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Michele Simon

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Why PepsiCo Is Fighting GMO Labeling in California

Posted: 08/09/2012 3:40 pm

Most people just think of soda when they hear the name "Pepsi." But in fact, PepsiCo is the nation's largest food company and second largest in the world. Its annual earnings top $60 billion, from a dizzying array of brands. Walk down almost any supermarket aisle (soda, snacks, cereal, juice) and you're likely to bump into a PepsiCo-owned product.

This explains why the company is the top contributor among food makers to the "No on 37" campaign in California -- a ballot initiative that would require labeling of foods containing GMO ingredients. Also, as I wrote about recently, PepsiCo is a member of the Grocery Manufacturers Association, a powerful trade group that has so far contributed $375,000 to the No on 37 campaign.

Why would PepsiCo pony up more than $90,000 just to keep Californians in the dark about what they are eating? A closer look at its "portfolio of products" (in corporate speak) reveals exactly what's at stake for the food giant.

PepsiCo brands span five divisions: Pepsi-Cola, Frito-Lay, Gatorade, Tropicana, and Quaker. While most consumers probably think of processed snacks and cereal-type products when trying to avoid foods containing GMOs, beverages are also a major culprit (which explains why Coca-Cola has donated more than $61,000 to the No on 37 campaign).

Estimates are that up to 85 percent of corn grown in the U.S. in genetically engineered, and a significant number of PepsiCo brands contain some form of corn. For example, among PepsiCo beverages sweetened with high-fructose corn syrup are brands such as Pepsi and Mountain Dew, as well as the AMP Energy and Lipton iced tea lines, each of which contain numerous flavor varieties. Even some products within the company's Tropicana line of "juice drinks" contain HFCS. Then there's Naked Juice, which last year became the target of a consumer deception lawsuit over the brand's "non-GMO" claim on the label, among other issues. (Gatorade reformulated its products to replace HFCS in 2010, but is not exactly a health drink either, as recent research has revealed.)

Speaking of GMO-related lawsuits against PepsiCo, I wrote last December about how the company is being sued over several Frito-Lay snack products labeled "natural," despite containing genetically-modified corn and vegetable oils, including corn, soybean, and canola oils. (That case was re-filed earlier this year.) In 2010, Frito-Lay announced that half of its products would be made of "all-natural ingredients," but of course non-GMO isn't part of the company's definition of natural. As I have explained, the Food and Drug Administration unfortunately has so far refused to create a workable definition, which is why companies like PepsiCo are able to deceive customers so easily.

The scope of Frito-Lay products potentially impacted by GMO labeling is vast. Among the brands under this $13 billion division that contain corn include Fritos, Doritos, Tostitos, and Cheetos. And that's not counting the vegetable oils, which are almost all made with GMO ingredients. Even allegedly healthier brands like SunChips contain GMO corn, which is why that product is named in the deceptive labeling lawsuit against Frito-Lay.

Even PepsiCo's relatively healthy division Quaker would be impacted if GMO foods must be labeled. In addition to plain old oats, the Quaker brand makes heavily processed granola bars. I counted six sources of corn -- including HFCS and "corn syrup solids" -- in this new "yogurt" variety (which contains no actual yogurt, but rather "yogurt flavored powder" -- don't even ask). It's one thing for junk foods to bear a GMO label; I can't imagine hard-core Cheetos fans caring too much about GMOs, but Quaker consumers probably would.

Another PepsiCo brand sure to make HQ nervous over GMO labeling is Mother's, which claims its products are "all natural." The Cornucopia Institute tested Mother's cereal and found that it contains GMO ingredients, which is expected since some of the varieties contain corn. Imagine how many mothers would be upset to learn that the cereal named after them is genetically engineered.

PepsiCo's official policy regarding using GMO ingredients is rather bland:

Approval of genetically-modified foods differs from country to country regarding both use and labeling. For this reason, PepsiCo adheres to all relevant regulatory requirements regarding the use of genetically-modified food crops and food ingredients within the countries it operates.

Translation: We follow the law, very impressive. But the statement also points to how the company has different standards around the world depending on what the law requires. More than 40 other nations -- including the entire European Union -- require some form of disclosure for foods made with GMOs.

