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HANOVER, NJ - April 22 - Kraft’s continued use of genetically
engineered ingredients was a major topic of concern today among
investors inside Kraft’s annual shareholders meeting.
Kraft shareholders,
including actor Chevy Chase and his wife Jayni Chase, spoke
out at the meeting raising concerns about the public health,
environmental, and financial risks posed by genetically engineered
ingredients.
Chevy Chase
raised the issue of biopharm crops—food crops genetically
engineered to produce prescription drugs and industrial chemicals—and
the risks they pose if they were to contaminate Kraft products.
In November, disaster was narrowly averted when the USDA found
500,000 bushels of soybeans headed for the food supply to be
contaminated with biopharm corn.
Mr. Chase
stated, “I don’t want my family to accidentally ingest
a pig vaccine when they eat an Oreo, or inadvertently eat a
heart medicine when they pour a bowl of Alpha-Bits.” He
also asked Kraft executives, “Given the serious risks posed
by biopharm crops and other genetically engineered crops, is
Kraft seriously considering removing genetically engineered
ingredients from its foods? And, if not, would you please consider
doing so?”
Concerns
about the financial risks genetically engineered foods pose
to investors were also raised. Wendy Wendlandt, a representative
of Green Century Capital Management, asked during the meeting
if there are financial benefits to the company and shareholders
associated with the continued use of genetically engineered
ingredients. Ms. Wendlandt also stated, “continued use
of genetically engineered foods exposes investors to unnecessary
financial risk. Another incident like the StarLink contamination
could have devastating impacts on Kraft’s bottom line and
share value.”
The financial
risks of genetically engineered foods became evident with contamination
of the food supply by StarLink in 2000, which is estimated to
have cost the food industry billions of dollars. StarLink is
a variety of genetically engineered corn that was not approved
for human consumption because of concerns that it might trigger
allergic reactions. StarLink was first discovered in Kraft’s
Taco Bell brand taco shells.
Kraft was
also called to task on addressing the issue of genetically engineered
foods with Altria’s new Social Responsibility program.
“Many students at top universities are saying that they
will not work for Kraft because of its use of genetically engineered
ingredients,” stated Rebecca O’Malley, program director
for ecopledge.com. “If Kraft and Altria want to be seen
as socially responsible companies, the issue of genetically
engineered foods must be addressed.”
Last week,
a report was released entitled, “Risky Business: Financial
Risks that Genetically Engineered Foods Pose to Kraft Foods,
Inc. and Shareholders.” The report reveals that Kraft’s
use of genetically engineered ingredients poses risk of product
recalls and liability lawsuits, loss of competitive advantage,
consumer rejection of Kraft’s products, and damage to reputation
resulting from increased controversy surrounding these foods.
The report
also makes the case that genetically engineered foods do not
offer financial benefits to Kraft or marketable benefits to
consumers. Genetically engineered crops may even cost more to
produce than non-genetically engineered counterparts.
“Continued
use of genetically engineered ingredients is a no-win situation
for Kraft and its shareholders,” stated Kate Madigan, advocate
for the state Public Interest Research Groups and author of
the report. “Many food companies have already removed these
ingredients from their products to protect consumers and investors.
Kraft should do the same.”
The State
Public Interest Research Groups (PIRGs) are a nationwide network
of non-profit public interest advocacy groups. The report “Risky
Business” can be viewed at www.pirg.org/ge.
Green
Century Capital Management, Inc. is the investment adviser to
the Green Century Balanced Fund and the administrator of the
Green Century Funds. The Green Century Funds are the first family
of no-load, environmentally responsible mutual funds and were
founded by a partnership of non-profit environmental advocacy
organizations.
Ecopledge.com
is a non-profit organization that organizes students, consumers,
and investors to influence corporate social and environmental
responsibility.
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