GMO LABELING OPPOSITION ROOTED IN PROTECTING PROFITS, NOT CONSUMERS

DENVER – October 14, 2014 – Chipotle Mexican Grill (NYSE: CMG) is urging Colorado voters to vote “yes” on Proposition 105, the ballot initiative that would require mandatory labeling of genetically modified organisms (GMOs) in food across the state, subject to some exceptions. Chipotle is already voluntarily labeling GMO ingredients in its food, and is actively working to eliminate GMOs from the ingredients it uses to make its food.

Consumer support for labeling genetically engineered foods is consistently strong. In a recent survey conducted for ABCNEWS.com, 93 percent of respondents said the federal government should require labels on food that has been genetically modified or “bio-engineered.” Across polls, consumers overwhelmingly favor GMO labeling with support consistently tracking above 80 percent. In spite of such strong preference, the federal government has yet to act on GMO labeling, similar efforts failed to pass in California and Washington, and a lawsuit has been filed in Vermont to block a labeling law that was enacted earlier this year. The challenge comes from strong opposition efforts with significant funding from large food companies, chemical companies, agribusiness companies, and biotech seed companies.

“Fundamentally, we believe that people have a right to know what’s in the food they eat,” said Steve Ells, chairman and co-CEO at Chipotle. “Consumers want this information, and we are already giving it to them. But well-funded opposition groups continue to fight labeling efforts, with opponents putting their own profits ahead of consumer preferences.”

Opponents argue that requiring GMO labeling would put Colorado food producers at a disadvantage and raise food prices for consumers around the state. In a study of the economic impacts of GMO labeling in Oregon, where voters will decide a similar measure, Consumers Union (the public policy arm of Consumer Reports) found the median cost per person of GMO labeling would only be $2.30 per person per year, calling into question some key elements of opponents’ arguments. Consumers Union and Consumer Reports are supporting labeling initiatives in Colorado and Oregon.

The prevalence of GMO foods in the United States has gotten alarmingly high since their introduction into the food supply in the mid-1990s. According to the USDA, more than 90 percent of all corn, soybeans, sugar beets and canola grown in the U.S. contain patented genetically modified genes, and an estimated 75 percent of processed food contains genetically engineered ingredients. Much of this transition has occurred without consumer knowledge, but consumers are asking for greater transparency in the food system.

Chipotle Urges “Yes” Vote on Proposition 105

Elsewhere in the world, GMO foods are more regulated with 64 countries maintaining labeling requirements or other rules concerning GMO use. Many U.S. food companies are already labeling GMO foods for export to these countries.

GMO labeling opponents are concerned about negative impacts to businesses, but should be thinking about working with consumers to meet their demands for greater transparency. According to the ABCNEWS.com poll, 57 percent of respondents say they would be less likely to purchase foods that are labeled as genetically modified. If consumers sought to avoid GMO foods, demand for GMO seed could also be impacted.

“Public support for GMO labeling is overwhelming,” said Ells. “We are urging voters to act in the interest of consumers who want to know what’s in their food, not in the interest of protecting profits for companies that may be hurt by greater transparency in the food system.”

ABOUT CHIPOTLE

Steve Ells, founder, chairman and co-CEO, started Chipotle with the idea that food served fast did not have to be a typical fast food experience. Today, Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. Through our vision of Food With Integrity, Chipotle is seeking better food from using ingredients that are not only fresh, but that—where possible—are sustainably grown and Responsibly Raised™ with respect for the animals, the land, and the farmers who produce the food. In order to achieve this vision, we focus on building a special people culture that is centered on creating teams of top performers empowered to achieve high standards. This people culture not only leads to a better dining experience for our customers, it also allows us to develop future leaders from within. Chipotle opened with a single restaurant in 1993 and currently operates more than 1,700 restaurants including eight ShopHouse Southeast Asian Kitchen restaurants, and is an investor in an entity that owns and operates two Pizzeria Locale restaurants. For more information, visit Chipotle.com.

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