Carl Icahn’s reputation for being a brutal corporate raider could be in danger as the billionaire mogul takes aim at the largest fast-food chain in the world over how it treats pigs that endup in the U.S. pork supply.
In an interview with Bloomberg News, Icahn stated that “I feel very emotional about these animals as well as the unnecessary suffering they have to endure.” Icahn said that a pig has “a great brain” and is “a sensitive animal” . Mark Stevens, a biographer, described a pig as “not warm”.
In what’s most likely a first step towards a proxy fight the investor has appointed two members to McDonald’s board, the company said in a statement. Bloomberg reported that Icahn only holds 200 shares of McDonald’s.
Icahn has nominated Leslie Samuelrich, president, Green Century Capital Management. He is dedicated to protecting our water, air, and land. Maisie Ganzler, chief strategist and brand officer at Bon Appetit Management describes itself as a “food service that will sustain the future”.
McDonald’s pledged in 2012 to eliminate pork from problematic suppliers who use gestation crates. These crates are approximately the same size of the animal and have no space to lie down or turn.
At the time, the Humane Society of the United States applauded the announcement. It criticized McDonald’s for making statements about “ending” gestation crates, while allowing suppliers to “contain mother pigs within these crates for several weeks during each cycle of their life.”
McDonald’s pledged in a 2017 update that it would only purchase U.S. pork from producers who do not use crates to hold pregnant sows.
McDonald’s now claims that it expects to have 85% to 90% U.S. pork from pigs who are not restricted to crates during pregnancy. The company cited the “industry-wide problems for farmers and producers”, including the pandemic. Now, the company says it expects to meet its commitment to use pork in America only from “sows kept in groups during pregnancy” by 2024.
Icahn is skeptical. He stated that McDonald’s suppliers only transfer pigs out of crates when it’s clear they’re pregnant.
Bloomberg was told by the 86-year old Icahn that they never delivered. He also said that he had pushed for McDonalds’ initial pledge at his request, at the urging and support of his daughter, a vegetarian, who worked at the Humane Society at the time.
It’s not something that you can say, “Well it’s good for mankind.” Bloomberg told Icahn that you don’t need to keep the pig in this gestation container. Icahn clarified that he wasn’t trying to say people shouldn’t eat meat. He was simply saying that it’s not necessary to make animals suffer for four years before they are killed.
KLP, Norway’s pension fund, supported Icahn’s position. It holds $72million in McDonald’s including its bonds and equities.
“It is appalling that McDonald’s continues to use cruel gestation crates for pregnant animals in its supply chain. We welcome this renewed attention. We strongly encourage other shareholders to investigate this matter. In an email statement, Kiran Aziz from KLP’s responsible investment team stated that these practices must be banned until they are.
KLP and Icahn want McDonald’s to source only “crate-free” pork. However, McDonald’s believes that this request is unrealistic.
McDonald’s stated that while the company is open to further collaboration within the industry, current U.S. pork supply would make such a commitment impossible.
McDonald’s buys 1% of the pork produced in America and doesn’t own any pigs.
