Mathilde Do Chi is the CEO of Vegan Food Law, a food law and regulatory consultancy in global alternative protein regulations. She is an
In this third installment of the series, Mathilde discusses how simultaneously obtaining food regulatory approvals across multiple jurisdictions is crucial for companies looking to efficiently enter international markets, optimize costs, and gain a competitive advantage in the global food industry.
Not putting your eggs in the same basket: the importance of simultaneous food regulatory approvals in multiple jurisdictions
By Mathilde Do Chi
In today’s interconnected world, the food industry is increasingly expanding its reach across borders. But when it comes to food innovation, it may face some regulatory hurdles. To successfully launch and distribute food products internationally, companies must navigate the complex landscape of food regulations and obtain regulatory approval in multiple jurisdictions simultaneously.
This article explores the reasons why seeking food regulatory approval in several jurisdictions at the same time is crucial for companies aiming to thrive in the global market.
Efficient Market Entry
Seeking regulatory approval in multiple jurisdictions concurrently expedites market entry. Rather than pursuing approvals sequentially, which can be time-consuming and delay product launches, simultaneous approval allows companies to reach multiple markets faster. This efficient approach minimizes bottlenecks and ensures that companies can capitalize on market opportunities without unnecessary delays.
“Seeking regulatory approval in multiple jurisdictions concurrently expedites market entry”
For instance, the novel food regulation in Saudi Arabia is inspired by the EU, Canadian, Australian and New Zealand regulations which may suggest that similar requirements apply there.
Cost Optimization
Obtaining regulatory approval is a resource-intensive process. By seeking approvals in multiple jurisdictions simultaneously, companies can optimize costs associated with product testing, documentation, and administrative procedures. Consolidating efforts and resources streamlines the regulatory process, reducing duplication and redundant expenses. It also eliminates the need to repeat similar tests or compile additional documentation when seeking approvals individually in each jurisdiction. For instance, food safety data requirements like chronic toxicity studies are based on OECD guidelines that the vast majority of regulatory authorities follow.
Consistency and Standardization
Harmonizing regulatory compliance across jurisdictions promotes consistency and standardization. Different countries or regions may have varying requirements, such as labeling regulations, permissible ingredients, or safety standards. Seeking approval in multiple jurisdictions simultaneously allows companies to develop standardized processes, formulations, and labeling practices that align with the highest regulatory standards. This ensures consistent quality and compliance across markets, enhancing consumer trust and brand reputation.
Ultimately, it also helps companies to assess how stringent one jurisdiction may be in comparison to others.
Risk Mitigation
Navigating regulatory landscapes independently in different jurisdictions increases the risk of encountering unforeseen challenges. Regulatory requirements can vary significantly, and unexpected regulatory hurdles may arise during the approval process. By seeking regulatory approval in multiple jurisdictions concurrently, companies can identify potential hurdles earlier, address them proactively, and mitigate risks more effectively. It allows for a comprehensive understanding of regulatory landscapes, ensuring compliance from the outset and minimizing potential setbacks.
Market Flexibility and Expansion
Simultaneous regulatory approval provides companies with the flexibility to expand into new markets swiftly. By planning and executing a multi-jurisdictional approval strategy, companies can position themselves strategically for market expansion. They can target multiple regions simultaneously, seize market opportunities, and respond to changing consumer demands promptly. This flexibility enhances business agility and enables companies to capitalize on emerging trends and market dynamics.
“…seeking food regulatory approval in multiple jurisdictions simultaneously is vital for companies aiming to thrive and expand internationally”
Moreover, if once company gains regulatory approval in one jurisdiction while it is still awaiting in another way may speed up the process in the latter.
Competitive Advantage
Securing regulatory approval in multiple jurisdictions concurrently can confer a competitive advantage. Companies that successfully navigate complex regulatory environments demonstrate their ability to meet stringent standards and comply with diverse regulatory requirements. This achievement enhances brand credibility, instills consumer confidence, and differentiates companies from competitors. It also positions them as reliable partners for distribution networks, retailers, and consumers seeking high-quality, compliant food products.
While the Protein Brewery is still awaiting regulatory approval in the EU, the company has recently obtained approval in Singapore.
Conclusion
In an era of globalized food markets, seeking food regulatory approval in multiple jurisdictions simultaneously is vital for companies aiming to thrive and expand internationally. The benefits of efficient market entry, cost optimization, consistency, risk mitigation, market flexibility, and competitive advantage make a compelling case for companies to pursue this approach. By understanding and proactively addressing the regulatory requirements of multiple jurisdictions, companies can position themselves for success, navigate complex landscapes effectively, and offer their innovative food products to consumers around the world.
Click here to read further articles on food law by Mathilde Do Chi.
