SNAP Waivers Target Unhealthy Foods in 18 States (Image Credits: Unsplash)
Major food and beverage companies face mounting pressure as states roll out restrictions on using SNAP benefits for unhealthy items like candy and soft drinks.
SNAP Waivers Target Unhealthy Foods in 18 States
The Trump administration approved waivers for 18 states to limit SNAP purchases of non-nutritious products.[1][2]
Eight states already enforced these measures by early 2026, with others scheduled throughout the year. Bans primarily prohibit soft drinks and sweetened beverages, while some extend to candy, energy drinks, and prepared desserts. For instance, Indiana, Iowa, Nebraska, Utah, and West Virginia started restrictions on January 1, followed by Idaho, Oklahoma, and Louisiana in February.[2]
Retailers must adapt to varying definitions of restricted items across states, creating implementation challenges. The U.S. Department of Agriculture oversees these waivers through its SNAP Food Restriction program, aiming to promote healthier choices.[2]
- Indiana: Soft drinks and candy
- Iowa: Taxable food items (except seeds and plants)
- Nebraska: Soda and energy drinks
- Utah: Soft drinks
- West Virginia: Soda
- Idaho: Soda and candy
- Oklahoma: Soft drinks and candy
- Louisiana: Soft drinks, energy drinks, and candy
Hershey Monitors Retail Frontlines
Hershey reported close collaboration with retailers to assess how bans affect shelf sales. The company viewed it as too early to measure precise earnings effects from the restrictions.
CFO Steven Voskuil highlighted proactive planning during recent earnings discussions. “We’re trying to predict different ways it could play out,” Voskuil said. “And then how our portfolio can play offense against some of those challenges.”[1]
Such strategies involve anticipating consumer shifts and positioning products to maintain volume despite limits on benefit use.
Keurig Dr Pepper Sees Mixed Early Signals
Keurig Dr Pepper observed varied outcomes in states with active bans. CEO Timothy Cofer anticipated minimal long-term changes in soda consumption patterns.
SNAP recipients often supplement benefits with personal funds, Cofer explained. “SNAP recipients fund their grocery bills through a combination of SNAP benefits and their own money,” he said. “And so we’ve seen that there is often a reallocation, kind of left-pocket, right-pocket as it relates to that.”[1]
The executive expressed greater concern over potential broader SNAP reforms, such as work requirements or benefit cuts that could reduce overall program participation. J&J Snack Foods, for example, experienced sales dips during a prior government shutdown-induced benefit pause.[1]
Industry-Wide Implications Unfold
SNAP accounts for 12% of U.S. grocery spending, per the National Grocers Association, amplifying the stakes for manufacturers.[1]
NielsenIQ data from last year indicated nearly one-third of consumers would cut back on food purchases amid benefit reductions. Companies like Keurig Dr Pepper plan responses such as value packs and promotions to bolster affordability. Cofer remained optimistic: “I think the overall impact on the business is going to be manageable, and you should expect us to respond as we learn more.”[1]
Key Takeaways
- 18 states target SNAP use for soda, candy, and similar items, with eight already active.
- Hershey and Keurig Dr Pepper track impacts closely but deem them unquantifiable so far.
- Consumer fund reallocation and affordability tactics may offset sales losses.
These developments signal a pivotal shift in how food assistance intersects with industry sales, urging manufacturers toward adaptive innovation. What strategies do you see working best for these companies? Tell us in the comments.