Burger King says it will start buying eggs from suppliers who don’t confine chickens to cages. The chain already purchases 10 percent of its pork from crate-free suppliers.
Burger King is the world's No. 2 hamburger chain (behind McDonald's) with more than 11,100 restaurants in more than 65 countries. This news came out after Burger King Corp. product safety manager Steve Weiffenbach reportedly sent two letters in March to the People for the Ethical Treatment of Animals (PETA) organization -- a strong lobby group -- detailing the company's new supply guidelines. No information about this move has yet found its way to the Burger King Corp. U.S. investor relations site.
This move can have a significant impact on the farms that rely on Burger King contracts to sell their pigs and chickens. However, the percent of its products that will actually be cage-free is relatively small. Only 2 percent of its eggs in 2007 will be from hens not confined to small cages; it will be 4 percent the end of 2007. Additionally, BK says it will double the amount of crate-free pork it buys, from 10 percent to 20 percent.
Burger King follows the pace set by the 39-restaurant Burgerville chain. Burgerville went cage-free in January. It already purchases sustainable ingredients and locally grown produce, and has branded itself for these strategies.
Our questions:
1) Is going "cage-free" being used as a marketing ploy?
2) What ripple effect do you see for the worldwide economy in relationship to this trend?
3) Burger King's stock, traded at BKC, is down 42 cents today. What further impact do you think we'll see on its stock price as a result of this news?


Comments: 18
Pressure has been put on McDonald's both domestically and internationally -- and I would imagine Burger King and other chains -- by numerous organizations [don't ask me to document them here -- the information is generally available.] I believe the chains have responded to both organized effort and marketing pressures -- though in my personal opinion not nearly fast enough.
I do think, however, that the chains, and especially the so-called 'fast food' chains are beginning to realize that consumers really do care what they eat if they think it may make them sick -- and not just fat. The recent spinach and lettuce scare seems to have had some impact locally -- at least anecdotally -- though I have no idea if anyone was or is measuring same.
Here where I live in northern California, we are beginning to have some competition between our two local supermarkets re rBST free milk and other healtier alternative products -- and our local fast foods are also beginning to make changes. We have a very large segment of the community interested and involved in self sustainability.
Our local Burger King announced they would be changing the oil product they use to make french fries. Many locals won't eat beef here for fear of mad cow and on general principles re treating animals humanely -- or just not eating them. I'm moving in the direction of the latter, re PETA, and just generally not trusting the safety of our food chain.
Having grown up on an old fashioned family farm with full, precise and up close and personal knowledge of where dinner came from, and having knowledge also of "factory farming," I think it would be fair to say that the vast majority of consumers have no idea how the food chain really works -- which gives Burger King and other mass food producers very little incentive to make healthy changes.
I am fortunate to live in an area where local organic products are easily obtainable -- and no more expensive ultimately than buying at the local super. For those who do not have quick and easy access, it's just makes common sense to adjust your shopping habits, drive or shop less often and go where "it" is. Most communities have a health food type store with organic produce available.
KNOW your local super market and fast food managers, ASK QUESTIONS, read LABELS and INSIST that they provide healthier options.
THANKS Jennnifer, for this article. We should all insist on more PUBLIC INFORMATION in schools, and in product labels, and the media in general.
Thank you all! I was only able to check in for a second before heading to bed, but wanted to let you all know that I really appreciate your comments.
Here's to continuing this discussion tomorrow....
Just out of curiosity, wonder where they DO get all their raw materials? After the recent pet food scare, it kind of makes me paranoid at the mere thought of buying anything "fast" or prepackaged -- wonder if consumer [scare] concerns could cause glitches. Oil prices spiked because Tony Blair opened his big yap. Somebody stuff a burger in it.
Just FYI for anyone interested: CSPAN covered meeting of the Arab League Nations. I didn't get a chance to watch it, except here and there. Was a bit difficult to follow various interpretors. There seemed to be theme re several speakers [Saudi's among them] : Peace in the middle east is through Palestine, not Baghdad. It will be reshown -- I'm going to try to see it or find time to find in archives. Tony should get over himself being King of the Empire, or we'll pay through the nose at the pump. They really really don't like him - or his friend either.
my breathing is just fine (except for when you bow in my ear (-; )
Not that I am a big fan of fast food, or corporate food in general, I wanted to point out that there are two markets in play with an announcement of this type. Many consumers do not understand commodities and the supply chain dynamics of corporate food service. What may appear as slow implimentation of this policy, is the result of market and supply chain constraints. The incremental roll-out for this change was touched upon in the press statements I saw early yesterday morning.
The Humane Society of the United States uses PR Newswire to distribute its press release on this issue. This release has one disparity from the coverage I've read, and a few additions:
1) The release says that Burger King has already "begun purchasing two percent of its eggs from producers that do not confine laying hens in battery cages. It will more than double the percentage of cage-free eggs it's using to five percent" by the end of this year.
2) "It has implemented a 'preference' for producers that use controlled atmosphere killing of chickens used for meat. This has been shown to cause significantly less suffering than the conventional method of slaughter used by most of the nation's poultry slaughterers."
3) "Burger King's decision is the latest in a recent string of historic
advancements for farm animals in the United States. In the wake of
successful Humane Society of the United States-led ballot initiatives banning gestation crate confinement in Florida and Arizona, the U.S.'s and Canada's largest pig producers -- Smithfield Foods and Maple Leaf Foods -- announced in recent weeks that they are phasing out their use of gestation crates. Just last week,
Wolfgang Puck announced a wide- ranging plan to improve animal welfare in
his supply chain. After The HSUS launched its No Battery Eggs campaign,
numerous retailers, foodservice providers, and more than 100 schools have
eliminated or dramatically reduced their use of eggs from hens confined in
battery cages."
Yet, something must be done. The animals have been confined for decades. I remember this kind of research surfacing 30 years ago and nobody did a darn thing about it. Antibioitcs, fecal matter (I'm talking beef and pork, now, too); it is a step in the right direction. But capitalistic governments will not support what they have not supported yet.