Food and Beverage
Overview
We counsel and represent clients in all sectors of the food and beverage industry, leading ingredient suppliers, producers of agricultural products, manufacturers and contract manufacturers, distributors, retailers, food packaging companies, restaurants and private equity funds investing in these businesses. Our core food and beverage industry team includes approximately 30 attorneys practicing in offices throughout the United States, Europe and Asia.
Our full-service team offers clients strategic insights on a wide array of business and regulatory matters to assess opportunities and risks, to identify ways to better serve customers and to develop tailored risk management, along with defending clients in disputes arising from product liability claims and recalls, advertising claims and contractual issues. Our team also has particular depth representing manufacturers of distilled spirits, wine and beer in transactional matters.
Our team can assist you with:
- Data privacy
- e-commerce
- Insurance recovery
- Intellectual property
- Labor and employment
- Litigation defense and risk mitigation
- Logistics
- Product regulations
- Safety and regulatory compliance counseling
- Transactions and agreements
Safety and regulatory compliance counseling. We advise manufacturers, distributors and retailers of food products regulated by the U.S. Food and Drug Administration (FDA) and Department of Agriculture (USDA) in matters related to compliance programs, labeling issues, inspections, recalls and investigations, often helping to prevent issues before they arise. Our lawyers also have extensive experience interpreting and implementing the federal and state laws governing food products, including the Federal Food, Drug, and Cosmetic Act (FDCA), the Federal Meat Inspection Act (FMIA), the Poultry Products Inspection Act, the Fair Packaging and Labeling Act (FPLA) and the Food Safety Modernization Act (FSMA), and implementing regulations. If a problem does arise, our lawyers have experience defending against Federal Trade Commission (FTC), USDA and FDA enforcement actions, including after receiving an FDA Form 483, Warning Letter, or a USDA Noncompliance Report; during FDA/DOJ investigations; and when executing recalls.. We have also advised clients on the implementation of corrective and preventive actions to avoid potential legal action or the unwanted media attention that often accompanies a recall or investigation. Additionally, we provide legal assistance on import and export issues involving food, ingredients and foreign suppliers.
We regularly assist food, dietary supplement and beverage clients with advertising, labeling and promotional review matters. We review advertising content and marketing programs to ensure compliance with local laws and regulations, and work on celebrity and other media transactions and agreements. We can assist clients with the issues that arise in clearing all forms of advertising materials for digital advertising, television, radio and print and help clients ensure their materials comply with local, state and federal laws, network guidelines and industry codes of practice. Advertisements, websites and all forms of social media that attract consumer attention must remain compliant with all applicable regulations.
We have led internal trainings, conducted internal investigations, and helped food and beverage companies identify and fill gaps in their advertising and promotional policies and procedures. Our advertising and FDA counseling teams are able to advise clients through the issues related to FDA and FTC advertising regulations, and are uniquely positioned to counsel brands on matters ranging from regulatory issues regarding manufacturing to advertising of an FDA-regulated food or beverage product, and Untitled Letters.
Transactions and agreements. Reed Smith has a remarkable depth of knowledge that few firms can match. We are proud of our market-leading M&A experience in the food and beverage industry, which comes from decades of partnering with a wide range of industry participants to drive progress for their businesses. Our attorneys have extensive experience with transactions in the food and beverage industry and handle both buy- and sell-side deals for all kinds of entities engaged in investing in, acquiring and selling food and beverage companies. We assist our clients with every stage of mergers and acquisitions from merger control filings and regulatory due diligence audits to closing and implementation. We also regularly assist our food and beverage clients with issues relating to dispositions, securities, regulations and venture capital. In addition to our experience handling the corporate aspects of food and beverage industry transactions Reed Smith shines in its ability to provide specialized FDA and USDA regulatory due diligence in transactions involving nearly every type of food and beverage company. Through our regulatory due diligence services, we help companies identify key issues and strategies to mitigate regulatory risk and liabilities, and we develop integration plans for post-closing, providing our clients with a detailed review of legal requirements, contracts, marketing approvals, compliance plans, audits, investigations, policies, and and procedures.
Leveraging our experience throughout the advertising and marketing ecosystem with our deep understanding of the practical negotiating pressure points, we offer guidance on a broad range of commercial arrangements, including drafting, negotiation, interpretation, template development, and advice on related areas of law. This includes agreements involving advertising and public relations agency relationships, media planning and buying, merchandising, e-commerce, music and other intellectual property licensing, sponsorships, joint ventures and partnerships, website development and oversight, software protection and licensing, and data processing and security.
