economy
SNAP restrictions could change what shoppers buy
SNAP food restrictions are spreading to more states, pressuring major food and beverage as consumers shift spending away from soda, candy and processed foods.
TL;DR
- 23 states have approved food restriction waivers for SNAP benefits, affecting about one-third of participants.
- These restrictions could reduce U.S. food and beverage sales by an estimated $830 million this year.
- Waivers primarily target sugar-sweetened beverages and confectionery products, with some states considering broader definitions for processed snacks.
- Major companies like Kraft Heinz, PepsiCo, Coca-Cola, General Mills, and Nestle are significantly exposed to these changes.
- Companies are adapting by studying consumer behavior, reformulating products, and phasing out artificial ingredients.
- Walmart, Kroger, Costco, and Amazon are the most exposed retailers to SNAP spending.
- There is also a broader discussion about banning junk-food television advertising, with HHS Secretary Robert F. Kennedy Jr. expressing support.