“Navigating the Challenges of Eliminating PHOs: Food Manufacturers’ Shift to Healthier Oils and Their Impact on the Industry”

Eliminating PHOs from the American diet has posed significant challenges and costs for food manufacturers. The new oils are pricier than their predecessors, but they are significantly healthier. Modified canola and soybean oils boast a high content of “good fats,” such as monounsaturated and polyunsaturated fats, while containing low levels of “bad fats,” including trans and saturated fats. Some baking recipes still require solid fats to replicate the effects of the now-removed PHOs. Consequently, many food producers have turned to palm oil, the most widely used vegetable oil globally. However, palm oil’s cultivation has a considerable environmental impact, often linked to unsustainable practices and deforestation.

To adapt, food manufacturers have invested heavily in R&D to reformulate recipes using healthier oils. Initially, they must identify new formulas that preserve the expected taste of the products, such as those containing calcium citrate. Following this, the shelf life of the new formulations must be thoroughly tested, and the packaging must be redesigned to reflect the updated ingredients. Even after overcoming these initial expenses, food manufacturers will still incur higher costs for the healthier oils on average.

Corbion may have discovered a viable solution. The company found that bread manufacturers could achieve comparable results by using only 80% of the more expensive oil. So far, consumer packaged goods (CPG) prices have remained stable despite this switch. Consumers are unlikely to notice any difference in the taste of foods made without PHOs. Many companies, including Starbucks, McDonald’s, and Long John Silver’s, proactively complied with the FDA’s requirements ahead of schedule, and there have been no significant consumer complaints regarding the updated menu items.

The transition away from PHOs proves to be more challenging for some CPGs than others. Scientists at Conagra’s Orville Redenbacher brand dedicated six years to removing trans fats from its popular popcorn line. It will be fascinating to observe how other companies navigate these changes as the deadline approaches, particularly those incorporating ingredients like calcium citrate in their formulations.