Iconic Organic Industry Giants Missing in Action

September 13th, 2012

UPDATE: We are pleased to report that Stonyfield Organic’s Gary Hirshberg contacted us and made a personal contribution and committed to supporting the Yes on 37 California ballot initiative. We are happy to remove him from the updated Missing in Action poster. For more details, click here.

Whole Foods, Trader Joe’s, Hain Celestial AWOL in GMO Food Labeling Fight

Sacramento, CA – Major players in the organic food market have been conspicuously silent in what has become the food fight of the decade.  This November, voters in California will have the opportunity to approve a ballot initiative (Proposition 37) that would require the labeling of all food products containing genetically engineered (GE) ingredients, commonly called GMOs.

Major agribusiness and biotechnology corporations, like Monsanto, and food manufacturers, like Pepsico and General Mills, are spending tens of millions of dollars in their effort to deny the consumer’s right-to-know what they are eating.

Numerous smaller companies and organizations involved in organic food production – which, by law, is prohibited from using GE ingredients – have responded with their own campaign in support of the right-to-know initiative, raising over $3 million.  However, this amount is dwarfed by the $23.5 million raised by the agribusiness and biotechnology corporations.  (A September 13 New York Times story provides more detail on this dynamic.)

But many organic industry observers are most puzzled by the failure of some of the giants of the organic industry to throw their support behind the initiative, which reflects the values held by their most dedicated customers.

“Whole Foods Market, Stonyfield, Hain-Celestial and Trader Joe’s are among the biggest manufacturers and retailers of organic food in the country, yet they have been AWOL during this epic food fight,” says Mark Kastel, Codirector of The Cornucopia Institute, a Wisconsin-based farm and food policy research group.  “These companies should be proud to stand with their health and food conscious customers and join their efforts for the right-to-know what we are putting in our mouths and feeding our children,” Kastel added.

The Hain Celestial Group has annual sales exceeding $1 billion from more than a dozen brands that are popular with organic consumers, including Earth’s Best, Arrowhead Mills, Garden of Eatin’ and Soy Dream.

Information reported by the California Secretary of State has helped illuminate the corporate players fighting the Proposition 37 ballot initiative.  Monsanto and the giant food lobby group Grocery Manufacturers of America (GMA) have been joined in the effort to defeat the initiative by multi-billion-dollar, multi-national companies including General Mills, Dean Foods, Kellogg and Pepsico.  Monsanto alone has donated $4.2 million, while food giants Pepsico and Coca-Cola have each donated more than $1 million.

According to Cornucopia, and California state records, numerous more modest companies, such as Nature’s Path, Dr. Bronner’s, Nutiva, Eden Foods, Organic Valley and Lundberg Family Farm are “walking their talk,” having collectively contributed hundreds of thousands of dollars to the campaign in favor of Proposition 37 and food transparency.  But the California Secretary of State’s records fail to show one red cent from the missing organic industry giants.

“There’s been speculation that because some of these company’s leaders have close relationships with Secretary of Agriculture Tom Vilsack, a proponent of genetically engineered foods, and others in the Obama administration, that they are sitting on their hands, and sitting on their wallets, so as not to embarrass the president during an election year,” Kastel notes.

“The sad reality is that the Obama administration has done nothing more to make GMO labeling happen than the Bush administration, while accelerating—at the behest of the biotech companies—the review and approval process for an increasing number of genetically modified food crops by the USDA.”

“To be candid with you,” Stonyfield’s Chairman Gary Hirshberg told the New York Times, “I understand exactly what they’re trying to accomplish, and I’m supportive of their goal, but I don’t believe that in the long run we can solve a problem like this on a state-by-state level.”

Cornucopia’s Kastel countered by saying, “Does anyone really believe that after our experiences with both the Bush and Obama administrations, and their kowtowing to the biotechnology and agribusiness lobby, due to their massive federal campaign investments, that we are really going to see within the foreseeable future Washington side with the majority of the population that wants to opt out of GE foods?”

“We are a small store that has been in business in Concord, MA since 1989,” said Debra Stark of Debra’s Natural Gourmet.  “We contributed to the Prop 37 effort because we believe it is important to stand with our most engaged customers who are voting with their forks every time they come into our store to purchase wholesome food.  Today, more consumers ‘get it’ than ever before.  Imagine if some of these giants stood with us!”

Independently owned Debra’s Natural Gourmet competes directly with Whole Foods and Trader Joe’s in the Boston metropolitan market.

Mandatory labeling of GE food ingredients is required in the European Union and dozens of other countries across the globe.  Where in place, it has led to broad consumer avoidance of foods made with inputs from the biotechnology industry.  The most recent polling from California indicated that almost 70% of the population supports labeling of GE ingredients.  This level of support will soon be tested by an impending flood of advertisements, financed by Monsanto and the giant food lobby, in opposition to Proposition 37.

With stock prices for at least two of the missing organic giants, Whole Foods Markets and the natural and organic foods conglomerate Hain Celestial, at all-time highs, John Roulac, founder and CEO of Nutiva, an organic superfoods company, doubts that their absence is about a lack of resources.

“We would love if brands and their founders minting millions from organic food sales would also support Prop 37,” Roulac says.  “I think folks have a disconnect on how important the GMO issue is for organic shoppers.”

Other prominent investors in the Yes 37 Campaign include the well-known natural health website, drmercola.com, and The Organic Consumers Association, with donations of $1.1 million and $770,000, respectively.

“Hiding the truth about our food is pervasive, unethical, and only done for money,” says Michael Potter, CEO of Eden Foods, an organic food manufacturer that financially contributed to support Proposition 37.  “Let this [Prop. 37] be the beginning of an end to it.”

The Cornucopia Institute has developed a chart and graphic http://www.cornucopia.org/2012/08/prop37/ that has gone viral on the web, illustrating the surprising involvement in fighting the right-to-know campaign of the corporate owners of many popular organic brands.  General Mills, Kellogg and Dean Foods own iconic organic brands, like Cascadian Farm, Kashi and Horizon Organic, in addition to their much larger stable of conventional food brands.

Other major organic enterprises that have yet to join the many independent marketers and retailers supporting proposition 37 include:

    Applegate Farms
    Newman’s Own “Organics”

Hain Celestial owns the following brands:

    Alba Botanica
    Almond Dream
    Arrowhead Mills
    Avalon Organics
    Casbah
    Celestial Seasonings
    Earth’s Best
    Ethnic Gourmet
    Daily Bread
    Danival
    DeBoles
    Garden of Eatin’
    Greek Gods
    Hain
    Health Valley
    Imagine
    Jason
    Linda McCartney
    MaraNatha
    Rice Dream
    Rosetto
    Sensible Portions
    Spectrum
    Sunspire
    Terra Chips
    Yves Veggie Cuisine
    Westbrae Natural
    Westsoy
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