Ben & Jerry’s Finds Going GMO-Free Easier Said than Done

Favorite flavors such as Chunky Monkey and Pfish Food will be free of GMO ingredients by mid-2014, according to Unilever (NYSE: UN  ) subsidiary Ben & Jerry's. The iconic ice cream brand, noted for its socially conscious mission, reports that it can now certify about 80% of its ingredients as free of GMO (genetically modified organisms) ingredients.

In earlier statements, the company had planned to complete the transition to all non-GMO ingredients by the end of 2013, but the process has proved to be more daunting than anticipated. "After reviewing the more than 200 products that need to be converted, we realized this transition process will extend into 2014," said the company on an update on its website.

Source: Ben & Jerry's

It's not easy being GMO-free

The delay on the part of Ben & Jerry's highlights the difficulties that packaged food manufacturers who choose to go GMO-free are encountering. With a food economy built around a highly complex chain of ingredient sourcing that goes from farm to factory, the task of procuring ingredients that can be certified as not having come from GMO crops is daunting. This is especially true of grains such as corn, wheat, and soy. In 2012, 93% of all soybeans and 88% of all corn planted in the U.S. were from genetically engineered seeds, according to the USDA.

Post Foods (NYSE: POST  ) announced in January that it was labeling its Grape Nuts original cereal as "verified GMO-free" and would be researching whether it could take the same step with any of its other cereal brands. With just six ingredients, original Grape Nuts may prove to be one of the easier products to source and certify.

The Grape Nuts news followed on the heels of the announcement by General Mills (NYSE: GIS  ) declaring Cheerios free of GMO ingredients. The company described Cheerios as a logical product for this designation, as the cereal's main ingredient, oats, is not a GMO crop. The company was able to accomplish this by making changes to its sourcing for corn starch and cane sugar and did not change the cereal's actual formulation; even so, General Mills describes this transition as having required a "significant investment."

General Mills does not plan to reformulate any of its other non-organic brands, stating, "For our other cereals, the widespread use of GM seed in crops such as corn, soy, or beet sugar would make reliably moving to non-GM ingredients difficult, if not impossible."

Future of GMO crops in the U.S.

The FDA has been clear that it does not plan to take a stand against GMO crops, stating that these have been in the food supply for the last 20 years. Nevertheless, it does claim to be active in monitoring crops that have been genetically engineered (GE), a term that it uses to distinguish changes made in the lab from the more traditional methods farmers have long used to improve crops. The American Medical Association has taken a stand in support of the FDA policies.

With so much of its food economy invested in GMO crops and a lack of interest on the part of regulatory bodies to restrict genetically engineered seeds, it seems highly unlikely that a major change is on the horizon in the U.S.

The current actions by food manufacturers represent response to a reenergization of the opposition to GMO crops by grassroots organizations, which are working to require food labeling legislation at the state level.

The FDA, the American Medical Association, a number of the food manufacturing organizations, and even GMO source Monsanto (NYSE: MON  ) support voluntary labeling. However, the state initiatives are aimed at making labeling law.

The overriding concern on the part of the food manufacturers is that mandatory labeling will raise consumer awareness to a level that will force a difficult-to-manage backlash. When asked, just over a third of Americans consider foods with GMO ingredients safe to eat (as reported in a 2013 ABC news poll). This contrasts sharply with the nearly ubiquitous use of the ingredients in the general food supply. The disconnect suggests that most consumers just aren't thinking about it.

Why the changes now?

Ben & Jerry's has taken a non-GMO position not out of safety concerns, but because they support a consumer's right to know in general and they actively seek to support smaller farming enterprises. In this case, it is more against defending against "the man," large corporate agricultural companies for whom GMO farming is a matter of course.

Other food manufacturers who have moved toward non-GMO products are clear that their concern is not safety, but rather a support of consumer choice. General Mills cited "broad consensus among major global scientific and regulatory bodies that approved genetically modified foods are safe," in its release about Cheerios.

By giving shoppers the opportunity to purchase foods with ingredients they feel good about, food manufacturers may well also be staving off more difficult and costly changes that intensification of the non-GMO movement would provoke.

The next step for you
Want to profit on business analysis like this? The key for your future is to turn business insights into portfolio gold through smart and steady investing ... starting right now. Those who wait on the sidelines are missing out on huge gains and putting their financial futures in jeopardy. The Motley Fool is offering a new special report, an essential guide to investing, which includes access to top stocks to buy now. Click here to get your copy today -- it's absolutely free.


Read/Post Comments (5) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 22, 2014, at 12:15 PM, MikeyB73 wrote:

    Interesting. The B&J ice cream flavor you spelled 'Pfish Food' is properly spelled 'Phish Food'. It's named after the biggest cult band in the world, Phish.

  • Report this Comment On February 22, 2014, at 12:15 PM, MikeyB73 wrote:

    Phool ;)

  • Report this Comment On February 22, 2014, at 4:31 PM, BreakerBeth wrote:

    Good catch, MikeyB!

    Phool,on! :)

  • Report this Comment On February 23, 2014, at 1:29 PM, DrKND wrote:

    Fool, you keep posting deceptive pieces on GMOs that insist that they are safe and that the only issue is choice. But we are not deceived no matter how many times you promote the lie. The only reason that consequences of these crops aren't better known is that the lack of labeling prevents us from tying consequences to them. That's why these biotech firms and food companies are willing to spend a fortune to circumvent the will of the people (90% of us say JUST LABEL IT). So keep hyping GMOs Fool, but we are not fooled. This open air experiment on our food supply, conducted over two decades without proper controls or the consent of we the people, must be reigned in. If GMOs turn out to be great for humanity, I'll be thrilled. But until the cross generational studies are done, we have not honestly assessed what the real consequences of introducing non-natural elements into our foods are.

  • Report this Comment On February 23, 2014, at 6:38 PM, SlowMoneyFarm wrote:

    If people want nonGMO foods they're out here.The majority of people just don't care. People are busy, and we know we cannot feed the majority of the population. The big companies and restaurants need volume, and that doesn't come from small farms they like to picture any more than Tysons or Smithfield's. If people want more nonGMO *help us*. Invest in us, make it possible for us to have a market to sell to without competing with the volume farms that use the technology.There's a choice for every person and a farmer producing it, or willing to. We do heirloom/heritage focus, not for fear of GMO but because it's what we like. Having a market for the products enables conservation of animals and plants that have been around for 100 years or more. Efficient is good, but so are choices. Make them, invest in them and that will grow. Or do nothing and continue investing in large companies and complaining how "they" are eliminating the small farms.

Add your comment.

DocumentId: 2849110, ~/Articles/ArticleHandler.aspx, 7/25/2014 1:24:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement