On Friday, processed food stocks took a nosedive as investors worried about big changes coming under President-elect Donald Trump and his new ally, Robert F. Kennedy Jr.
The sell-off happened after Trump announced Kennedy as his pick for Secretary of the Health and Human Services Department. This department oversees major agencies like the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC).
Kennedy, known for his controversial views on vaccines and public health, has been vocal about shaking things up, including calling for big changes at the FDA. He even suggested getting rid of nutrition departments altogether!
Major food companies felt the heat in the stock market. Soda giants like PepsiCo and Coca-Cola saw their shares drop by over 4% and 1%, respectively. General Mills, the company behind Cheerios and Betty Crocker, fell more than 2%, along with Conagra Brands, which makes products like Reddi-wip.
Campbell Soup, known for its Goldfish crackers and Pepperidge Farm cookies, slid nearly 3%, and Kraft Heinz, famous for mac and cheese and Oscar Mayer hot dogs, dipped 2%. Lamb Weston, which supplies french fries to places like McDonald’s and Chick-fil-A, suffered the most, tumbling over 6%.
Kennedy’s nomination sparked a mix of reactions. While some see his focus on making America healthier as refreshing, others, including politicians and public health experts, are concerned. If the Senate approves him, Kennedy will also oversee programs like Medicare, Medicaid, and the National Institutes of Health.
Kennedy has criticized regulators for not doing enough to protect public health. In a recent interview, he pointed out that a cereal like Fruit Loops has nearly 20 ingredients in the U.S., but only two or three in Canada. “Why are we feeding our kids stuff like this?” he asked.
Interestingly, WK Kellogg Co., the maker of Fruit Loops, had a slightly better day than others but still ended the week down by over 4%.
It seems like investors are bracing for changes that could affect some of the biggest names in snacks and sodas. For now, all eyes are on what “Make America Healthy Again” might actually mean for the food industry.