In addition, we are a one-stop shop for the negotiation and drafting of endorsement deals in the alcoholic beverage space, and offer significant value versus the traditional talent brokers, payroll companies and business affairs teams that offer celebrity negotiations. Our experience in this area and, importantly, the relationships that we have developed with many of the most significant players in the talent management industry, such as CAA, ICM, IMG and WME, mean that Reed Smith is not just the go-to law firm for brand endorsement agreements; we are also the go-to advisers when it comes to brokering talent in the first place. Over the years, we have drafted and negotiated endorsement talent agreements with some of the highest profile celebrities in the world.
Intellectual property. Our IP team is well versed in the complexities of intellectual property issues throughout the entire product cycle and regularly represents global food and beverage companies. We provide comprehensive guidance on safeguarding your intellectual property assets to maintain your competitive advantage in the market.
Recognizing the pivotal role of trademarks in establishing ownership and cultivating strong, successful brands, we conduct thorough trademark searches to ensure the availability of desired brand names and logos for use. Our skilled team has successfully protected numerous world-renowned brands, managing portfolios that encompass over 20,000 trademarks. We regularly bring to court and defend infringement, dilution, trade dress, false advertising and unfair competition cases, as well as opposition and cancellation proceedings.
When it comes to inventions, new processes and innovative food technologies, our IP attorneys with technical backgrounds are well equipped to assist clients with patent protection. We guide companies through the intricate patent application process, offering valuable legal advice, from product inception to transatlantic patent litigation support.
In addition, we recognize the significance of identifying and safeguarding trade secrets. Our services extend to helping food and beverage companies protect valuable confidential recipes, manufacturing processes and formulas, ensuring the preservation of these valuable assets.
Data privacy. Data-driven personalization continues to accelerate as customers increasingly value the advantages of a convenient and fast shopping experience. However, high-profile cases of corporations misusing consumer data continue to raise concerns over how food and beverage brands and retailers can reach a balance between personalization and customer privacy protection.
Our group advises clients on the full life-cycle of data management and protection, from conception of a project or product involving the collection of personal information through its handling, disclosure, transfer and deletion. We regularly advise on data protection laws and regulations in the United States and EU, and across the Middle East, Latin America and Asia Pacific regions. Our counseling benefits from our experience working with regulators such as the FTC, the FCC, state attorneys general and the European national data protection authorities and regulators.
We have substantial experience assisting clients in achieving compliance with global data protection regulations on a national and international scale, including recent laws such as the EU General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), California Privacy Rights Act (CPRA) and Virginia Consumer Data Protection Act (CDPA).
e-commerce. Online sales are more important than ever and the issues involved in creating an e-commerce environment entail a patchwork of legal issues that crosses borders. We understand the banking laws, regulatory shifts, complex supply chains, business and operational issues, and trends impacting payment system platforms and e-commerce, and can put this knowledge to work across the world. We have worked on various payment and e-commerce matters from idea stage through execution and vendor management. We have also supported our e-commerce clients with trade and customs issues that they face in relation to the fulfilment of their online orders.
Additionally, our lawyers have extensive experience drafting a wide range of online consumer agreements, including website terms of use, terms of service, privacy statements, privacy policies, data protection terms, e-commerce terms, co-sponsorship and co-promotional terms, sharing agreements, online gaming terms and conditions, and click wrap, cookie, invisible GIF, web beacon and related terms, as well as terms for user generated content uploads, and media download-to-own and streaming content.
Product regulations. In today’s global marketplace, companies deal not only with trade issues such as customs duties, but also with a wide range of product-related issues that complicate market access. We team up with clients facing product regulatory complexity so they can maximize commercial opportunities while minimizing unnecessary risk. We advise clients on both contentious and non-contentious matters relating to product safety, labeling, environmental standards and product placement. This involves advising on the applicable regulatory regime throughout the product’s life-cycle (R&D, design, manufacturing, use, supply and end of life). We also assist companies in translating all these product regulatory requirements into company protocols, compliance guidelines and procedures. We coordinate with the competent regulators and market surveillance authorities worldwide in case of challenges such as enforcement actions and recalls. Finally, we manage disputes with supply chain partners where the integrity or safety of the product is put into question.