What a shame that here in its home country, PepsiCo wants to ignore what 90 percent of American consumers say they want: to know which foods contain GMOs. PepsiCo would rather fight to maintain the status quo because it means a continued cheap supply of ingredients for its highly-processed, unhealthy beverages and junk food.

 
 
 

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01:07 PM on 09/27/2012
'GMOs are as safe as real food, but we're going to PATENT them because they're different, but they're really the same.........but a different kind of same, so we're patenting them......
11:28 PM on 09/20/2012
In the final analysis, the issue at stake is liberty. We most certainly have a right to know what we are consuming. From this point forward, Americans ought to find out who is bankrolling NO to 37, and boycott their food products. Period.
01:35 PM on 09/17/2012
people are all GMO products
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Lisa Seville
Put the lime in the coconut
10:47 PM on 08/21/2012
It's all about money. Pepsico will lose money if they label GMO products-If they would make money labeling GMO products we wouldn't even be having this conversation. Their quest of your money at the expense of your health and the health of your children & grandchildren supersedes you making an informed choice. They don't want you to know their "dirty little secret" and will spend whatever amount needed to keep you in the dark. They have made billions annually off of your ignorance and they don't want to lose any money by informing you now.
11:57 AM on 08/16/2012
continue from last post... However, by feeding cattle grain, this caused Ecoli to mutate (O154 H7). This particular strain is acid resistant. When ingested by humans, O154 H7 can lead to kidney failure or death! Living is within our control. We should strive to eat with purpose. I'm not saying that you shouldn't reach for the cake made with pasteurized flour. I'll be the first to say that I love cake! All I am saying is that you can choose to support companies and organic farmers that support "purposeful" eating. A great first step is to increase eating fresh and eating local.
02:39 AM on 10/09/2012
"by feeding cattle grain" What does that even have to do with GMOs?
11:56 AM on 08/16/2012
This conversation goes beyond GM and PepsiCo. We need to consider the entire US food chain! While technologies such as GM seem to increase our quality of life and offer consumers access to affordable foods, readers should consider the hidden consequences. There are so many that I can't list them all. For example, food engineers work tirelessly to develop and process natural ingredients such as wheat. When processed, this allows for longer shelf life and transportability across borders. The deleterious consequence is a decrease in nutrient. Then, the food engineer adds back key minerals lost during processing. Multinational food companies use the economic euphemism "adding value." Really? Maybe I just don't get it but this seems backwards. Why take out nutrient in the first place. Consider the bag of wheat flour in your cupboard. Have you stop to take notice of the minerals listed on the food label? Yup, most of the time, those are nutrients that have been "added" back. You have to ask yourself: are you better off with what naturally occurs in your wheat or are you better off eating wheat that was pasteurized with added minerals that were mined from the Earth sourced from who knows where? How about giving cattle corn feed? Ruminants have evolved to eat grass not grain. Some forms of Ecoli are naturally found in ruminants. When humans ingest meat for a grass fed cow, the acids in our stomachs naturally kill bacteria, including Ecoli.
08:22 PM on 08/14/2012
I wonder how California plans on enforcing the labeling laws? The USDA has a program that allows farms and food manufacturers to become certified as organic. They have very stringent rules, record keeping and compliance procedures to ensure that all products sold in the US that are labeled "organic" meet certain standards. From their website:

"The USDA organic regulations prohibit the use of GMOs, listing them as “excluded methods…."
To prevent GMOs from being introduced into organic production, producers do not use genetically modified seeds or other materials when planting crops. They also work with their certifiers to implement preventative practices that effectively buffer their farms from GMO contamination.

Organic food handlers and processors also ensure that their ingredients are not produced from excluded methods. Certifying agents review and audit all of ingredients–not only the agricultural ingredients but also others that are allowed in organic processing, like baking soda, yeast, dairy cultures, and vitamins–to verify that they are not genetically modified."

It's a very extensive and thorough program. How will California monitor all food manufacturers to ensure that food with GE ingredients don't get labeled "GMO Free?" Are we going to take their word for it? Or will we spend the billions it would take to set up such an elaborate monitoring system to check the source of every ingredient going into all food sold in the state? I take Pepsi Co.'s opposition as a good sign
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10:45 PM on 09/16/2012
Um, FrenchKissed? Again? I see you following around these posts about Prop 37 and genetic engineering, as if you're being paid to do so.

