SNAP restrictions in 23 states threaten $830 million in food sales for Coca-Cola, PepsiCo, Hershey
USDA-approved SNAP waivers in 23 states affecting one-third of program participants could reduce food and beverage sales by $830 million in 2026, forcing Coca-Cola, PepsiCo, Hershey, and Kraft Heinz to reformulate products as restrictions target sugar-sweetened beverages and confectionery.
The U.S. Department of Agriculture approved food restriction waivers for Supplemental Nutrition Assistance Program benefits in 23 states as of May, affecting roughly one-third of all SNAP participants and threatening $830 million in food and beverage sales this year, according to Numerator. Most waivers focus on limiting consumption of sugar-sweetened beverages and confectionery products.
Walmart captures roughly 25% of all SNAP grocery dollars nationwide, making it the most exposed retailer, followed by Kroger at 8%, Costco at 6%, and Amazon at 5%. Kroger CEO Greg Foran said on the company's first-quarter earnings call Thursday that customers remain under pressure in part due to reduced SNAP benefits and higher gas prices. Iowa became the first state to codify elements of the "Make America Healthy Again" movement into law last month, banning synthetic dyes including Red 40 and Yellow 5 from K-12 school meals and restricting SNAP recipients from buying soda and candy.
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