August 4, 2000 Novartis Removes Ingredients With Genetic Modifications By a WALL STREET JOURNAL Staff Reporter BASEL, Switzerland -- Novartis AG, which eliminated genetically modified ingredients from its Gerber baby-food brand last year, confirmed it has cut them from all its food products. The pharmaceuticals company also makes Ovaltine drink mix, health foods and medical-nutrition brands Resource and Isosource, which are used in hospitals and nursing-care facilities. A Novartis spokesman said the company has prohibited ingredient suppliers from using genetically modified crops such as corn and soybeans since June 30. Novartis disclosed the move in a letter to Greenpeace, the European environmental group opposed to crop biotechnology. Novartis, whose agricultural unit was a pioneer in crop biotechnology, stunned the food industry last year when it decided to eliminate genetically modified ingredients from Gerber, the biggest U.S. baby-food brand whose annual world sales are about $1 billion. Though Novartis defends crop biotechnology's safety, it decided to remove genetically modified ingredients from products amid a European public backlash in 1999. The company said it doesn't have plans to advertise that it has removed genetically modified ingredients from food products, for the broad dispersal of pollen from transgenic plants in several parts of the world makes it impossible to guarantee that any product containing corn and soybeans is free of modified organisms. After Gerber's move, most of America's big baby-food makers also banned genetically modified ingredients. Also, some U.S. fast-food chains have asked their french-fry suppliers to stop using genetically modified potatoes. Frito-Lay Co., the Plano, Texas, snack chip unit of soft-drink giant PepsiCo Inc., has asked its farmers to stop growing genetically modified corn and potatoes.