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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: T L Comiskey who wrote (3172)9/22/2000 6:42:26 PM
From: T L Comiskey  Respond to of 65232
 
Run for the border
Somehow.... Knowing about Taco Bell's Parent Company's ownership...make me want to upchuck a Chalupa........
hold the tobacco sauce

Taco Bell to Replace Restaurant Taco Shells

CHICAGO (Reuters) - Philip Morris Cos.' (MO.N) Kraft Foods
unit said on Friday it is voluntarily recalling all Taco Bell
Home Originals taco shells sold in U.S. grocery stores
nationwide because samples contained an unapproved variety of
gene-modified corn.

Tests performed by an independent laboratory found, in
certain samples, the presence of a variety of gene-modified
corn that Kraft had not specified for the product and which is
not approved by U.S. regulators for use in food, Kraft said.

The recall is the first of a U.S. food product containing a
gene-modified ingredient not approved for human consumption,
said Dave Schmidt, senior vice president for food safety at the
International Food Information Council.

``It is basically a violation of the regulatory status. That
type of corn should not have shown up in a food product,'' he
said.

Kraft stressed that there appears to be no evidence of
adverse health effects from the corn variety, known as
StarLink.

The U.S. Food and Drug Administration (FDA) and the
Environmental Protection Agency (EPA) said earlier this week
they were jointly investigating allegations by an anti-biotech
coalition that a variety of unapproved gene-spliced corn had
slipped into Taco Bell shells sold in a Maryland grocery store.

The products being recalled are: Taco Bell Home Originals
12 Taco Shells, Taco Bell Home Originals 18 Taco Shells and
Taco Bell Home Originals Taco Dinner containing 12 shells,
sauce and seasoning.

Consumers who have purchased the products should not eat
them, and should return the packages to the store where they
were purchased for a full refund, Kraft said. More information
is available in a special report at kraftfoods.com,
or consumers may call 1-800-433-9361 from 8 a.m. to midnight
EDT.

The corn variety was developed by Aventis SA (AVEP.PA) of
Strasbourg, France. It was approved in the United States in
1998 for use only in animal feed because it contains a protein
that might be an allergen.

Gene-modified corn is spliced with a naturally occurring
plant pesticide known as bacillus thuringiensis.

Aventis had sought EPA approval for the corn as a food
ingredient, but an advisory committee earlier this year
postponed a decision on the request, citing inconclusive safety
data, Schmidt said.

While there is an uproar in Europe over genetically
modified ingredients in food, until now American companies had
mostly avoided controversy and U.S. consumers seemed content
that foods were safe.

Kraft's willingness to incur the expense of a recall
despite no evidence the product is unsafe demonstrates U.S.

companies are becoming increasingly sensitive to consumers'

heightened awareness about food safety, said food industry
consultant Willard Bishop.

``This shows the tremendous focus on food safety that has
obviously become a political issue,'' he said.

Shares of Philip Morris closed $1-1/8 higher at $27-11/16
on the New York Stock Exchange.

Kraft is licensed by Taco Bell to use the name on taco
shells sold only in supermarkets. Kraft buys finished taco
shells for the Taco Bell line from Sabritas Mexicali, a
subsidiary of PepsiCo Inc. (PEP.N) in Mexicali, Mexico.

Sabritas buys corn flour for the product from Azteca
Milling L.P., which processes the flour in its Plainview,
Texas, mill, Kraft said. Kraft added the crops were grown
within a 100-mile radius around the Texas mill.

The specifications for the corn Azteca purchased for the
taco shells were confined to several varieties of conventional
yellow corn and did not include the StarLink corn, Kraft said.

Kraft said it is cooperating with FDA to determine how the
StarLink corn became mixed with the product ingredients.

The company will discontinue production of the taco shells
until it is assured the raw materials and finished products
from the suppliers comply with regulatory requirements.