Logistics. We are a premier global law firm and represent clients in key transactions and litigation around the world at every point in the supply chain.
Clients value our input because we have robust industry capabilities – in real estate, road and rail transport, shipping, aviation and port use – and market leading lawyers in commercial, corporate, data and technology, employment, environmental, finance, insurance and regulatory, anti-trust and competition – covering every part of the logistics operation. We draft, negotiate, arbitrate and litigate contracts, agreements and arrangements at every stage of the transfer and carriage of goods process. We keep a watch on emerging trends affecting the industries that impact the supply chain and can use this knowledge to support your strategy.
Our network of lawyers worldwide provides a seamless and personal service to address the full range of international law needs you may have. Our offices are located in key hubs across the United States, Europe, the UK and Asia, and through our network of partner firms, we have lawyers who can support your needs. Depending on the size, complexity and jurisdiction of the issue, we will work with you to choose a bespoke team from our global platform of skilled practitioners to chart a course of action that best serves your business interests, investments and future plans.
Litigation defense and risk mitigation. Our deep and diverse team of trial and appellate lawyers has built a successful track record prosecuting and defending lawsuits alleging false advertising and is a recognized leader in defending clients facing consumer class actions.
We have extensive experience representing global manufacturers of agricultural and consumer products in complex litigation and class action defense matters involving antitrust concerns, FTC and FDA enforcement actions, food contamination and consumer fraud actions. Our litigation team successfully defends consumer class action lawsuits based on a broad range of allegedly false advertising claims, deceptive practices and unjust enrichment claims under state and federal laws, including health, nutrition and benefit claims (“fresh,” “healthy,” “natural,” etc.), performance and efficacy claims, slack fill, sales prices and discounts, “made in USA” claims and environmental benefit claims. We have successfully defended clients in hundreds of putative consumer class actions filed across the United States, brought under statutes such as California’s Consumers Legal Remedies Act, as well as under sections 17200 and 17500 of the California Business and Professions Code and New York’s General Business Law. We are often called by clients facing potential recall situations, and we help conduct health hazard evaluations and root cause analyses to determine whether and to what extent a recall or market withdrawal is necessary.
We have considerable experience advising clients on preventive measures that can reduce the risk of liability without interfering with strategic business objectives and provide clients with an array of risk mitigation counseling services, including insurance advice and liability prevention measures.
Insurance recovery. With a team of more than 80 lawyers in offices across the United States and abroad, Reed Smith’s Insurance Recovery Group is uniquely positioned globally to assist clients in the food and beverage industry with obtaining insurance coverage for allegedly defective or contaminated products, product recalls and consumer class action product claims. As leaders in insurance coverage since the 1970s, Reed Smith’s lawyers have helped pioneer insurance coverage for multi-year product liability claims and have advocated on behalf of numerous policyholders in insurance coverage negotiations, alternative dispute resolution, litigation and bankruptcy proceedings, securing substantial insurance coverage for our clients in coverage disputes concerning allegedly defective food and beverage products.
Our team frequently represents policyholders in coverage disputes for product recalls under first-party property and business interruption, general liability and specialized product recall policies. We have helped our clients pursue and maximize insurance claims for product recall losses and for the defense and settlement of food-borne illness claims, under their own policies and as “additional insureds” under suppliers’ policies. We also regularly advise our food industry clients regarding contractual insurance and indemnification provisions involving vendors/suppliers or distributors/purchasers of food and beverage products and ingredients.
Labor and employment. Our labor and employment lawyers work frequently with food and beverage clients on their most pressing workforce issues, including defending them against of allegations of discrimination and/or harassment, claims of wrongful discharge, whistleblower complaints, and non-compete and restrictive covenants. We also manage complex wage and hour issues affecting this industry under the Fair Labor Standards Act and state equivalents, including independent contractor, misclassification, meal and rest period and overtime issues. We defend our clients against allegations of violation of worker rights, negligence/breach of contract, defamation and other torts. Our labor relations team assists management on union and other issues. Our lawyers provide counsel in a wide range of employment law matters, identify potential liability issues and develop preventive strategies to avoid litigation, assisting in developing effective policies across the board. We have a specialized compliance and audits team that conducts diversity and pay equity audits, setting achievable goals. Finally, we are also particularly skilled at handling sensitive investigations and workforce change issues.