.

Enhancing Packaging Sustainability

The consumer packaged goods industry plays a crucial role in creating a more sustainable future by reducing packaging material, increasing the recyclability, compostability and reusability of packaging material and manufacturing with recycled content.

We aim to leverage our collective expertise and innovations to educate and unify stakeholders and drive practical solutions.

Powering every day.

O BJ EC TIVES

1.

Establish the industry as a thought leader and change agent.

2.

Advance solutions that are bold and impactful for the long term and can be scaled nationally.

3.

Create an environment of shared responsibility to ensure all relevant stakeholders contribute to creating favorable packaging sustainability outcomes.

STRATEG I ES & TA C T I CS

Recast the industry identity from a contributor to the problem to an integral part of any successful solution.

• Champion the industry’s commitments – from targets to financial investments – to reducing waste, packaging in recyclable material and using recycled content.

• Highlight the role food safety and regulatory requirements play in encouraging packaging material that may not be recyclable or use recycled content.

• Showcase the industry’s efforts that are making a positive impact on the environment.

Create a national solutions framework that will promote the power of scale to protect the environment and address underlying problems in the recycling and recovery system.

• Determine and promote those aspects of enhanced packaging sustainability that can be established at a national level and guarantee a degree of uniformity across the country.

• Forge innovative partnerships with NGOs and other influencers highlighting the broken system and advancing bold policy solutions.

• Identify and execute marketplace solutions to current barriers in the value chain that are preventing CPG companies from achieving their packaging and recycling goals.

Powering every day.

Prove that fixing the broken recycling system is the greatest opportunity to make real and lasting change but is presently the greatest obstacle to achieving shared outcomes.

• Provide research-based evidence that the recycling system is broken and that fixing it will have a massive positive impact on environmental health.

• Clarify all stakeholders and hold them accountable for their shared responsibility in fixing the broken recycling system.

• Identify central players in the packaging and recycling ecosystem and forge partnerships with those (particularly NGOs) that are like-minded about the broken recycling system.

Recycling Leadership Council

The Recycling Leadership Council (RLC) is a diverse group of stakeholders from consumer-facing industries, packaging companies and the recycling ecosystem, brought together by the Consumer Brands Association, that believe sweeping change is imperative to fixing recycling in America and integral to the long-term health of the planet.

CO U N C I L M E M B E R S • American Beverage Association

• Glass Packaging Institute

• American Cleaning Institute

• Household & Commercial Products Association

• AMERIPEN • Arizona State University Rob and Melani Walton Sustainability Solutions Initiatives

• International Franchise Association

• Can Manufacturers Institute

• National Retail Federation

• Closed Loop Partners

• Ocean Conservancy

• Consumer Brands Association • Consumer Technology Association

• PMMI, The Association for Packaging and Processing Technologies

• Distilled Spirits Council

• Retail Industry Leaders Association

• Flexible Packaging Association

• The Recycling Partnership

• FMI, The Food Industry Association

• Wine Institute

• National Restaurant Association

Powering every day.

The RLC is charged with building a public policy framework that will fundamentally reimagine the U.S. recycling system. That framework — The American Recycling Roadmap — will outline policy solutions to create an efficient and effective system that works for business, consumers, and the environment and guide advocacy at the federal, state and local level.

T H E R LC ’S M E M B E R S H I P I S U N I T E D BY T H E FO L LOW I N G GUIDING PRINCIPLES: • Pursue big ideas to create modern and scalable solutions which maintain affordability, safety and reliability of consumer products.

• Seek uniformity of recycling rules and practices across the entire ecosystem.

• Identify long-term solutions that take precedence over short-term, competitive interests, with the goal of increasing sustainability and significantly reducing waste.

In 2020, the RLC will host regional roundtables across the country bringing together diverse stakeholders to discuss current industry action, technological innovation and public-private partnerships, and to examine the challenges in local recycling systems. Each roundtable will help the council understand what is and is not working in different regions of the United States and allow the group to identify scalable themes and policy solutions. Key findings from each roundtable will be summarized and shared publicly.

86%

of Americans agree the world is facing a packaging and plastic waste crisis.

83%

of Americans believe that tackling plastic and packaging waste is an opportunity for the federal government to lead.

93%

of Americans believe that national recycling standards will alleviate confusion.

