Dive Brief:
- The new mandatory GMO labeling standard, which the president signed into law late last month, could have a different impact on small and medium-sized manufacturers than the major companies that have dominated the GMO labeling conversation.
- Small and medium-sized companies don't always have the capital they need to fund decisions such as whether to invest in earning non-GMO certification or changing the ingredients in their products to avoid the GMO label.
- Access to a consistent supply of non-GMO ingredients could also be limited for these companies.
Dive Insight:
One benefit small and medium-sized manufacturers could have is that, pending the USDA's final requirements for the law, they may be able to comply by printing a phone number or website on the product's packaging. Very small manufacturers are exempt from the mandate.
However, consumers' perceptions of GMO ingredients will impact manufacturers regardless of size. Consumers who want to avoid GMO ingredients may stop buying certain products once the product starts bearing the GMO ingredients label, even if those products come from a smaller manufacturer the consumer has trusted.
Depending on their positioning, smaller manufacturers and manufacturers that market their products as "natural" could face even more severe backlash from consumers than major manufacturers. Based on studies of consumers' perceptions of larger manufacturers, consumers may not be surprised that larger companies use genetically-modified ingredients.