Arkansas Governor Sarah Huckabee Sanders is pursuing approval from the U.S. Department of Agriculture (USDA) to ban the purchase of candy and all types of soda with funds from the Supplemental Nutrition Assistance Program (SNAP). This proposed change is set to take effect in July 2026, pending USDA approval. The USDA is prioritizing these requests from Arkansas and similar motions from other states, reflecting a growing trend towards restricting the types of food that can be bought with SNAP benefits.
The potential policy shift may have significant implications for major manufacturers in the soda and candy industry. Companies such as Coca-Cola (KO), PepsiCo (PEP), Keurig Dr Pepper (KDP), Hershey (HSY, Financial), Mondelez (MDLZ), and Nestle (NSRGY) could be directly affected if these SNAP purchase restrictions are implemented. These changes aim to promote healthier food choices among SNAP recipients, but they also raise concerns about the economic impact on these large food and beverage producers.
