2016 Annual Meat Conference February 21-23, 2016 Nashville, Tennessee
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1 2016 Annual Meat Conference February 21-23, 2016 Nashville, Tennessee Addressing the Consumer Concern with GMOs David Fikes Food Marketing Institute VP, Consumer/Community Affairs and Communications
2 Three propositions Consumers are confused about GMOs; concern is more about right to know than alarm about the process. 20+ years of use and testing, not a single documented instance of harm to human health resulting from genetic modifications. GMOs are caught in the vortex of the noted consumer skepticism of science. 2
3 Consumer confusion is justified GMO is a complicated scientific procedure requiring sophisticated technological expertise. Tend to distrust or question that which exceeds our comprehension or requires work to understand. Especially distrust it, if we think/fear information is being withheld from us. 3
4 What is a GMO? GE, GM, GMO refer to the highly technical process of taking the gene for a specific characteristic from one organism and transferring it to another. A gene displaying a desirable characteristic found in one plant, animal, virus or bacteria is isolated & scientifically transferred into the genetic code of another plant, making it a genetically modified organism or GMO. Shorthand for food products containing ingredients coming from crops that have had their DNA altered in a laboratory setting. 4
5 What is a GMO? The short answer. A GMO is a crop that has very specific changes made to its DNA usually having one to two genes added or silenced to achieve a desired trait. 5
6 Confusion abounds about GMOs In some cases, GMO refers to the process, in others its refers to the products that are the result of the process. GMO is not an identifiable ingredient like salt, but is the alteration of the genetic code of ingredients used in food products. Crops approved for genetic modification and commonly found in the marketplace include soy beans, corn, cotton, sugar beets, squash, zucchini, papaya and alfalfa. In 2015, USDA/FDA approval was granted for varieties of GMO potatoes and apples. 6
7 Confusion abounds about GMOs Difference between consumer concern about GMOs (seeking non-gmo product) and consumer desire for having GMO products labeled. Shift in activist tactics from a fear of unforeseen consequences/hasn t been studied argument to you have a right to know argument. Need to separate the science and technological expertise of companies developing GMO technology from criticism of their business practices. 7
8 Consumer Research FMI s U.S. Grocery Shopper Trends 2015
9 2015 The Hartman Group, Inc. FMI U.S. Grocery Shopper Trends, 2015 GMO Avoidance is Currently More about Minimally Processed Foods than about Health Shoppers tend to have sets of claims they seek in tandem, corresponding with underlying interests and values. Those who seek high fiber, for example, tend to be among those who seek whole grain. Those who seek low calories tend to among those who seek low sugar on the one hand and low carb on the other. Seeking Non-GMO is the single strongest indicator of an underlying interest in minimal processing, cued by an array of alternative claims such as Certified organic or No preservatives. Whole grain Low sodium Low sugar High fiber No artificial ingredients No trans fats No preservatives Low calorie No/Low fat No HFCS (high-fructose corn syrup) Natural Non-GMO Low/Lowers cholesterol % 41% 37% 35% * * 33% 31% 30% 28% 24% 22% 22% Claims sought by shoppers % 29% 29% 28% 26% 26% 38% 38% 37% 36% 35% 41% 41% Claim patterns identified via factor analysis* Reduces risk of heart disease/heart healthy Certified organic Low carb Antioxidant-rich Vitamin-enriched Calcium-fortified Gluten-free 21% 18% 22% 20% 18% 14% 11% 10% 14% 22% 20% 20% 19% 19% Red boxes indicate that change in results year over year are statistically significant at p< Source: FMI U.S. Grocery Shopper Trends, H11: What health claims do you look for on the package when purchasing a food product? *Principal-axis factor analysis, Varimax rotation. 2014, n=1, , n=1,164.
