Derrick Teal: Hello, and welcome to this End of the Line video podcast—also known as a video. I’m Derek Thiel, editor of ProFood World, and I’m joined by Liz Cuneo, editor of Healthcare Packaging; Matt Reynolds, editor of Packaging World; and Sean Reynolds, editor of OEM Magazine. Today, we’re discussing what we’ve seen over the past week.
Matt Reynolds: Reynolds, Riley—whatever it takes.
Derrick Teal: Sorry—Sean Riley. I should have started by saying I’m the least qualified person to host this, yet here I am taking one for the team.
Group: You’re doing great.
Derrick Teal: Thank you. We’re here to talk about industry developments from the past week. Liz, I understand you were in New York.
Liz Cuneo: Yes, I attended INTERPHEX, a global pharmaceutical and biotechnology event. It was my first time there, and I found it especially interesting because it goes beyond packaging. It gave me exposure to areas I don’t typically see at my usual events.
Derrick Teal: Such as?
Liz Cuneo: One example is cold storage solutions for pharmaceutical companies. With the rise of biologics, there is an increasing need for temperature-controlled environments, and facility space is already a challenge across industries.
I saw modular cold storage units—essentially flexible, rentable structures that can be configured in different shapes and sizes. Companies can scale them up or down depending on their needs, whether short-term or long-term. Some companies are even placing them outside to expand their facility footprint, while others install them indoors in previously unused spaces. I thought that was a really innovative solution.
In addition, there were sessions on AI and data analytics in pharma, as well as sustainability. Sustainability remains a complicated topic in this space because materials that come into contact with drugs often cannot be altered. However, companies are finding alternative ways to incorporate sustainability into packaging.
For example, there is a focus on shipper design, housing materials, and making packaging easier to disassemble for recycling. There is also more emphasis on improving sustainability in secondary packaging, since it does not directly contact the drug.
Overall, it was interesting to see the industry thinking more creatively. One quote that stood out to me was that the pharmaceutical industry tends to stick with what works, but sometimes it’s necessary to change—and it seems like that moment has arrived.
Derrick Teal: That’s interesting. Matt, while you weren’t at a show, Anne-Marie was, and she saw something related to sustainability, right?
Matt Reynolds: Yes. Anne-Marie was in Nashville this week and shared several insights that align with what Liz described. Right now, the “800-pound gorilla” in sustainability discussions is California, specifically SB 54.
According to her, this regulation came up in nearly every session and is creating confusion and frustration among brands. It’s already influencing material choices, but there doesn’t seem to be clear logic behind some of the decisions. For example, molded fiber egg cartons may not qualify as recyclable under the law, even though they are biodegradable and made from recycled materials.
This highlights a larger issue: there is no national alignment. California is influential, but each state has its own regulations, forcing brands to design packaging for multiple compliance scenarios.
I also spoke with a brand owner this morning about minimum content laws, such as those in New Jersey, which require a certain percentage of recycled material in packaging. The goal is to support a circular economy by creating demand for recycled materials.
However, this creates conflict with FDA regulations, especially for food-contact materials. Companies could comply with state laws but run into issues with federal requirements, or vice versa. This patchwork of regulations is becoming increasingly difficult for brands to navigate.
Derrick Teal: That connects to another issue I’ve been thinking about—FD&C-certified colors and artificial dyes. There’s a similar patchwork of state laws requiring natural alternatives, while federal guidance still classifies them as artificial.
Even when the FDA signals it won’t enforce certain rules, state regulations can still create complications. This raises questions for producers about labeling, packaging, and whether they need different versions for different regions.
It reminds me of how cannabis regulations vary by state. While a single federal standard may not be perfect, it does provide clarity. Right now, the industry keeps talking about the need for harmonization, but we’re not there yet.
Matt Reynolds: Exactly. Europe has mechanisms to align regulations across member countries, but in the U.S., we’re dealing with a fragmented system. Even with laws like New Jersey’s recycled content requirements, companies still face uncertainty about FDA approval for certain materials.
This creates situations where brands must choose between complying with federal or state rules, and we’re likely to see more examples like this.
Derrick Teal: It sounds like both of your industries are dealing with the same regulatory challenges. Speaking of policy, Sean, what’s happening with tariffs?
Sean Riley: Tariffs have been an ongoing topic. The Supreme Court struck them down earlier this year, but they’ve since been restructured. The bigger story is the amount of money collected—about $175 billion from U.S. importers, including $55 billion from small businesses.
Now, there’s a process for requesting refunds. As of this week, companies can apply for IEEPA tariff refunds. PMMI has created a helpful FAQ to guide companies through the process, whether they’re CPGs or machinery manufacturers.
Matt Reynolds: That’s good news, but where’s the refund for consumers who paid higher prices?
Sean Riley: Unfortunately, I can’t help with that.
Derrick Teal: I saw something similar in another industry—Nintendo users are suing over price increases, arguing they should get refunds.
Liz Cuneo: That raises an interesting question. Even if companies receive refunds, will prices actually go down? If consumers have already shown they’re willing to pay more, it seems unlikely.
Matt Reynolds: Exactly. I haven’t been tracking every purchase closely enough to claim anything back, but I doubt we’ll see widespread price reductions.
Derrick Teal: We haven’t seen refunds for shrinkflation either, so expectations should probably stay low.
Matt Reynolds: Once companies establish a higher price point, it rarely goes back down.
Liz Cuneo: That’s a good reminder—keep expectations low.
Derrick Teal: On that optimistic note, thanks to everyone for joining us for this End of the Line video podcast. We hope to see you again next week.
