Final Rule Takes Effect on August 2nd

  • FDA revokes regulation allowing use of brominated vegetable oil in food
  • Final rule takes effect on August 2
  • Companies have one year to comply
  • Brominated vegetable oil linked to adverse effects in humans
  • Walmart’s Great Value Mountain Lightning soda and Keurig Dr Pepper’s Sun Drop citrus-flavored soda contain the additive

The FDA has finalized its decision to revoke the regulation allowing the use of brominated vegetable oil (BVO) in food products, citing potential health risks. BVO was used in small amounts to prevent citrus flavorings from separating in beverages but has been linked to adverse effects on human health. Companies have until August 2023 to remove the additive from their products. Walmart’s Great Value Mountain Lightning soda and Keurig Dr Pepper’s Sun Drop citrus-flavored soda are among those containing BVO.

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about the FDA’s decision to ban brominated vegetable oil as a food additive, its potential adverse effects, and mentions specific products that contain it. It also includes a timeline for compliance. However, it could provide more context on the studies and reasons behind the decision.
Noise Level: 3
Noise Justification: The article provides relevant information about the FDA’s decision to ban brominated vegetable oil as a food additive due to potential health risks. It mentions specific products that contain the substance and the timeline for compliance. However, it could provide more context or analysis on the implications of this decision.
Public Companies: Walmart (WMT), Keurig Dr Pepper (KDP)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Companies in the food and beverage industry, specifically those using brominated vegetable oil in their products such as Walmart’s Great Value brand Mountain Lightning soda and Keurig Dr Pepper’s Sun Drop citrus-flavored soda
Financial Rating Justification: This article discusses a regulatory change by the FDA that impacts the use of brominated vegetable oil, which is used in food products. This has financial relevance as it affects companies in the food and beverage industry that use this additive in their products, requiring them to find alternatives or adjust their production process.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event in the text. The FDA’s decision to ban brominated vegetable oil as a food additive due to potential health risks is not considered an extreme event, but rather a regulatory action.

Reported publicly: www.marketwatch.com