MTY Food Group | Provide roadmap with benchmarks for switching to cage-free eggs at MTY Food Group

Status
3.06% votes in favour
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
MTY
Resolution ask
Set targets or plans
ESG theme
  • Social
ESG sub-theme
  • Animal welfare
  • Public health
Type of vote
Shareholder proposal
Filer type
Shareholder
Company HQ country
Canada
Resolved clause
Shareholders ask that MTY adopt, as it previously pledged to do, “a roadmap with benchmarks” for
switching to cage-free eggs.
Supporting statement
All McDonald’s eggs in Canada and the U.S. are cage-free now. Others switching to cage-free eggs include Loblaw,
Restaurant Brands International (Tim Hortons and Burger King), Yum! Brands, A&W, Inspire Brands, Jack in the
Box, CKE, Starbucks, Dine Brands, Brinker, Cracker Barrel, Darden, Panera, Bloomin’ Brands, Cheesecake Factory,
Potbelly, and Denny’s.
This makes sense, considering the material implications.
• The Center for Food Safety says cage-free systems cause “significantly less stress and disease for the hens and lead
to a better final product for consumers.” [Emphasis added.]
• A 2023 scientific study by North Carolina State University’s Prestage Department of Poultry Science—and published
in a peer-reviewed journal—evaluated physical quality parameters of eggs from caged hens (including conventional
and “enriched” cages) and cage-free hens. It found housing has a “highly significant effect on most physical egg quality
parameters” and that caged hens “produce the worst-quality eggs.” [Emphases added.]
• Studies show consumers view cage-free eggs as more humane, and more humane eggs as higher quality, healthier,
and better tasting.
• And ten U.S. states have laws banning cages and/or selling cage eggs.
Yet, consider MTY’s morphing position.
In 2016, MTY pledged to only use cage-free eggs by 2025 (www.bit.ly/Archived-MTY-Statement). Thatstayed online
for seven years, before a shareholder proposal asked MTY to finally disclose its progress.
In exchange for withdrawing that proposal, MTY published an update, in March 2023, saying it “remains committed”
to cage-free eggs, was establishing “a roadmap with benchmarks” for converting, and would “provide another update
here in July with details.”
But July 2023 came and went with no roadmap. Instead, after securing the withdrawal (thereby evading a shareholder
vote), MTY simply removed the agreed-upon statement.
Then, in a lengthy section of its latest Sustainability Report, MTY claimed it conducted a new “study” on the issue,
so many years after its pledge, that suddenly resulted in a new position. Now, MTY says it’ll use “enriched colony
and/or cage-free and/or UEP Certified” eggs.
But breaking that down:
1. MTY’s required to use some cage-free eggs, since it operates in states with cage-free laws;
2. all “enriched colony” eggs are from cages (“enriched colonies” are just a type of cage); and
3. most “UEP Certified” eggs are from cages.
Thus, MTY’s new “sourcing criteria” lets it use cage eggs indefinitely, despite years of cage-free promises.
Shareholders should reject this “study” and “criteria” though.
Indeed, however MTY may try to justify its about-face, we believe the fact that its new policy diverges so significantly
from those of McDonald’s, Tim Hortons, Burger King and virtually every other major chain— as well as mounting
regulations, food safety/quality expertise, and MTY’s own seven years of cage-free commitments—clearly shows
adoption of this proposal is warranted. Thank you.

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