Powering every day.

The CPG Industry is Committed to a More Sustainable Future Commitment to 100% recyclable, reusable or compostable packaging Nestlé

Procter & Gamble PepsiCo

Unilever

AnheuserBusch InBev Tyson Foods

Coca-Cola Co.

Mars*

L’Oréal

Danone

Kraft Heinz

Mondelez International Heineken Holdingi

 = 100% by 2025

Powering every day.

Other sustainable efforts

 

To celebrate World Oceans Day, more than 6,000 Nestle employees participated in coastal clean-up initiatives, removing 60 tons of waste in just one day.

          

Since 2010, the PepsiCo Recycling Program has helped recycle more than 425 cans and bottles and made a $10 million investment to educate families on recycling.

Throughout the year, P&G employees participate in community projects, including removing 18,000 pounds of trash from the Ohio River and a “Big Beach Clean” in the UK.

"Less plastic. Better plastic. No plastic." is Unilever's sustainability framework, made possible by limiting and innovating their current packaging.

By 2025, all Anheuser-Busch products will be in packaging that is returnable or made from majority recycled content.

To mark Earth Day, Tyson employees participated in projects around the world, including planting trees in Pennsylvania and cleaning the Arkansas River.

Coca-Cola's "A World Without Waste" initative set a monumnetal goal to collect and recycle the equilivant of every bottle and can it sells by 2030.

In partnership with the Ellen MacArthur Foundation, Mars is working on a plastic sorting facility to enable more than 90 percent recycling of after-use plastic.

In 2018, L'Oreal eliminated 8,705 pounds of virgin materials in packaging, as part of its commitment to improve the enironmental profile of 100% of L'Oreal products.

Danone's "One Planet. One Health" vision includes a circular packaging economy, carbon neutrality and sustainable ingredient sourcing.

As part of Kraft Heinz's "Growing a Better World" strategy, the company is optimizing and reducing its global pacakaging by 50,000 metric tons.

Mondelēz International's long-term goal of zero-net waste packaging will propeled by its new partnership to collect and recycle packaging around the world.

During Heineken's annual Day of Giving, Florida employees spent a day on Miami Beach collecting trash and ensuring a clean area for tourists and wildlife alike.

The CPG Industry is Committed to a More Sustainable Future (continued) Commitment to 100% recyclable, reusable or compostable packaging Henkel AG

Kimberly-Clark Corp.ii Associated British Foods General Mills

ColgatePalmolive Co. Newell Brandsiii

Johnson & Johnson (Consumer) Grupo Bimbo

RB

Kellogg Co. MolsonCoors Brewing Co.iv S.C. Johnson*

           

Other sustainable efforts In addition to Henkel's 2025 commitments, the company aims to use sustainably sourced packaging as part of a closed loop economy.

As of 2017, 95% of Kimberly-Clark manufacturing waste and 15,500 metric tons of post-consumer waste has been diverted from landfills.

Associated British Foods is actively working to reduce packaging waste and develop a circular economy for plastics.

General Mills' global volunteer week resulted in 6,000 volunteer hours, with employees working in community gardens and collecting trash from the Mississippi River.

In 2018, six Colgate-Palmolive manufacturing sites around the globe achieved "Zero Waste" certification, with more on the way, operating under the same standard.

Newell Brands packaging is designed for sustainability, with every element of the product lifecycle taken into consideration, in alignment with their 2025 goals.

Johnson & Johnson's 2020 goals include reducing carbon emissions by 20% and ensuring that 35% of electricity used is from renewable sources.

In 2019, Grupo Bimbo introduced the first compostable packaging for bread in Mexico, aimed at eliminating the environmental footprint of packaging.

RB aims to beat plastic pollution through easy-tounderstand graphics on product pacakaging, advising if the plastic is able to be recycled in your area.

Kellogg's packaging reduction initatives avoided 1,000,000 pounds of packaging waste in just one year.

Molson Coors sponsors the Great Canadian Shoreline CleanUp, an event with 47,000 volunteers who collected 216,053 pounds of litter from Canada's shorelines.

S.C. Johnson teamed up with the Plastic Bank Team, leading marine biologists and other experts to combat plastic from ever entering the ocean.

