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Not Made in Hawaii

Mainland and even foreign companies exploit the Hawaii brand to sell their products, and it’s usually perfectly legal

(page 3 of 3)

Hanagami of the Hawaii Food Industry Association would like to see more local retailers and manufacturers work together to push the sale of local products.

“We have a real opportunity to carve out a niche for ourselves and sell quality and authenticity,” he says.

For true local manufacturers, the competition from fake Hawaii products is a challenge, “but there is a silver lining,” Chan says.

“The way I see it, if these products are promoting Hawaii and have a big reach on the mainland and internationally, that could be good for us small guys because it’s helping our state and the brand get more exposure,” he says.

Hawaii’s robust tourism industry means there is a built-in market for local manufacturers. In July, the average visitor spent $177 per day while in Hawaii.

“Our average annual visitor market is more than seven times our population,” Hanagami says. “People pay thousands of dollars to come here and Hawaii continues to be one of the top repeat-tourist destinations in the world. When it comes to providing the highest quality, freshest products, our local manufacturers can’t be beat. I don’t care who’s on the other side.”

 

Weakened Watchdog

Since 2009, the number of Agriculture Department inspectors responsible for enforcing state labeling laws on products sold in Hawaii has been slashed from six to three. “And six was already a reduction from previous years,” says Jeri Kahana, manager for the department’s Quality Assurance Division Commodities Branch. “People were laid off and those positions were never restored, so we’re pretty crippled right now.”

These same inspectors also monitor all commercial devices in the state involving a measuring apparatus, she says, such as gas pumps, scales and taxi meters.

“When you have to prioritize responsibilities, which is more important: making sure those devices across the state are accurate or looking at labeling on a bag of chips?” Kahana says. “Ideally, the state should be able to identify all of the unscrupulous companies that like to exploit Hawaii with their coconut-tree packaging and terminology on their labeling that make it seem like their product is Hawaiian, when it’s really not, but that has been a challenge due to lack of resources.”

The federal Fair Packaging and Labeling Act requires a label to include the identity of the product, the name and place of business of the manufacturer, packer or distributor, and the net quantity and contents. If the state discovers a product is improperly labeled, the Department of Agriculture can fine the company up to $2,000 per day for violating state laws and has the authority to temporarily halt sales until it’s proven that the label is accurate. However, the state does not have jurisdiction over products sold outside of Hawaii.

“If a company was mislabeling a product in another state, it would be up to that state, or it could even become a federal issue, to investigate and take action,” Kahana says. In Hawaii, she adds, “We give (companies) the opportunity to fix it and if they don’t, we have the ability to pull the product off the shelf for good and issue them a fine that’s pursuant to the violation.”

Stamp of Approval

With so many products on the market claiming to be “Made in Hawaii” or “Hawaiian-style,” how can you spot the phonies? “It’s simple – check the label,” says Kahana. “Most companies that are legitimately manufacturing goods in Hawaii are proud of that fact and will mention it on the front of their packaging.”

The state Agriculture Department launched the Seals of Quality program in 2006 to protect the integrity and value of products manufactured in Hawaii. Items that use the seal have been reviewed by the state and are genuine Hawaii-grown or Hawaii-made products.  The department says only the best agricultural products in the state can bear the seal after meeting specific quality standards. “This is one way to give local manufacturers a competitive edge,” Kahana says.

Kauai and Hawaii Island also have their own marketing programs to promote products made on their respective islands. The goal of the Kauai Made program and the Big Island’s Mountain Apple Brand is to stimulate local industry and ensure the money spent stays on-island.

In August, more than 400 of the state’s local vendors participated in the annual Made in Hawaii Festival in Honolulu, which drew more than 35,000 attendees.

Learn more at Hawaii.gov/hdoa/add/soq
and kauaimade.net

Hawaii Business magazine invites you to comment on our articles and the issues they raise. Comments are moderated for offensive language, commercial messages and off-topic posts and may be deleted. Some comments may be chosen for inclusion in the magazine on the Feedback page.

Old to new | New to old
Nov 8, 2011 01:31 am
 Posted by  Kona Coffee

The State of Hawaii is knowingly blocking the Geographical Identity Protection the USPTO offers. Many times have farmers and producers pleaded with the State congress members for protection of agricultural products. The strong lobbying efforts of mainland importers (i.e. Paradise Beverages) always ruined these bills to become law.
Enforcement should not be handled by the Dept of Ag: Just forward these numerous reports of violations we farmers file to the State Attorneys office.

Nov 22, 2011 12:11 pm
 Posted by  san

This article is good, but doesn't go far enough. A big issue I have with product labeling here in Hawaii is when items are labeled with a locally identifiable name with the words "distributed" or "packaged" in Hawaii. These words DO NOT mean that the product was grown or produce in Hawaii. examples: Big Island Poultry - that are actually Mainland Fresh; many brand names of Hawaiian Salt; 50th State Poultry, Vegetables bagged in plastic. This kind package is deceptive.

Nov 22, 2011 12:57 pm
 Posted by  san

I had heard that Primo was made on Kauai – so I found this on good ole Wikipedia
In 1999 Pabst acquires the Primo brand and 2007 Pabst decides to bring back the Primo Beer. The Primo Lager sold in state is produced on the island of Kauai at the Keoki Brewing Compnay, which still addes sugar cant to each batch. In May 2007, Keoki was bought by Hawaiian Nui Brewing Company. Portions of the island-based proceeds go to the Outrigger Duke Foundation and toward preserving Hawaiian culture & heritage

Nov 23, 2011 02:35 am
 Posted by  Steve Petranik, HB editor

Hi San:
Wikipedia's info is out of date. Keoki Brewing was only brewing a draft version of Primo, and they have even stopped that. All of the Primo now sold in Hawaii is made in California.

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