McDonald's to bar GMO fries

Report: fast-food chain to stop using genetically modified potato products
April 28, 2000: 7:55 a.m. ET

NEW YORK (Reuters) - Fast-food chains including McDonald's Corp. are 
telling their french fry suppliers to stop using Monsanto Co.'s genetically 
modified potato, according to the Wall Street Journal.

J.R. Simplot Co, a major McDonald's (MCD: Research, Estimates)
supplier, has told its farmers to stop growing the potato developed by
Monsanto, which is now a part of Pharmacia Corp (PHA: Research,
Estimates).

PepsiCo  (PEP: Research, Estimates) unit Frito-Lay Co. said Thursday that 
it was asking its farmers not to grow genetically modified potatoes this 
year, the Journal said. Earlier, the company told its corn farmers to stop 
growing genetically modified crops.

The modified crops are easier to grow and heartier than conventional varieties.

Critics have raised questions about the safety of modified crops and their
impact of the environment. Studies show many U.S. consumers want labels on 
foods that contain genetically modified ingredients.

McDonald's shares fell 1/16 Thursday to 38-13/16. PepsiCo stock skidded 
5/16 to 37-7/16, while Pharmacia dipped 1/4 to 52-1/2.