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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.
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 say it's about improving public health and making sure taxpayer funded food assistance is spent on more nutritious options. But for food companies, it's creating a whole new challenge. Iowa isn't alone. The USDA has approved food restriction waivers in more than 20 states. Together, those states account for nearly one third of all Snap participants in America.
Numerator estimates those restrictions could reduce food and beverage sales by as much as $830 million this year alone. When you think about the products most impacted candy, soda, snacks, you see the exact categories that have long been staples for some of the biggest names in food PepsiCo, Coca-Cola, Kraft, Heinz, Hershey, General Mills, J.M. Smucker and those companies are paying close attention. In fact, Hershey says it's already studying snap shoppers to see how their buying habits might change under new laws. The company is looking at everything from product swaps to budget tradeoffs. Basically, if shoppers can't buy one product anymore, what will they buy instead?
Not every company, though, is sounding the alarm. I spoke with Mark Smucker, CEO of J.M. Smucker, and he told me the changes implemented so far haven't had a meaningful impact yet, but there's still a lot of uncertainty. While most restrictions focus on soda and candy, some states are considering broader definitions that could eventually pull other packaged snacks into the conversation. At the same time, companies are being pushed to reformulate products Secretary Kennedy has pushed to eliminate artificial colors, has accelerated efforts across the food industry. Several manufacturers pledged in 2025 to remove certain synthetic dyes and additives by 2027 or sooner.
Nestle is the latest company to announce it has met that timeline. Hershey's told me in a statement that the company has observed some consumer uncertainty regarding the new changes, and that it anticipates this will improve as store execution improves, rules become clearer and Snap users can plan and budget with more certainty. So what started as a public health movement is quickly having a lasting impact on the food industry. Companies are trying to answer a pretty important question. If regulators change what's eligible for Snap and consumers keep demanding healthier products, what does the future of the snack aisle look like? Well, we are about to find out.
