Food companies adopting GMO labeling

WASHINGTON — More food companies are voluntarily disclosing if their products contain genetically modified ingredients, a sign that consumer groups may be gaining ground in their campaign to get a nationwide mandatory label.

In the past few weeks, candy-maker Mars, General Mills, Kellogg and ConAgra all announced they would be voluntarily labeling their products. They joined Campbell Soup, which became the first major food company to disclose the presence of GMOs on labels in January.

Food executives say they have no choice but to include the ingredients on labels, citing growing pressure from consumers to know what’s in their food, a failure by Congress to adopt a nationwide standard, and the fact that Vermont on July 1 likely becomes the first state to require labeling.

With these “companies starting to do it, it will create a real responsibility for other companies to start mentioning (them.) They will have to start indicating where their ingredients come from” said Sophie Ann Terrisse, a senior adviser with brand-management firm 26FIVE in New York. “They won’t have a choice.”

The Vermont law requires packages to say “produced with” or “partially produced with” genetically engineered ingredients. It would only apply to products regulated by the Food and Drug Administration, excluding meat and poultry overseen by the Agriculture Department. A business failing to comply with the Vermont law would be fined $1,000 each day for every product not properly labeled.

Scott Faber, Environmental Working Group's vice president for government affairs, said the move by more food companies to label is evidence "the ground is shifting" in the debate. "Those labels will be met with ... applause from the consumers who want to know," he said.

Up to 80 percent of packaged foods contain ingredients that have been genetically modified, according to the food industry.

Last month, the Senate failed to advance a bill banning states from establishing their own GMO labeling laws. Instead, the legislation would have created a voluntary program using “smart labels”  on products that allow consumers to find out more nutrition and ingredient information online or by calling a toll-free number. It would become mandatory if at least 70 percent of food products were not in compliance within three years.

Sen. Jon Tester said consumers should know more about what they are eating. He was confident the Senate could still act.

“I believe we can craft a compromise that gives consumers clear and accessible information on what is in their food while also avoiding  a confusing patchwork of numerous state laws,” Tester added.

But Sen. Steve Daines, who opposes a mandatory program, said "a patchwork of (state) laws will only increase prices for consumers and hurt hardworking American families.”  Rep. Ryan Zinke also has backed a nationwide voluntary label.

Herr Foods, a Pennsylvania producer of potato chips, pretzels and popcorn, is one company that is considering pulling its products from Vermont. "We're looking at all of our options ... but that isn't our preferred route," said Bob Clark, Herr's vice president of marketing. "It's a very huge expense to" change labels across all our products to comply with the law.

Opponents of mandatory labeling have routinely touted a Corn Refiners Association study that estimated Vermont’s law could increase the price of groceries for families by nearly $1,050 a year. Consumers Union puts it closer to $2.30 per person annually.

Campbell Soup, which also makes its namesake soups, V8 and Pepperidge Farm cookies, decided late last year to move forward with the label change following months of research and feedback from consumers, said Mark Alexander, a president with the company.

“We believe that by being out front and by being the most transparent food company, that we will earn very strong levels of consumer trust, which will obviously benefit our business over time,” Alexander said.

At General Mills, whose brands include Cheerios and Chex, the company delayed work on other projects to focus attention on its GMO label. While the company still backs a national standard, it felt it had no choice but to make the change now.

“We can’t wait any longer with the Vermont law taking effect soon,” said Mike Siemienas, a spokesman with General Mills. “A national standard doesn’t exist and we face fines if we don’t comply.”

The Grocery Manufacturers Association, which backs a voluntary law and opposes individual state laws they contend would be too costly, has challenged the Vermont measure in federal court. A request for a preliminary injunction to block the law was denied; the trade group has appealed. If Vermont's initiative withstands the legal challenge, proponents say it could give momentum to similar measures being considered in more than a dozen other states.

“One small state’s law is setting labeling standards for consumers across the country,” said GMA.