Functional Food Case Study

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INTRODUCTION
All foods in their natural state are considered functional, as they provide taste, aroma, or nutritional value. Within the last decade, however, the term functional as it applies to food has adopted a different association; that of providing an additional physical or nutritional benefit beyond that of meeting basic nutritional needs. These foods are also known as ‘functional foods’ and are thought to provide additional nutritional befits beyond that of its natural state, whilst playing a role in the prevention or minimization of risk of certain diseases and health conditions. Functional foods can include food products, beverages, or food ingredients that contain known bioactives that have been minimally or substantially transformed.
Some examples of functional foods include fruits and vegetables, whole grains, animal sources, beverages, and dietary supplements. Having greater knowledge on which foods provide specific health benefits, allows consumers to make healthier food and beverages choices, ultimately decreasing the risk of certain diseases and health conditions. The purpose of this report is to provide an objective definition of functional foods, how these products play an active role in the Australian food industry, the regulations and restrictions that must be followed, and the functional process of oats.

THE PROS AND CONS TO FUCTIONAL FOODS
Functional foods are considered to be a potential healthy alternative as they provide a nutritional benefit beyond its conventional state. However, alteration to
Advertising, labeling, and formulation of these foods are heavily regulated in order to comply with food and therapeutic laws. There are 5 keys steps to advertising and labeling functional foods in Australia. Step one involves determining whether your product is a ‘food’ or a ‘therapeutic good’. This stage will determine which governing scheme applies to your product, and how it will be marketed, labeling, and formulated. Different types of foods are regulated under state and federal food laws and are subject to the Food Standards Australia New Zealand (FSANZ) food standards code. Step two involves ensuring the formulation of food complies with the food standards code. The formulation of function foods must comply with the requirements under the FSANZ food standards code in order to be marketed in Australia. Some of the following standards require businesses to consider these requirements; substances added to foods, contaminants and residues, food produced using gene technology, microbiological limits in food, etc. Step three involves the avoidance of making therapeutic claims when marketing functional foods. When marketing a functional food product, claims towards these products must be health or nutrition related claims. Making claims such as “prevents diabetes” are prohibited under Australian law, unless

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