Monsanto Company (MON): Whole Foods Market, Inc. (WFM)’s Brilliant Cross-Contamination Plan

Going old school
While it’s unlikely that the labeling will convince huge droves of customers to give up processed food made from GMO ingredients, pushback against GMO foods can already be seen in some areas of the world. Certain drought-resistant corn seeds from E I Du Pont De Nemours And Co (NYSE:DD) and Syngenta AG (ADR) (NYSE:SYT), for example, are produced with the age-old technique of selective breeding, whereas Monsanto Company (NYSE:MON)‘s are genetically modified by splicing in genes from other, hardier plants.

The difference matters in certain European countries, which have strict laws regarding genetically modified foods, and in the U.S., where seeds made from selective breeding can still be considered organic. Somewhat ironically, there is, in fact, a smaller, independent seed company in the U.S. that produces a strain of certified organic corn that’s been selectively bred to resist fertilization from errant GMO corn pollen, which can sometimes be a problem for organic farmers.

The Foolish bottom line
On the surface, requiring GMO labeling is (pardon the pun) a very organic move for Whole Foods Market, Inc. (NASDAQ:WFM), which already labels many of its products as locally grown, organic, or health- or eco-friendly in some other way, and it also has a well regarded sustainability labeling system for the fish it sells.

But the move is also very shrewd, as many of the company’s suppliers might not bother to create two sets of packaging, one for Whole Foods and one for everyone else. Whole Foods Market, Inc. (NASDAQ:WFM) may end up cross-contaminating other stores with the labeling system, drawing even more attention to the company’s large selection of health-conscious — and high-margin — products.

The article Whole Foods’ Brilliant Cross-Contamination Plan originally appeared on Fool.com and is written by Jacob Roche.

Fool contributor Jacob Roche has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Whole Foods Market (NASDAQ:WFM).

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