Monsanto Company (MON): Whole Foods Market, Inc. (WFM)’s Brilliant Cross-Contamination Plan

Page 1 of 2

Earlier this month, Whole Foods Market, Inc. (NASDAQ:WFM) made a big decision — it’s giving its suppliers five years to either source non-gentically modified (GM) ingredients or clearly label any products that contain genetically modified ingredients. Whole Foods is so far the only major grocer to make this requirement, and it may prove to be yet another key differentiator between the company and its more conventional rivals.

Whole Foods Marlet Inc WFM

California residents may be reminded of last year’s Proposition 37, a ballot measure that would have required similar labeling for any foods with GM ingredients, statewide. The measure failed, contradicting polls that consistently show that huge majorities of Americans support GM labeling, but the vote was close — 53.1% to 46.9%. There’s a lot of debate over why the measure failed, but one thing is for certain — a lot people are interested in what goes into their food, and Whole Foods Market, Inc. (NASDAQ:WFM) isn’t necessarily just preaching to the choir.

Everything gives you cancer
During the Prop 37 campaign, some comparisons were made with 1986′s Proposition 65, which did pass and required warning labels on products containing chemicals known to cause cancer or birth defects. Unfortunately, it turned out that that was pretty much everything, and now almost any place you go has signs out front warning that the building contains cancerous chemicals. They’re so commonplace that no one really pays attention to them now. I’ve lived in more than one apartment with a warning sign not far from my front door.

The same problem exists for GM labeling. About 75% of all packaged food contains ingredients that come from genetically modified organisms, and the worry with Prop 37 was that the labels would be so commonplace that consumers would stop noticing them.

The easy solution is to buy organic food, which legally can’t contain genetically modified ingredients. This is what makes Whole Foods Market, Inc. (NASDAQ:WFM)’s labeling decision a key differentiator. Customers won’t necessarily have more information — Whole Foods already labels non-GMO products on its own. But conscious consumers may not connect the lack of a “non-GMO” label with the presence of GMOs, and by making suppliers label their own GM products, Whole Foods can highlight the stores’ large selection of organic products, including its own Whole Foods 365 Organic line. Because organic products tend to carry a higher margin, this move could prove to be as profitable for the company as it is helpful for consumers.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!