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governmental regulators needed to be concerned about genetically
engineered (GE) products. Yet the massive recall of StarLink
GE corn - which contaminated more than 300 products - will
cost over a billion dollars in direct costs to companies all
along the food commodity chain line. Brand name damage will
account for additional untold costs.
The implications for Hershey are highly significant. Our
company uses significant amounts of milk, corn and soy products
- these products are among the most heavily impacted ingredients
from genetically engineered food crops. Hershey is clearly
exposed to unnecessary risks.
Highlighting our concerns are:
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The company’s exposure to unnecessary reputational and
financial risks from use of a product that provides no
financial or nutritional benefit.
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Scientific studies which identify potential environmental
and public health risks of GE foods.
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The lack of long-term safety testing of these products
and gaps in regulatory oversight.
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The growing public controversy and backlash over GE food
and crops.
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The overwhelming support for labeling of GE products
by US consumers and international governments.
We do not believe our company should face risk in allowing
inadequately tested and poorly regulated products to reach
millions of Americans. Nor do we feel it should risk its foreign
sales as international markets are soundly rejecting GE products.
The proponents of this resolution, who represent over $22
million in Hershey stock, first approached the company on
this issue in November 2000. For nearly three months Hershey
ignored our calls, emails, and letters. Finally we were informed
that the company "does not want to talk to shareholders
on this issue." We hope that you will agree with us that
it is unacceptable for management to simply refuse to discuss
shareholder concerns on such an important issue.
Consequently, we are asking fellow investors to support this
resolution – both as a practical business strategy in responding
to serious financial, legal and reputational risks; and as
a means of sending a clear message to management that it is
accountable to shareholders. Please vote FOR proposal # 3.
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