Dive Brief:
- Major food investors, along with the Humane Society of the United States (HSUS), are sponsoring a first-of-its-kind "Humane Economy" event, which will examine humane food-sourcing practices and "the financial impacts of social issues on restaurants, retailers and other consumer-focused companies," Reuters reported.
- The event follows several major food entities announcing they'll use only cage-free eggs, including Nestle SA and Whole Foods Market.
- Michelle Edkins, a BlackRock managing director and global head of the firm's 22-member corporate governance and responsible investment team, told Reuters that "with consumer tastes changing quickly, companies may be best served by preempting or anticipating changing sentiment rather that waiting to be hurt by the shifting tide."
Dive Insight:
Consumer preferences continue to change, and that comes with the need for more environmentally-friendly and animal-friendly sourcing and processing practices for companies to stay on trend. This has led to increased sustainability among food companies as well as other initiatives, such as companies like Tyson Foods and Pilgrim's Pride promising to remove or reduce antibiotics from their chicken supply.
Consumers have proven that they will hold companies accountable for their sourcing practices, such as celebrities recently targeting Costco for its caged hens policy.
Earlier this week, egg trade group United Egg Producers said it would not raise money to combat a 2016 Massachusetts ballot that could impose new regulations on better conditions for U.S. egg-laying hens, breeding pigs, and veal calves. The group lost a similar fight in California in 2008.