Aqua Bounty Technologies

Taste and Labeling: Keys to Acceptance of Biotech Food

What do a bag of pretzels, a bottle of aspirin, a box of laundry detergent and a carton of milk have in common? They all carry a label of some sort to help consumers understand what it is they are buying, how to use it properly and many other interesting and useful nuggets of information. Many thousands of product labels include information such as quantity by weight, volume or count, ingredients listed in descending order from most prevelant to least, nutritional information, name and address of the manufacturer, and storage and preparation instructions. Such information has been mandated under the federal Food, Drug and Cosmetic Act, in different forms, since at least 1938.

Labels are extremely important tools of communication between the manufacturer or producer and the consumer. In fact, recent consumer research has indicated that nearly 50% of the US Public regularly reads product labels, and another 29% reads them occasionally. This shows that consumers rely on labels for valuable information about products they buy.

What is more, many consumers take a "right-to-know" view about consumer products and their labels. Perhaps no where is this seen and felt as strongly as when people go shopping for food. In a world where consumers increasingly feel estranged from the food production process, labels provide people with a feeling of control and power over what they see as the still cherished role of providing for themselves and their family.

Now, with the increasing introduction of bio-engineered food into the market place, consumers are more interested than ever in how their food is produced. Research commissioned this year by Novartis -- the world's largest agribusiness company -- indicates that a whopping 93% of Americans surveyed want foods that are genetically modified to be clearly defined with labels. The reason is not that they are concerned with the safety of the bio-engineered food - on the contrary, 50% felt such food is "very safe", 21% say it is "somewhat safe", and only 15% think such food is "unsafe". Instead, increasingly sophisticated consumers today strongly believe that they have the right to know how their food was produced.

Legally, foods developed through biotechnology are not required by US law to be labeled unless (1) the nutritional content of the food is subsequently altered, (2) the technology introduces a known allergen into a product, or (3) the modification results in a product that is different enough to be considered a new food item.

In the European Union, efforts are underway to amend the current rules on labeling on biotech products to ensure cohesion among the EU member countries. On the table is a proposal to require labeling of products containing all genetically modified organisms approved in the future and all new products made with already approved biotechnology ingredients. While the proposed rule would not retroactively cover products already on the market, the European Commissioner is hopeful that companies will voluntarily label such products.

Salmon produced using Aqua Bounty Farms' AquAdvantage technology would not, then, legally be required to carry a label in the United States. But, at Aqua Bounty Farms, we have made a company decision to require that all licensees growing AquAdvantage fish agree to a labeling requirement.

Why require a label if it isn't necessary? For several reasons. First, both extensive consumer research and prior marketplace experience by other biotechnology firms has confirmed that consumers are much more likely to accept a product if they have the facts and are allowed to make a choice.

Furthermore, we believe that once consumers have tasted salmon produced through AquaAdvantage breeding, and learn about the many benefits of the technology, they will want to re-purchase the product again and again. An easily identifiable logo/label will help consumers quickly recognize these superior products produced with AquAdvantage technology.

Finally, experience and research tells us that, rather than viewing labels as something negative, consumers consider labels, freely placed, to be just another means of information and communication. Rather than raising an alarm, voluntary labels on biotechnology products help make the way in which the product was produced a non-issue with consumers -- and with advocacy groups that might otherwise be quite vocal. The consumer is given control and choice, the producer or manufacturer is able to market the product without having to engage in drawn-out legal and media battles, and everyone wins.

To help foster label recognition and education, Aqua Bounty Farms will soon initiate a comprehensive research effort to design a logo/label which will provide consumers with an easy way to identify salmon produced using AquAdvantage technology. In addition, Aqua Bounty Farms will engage in a consumer education program to help explain to interested consumers the wholesome way in which their food is produced.

As evidence by our forerunners in the food biotechnology arena, consumer information and education will be key to product acceptance. At Aqua Bounty Farms, we plan to take advantage of the research and work that already had been done and which clearly demonstrates a strong consumer preference for openness and education.