SWEET TREATS GONE IN A SNAP
The cleverly named Supplemental Nutrition Assistance Program, or SNAP, is a federal government program in the United States formerly known as the Food Stamps Program. Administered nationwide by states, the program has served over 42 million people per month, or 12.6 percent of US residents, in primarily low to no-income households. The benefit, across all states, can be used for “any food or food product intended for human consumption,” obviously excluding alcohol, tobacco, and prepared foods.
The controversy and potential impact on the demand for certain consumer goods brands emanates from the 10-plus states offering various changes and are pursuing waivers to exclude certain “junk foods and sugary drinks” from the program. Arkansas Governor Sarah Huckabee Sanders sent a letter to the US Secretary of Health and Human Services, Robert Kennedy Jr., regarding his “Make America Healthy Again” movement supporting fruits, vegetables, eggs, and proteins, but prohibiting the use of SNAP for junk food. Candy and soft drink bans are within the scope of each waiver request.
While the debate around government overreach and control plays out against the arguments promoting healthy eating habits, this limitation no doubt creates additional headwinds for snacking and soda manufacturers, who are already dealing with the impact of impending tariff costs and a more challenging consumer.
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