The U.S. Department of Agriculture approved food restriction waivers in 23 states as of May. The waivers affect roughly one-third of all SNAP participants and focus on limiting consumption of sugar-sweetened beverages and confectionery products. Numerator estimates the restrictions could reduce food and beverage sales by as much as $830 million this year as consumers shift spending to approved products or cut back overall. The movement follows the "Make America Healthy Again" initiative, with Iowa becoming the first state to codify MAHA elements into law last month.
Iowa Codifies MAHA Elements Into State Law
Iowa Gov. Kim Reynolds signed legislation last month targeting artificial food dyes, ultra-processed foods in schools, and SNAP purchases. "Altogether, this bill advances the health and wellness for every Iowan today and for generations to come," Reynolds said when she signed the measure. The law bans several synthetic dyes, including Red 40 and Yellow 5, from most K-12 school meals and vending machines, while also restricting SNAP recipients from using benefits to buy products such as soda and candy. Reynolds added the law helps "refocus federal food assistance programs on the actual purpose for which they were created: helping low-income families afford nutritious food."
Hershey Conducts Texas Shopper Research on SNAP Restrictions
At a Goldman Sachs conference in May, Hershey said it has researchers in Texas conducting in-store interviews with shoppers who receive SNAP benefits to understand how purchasing behavior is shifting under new restrictions in the state. "We've observed some consumer uncertainty at the register as new restrictions take effect," a Hershey spokesperson told CNBC. The company is studying everything from product substitutions to budget tradeoffs. "We anticipate this will improve as store execution improves, rules become clearer, and SNAP users can plan and budget with more certainty," the spokesperson said.
Kroger CEO Reports Customer Spending Pressure
Kroger CEO Greg Foran said on the company's first-quarter earnings call on Thursday that customers remain under pressure in part due to reduced SNAP benefits, as well as higher gas prices, "squeezing budgets." "Customers are managing spend carefully and shopping with real intent," Foran said.
Analysis Estimates 3.5 Million People Lost SNAP Aid
One analysis estimates 3.5 million people have lost their SNAP aid since President Donald Trump last year signed a sweeping bill that restricts eligibility for SNAP, among other changes. Walmart is particularly exposed to SNAP spending, capturing roughly a quarter of all SNAP grocery dollars nationwide, according to Numerator. Kroger, Costco and Amazon follow at about 8%, 6% and 5%, respectively.
Food Companies Pledge Artificial Dye Removal by 2027
Responding both to the MAHA initiative and shifting consumer tastes, food manufacturers have accelerated efforts to reformulate products and reduce synthetic ingredients in products like Kool-Aid, Fanta, Doritos and Flamin' Hot Cheetos, which contain dyes like Red 40 and Yellow 5. General Mills, Kraft Heinz and Target have all pledged to phase out certain artificial colors and additives by 2027 or sooner. Nestle announced Monday it achieved its commitment on time to fully eliminate Food, Drug & Cosmetic colors from its U.S. food and beverage portfolio.
HHS Secretary Discusses Junk Food Advertising
At a hearing of the Senate Committee on Health, Education, Labor and Pensions in April, Health and Human Services Secretary Robert F. Kennedy Jr. said he "would support" a ban on junk-food television advertising. The department has not yet taken steps to introduce such a ban.
FAQ
What did the USDA approve regarding SNAP benefits as of May?
The U.S. Department of Agriculture approved food restriction waivers for SNAP benefits in 23 states as of May, affecting roughly one-third of all SNAP participants. Most waivers focus on limiting consumption of sugar-sweetened beverages and confectionery products.
What law did Iowa pass related to food restrictions?
Iowa became the first state to codify MAHA elements into law last month. The legislation bans several synthetic dyes including Red 40 and Yellow 5 from most K-12 school meals and vending machines, and restricts SNAP recipients from using benefits to buy products such as soda and candy. Gov. Kim Reynolds signed the measure last month.
