WILD OATS, WHOLE FOODS PLANS TO CUT GM ITEMS

DAVID GHITELMAN

BOULDER, Colo. -- The two leading U.S. health-food supermarket chains, Wild Oats Markets here and Whole Foods Market, Austin, Texas, both said separately last week they will launch efforts to eliminate genetically engineered ingredients from their store-brand products.

The action comes at a time when some observers are wondering if the strong sentiment against genetically modified foods in Europe will spill over into the United States. The U.S. government has approved approximately 40 genetically modified food products for sale, including varieties of corn, tomatoes, potatoes and soybeans.

Both Wild Oats and Whole Foods cited health concerns as the reason for their policies. "We are very concerned about the disruptive effect genetic engineering may have on our environment and whether long-term human health issues have been thoroughly addressed," said Whole Foods in a brochure for shoppers.

In a memo for employees, Wild Oats explained, "There is controversy among creditable scientists around the health and environmental safety of genetically engineered foods. We believe that more comprehensive human and environmental testing is necessary."

Both companies said they will seek to eliminate genetically engineered ingredients from store-brand products by working with suppliers and by independent third-party testing.

The two companies also said they favor the mandatory labeling of products containing genetically modified organisms. The Whole Foods brochure urged consumers to write to the Food and Drug Administration and the Department of Agriculture to express support for mandatory labeling. The Wild Oats memo also encouraged staffers to write the FDA. Despite the similarity of their views and actions, the two companies, known to be fierce competitors, are not working together on this issue.

Jim Lee, Wild Oats president, said, "We don't chat much, but in this case our positions are in alignment."

He added, "By taking a strong position, we are helping manufacturers see there is a market for non-genetically engineered products."

Lee estimated that Wild Oats sells between 700 and 800 store-brand products, which account for roughly 10% of company sales.

Brian Sansoni, spokesman for the Grocery Manufacturers of America, Washington, said, "Wild Oats and Whole Foods banning a few of their private-label products is a clever marketing move that draws attention to their political views.

"This has more to do with market share than food safety. Our government agencies have declared this technology and its products to be safe.

"It's important that consumers have choices, but mandatory labeling could lead to less choice for consumers."