How Snack Companies Could Lose Millions Of Dollars Over ‘MAHA’ Laws
New SNAP restrictions inspired by Robert F. Kennedy Jr.'s MAHA movement are limiting purchases of sugary drinks and candy, with over 20 states implementing these rules affecting nearly one-third of SNAP participants. Food companies face potential losses of $830 million this year as they scramble to understand changing consumer behavior and reformulate products to comply with new regulations.
Summary
Iowa has recently signed a law inspired by the Make America Healthy Again (MAHA) movement, which restricts SNAP recipients from purchasing sugary drinks, soda, and candy while also cracking down on synthetic petroleum-based food dyes in schools. Supporters argue these restrictions ensure taxpayer-funded food assistance is spent on more nutritious options and improve public health. However, major food companies including PepsiCo, Coca-Cola, Kraft Heinz, Hershey, General Mills, and J.M. Smucker face significant financial challenges from these policy changes. Over 20 states have received USDA approval for food restriction waivers, collectively representing nearly one-third of all SNAP participants in America. Numerator estimates these restrictions could reduce food and beverage sales by as much as $830 million in a single year. Companies are actively studying how SNAP shoppers will adjust their purchasing habits, examining product substitutions and budget tradeoffs to predict future buying patterns. While J.M. Smucker's CEO stated that current changes haven't had meaningful impact yet, there remains uncertainty as some states are considering broader definitions that could extend restrictions beyond soda and candy to other packaged snacks. Additionally, Secretary Kennedy's push to eliminate artificial colors has prompted multiple manufacturers to pledge reformulation of products by 2027 or sooner, with Nestle already meeting this accelerated timeline. The fundamental question facing the food industry is how the snack aisle will evolve as regulators change SNAP eligibility requirements and consumer demand for healthier products continues to grow.
Key Insights
- Numerator estimates that SNAP restrictions could reduce food and beverage sales by as much as $830 million this year alone, with the most impacted categories being candy, soda, and snacks sold by major companies like PepsiCo, Coca-Cola, and Hershey.
- Over 20 states have received USDA approval for food restriction waivers, collectively representing nearly one-third of all SNAP participants in America, demonstrating the widespread scale of these policy changes.
- Hershey is studying SNAP shoppers' buying habits to understand product swaps and budget tradeoffs, essentially trying to predict what shoppers will purchase if they can no longer buy restricted products.
- Secretary Kennedy's push to eliminate artificial colors has accelerated industry-wide reformulation efforts, with multiple manufacturers pledging to remove synthetic dyes and additives by 2027 or sooner.
- Some states are considering broader definitions of restricted foods that could eventually extend restrictions beyond soda and candy to include other packaged snacks, creating ongoing uncertainty for food companies.
Topics
Transcript
[0:00] What if I told you that some of America's biggest food companies are set to lose hundreds of millions of dollars? Well, new laws forbidding shoppers from buying certain things with SNAP benefits will soon make that a reality. Let's start in Iowa. The state recently signed a law inspired by MAHA, the Make America Healthy Again movement created by Health and Human Services Secretary Robert F. Kennedy Jr. >> Iowa is leading by improving nutrition, strengthening public health, and building a stronger future for American children and families. [0:30] >> The law cracks down on synthetic petroleum-based food dyes in schools and restricts SNAP recipients from using benefits to purchase sugary drinks like soda and candy. Now, supporters…
Full transcript available for MurmurCast members
Sign Up to AccessMore from CNBC
Former Disney CEO Bob Iger On What China Has Meant For The Company
Former Disney CEO Bob Iger reflects on the 10th anniversary of Shanghai Disneyland, discussing its success, the evolution of Chinese consumers, and Disney's investment plans in China. He also shares thoughts on AI, geopolitical risks, and his philosophy of bold risk-taking as foundational to Disney's identity.
Where Markets Think Fed Chair Warsh Is Taking Interest Rates
Kevin Warsh has been sworn in as the new Federal Reserve Chair, bringing different communication philosophies and inflation measurement preferences. The Fed faces a challenging balancing act between stable employment and rising inflation above 4%, while Warsh's preference for data-open meetings could introduce more market volatility.
Can AI Compute Become The Next Big Futures Market?
Start-up Silicon Data has partnered with CME Group to launch what could be the world's first AI compute futures market, pending CFTC regulatory approval. The market aims to help companies hedge against volatile GPU rental costs, similar to how airlines use oil futures. Key challenges include standardizing GPU pricing benchmarks and building sufficient market liquidity.
Why KFC Has Fallen Behind In The U.S.
KFC has fallen significantly behind competitors in the U.S. fast food chicken market, now ranking fourth by market share despite the category booming. In 2025, the company launched a turnaround plan featuring boneless menu items, a new beverage lineup, and redesigned restaurants. Meanwhile, KFC's international business continues to thrive, making its U.S. struggles even more pronounced.
What To Expect From Trump’s Trip To The G7 Summit In France
President Trump is headed to the G7 summit in Evian, France, where he faces strained relationships with most allied leaders over tariffs, the Iran war, and Ukraine. European and Asian allies feel increasingly sidelined as the U.S. pivots its focus toward Middle Eastern Gulf nations. Key agenda items include the Iran conflict, Ukraine support, AI regulation, troop withdrawals, and supply chain security.