 = 100% by 2025 i 100% by 2030 ii Increase net recycling in operations by 10% every year until 2022 iii Zero landfill waste at major manufacturing sites by 2020 iv Nearly all is already recycleable. Committed to reducing packaging amount.

Powering every day.

Creating Frictionless Supply Chains

CPG products account for one-fifth of all freight in the United States, making the industry a key stakeholder — and expert voice — on supply chain issues. We work to remove barriers and create opportunities that allow for a frictionless journey, ensuring American consumers access, availability and affordability of products they rely on every day.

O BJ EC TIVES

1.

2.

3.

Powering every day.

Expose how flawed public policies create inefficiencies in the supply chain and result in higher consumer costs.

Leverage the power of brands to drive pro-growth supply chain policy.

Supplement our advocacy efforts with the pursuit of marketplace solutions — regularly convening retailers and manufacturers — where feasible.

STRATEG I ES & TA C T I CS

Highlight, clarify and quantify supply chain challenges that expose the impact of government policies.

• Conduct a comprehensive analysis of policies that add time, cost and complexity to CPG supply chains, building a foundation for engagement on Capitol Hill.

• Map the supply chain lifecycle to educate policymakers and key audiences about its complexity and the regulatory friction points that government can cause or alleviate.

Position Consumer Brands as an advocate and thought leader by developing a new narrative centered on the industry and its role in driving supply chain issues forward.

• Leverage brand strength and product visibility to tell the story of industry innovation and responsiveness to challenges and consumer demand.

• Build awareness of the CPG industry’s stake in supply chain and empower policy champions to adopt pro-consumer recommendations through strategic leadership roles and increased engagement on Capitol Hill.

• In coordination with member companies, government decision-makers, leading academics and relevant supply chain experts, launch a multi-faceted thought leadership campaign to build momentum on policy objectives and drive a sense of urgency.

Powering every day.

• Develop a pro-consumer, pro-CPG advocacy platform rooted in Consumer Brands research, prioritizing intermodal connectivity, infrastructure investment, technology enablement, trade expansion, traceable transparency, enhanced safety and reduced consumer costs.

Foster industry collaboration around best practices and innovative private sector solutions to reduce supply chain friction.

• Develop marketplace solutions through pilot projects and partnerships that navigate challenges and promote opportunities in the private sector.

• Unite the CPG industry with supply chain stakeholders — from shippers to distributors to retailers — through events and opportunities that allow for greater collaboration.

• Elevate industry-endorsed solutions as the de facto standard and grow the impact of CBA’s advocacy approach through exclusive supply chain partnerships with suppliers, carriers and technology providers.

Championing Smart Regulation

We advocate for smart regulatory frameworks that maintain affordability, promote choice and build consumer trust across the sectors we represent, from household and personal care products to food and beverage. We define smart regulations as those that: • • • • • • •

Result in uniform structures.

Empower consumers to make informed decisions.

Enhance trust in consumer packaged goods.

Consider consumer benefit and expectations.

Are informed by risk-based science.

Achieve outcomes efficiently.

Are able to stand the test of time.

Powering every day.

O BJ EC TIVES

1.

2.

3.

Advance smart regulatory policies that protect public health and open pathways for industry innovation and growth.

Expose the consequences of patchwork regulations for the industry and the consumers it serves.

Be the preeminent source of policy intelligence and an essential gateway to regulators.

STRATEG I ES & TA C T I CS

Expose problem regulations, particularly at the state level, and elevate to the federal level for the benefit of all consumers.

• Modernize California’s Proposition 65 to reflect the market dynamics and disclosure opportunities of today, not the pre-internet 1980s.

• Develop a playbook to manage regulatory ambiguity and emerging issues (i.e. residues) in a consistent manner.

• Expose problem regulations at the state level to serve as an example of the consequences of bad policymaking.

Create a uniform transparency framework for disclosing product information to American consumers.

• Develop a policy playbook to advance at the national and, where appropriate, state levels on disclosure solutions that are achievable for the industry and provide meaningful information to consumers.

• Launch an initiative to modernize the regulatory framework for product claims to create a level playing field for the industry and to ensure claims are understood by consumers.

• Engage proactively with regulators and NGOs to increase transparency where possible.

Powering every day.

Elevate the work of scientific and regulatory affairs with key influencers and promote our reputation through thought leadership on smart regulation.

