Pepsi challenged to give up GMO corn syrup
3 May 2000

PLANO, Texas -- PepsiCo (PEP.N) Inc. shareholders were cited as rejecting
a bid to ban genetically altered corn from the sweeteners used by the
beverage and snack food giant to make Pepsi Cola, Mountain Dew and other
sodas on Wednesday.

The proposal offered by a social issues investment firm and opposed by
management was, the story says, shot down by holders of 96 percent of the
shares voted at PepsiCo's annual meeting.

The story also says that shareholders at Coca-Cola Co. last month rejected
an identical proposal, which is based on arguments that potential problems
with gene technology expose beverage and food makers to the risk of
future lawsuits and consumer boycotts.

Bioengineered crops are easier to grow and heartier than conventional
varieties. But critics have questioned whether they threaten human
health or the environment.

Investment advisor Michael Harrington, president of Napa, Calif.-based
Harrington Investments Inc., was quoted as telling the meeting that,
"Genetically modified foods could pose a serious health danger to consumers.
The use of GM (genetically-modified) corn to produce high-fructose corn
syrup may subject this company to lawsuits and possible boycotts,
subject the company to financial damage and erode shareholder value."
He counseled PepsiCo to follow the lead of its own chips and snacks
division Frito-Lay, which has taken a step back from modified crops by
not asking its farmers to plant gene-altered corn and potatoes for its
brands such as Doritos and Lay's.

But PepsiCo Chairman and Chief Executive Officer Roger Enrico was cited as
saying modified crops have been approved by food and health regulators
around the world, including the U.S. Food and Drug Administration and the
World Health Organization, adding, "Our view is that we should follow the
science." If regulators change their view or if consumers walk away from
products with modified ingredients, PepsiCo "will act accordingly," Enrico
added.