J.M. Smucker Disagrees with Kennedy over Phasing out Snacks and Other Unhealthy Foods

The makers of weight loss drugs and Robert F. Kennedy Jr. are advocating for significant changes in American diets, but the company behind Twinkies and Uncrustables remains confident in the enduring demand for snacks.

J.M. Smucker CEO Mark Smucker addressed concerns during an earnings call on Tuesday, stating, “Regardless of political factors, we strongly believe snacking will persist. Consumers will continue to seek small rewards throughout the day.”

This response came after an analyst questioned the potential impact of Kennedy’s “Make America Healthy Again” initiative on the company.

Kennedy, nominated by President-elect Donald Trump as Secretary of Health and Human Services, has proposed banning artificial food colourings and pesticides.

His agenda also aims to restrict soda and processed foods in school lunches and the Supplemental Nutrition Assistance Program, labelling some snacks like chips and gummy bears as containing “chemical poisons.”

Kennedy’s approach is seen as more aggressive toward food companies than previous administrations. Bernstein analyst Alexia Howard noted in a client report that his potential policy changes could have repercussions across the food sector.

Stocks of major food companies like Pepsi, General Mills, Kellogg, and Kraft Heinz dipped earlier this month following Trump’s announcement of Kennedy’s nomination.

However, Kennedy’s plans remain speculative until he is confirmed by the Senate, and it’s uncertain if regulating food companies will be a priority for an administration promising broad deregulation of industries.

Many in the food industry remain sceptical of significant policy shifts. “The food industry should be nervous, but they’re not convinced it will happen,” said Marion Nestle, a leading expert on nutrition and food policy at New York University, in a recent CNN interview.

J.M. Smucker is betting that Americans’ appetite for snacks will prevail. About half of Americans report eating three or more snacks daily, according to research from Circana.

Smucker also noted it has not experienced a “material impact” from the growing use of GLP-1 weight loss medications, such as Ozempic and Wegovy, which have gained significant traction.

Research indicates that one in eight U.S. adults has used GLP-1 medications. A proposal unveiled by the Biden administration could expand access to these costly anti-obesity drugs for seniors and low-income individuals, potentially influencing dietary trends further.

Smucker is exploring adjustments to its product lines to align with evolving consumer habits influenced by weight loss drugs. “We are continuously researching the potential impact of GLP-1 trends on our business,” Smucker said. “We might explore options like reducing sugar and introducing various innovations.”

Other food companies are also adapting. Nestlé recently launched Vital Pursuit, a new line of frozen meals high in protein and fiber, specifically designed for GLP-1 users and those focused on weight management.

These changes may pose a greater challenge for brands heavily reliant on sugary or unhealthy snacks, but the industry remains resilient in catering for consumer preferences.
Source: CNN