Is that a bait you're setting? Are you looking for supporters of labeling to say, well, of course, noncompliance would bring on lawsuits? Do you really think us so gullible? And companies unwilling to comply? These days, testing kits are so prevalent, that I, as a lowly consumer, can purchase one at an affordable price. Done on an industry scale, it would be a pittance.

I believe, in the end, the collective arrogance of the industrial ag, processed food industry, and their sniveling pawns will be their undoing.

We're not quite as stupid as you and your cohorts would like to believe.
03:36 AM on 09/17/2012
Apparently you are, but don’t feel bad because you’re just one of dozens of people who have accused me of being on Monsanto’s payroll or part of some massive industrial agriculture conspiracy.  It would be funny if it wasn’t so tired and predictable by now.

 

Let’s think about this for a minute- why would Monsanto pay someone who posts about sex worker’s rights and state sanctioned, same sex marriage?  I’ve made it clear that I am against the war on drugs, and in favor of peace in the Middle East (with Jerusalem as the capitol of a UN recognized Palestinian state that respects Israel’s right to exist). 

 

Do you think they’d have a paid spokesperson with a bad temper who occasionally spoke very bluntly about things of a personal, sexual nature?  I am probably close to the bottom of the list of people Monsanto would want speaking on their behalf.  Yet these baseless accusations keep coming as though you were incapable of understanding that a regular person would feel as strongly as you do, but from the opposite direction
01:21 AM on 09/17/2012
"the billions it would take to set up such a monitoring system..." I don't think so! It didn't take "billions" to separate the GMO from the non-GMO, monitor and ship the products that Europe demanded, why should it take "billions" to do the same in Pepsico's country of origin? All the problems some anti-labeling folks like to raise have all been solved already for the citizens of Europe. Suddenly it's just impossible to do it for U.S. citizens? Not falling for that one.
04:11 AM on 09/17/2012
You are quite right, it would cost many millions to enforce, not billions. However, apparently we're just going to take their word for it, unless it comes from a company big enough to sue and then they'll test some products for litigious pursuit. The whole thing is a scam, but we Californians are notoriously dense when it comes to this sort of thing.
01:42 PM on 08/14/2012
Lots of corn along I-5 south of Sacramento that is reported to use 2000 gal of water to grow corn for 1 gal of ethanol for my gas tank.

Should Governor Brown consider a waiver supported by the UN?

Is fed EPA confused when a Lodi bread baker is taken to fed court to collect $625,000.00 fine for generating ozone from the ethanol made by baking bread while mandating millions of tons in our gas that may be a bigger deal than MTBE to our ground water supply? Do water folks check for ethanol in our drinking water?

Drinking ethanol maybe rated as causing cancer but MTBE never has.

Does ATF audit for the payment of $17 tax of moonshine from the GMO corn fuel ethanol?

Let's see, a 10,000 gal tanker truck can move around a $170,000.00 tax and a reported $0.50 cent process can move fuel grade to food grade.
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Lisa Seville
Put the lime in the coconut
08:55 PM on 08/13/2012
People have a right to know if their food is genetically modified. Labels should of course tell you if they have GMO's in their products. When foods containing GMO's are all exposed you won't believe how many of them you have been consuming.
08:01 PM on 08/14/2012
Maybe when people realize how much GM food they've been consuming they'll finally realize they've been getting all worked up over nothing.

People have a right not to eat genetically engineered food; they don't have a right to demand warning labels on food that poses no threat to their health.
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Lisa Seville
Put the lime in the coconut
12:52 AM on 08/18/2012
And you know this how ???? not enough testing has been done to verify what you just stated. We are not science experiments. Contains GMO's is an information label but yes it is a warning label also since it is dangerous and brought to you by the same company that made Agent Orange-chat with those victims-Oh, the pesticide in GMO corn is placed in the DNA of the corn to explode insects stomachs and is suppose to break down before you consume it yet it has been found in pregnant woman and umbilical cords. It is like drinking round-up-How can you say it poses no threat to OUR health.
06:41 PM on 09/17/2012
Remember what happened to Big Tobacco? They said it was safe.. Now, look at that industry.
Youre a contradiction, we have the right, you say, to not eat GM food, but dont have the right to know its there.. What?!!
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spriddler
07:19 PM on 08/13/2012
Its nice to see that the right isn't the only side of the spectrum with an anti-science bent.
02:00 PM on 08/13/2012
The company, and farmers, have just been fullfilling the public's wishes which is to pay next to nothing for food so that they can afford 65inch flat screens, high def tv and the newest and greatest iPods and iPhones.

