The hunger for profits has compromised food labeling.
July 21, 2014 |
Walk through your local grocery store these days and
you'll see the words "all natural” emblazoned on a
variety of food packages. The label is lucrative,
for sure, but in discussing the natural label few have
remarked on what's really at stake — the natural
ingredients and the companies themselves.
If you take a look at some of the favorite organic
and natural food brands, you'll see they're owned by
some of the largest conventional companies in the world.
Coca-Cola owns Odwalla and Honest Tea. PepsiCo. owns
Naked Juice. General Mills owns Lara Bar. Natural and
organic food acquisitions aside, Coca-Cola, PepsiCo and
General Mills all
opposed California's GMO Proposition 37 that would
require GMO food labeling. Today, some of those
companies touting an all-natural list of grains and
sugars can be seen changing the ingredients in their
natural food products as the natural foods' distribution
channels are pushed to larger and larger markets.
Recently, in a class action consumer-fraud lawsuit,
Kashi agreed it
would stop using “all natural” and “nothing
artificial” for its line of cereal products, which,
according to plaintiffs,
contained unnatural ingredients like pyridoxine
hydrochloride, calcium pantothenate and soy oil
processed with hexane, a byproduct of gasoline refining
in its line.
Kashi’s use of “natural” ingredients wasn’t in
question in 1999 when it made nearly $25 million in
sales. But in 2000 Kellogg's purchased Kashi and less
than a decade later it was the No. 1 natural foods brand
making nearly $600 million in sales. The rise in
class-action lawsuits against the "natural" label comes
in part because brands like Kashi have ballooned in
sales — in other words, there's no money to be found in
a smaller, natural company. Yet Kashi rose to the top
while continuing to tout its "all natural" ideology of
which David DeSouza, Kashi's former general manager (a
defendant in the case and formerly with Kellogg's for 19
years prior to joining Kashi),
was so fond.
As part of the settlement for its use of unnatural
ingredients, Kellogg's is creating a $5 million
settlement fund for California customers who
purchased the products containing the specific
ingredients.
Natural food buyouts have become second nature to
the food industry as companies like Kellogg's continue
to diversify their portfolios and latch on to the
popularity of natural and organic foods. And while a
downgrade of some ingredients is one thing in some
cases, companies have undergone a complete 180 from
using organic and natural ingredients by opting for
conventional or GMO ones.
When Brendan Synott and Kelly Flately started Bear
Naked, they hand-packed granola and distributed it to
bed-and-breakfasts themselves. Kellogg's purchased Bear
Naked in a $122 million deal and it soon became apparent
that its Kashi products were no longer as natural as its
humble beginning. Kellogg's agreed to remove “100%
natural” and “100% pure and natural” from its Bear Naked
labels in a suit similar to Kashi, which faulted its
ingredients. Kellogg's eventually
settled for $325,000.
Still, when Kashi was criticized by the Cornucopia
Institute for its use of GMO ingredients in April 2012,
Kashi released a statement complaining about the organic
food supply, writing: "A major challenge we face in
North America is that over 80% of many crops, including
soy, are grown using GMOs." It added: " Given the fact
that only 0.7% of US cropland is organic, it’s
unfortunate that Cornucopia failed to recognize Kashi’s
significant contribution to supporting organic
agriculture and our ability to impact future change."
Kashi's case is not unique. In 2010 the Center for
Science in the Public Interest reported that Ben &
Jerry's was hardly an all-natural ice cream and found
that 48 of its 53 flavors were unnatural, with
ingredients like "alkalized cocoa, corn syrup, partially
hydrogenated soybean oil, or other ingredients that
either don’t exist in nature or that have been
chemically modified." Ben & Jerry's was bought by the
multinational consumer goods company Unilever in 2000.
Just two years later in 2002
CSPI
warned the FDA about Ben & Jerry's false
representation of the term "all natural."
Like Ben & Jerry's, Silk was
once a leading brand for organic milk, but today no
longer carries the organic label after being purchased
by White Wave, a spinoff of Dean Foods which also owns
the Horizon brand. "They introduced the first
non-organic product within the Horizon label," said Mark
Kastel, co-founder of the
Cornucopia
Institute.
After Hearthside Food Solutions (a division of Post)
acquired Peace Cereal in May 2010, their ingredients did
a dramatic shift, from
organic to conventional. Kastel reported that before
2008 "all Peace Cereal products were certified organic,"
but today, "none are." Even with the swap, Peace Cereal
kept their higher, organic prices.
Currently Silk has
four organic
soymilks in its lineup. Peace Cereal now includes a mix
of organic and non-organic products. Four of their 19
cereals are certified organic.
Similarly, Solera Capital acquired a majority
interest in Annie's Homegrown in 2002. But by 2007, only
one in five of Annie's Homegrown cereal products were
certified organic, down from at least 70% organic. If
you looked at Annie's Homegrown marketing, you'd still
think its iconic bunny-branded macaroni and cheese is
made in
Annie's red barn. Instead, CEO John Foraker wants to
take Annie's out of "
those little, dust-covered aisles" and put it next
to brands like Kraft Foods Inc.
Some would argue that shelf placement matters little
and bringing organic foods out front is a good thing.
That may be true but competing with companies like Kraft
Inc. will mean taking a product that was formerly niche
(e.g. organic or natural) and making it more like its
mainstream competitors (i.e. not organic or natural).
Phil Howard, a Michigan State University professor
and expert on the organic food systems said the trend to
replace ingredients after buyouts is fairly common.
"Natural is vague enough that it is easier to maintain
this claim while still using increasingly cheaper
ingredients," he wrote in an email. In fact, when Kashi
was outed for its GMO ingredients, DeSouza admitted that
because the FDA does not define "natural," they did
nothing wrong.
In what's become a popular graphic of consolidation,
Howard created a
map of the top 100 food processors in America and
their organic and natural food company acquisitions. In
just a little over a decade, the natural food industry
has come to look more and more like its conventional
counterpart and the "all natural" label continues to be
little more than a marketing gimmick. The "natural"
label holds nearly
$40 billion in purchasing power. Meanwhile natural
foods continue to grow, reaching
$110 billion sales in 2013.
Some companies have remained tied to their natural
roots, including Nature's Path who continues to charge
less for their organic cereal than Kellogg's and still
operates independently. "You have to take that
information and say well, Kellogg's is grossly
profiteering at the expense of consumer goodwill," says
Kastel. "But Nature's Path is a pretty big company and
they've never lost track of the story behind their
label."
After lawsuits like Kashi's, companies entering into
the natural foods market are choosing to leave the “all
natural” label behind as the term is in limbo for
consumers and food marketers. If they continue to grow
(and they will) they face the possibility of being
bought out. So who's to say natural ingredients will
remain on the front packaging or more importantly, on
the inside?
This article has been updated.
Clarissa A. Leon is AlterNet's food editor.
She formerly served as an investigative research
assistant at The Daily Beast and The Nation
Institute.
http://www.alternet.org/food/corporate-assault-all-natural-food