• Forecast emerging issues that disrupt the CPG industry and erode consumer trust.

• Foster collaboration with regulators and NGOs to find reasonable and practical solutions that empower industry growth.

• Ensure industry perspective is well represented in policy and grassroots activity (providing testimony, filing comments, forming coalitions, etc.).

T H E CO N S U M E R B RA N D S ASS O C I AT I O N A N D C B D :

Our Campaign to Establish Clear Federal Regulations, Ensure Safety and Promote Transparency in the CBD Consumer Market

W H Y AC T I O N I S N E E D E D

Federal action is urgently needed. Since hemp was legalized by the 2018 Farm Bill, CBD products have flooded the market. Many CBD sellers make dubious claims without the science to support them.

The patchwork of state and local regulations is not working. Law enforcement gets conflicting guidance about which products are legal.

Regulators lack research to ensure CBD products are healthy and safe.

While the FDA bans marketing CBD in food, beverages and dietary supplements in interstate commerce, online retailers still sell products ranging from pet food to CBD-infused gummies. As a result, many reputable companies won’t enter the market without clear standards for testing, safety and ingredient levels.

Powering every day.

M ASS I V E CO N S U M E R CO N F U S I O N

According to our research, consumers are unclear about what CBD is and what it does.

• 39% mistakenly say CBD is marijuana • 51% think it can produce a high • More than three-quarters (77%) believe CBD is already regulated by federal agencies like FDA

?

W H AT W E A R E S E E K I N G

W H AT W E W I L L D O

To clarify the market, we propose a twopronged approach.

The Consumer Brands Association will lead an aggressive campaign to engage lawmakers and regulators, including FDA, DEA, USDA and EPA. We will be joined by a coalition of consumer advocates, medical and health organizations and law enforcement leaders. Together, we will advance policies to create a uniform regulatory framework, protect public health and open pathways for innovation and market participation — all while empowering consumers to make informed choices.

• Fund federal research and enforcement on CBD health and safety. Consumers should understand how CBD can be used and what claims can be made about the benefits it provides.

• Establish a clear federal regulatory framework that gives customers assurance in product safety and enables America’s most trusted brands to enter the market if they choose.

Americans support this approach. Our research indicates nearly eight-in-ten (79%) Americans believe CBD should be regulated at the federal level or federally in concert with the states.

Powering every day.

Consumers want information.

SmartLabel Delivers.

In today’s digital world, consumers want real-time information about the products they use every day. Created by the CPG industry and operated by the Consumer Brands Association, SmartLabel is a trusted source for product and ingredient information, enabling brands to digitally share more information than could ever fit on a label — from allergens and sourcing to how to recycle packaging.

KEY STATISTICS

64

Companies (+0% YTD Growth)

SmartLabel also makes possible compliance with state and federal labeling requirements, like California’s Cleaning Product Right to Know Act and the federal bioengineering standard.

940+ 73k+ Brands

Products

(+2% YTD Growth)

(+1.4% YTD Growth)

SmartLabel Market Share (Source: Nielsen) 80%

How it Works The SmartLabel team provides brands with guidance on the attributes and design specifications to build SmartLabel landing pages. Each brand creates, hosts and updates its own pages to ensure the most accurate and up-to-date information. Because SmartLabel data is brandcontrolled, it can be integrated into standard data management and syndication practices and updated in response to product innovations or packaging redesigns. Implementation is typically an interdisciplinary company activity, involving IT, data management, regulatory, supply chain, marketing and other consumer-facing functions.

Why SmartLabel is a Smart Investment SmartLabel enables brands to share the information consumers want in one convenient location. To ensure optimal engagement, relevance and performance in 2020, the Consumer Brands Association will continue to:  Educate state and federal stakeholders on the value of digital disclosure.  Engage with NGOs and other consumer groups on the shared value of transparency.  Innovate and advance the future of digital disclosure with industry peers.  Explore how brand-controlled data can power trusted consumer apps, databases and e-commerce platforms.

74% 60%

50%

40%

26%

27%

20%

0%

Dollar Share

Unit Share August 2018

December 2019

*As of December 2019, SmartLabel-registered products accounted for 50% of all dollars spent and 74% of all units sold across product categories where at least one SKU was registered with SmartLabel.