And of course all the advancements have meant the public no longer has to perform much manual labor and can afford to spend many luxurious hours drinking $5 lattes and whining about how farming is done without so much as lifting a finger.
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Lisa Seville
Put the lime in the coconut
11:16 PM on 08/21/2012
Monsanto-DuPont-Bayer Chemical companies are not meeting our needs. They are making money from enslaving Farmers and poisoning the public without our knowledge and now we want to know which products contain GMO's and they don't want us to know. Pepsico distributes fake foods containing Beet Sugar-High Fructose Corn Syrup-Soy Protein or oil from Monsanto GM Corn-Beets-Soy and Cottonseed Oil made from GM cotton. They make Tons of products containing these things-look at the labels of processed foods. The public does do manual labor and cannot afford spending hours drinking $ 5.00 lattes. We have a right to know how farming is done and farmers are the public EXCEPT the factory Industrial farmers who do what they are told by the chemical companies or get sued and lose everything. If the COMPANY was doing what we wanted and granting our wishes they wouldn't sue states requiring labels after the public voted they overwhelmingly demand them.
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alienobserver
01:25 PM on 08/13/2012
We have the RIGHT to know and make our own decisions. It's a bloody nghtmare out there in the grocery world, organic and natural mean very little without FULL disclosure.
06:56 AM on 08/14/2012
You're telling me that the USDA went through all the trouble of establishing an organic certification program and you don't have a clue what it means?

http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&navID=OrganicStandardsLinkNOPNationalList&rightNav1=OrganicStandardsLinkNOPNationalList&topNav=&leftNav=&page=NOPOrganicStandards&resultType=&acct=nopgeninfo
(my apologies for the annoyingly long link)

As it stands, organic certification and labeling laws are enforced and violators subject to an $11k fine. Who do you think will be overseeing compliance of GMO labeling if the law passes? Or will you trust everyone will tell the truth?
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alienobserver
08:27 PM on 08/14/2012
Big Biz will probably convince the universe they can police themselves if, and it's a very big if, they are ever made to disclose GMO ingredients!
06:45 PM on 09/17/2012
This is a labeling law.. nothing else. There are no provisions to start a new regulating agency.
Again you contradict yourself by stating that GM foods havent been proven to be a health risk and then yet again pose the question, "Are you going to trust them?"
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Lisa Seville
Put the lime in the coconut
10:50 PM on 08/21/2012
your right-you deserve a label-we all do
09:13 PM on 08/12/2012
TWEAKING IS TWEAKING! SHAME ON ANY COMPANY WHO FEEDS US THIS CRAP JUST BECAUSE IT'S CHEAPER FOR THE PROCESS.
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steve12
06:42 PM on 08/12/2012
It is my hope that if the food manufacturers had to disclose which foods are GMO'd or not that it would put pressure on its producers to reduce the number of products containing GMO'd ingredients. I realize that this may increase our cost of food, but that's a choice that the consumer should be allowed to make.
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06:13 PM on 08/11/2012
As if Coke and Pepsi wasn't unhealthy enough for you, now, it's unhealthy and made with genetically modified corn syrup. So the corn is most likely GM and then I heard they use an GM enzyme to make the corn syrup. It's really terrible.

At least back in the day it was a sweet little treat and because it was sugar, it was harder to keep drinking it all day long cause of the way the body breaks down sugar. With fructose you can keep drinking and drinking. I've lost so much faith packaged foods and processed foods, along with my lost faith in America in general.
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HazelPethigFan
I don't know until I know
10:17 AM on 08/12/2012
cane sugar is full of fructose as well doofuss.
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Lisa Seville
Put the lime in the coconut
08:59 PM on 08/13/2012
beet sugar is made from beets that contain GMO's-so if something says sugar but doesn't mention cane then it is also filled with GMO's.