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US SNAP food restrictions widen across states, putting Coca-Cola, PepsiCo and Mondelez on alert

Restrictions in the US SNAP food assistance program that exclude soda, candy and ultra-processed foods are spreading to more states, pushing low-income consumer spending toward healthier categories. Major food and beverage makers face revenue pressure as the mix shifts. Analysts say the impact will vary sharply by product segment.

Photograph of a supermarket produce aisle with fresh fruit and vegetables.
Photograph of a supermarket produce aisle with fresh fruit and vegetables.Photo: Pixabay / Pexels
CNBC Top News56 d agoKO PEP MDLZ
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Restrictions in the US Supplemental Nutrition Assistance Program (SNAP) that bar the purchase of soda, candy and ultra-processed foods are spreading to more states. Iowa, Indiana and Arkansas have obtained federal waivers narrowing what beneficiaries can buy, with similar proposals under discussion in California and New York. Total SNAP spending exceeds $100 billion a year.

The program reaches about 42 million people, giving it real weight in consumer markets. Food and beverage giants such as Coca-Cola, PepsiCo, Mondelez and Kraft Heinz are watching for shifts in the sales mix. A recent Bank of America note estimates that SNAP accounts for roughly 10% to 15% of US sales in some snack and sugary-drink categories.

Analysts expect the shift to favor produce, dairy and grains, with retailers such as Walmart and Kroger potentially benefiting from steadier basket value. Manufacturers are signaling plans to expand healthier snack portfolios and accelerate reformulation efforts. If federal policy aligns the waivers into a single framework, the impact could be felt over multiple years.

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Source: CNBC Top News
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This article is an AI-curated summary of the original story published by CNBC Top News. The illustration is a stock photo by Pixabay from Pexels and is not from the original story.

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