Dive Brief:
- Cargill released its first non-GMO products certified by a third-party, the Non-GMO Project, on Thursday, according to a couple of sources.
- The three certified non-GMO products include sugar cane, high oleic sunflower oil and erythritol, a bulking agent manufacturers use in chewing gums and sweeteners.
- As consumers demand more clean label and non-GMO products, Cargill is positioned to offer those ingredients to its customers, which include major manufacturers like Kraft Heinz and General Mills.
Dive Insight:
What's most notable about this company announcement is that Cargill has long been an avid supporter of genetic modification of ingredients, if not a leader of the initiative. But as consumers' demands for clean label products increase, both manufacturers and their ingredients suppliers need to take notice to stay on-trend and maintain sales.
Cargill won't abandon its GM ingredients portfolio. But if a supplier as massive as Cargill is producing certified non-GMO ingredients, the shift in the industry is undeniable.
However, not all consumers are concerned about GMOs, and many don't know what they are or what the term means. Manufacturers and ingredient suppliers then don't necessarily have to overhaul their entire portfolio. That's especially true if doing so would be a financial drain and reduce margins to unsustainable levels. Enough consumers will continue buying products that contain GMOs that manufacturers can continue producing their usual lines, even when GMO labeling officially goes into effect.