When a police car drives past my house, I smile and wave. The officer’s protecting us from bad guys and I appreciate it. When I see people in military uniform, I thank them. They’re protecting us from more bad guys. But I’ve never needed protection from vegan butter.
Miyoko Schinner creates plant-based foods. Her vegan cheeses win awards and she’s a nice person doing her thing to everyone’s benefit. But she crossed the “line in the sand” when she started selling “Miyoko’s Vegan Butter.” California Government (which never overreaches) decided it had to step in to protect us from being “deceived and confused” – – by Vegan Butter. Really?
Let’s see, Miyoko’s label says “Cultured Vegan Butter” and “Melts, Bakes, Browns & Spreads Like Butter.” The back of the box says “Organic Coconut Oil, … Organic Sunflower Oil, Organic Cashews …” Doesn’t seem confusing to me. She’s making vegan butter from plants.
But California Government decided Miyoko’s “Vegan Butter” is confusing and its name should be changed to “cultivated cashew cream” so no one will be confused. Oh yeah, that’s much clearer.
What usually happens in these cases is the food company “rolls over” and surrenders to the government who has an unlimited budget to crush anything they don’t like. But even California, in its infinite wisdom, didn’t count on Miyoko’s next move. She sued the State saying her First Amendment free speech rights are being trampled and her lawyers are the Animal Legal Defense Fund (because Miyoko’s products are cruelty free). Take that Gavin Newsome and Xavier Becerra. In this poker game, we “see” your puny state agency and raise you an animal activist special interest group with endless resources and vicious fanatical resolve. I know from 30 years of litigation that when you bring in a player who doesn’t care about time or cost, the balance of power changes. The Sovereign State of California is outgunned on this one.
This case also pits California against one of its natural political allies – – animal activists. That’s going to cost somebody some votes. Nice positioning, Miyoko. This will be entertaining.
The Food Lawyers® Take: California has gotten caught doing the bidding of the most powerful special interest in the State: The Dairy Lobby. Miyoko’s products threaten their entrenched interests and they’re fighting her with one of the oldest tricks in the book: “If you can’t beat ‘em, sic the government on ‘em.” But, Miyoko out maneuvered them by bringing in Animal Legal Defense Fund.
But there is a larger lesson here: Big Government will often stifle true innovation, like Miyoko’s, to preserve special interests that can pay off elected officials. Miyoko is lucky her battleground is one where a special interest group will spring to her aid. But too often in life and business, there’s no knight in shining armor. And when that happens, innovation suffers and we are all poorer for it.
What can we do about it? Not much, other than wait. Innovation eventually wins out. But Government takes a toll on everyone in the meantime.