10 2015 The Hartman Group, Inc. FMI U.S. Grocery Shopper Trends, 2015 A growing number of consumers are intentionally avoiding GMOs What are shoppers currently doing about GMOs? One-fourth look for non-gmo, threequarters do not Currently seek non-gmo 26% vs. 22% in 2014 Do not currently seek non-gmo 74% How do GMOs sound to them? After hearing a brief description, an additional one-fifth of shoppers said they would avoid GMOs In sum, then, almost half (45%) of shoppers say they would avoid GMO s Would avoid GMOs based on description 26% 19% 45% vs. 47% in % 10 Source: FMI U.S. Grocery Shopper Trends, G0: Please indicate whether you deliberately avoid or make sure you get any of the following kinds of foods or beverages. G1: Which of the following comes closest to describing your opinion about foods and beverages that may include ingredients from biotechnology or genetically modified organisms (GMOs)? Shoppers n=1,164
11 2015 The Hartman Group, Inc. FMI U.S. Grocery Shopper Trends, 2015 Widespread Interest In GMO Labeling Is More About Labeling, Less About GMO's Specifically Even among U.S. shoppers who say they do not and would not avoid GMO s, 63% support labeling as opposed to leaving on the shelf with no identification or special treatment. This represents a baseline pre-disposition to want information, rather than specific support for GMO labeling. This means that more than half of the responses supporting labeling comes from those with no current or potential GMO interest Shopper interest in identification or banning/removal of GMO products, among groups differently engaged with GMO 81% 13% 68% 63% Overall (all adult shoppers) 68% 5% "Would not avoid" GMO's (55% of adults) 96% 99% 17% 30% 79% "Would avoid" but don't currently (19%) 69% Currently avoiding GMO's (26%) Ban GMOs Label GMOs "I read about it, and there s such mixed research on GMOs. I guess I m cognizant and wary of them, and so I try to avoid them. I mean, it s the same thing with hydrogenated oils and different things like that. There are so many headlines, and you start looking into that, and the FDA says oh, no, it s safe, but I don t know if I trust them implicitly. They said smoking was safe at one point. So I try to avoid things like that. I do support labeling. I think the more knowledge you have, the better." 11 Source: FMI U.S. Grocery Shopper Trends, G2: Do you think foods and food ingredients from biotechnology or genetically modified organisms (GMOs) should be? Overall n=1,101; Would not avoid n=563; Would avoid, but don t currently n=228; Currently avoiding GMOs n=310 Erin, Female primary shopper, 44, Seattle
12 FMI U.S. Grocery Shopper Trends, The Hartman Group, Inc. Appendix GMO Survey Results To navigate this complex subject, the FMI survey presented GMO opinion questions in multiple formats to understand bias or distortion due to question framing. However, consumers were relatively consistent in their responses across all the framing texts used. V.2 "The US Food & Drug Administration (FDA) has determined that genetically engineered foods (GMOs) are safe and do not differ from other foods in any meaningful way." V.3a "The US Food & Drug Administration (FDA) has determined that genetically engineered foods (GMOs) in the marketplace are safe and do not differ from other foods in any meaningful way. On the other hand, some consumer groups say that GMOs are unproven and could pose risks to consumers, farmers or the environment." Total V.1 (no definition) G1) Which of the following comes closest to describing your opinion about foods and beverages that may include ingredients from biotechnology or 'genetically modified' organisms (GMOs)? V.3b "Some consumer groups say that genetically engineered foods (GMOs) are unproven and could pose risks to consumers, farmers or the environment. On the other hand, the US Food & Drug Administration (FDA) has determined that GMOs in the marketplace are safe and do not differ from other foods in any meaningful way." I would seek them out when available 4% 3% 4% 6% 4% I would avoid them if I can 45% 50% 41% 42% 46% I neither seek them out nor avoid them 51% 47% 54% 52% 50% G2) Do you think foods and food ingredients from biotechnology or 'genetically modified' organisms (GMOs) should be? BANNED by the government 13% 17% 9% 11% 12% Required to be identified by food manufacturers on the PRODUCT LABEL 68% 66% 69% 68% 68% Offered by food stores everywhere with NO SPECIAL LABELING 9% 6% 10% 12% 7% Never identified in any way whatsoever 11% 10% 12% 9% 14% 12 Source: FMI U.S. Grocery Shopper Trends, n=2,265 (Total), n=756 (Question version 1), n=735 (Question version 2), n=370 (Question version 3a) n=381 (Question version 3b).
