Whole Foods Market, Inc. (WFM): Bold Moves Make a Great Investment

Page 1 of 2

Whole Foods Market, Inc  (NASDAQ:WFM) has made a bold statement many of its major grocery rivals would never dare make. The organic and natural grocer is mandating that its suppliers label the products it sells in its aisles to disclose whether they contain genetically modified organisms (GMOs).

A major move like this — which absolutely goes against status quo — is why Whole Foods Market, Inc. (NASDAQ:WFM) is one of my favorite stocks as well as a component of the Prosocial Portfolio I’m managing for Fool.com.

Whole Foods Market, Inc. (NASDAQ:WFM)Secret sauce indeed
Many Americans likely remain unaware that GMOs are present throughout our food supply. Most corn and soybeans are genetically modified at this point, and these are ingredients in scores of popular foods. A quick glance at nutritional labels will reveal how many popular conventional foods contain high-fructose corn syrup, for example.

Many of the products Whole Foods Market, Inc. (NASDAQ:WFM) already carries have already disclosed that they’re GMO-free on their labels. According to the grocer, customers respond very well, showing a healthy market for such products, with some enjoying 15% to 30% sales increases. Furthermore, organic products don’t need to be labeled as GMO-free, since that’s part of the organic definition.

The daring move comes after the California Proposition 37 defeat, which sought to require all food companies to label products including GMOs. That defeat came after powerful, cash-rich companies such as Monsanto Company (NYSE:MON) , PepsiCo, Inc. (NYSE:PEP) , and The Coca-Cola Company (NYSE:KO) shelled out millions in an anti-labeling campaign. Whole Foods Market, Inc. (NASDAQ:WFM) and The Hain Celestial Group, Inc. (NASDAQ:HAIN) were among the companies that backed GMO labeling.

Some scientists and companies, as well as the Food and Drug Administration, say genetically modified foods are no different than their counterparts whose genes haven’t been tinkered with.

Still, critics claim that there hasn’t been enough study, and some even say that scientific findings about negative impacts of GMO crops and their effect on health and the environment have been suppressed or too flippantly dismissed. However, the most compelling and commonsense part of the pro-labeling argument may simply be that consumers have a right to know what they’re eating and how it has come to be on their plates.

Seeds of change
Although Whole Foods has imposed a five-year deadline for its suppliers to get with the program, note that it’s the only major grocer that’s pushing its suppliers on this issue, and that’s a pretty amazing move. It’s already the major grocer that far and away carries the most certified non-GMO products in North America, with that number of products coming in at 3,300.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

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!