A growing concern over health and environment issues has influenced many people’s choice “to avoid pesticides, hormones and other chemicals used in conventional farming”1 (Chang,1). A development which food and beverage providers, that use genetically modified ingredients, are battling with, as allegations regarding the mislabeling of products have resulted in large expenditures towards legal liabilities.
On the other hand, the CEO’s of Whole Foods are avoiding the costly lawsuits by recently advocating the company’s “support to the consumer’s right to know”, and ensuring all products with genetically modified ingredients are properly labeled by 2018.
(Figure 1)
Whole Food’s has already created shared value by providing organic food to growing numbers of environmentally conscious consumers, while simultaneously supplying from and supporting local farmers. Therefore, their recent promise to complete GMO* transparency will further enhance value and competitiveness. The company will create a loyal customer base who will develop trust towards their merchandise, which along with a growing interest in organic foods will increase sales and the demand for supply from local producers. The company’s promise will not immediately lead to a higher revenue, however, is a strategic reaction to recent GMO labeling allegations that forecasts for future market profitability.
*Genetically Modified Organism
Direct Reference to Kenneth Chang’s Blog. (External): 1.) Chang, Kenneth. “Organic Food vs. Conventional Food.” Well Organic Food vs Conventional Food Comments. N.p., n.d. Web. 08. Nov. 2013. <http://www.well.blogs.nytimes.com/2012/09/04/organic-food-vs-conventional-food/?_r=2.>
Figure 1: https://www.youtube.com/watch?v=L1sYxIpBjVM#action=share
Other sources.