Petaluma activist mixed on Dunkin’ Donuts move toward cage-free eggs

Petaluma investment adviser Dale Wannen didn’t gain Dunkin’ Donuts’ support on a shareholder proposal calling for the use of more eggs from cage-free hens, so he was surprised this week when the baked goods retailer announced its own initiative.

Wannen, who operates Sustainvest Asset Management in Petaluma, was able to place on the shareholder ballot an item to encourage Dunkin’ Donuts to buy at least 75 percent of its eggs from farms with cage-free hens in the next five years. The Dunkin’ Brands Group formally opposes the item, which will be considered May 12 at the annual stockholders meeting in Quincy, Mass.

However, on Monday the corporation announced that it would study “the feasibility of transitioning to 100 percent cage-free eggs globally” and would commit by the end of 2016 that 10 percent of the eggs for its breakfast sandwiches will be cage-free.

The announcement was made in partnership with the Humane Society of the United States, which previously helped pass a voter initiative in California that requires all fresh eggs sold in the state to come from cage-free hens.

Wannen, whose business specializes in sustainable and responsible investing, admitted to mixed feelings about the announcement. He credited the company with “taking a step in the right direction.” But he wished the announcement had mentioned the upcoming proxy vote, and he questioned how serious the company is about going completely cage-free.

“To me, it doesn’t sound like they’re committed to anything,” Wannen said. “They’re just exploring it.”

Wannen, who said he has four items on company shareholder ballots this year, began looking into the Canton, Mass.-based corporation’s practices in 2013 and bought shares of its stock in July of that year.

“I love Dunkin’ Donuts,” he said, adding it’s one of the first places he stops when visiting the East Coast.

The Humane Society has been working with the company for about four years, said Josh Balk, the group’s senior food policy director. In a statement, he said he thought the proxy item had no influence on Monday’s announcement, which also included plans for Dunkin’ Donuts to “source only gestation-crate-free pork in the U.S. by 2022.”

“This is not the first nor the last, but it’s the latest step they’ve taken,” Balk said of the company.

Dunkin’ Brands spokeswoman Michelle King didn’t respond directly to a question of whether Monday’s announcement was in any way related to Wannen’s proxy item. But as did Balk, she noted the company’s ongoing partnership with the Humane Society. She also pointed out that in 2012, the company set and later accomplished a goal of having 5 percent of its breakfast sandwich eggs be cage-free by the end of 2013.

“I can tell you that we made this announcement as part of our commitment to animal welfare and overall corporate social responsibility,” King said in an email. “We also recognize that consumers are seeking greater transparency as it pertains to their personal food and beverage choices.”

For his part, Wannen said he believes his ballot proposal has influenced the company.

“As an optimist, I would say ‘yes,’?” he said.

If his proposal wins just 3 percent of the vote, he said, it will be eligible to appear again in 2016.

You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit.