The Secondary Packaging Loophole Most California Shippers Miss Under SB 54

Industry experts break down producer liabilities, packaging data requirements and upcoming legal deadlines ahead of an Emerald Packaging webinar.

Fresh produce in plastic packaging remains a staple in retail grocery aisles, though upcoming regulations like California’s SB 54 are forcing growers and packaging suppliers to reevaluate their supply chains.
Fresh produce in plastic packaging remains a staple in retail grocery aisles, though upcoming regulations such as California’s SB 54 are forcing growers and packaging suppliers to reevaluate their supply chains.
(Photo: Puhimec, Adobe Stock)

California’s SB 54 has ignited a conversation around extended producer responsibility (EPR) laws and packaging compliance. To help businesses understand the law and its implications for flexible packaging, Emerald Packaging plans to host a webinar Nov. 4 at 11 a.m. PT.

Speakers include Kevin Kelly, CEO of Emerald Packaging; Isa Glassen, sustainable packaging associate for Emerald Packaging; and Jeff Brandenburg, president of QFresh Lab.

Those interested in attending can register online.

Kelly says this webinar is designed for growers, packers, produce companies, brand owners and packaging buyers looking to understand how SB 54 will affect packaging decisions and compliance.

“Many businesses are still determining whether they qualify as a ‘producer’ under the law and what that means for their operations,” Kelly says. “[The webinar] will also provide an update on the current state of SB 54 implementation. We’ll look at the many lawsuits, the possibilities for exclusions, the current state of enforcement, possible legislative action in 2027 and how these may impact your implementation strategy.”

The goal is for webinar attendees to get an understanding of the requirements, identify where a company’s packaging might be exposed and learn steps to take toward compliance, Kelly says.

“Even if you don’t believe the law applies directly to your business, it’s important to understand how it could affect your packaging suppliers, customers and broader supply chain,” he says. “It’s also important to understand the muddy waters surrounding the implementation rollout.”

Kelly says he sees a big misconception around what businesses qualify as a producer, especially with companies that have secondary and tertiary packaging.

“If you ship to a California customer and use pallet wrap or pallets, then you are a producer,” he says. “Welcome to SB 54.”

Kelly says sustainability and packaging performance need to work together.

“The goal isn’t simply to change materials; it’s to find practical solutions that meet regulatory requirements while protecting food, maintaining quality and supporting the economics of the supply chain,” he says.

Kelly emphasizes proactive management is key to mitigating compliance costs. By pursuing exclusions, optimizing packaging to lower overhead and keeping track of relevant legal developments, businesses can demonstrate foresight while managing customer price pressures.

Kelly also offers several immediate actions to take to get on the path to compliance. These include identifying packaging — including secondary and tertiary — and who is responsible. Next, it’s important to gather packaging data. He suggests working with suppliers to understand recyclability, recycled content and available documentation to help evaluate applicable requirements and potential changes. Lastly, he suggests starting conversations with suppliers and compliance advisors to understand what information is available, what gaps remain and potential changes needed. Kelly also recommends involving an attorney.

Kelly stresses that the produce industry needs to move past viewing SB 54 or EPR laws as distant future issues. Businesses, he says, must treat these regulations as a planning priority today.

“The requirements can feel complicated, but businesses can make meaningful progress by understanding their responsibilities, gathering the right packaging data, and engaging their suppliers early,” he says. “The businesses that start asking the right questions now will be better prepared to navigate the changes ahead. And understanding the current issues around SB 54 implementation may impact your approach to immediate compliance.”

Upcoming Event

Jan. 28–30, 2027  •  Miami Beach, FL

East Coast Produce Expo 2027

Three days of BizMatch+ meetings, trade show and networking at an iconic new location. Plan your trip:

View the agenda ›

Sessions, speakers and the first look at the Fresh Trends Consumer Report.

Explore the venue ›

Fontainebleau Miami Beach. Discounted $409 room rate through Jan. 5.

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