13 GMO Talking Points - Meat Department All GMO crops (including corn, soybean, and sugar beets as well as others) have been evaluated by the USDA, FDA and EPA and other world-wide scientific organizations and found to be safe and healthy for people and animals to eat. Meat and poultry livestock are not GMO. Although most animals are fed with GMO ingredients including corn and soybeans, there is no evidence that eating ingredients from GMO plants affects animals meat or milk. Organic meat and poultry is non-gmo and is from animals that are fed animal feed that does not contain ingredients from GMO plants. Source; 13
14 Safety of GMO Feed GM products have been in the U.S. food supply since 1996 hence we have years of practice that have shown no negative impact on animal or human health. Farm animals, the most carefully monitored animals on the planet, have been raised on GM corn and soybeans over several generations and there is no evidence of negative effects on growth, reproduction or disease. And there has been no documented case of human illness or allergen associated with GM foods. Dr. Ruth MacDonald, Professor and Chair of Food Science and Human Nutrition, Iowa State University 14
15 FMI Board Policy Regarding Genetically Modified Food and Biotechnology With regard to genetically modified (GMO) or genetically engineered foods and biotechnology, Food Marketing Institute believes: Retailers and the consumers they serve need one national standard for non-gmo food products; that standard must include clear criteria and definitions. Consumers should have access to consistent, accurate and relevant information about the food products they buy, and federal labeling standards for non-gmo products, under the purview of the U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA), are essential to avoid the inconsistent and confusing pitfalls of a state by state patchwork labeling system. Any GMO labeling program should focus on providing consumers the ability to clearly identify those products that are not genetically modified nor contain genetically modified ingredients. There is a need to provide unbiased scientific information to the public about genetically modified foods, especially since FDA has determined that genetically engineered foods (GMOs) in the marketplace are safe and do not differ from other foods in any meaningful way. This educational information will be most effective if undertaken as a cooperative effort among the agricultural, retail and manufacturing sectors of the food industry, the government and the scientific and consumer advocacy communities. 15
16 Impact of the Vermont GMO labeling legislation Facing a July 1 implementation deadline. Unknown time frame of pending legal case questioning the constitutionality of the Vermont law. Appeal to have a temporary injunction, while case is being considered was denied, but that decision is in the court of appeals. 16
17 Vermont GMO labeling legislation Manufacturers and retailers with private brands operating in Vermont face 4 options: Roll the dice and do nothing. Weigh the size of their Vermont market with the cost of implementation. Design/implement a Vermont-only label. Redesign all applicable labels for national products to be Vermont compliant. 17
18 Vermont GMO labeling legislation Those opting to redesign are wondering what happens when other states enact GMO labeling legislation that differs from that of Vermont - like Connecticut and Maine have already done and New Hampshire and New York (among others) are considering? 18
19 What is Being Done? FMI, GMA and the agriculture community are supporting efforts of U.S. Senate Agriculture Committee Chairman Pat Roberts to introduce a bill that would: create a national standard. pre-empt state GMO labeling laws. call for education Notice of mark-up of this legislation was released late on Friday 19
20 Revising FMI policy Remains preference that any disclosure program focuses on non-gmo product. Building in language allowing the possibility of supporting required disclosure, with flexibility in the communications means that accomplish the required disclosure. 20
21 Educate in a new way National Geographic documented the consumer distrust of science - necessitates new educational methods. Information from social networks. Engage trusted sources farmers, doctors, local supermarket to share reliable online materials that provide social currency and practical value. 21
22 Three propositions? Consumers are confused about GMOs; concern is more about right to know than alarm about the process. 20+ years of use and testing, not a single documented instance of harm to human health resulting from genetic modifications. GMOs are caught in the vortex of the noted consumer skepticism of science. 22
23 Thank you for your time and attention. Any questions?
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