Hershey's Foods

Hershey's is the largest North American manufacturer of chocolate and non-chocolate confectionery products, with revenues of over $4 billion and more than 13,000 employees worldwide.

These products contain ingredients such as corn syrup and soy lecithin, which are derived from the two most commonly grown GE food crops - soy and corn. Yet Hershey has no policy to avoid GE ingredients and its products are unlabeled.

In 2001, As You Sow organized a shareholder group of socially responsible investors - with over $21 million in combined Hershey shares - which filed a resolution that asked the company to report about steps required to phase out GE crops, organisms, or products unless long term testing proves them safe to humans, animals and the environment. Just two days after its annual meeting Hershey Foods made a rare public statement to the Wall Street Journal that the company had asked farmers not to grow genetically engineered sugar beets. The Consumers Union credits Hershey's decision with stopping the development of GE sugar beat industry.

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Sysco

As the largest food distributor in North America, Sysco has an impact on the expansion of GE products into the marketplace. AYS was part of an ICCR - Sysco dialogue begun in 2000. A shareholder resolution that year was withdrawn when senior management agreed to establish a task force to investigate the issue. AYS organized an expert briefing for the company utilizing GE scientific experts from both sides of the issue to discuss the environmental and health risks of GE products. We also provided the company with research showing gaps in the regulatory process, and a financial analysis of the biotech food industry indicating a loss of market share and falling stock prices. Sysco surveyed its suppliers and was told that their own brand name products could be GE-free in 2 years.

In 2002, the company abruptly terminated the dialogue with shareholders. Consequently, a shareholder group filed resolutions from 2003 - 2005 calling for a report on the impacts of GE foods, contingency plans for sourcing non-GE food ingredients should circumstances so require; and any issues of competitive advantage and/or brand name loyalty from use or non-use of GE ingredients.

While Sysco continues to avoid any transparency or dialogue on this issue, it has increased its use of certified non-GE products by becoming a market partner of the Food Alliance, a non-profit organization that promotes sustainable agriculture.

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Heinz

Heinz is one of the most recognized names among American food products. AYS was an active participant in the ICCR - Heinz dialogue from 2000 - 2003 when shareholders ended the dialogue after the company made significant efforts to eliminate GE ingredients from its products. Heinz was one the first US company's to publicly address the issue of GE foods by guaranteeing that its baby foods would be GE free. By 2002 Heinz completed an internal survey and released this statement: "we have investigated the source of all of our ingredients and reformulated, where necessary, our product range to eliminate GM [genetically engineered] content".

Heinz's transparency on this issue was matched by its willingness to engage in frank dialogue with shareholders on the workings of the food industry and the purchasing and marketing challenges relating to GE ingredients. For example, the company reformulated GE ingredients in many of its products but would still not label its US products due to the lack of crop segregation and the possibility of contamination. The company's decision to actively and publicly address this issue allowed it to receive the benefits of consumer loyalty and investor confidence, as well as avoid the negative press generated by grassroots groups targeting those companies that hid from this issue.

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Kellogg

Kellogg is another of America's most recognized brand names, yet unlike Heinz, it became a target of an international boycott over the issue of GE food. ICCR shareholders filed a resolution in 2000 and AYS participated in a shareholder dialogue at Kellogg from 2000 - 2001. AYS developed an investor fact sheet that looked at some of the reputational and financial risks facing the company from its use of GE ingredients and the ensuing consumer backlash. Shortly after this, Kellogg was one of many companies whose products were contaminated by Starlink, a GE corn not approved for human consumption. This prompted AYS to consider the overall impacts to the food industry as a whole in its report "Genetically Engineered Food and Financial Risks."

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Safeway

Safeway is one of the largest supermarket chains in the country and was another early target of consumer activists. A shareholder resolution was filed in 2000 and, similar to Kellogg, AYS developed an investor fact sheet that looked at Safeway's financial liabilities associated with use of GE products. AYS conducted a media campaign around the Safeway shareholder meeting that resulted in extensive Bay Area TV, radio and print coverage.

An exchange at the 2000 annual meeting between AYS and Safeway CEO Steve Burd was an example of things to come. Said Burd, "genetic engineering is not gene splicing", "these foods are pervasive, we have been eating it for decades", and government agencies "thoroughly tested and monitor" these products. AYS explained that the gene splicing is genetic engineering - fish genes were being inserted into tomatoes; that these products had only been pervasive for the last three years; and that testing had focused on the desired effect such as herbicide resistance or increased growth - and had not studied environmental and health related issues; and that the government did no testing, relied on voluntary consulting from the companies profiting from these products, and that regulatory loopholes exist like the Bt potato being classified as a pesticide not a food. This lack of understanding of GE foods, and in particular, the misunderstanding of the government's role in testing and oversight, was typical of the 40 companies that shareholders eventually approached about this issue. Five months later Safeway found itself the top story of extensive national TV, radio and print coverage as Safeway brand taco shells and other food items were found to contain Starlink corn - a GE corn not approved for human consumption - that led to a massive recall of Safeway products.

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