Boston, MA 05/15/2014 (wallstreetpr) – General Mills, Inc. (NYSE:GIS) is not being investigated over food contamination or anything like it. However, the Minnesota-based food company is drawing attention with its opposition to a piece of legislation that would require food companies that market products to children to report if their products contain certain chemicals.
Under a piece of legislation known as Toxic Free Kids Act, Minnesota House wants companies in the state to reveal if their food products marketed to kids contain chemicals such as lead, cadmium, formaldehyde and BPA along others. The chemicals are linked to cases of learning disabilities, autism, fertility issues and cancer.
Although the legislation seeks to understand the chemical composition of the food items sold to children, there are no plans to ban the use of the chemicals or even require the companies to change their product labels to signify the existence of the chemicals. Instead, the companies will be required to report to the environment and health officials in the state about the chemical composition of their products sold to children. The information will be available to the public.
No way
As simple as the process may appear, General Mills, Inc. (NYSE:GIS) has made it obvious that it is not in support of the idea. That position has sparked concerns about whether the company might be having something to hide. However, the company boasts a well-earned reputation in Minnesota and elsewhere that its products are sold and consumed. As such, there might be a good reason for the company to stand in the way of such legislation and the reality of that can only be understood with time.
In conclusion
General Mills, Inc. (NYSE:GIS) looks forward to better sales as the company improves its product portfolio and supply chain. The company also expects to benefit from an increase in personal incomes as that signifies increase in buying power that should in turn support more sales. Though the company has its eye on growing sales, it is also focused on cost-saving opportunities as it seeks to create a bigger value for the shareholders.
