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

As always, Whole Foods is ahead of the curve compared to many conventional rivals. Here’s another interesting element on the horizon: Some huge companies are beginning to start a constructive discussion about GMO labeling laws, given clear momentum in the right-to-know movement and more GMO labeling-related ballot initiatives in other states. The New York Times reported in January that executives from behemoths Pepsi, ConAgra Foods, Inc. (NYSE:CAG) , and  Wal-Mart Stores, Inc. (NYSE:WMT) met with pro-labeling groups to discuss lobbying for a national labeling program.

It’s becoming clear that these companies must acknowledge the writing on the wall: It simply doesn’t look good to take a position that your customers should be kept in the dark because you believe you know better what’s good or safe for them to consume. .

Wal-Mart even getting into the discussion about forcing a change like this is a huge deal, but Whole Foods has been consistently ahead of the curve, first in offering so many GMO-free products to begin with and now for vowing to make the complete shift to labeling. It’s one store where consumers will know they’ll have the full scoop on this issue by 2018.

Monsanto and DuPont , both the biggest companies specializing in genetic modification of seeds, stand to lose big time should the tide continue to turn. Investors should be aware of the risks of rejecting consumers’ right to know, given their industry’s patronizing defense that mandatory labeling could “mislead or confuse” consumers.

Pepsi and its ilk can regain some goodwill by furthering the movement to label such foods (and, ultimately, maybe even remove them from their product offerings). Last fall, I expressed disappointment in Prosocial Portfolio stock Pepsi’s involvement in contributing money to anti-Prop 37 efforts.

Some may not understand why Whole Foods is such a strong investment to own for the long term, but situations like this one tell you exactly why. Whole Foods isn’t just “another grocer.” It’s willing to make bold moves into the future, not kick and scream about staying in the past. The market’s been speaking louder and louder on the GMO issue, and Whole Foods has obviously been listening.

The article Whole Foods: Bold Moves Make a Great Investment originally appeared on Fool.com and is written by Alyce Lomax.

Alyce Lomax owns shares of Whole Foods Market. The Motley Fool recommends Coca-Cola. It recommends and owns shares of Hain Celestial, PepsiCo, and Whole Foods Market.

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