SIC 2079 Shortening, Table Oils, Margarine, and Other Edible Fats and Oils, Not Elsewhere Classified

Contenidos

• NAICS CODE(S).
• FURTHER READING.

SIC 2079

This category covers establishments primarily involved in manufacturing shortening, table oils, margarine, and other edible fats and oils that are not elsewhere classified. Companies primarily engaged in producing corn oil are discussed in SIC 2046: Wet Corn Milling.

NAICS CODE(S)

311225

Fats and Oils Refining and Blending

311222

Soybean Processing

311223

Other Oilseed Processing

Many of the goods classified in this industry are long-time staples of the American kitchen, including shortening, vegetable oil, and margarine. However, sales of margarine, spreads, and butter blends were decreasing in the mid-2000s, falling 4.8 percent in dollars and 7.5 percent in units in supermarkets, drugstores, and mass merchandisers (excluding Wal-Mart) during the 52-week period ending March 19, 2006, according to Chicago-based Information Resources Inc. (IRI).

Margarine, a key product in this industry, was invented in France in 1869. Market share in the United States was initially impeded by quality concerns and then by the efforts of a powerful butter lobby. After technical improvements and fairer tax legislation, margarine gained greater acceptance and came to be largely regarded as a healthier and cheaper alternative to butter. By the mid-1990s, however, the $1.5 billion margarine industry began to falter while butter increased its market share. Many consumers who had switched from butter to margarine as a healthier alternative became disillusioned after learning that vegetable shortenings raise the risk of cardiovascular disease. Of particular concern to many health practitioners was the presence of trans fatty acids (TFAs) in margarine. In 2003 the U.S. Food and Drug Administration announced its intent to mandate the labeling of all products containing TFAs as of January 2006. When the mandate took effect, it applied only to retail products, not foodservice. However, consumer awareness of trans fats led some restaurants to stop using products containing TFAs, and some communities, including New York City, passed ordinances banning those products from use in restaurants.

Trans fatty acids are formed when hydrogen is added to any vegetable oil. This hydrogenation process increases the shelf life, texture, and stability of products. Popular processed foods are being reformulated without trans fats and new products are being created. Any product called margarine must contain at least 80 percent fat...