Although California voters didn't back the labeling of products made with genetically modified ingredients, the practice will soon be mandatory at Whole Foods Market Inc.
The chain, known for its upscale emporiums of healthful and organic foods, has decreed that all items sold in its American and Canadian stores note the presence of genetically modified organisms, or GMO, by 2018. The Austin, Texas, company says it's the first national grocer to set such a deadline.
Whole Foods Co-Chief Executive Walter Robb described customer demand for the labeling as "a steady drumbeat."
"This is an issue whose time has come," he said. "With cases like horse meat discovered in the U.K., plastic in milk in China, the recalls of almond and peanut butter in the U.S., customers have a fundamental right to know what's in their food."
Activists have long pushed for more transparency on supermarket shelves. Some see Whole Foods' pledge as evidence of retailers' growing power to force policy changes when voters and regulators can't.
"The government has not been willing to take on this issue," Robb said. "So it's going to have to happen differently."
The grocery industry contends that genetically modified foods provide the same nutrition as organic fruit, vegetables and grains. Agriculture, food and beverage companies opposed to the initiative poured millions of dollars into advertising and lobbying to defeat the measure.
Monsanto Co. dumped $8.1 million into the attack campaign and PepsiCo Inc. contributed $2.5 million, according to a MapLight analysis of data from the California secretary of state. By voting day, opponents had raised $46 million against Proposition 37 — five times the $9.2 million cobbled together by supporters.
Whole Foods had endorsed the measure. The business has more than 300 locations, including seven British stores that already require such labeling.
The company says it carries 3,300 products from 250 brands that are certified as free of genetically modified organisms.