Health and Human Services Secretary Robert Kennedy Jr. has issued a broad ban of “artificial colors by the end of his term in 2029 or face government intervention.” While the new directive was focused toward the biggest companies in the food industry like PepsiCo North America, Kraft Heinz, General Mills, Tyson Foods, WK Kellogg, and JM Smucker (whom RFK, Jr. had meetings with the CEOs as well as representatives from the Consumer Brands Association), it is clear that all food manufactures and processors are expected to follow the edict.
It is reported that RFK, Jr. told the executives that “removing artificial dyes is an urgent priority,” but he left what happens if the companies fail to comply intentionally vague. This ominous, open-ended threat was enough to make the markets react as stock for the food giants all dipped at a sharper rate than the S&P 500 in general (which was on a downward vector) pointing to investors’ concern about how the new directive will affect the bottom-line. (But to be fair, whenever the government gets involved to this extent, investors tend to get nervous, at least until they have a better idea of what the actual fallout will be.)
How will the “removal of food dyes” policy affect the bottom line for food companies? Ultimately,, it is impossible to fully evaluate the question without knowing the ramificationsof non-compliance. After all, from a financial standpoint, it may be better to take the governmental penalty hit than a sales loss if the food is suddenly visually unappealing. People eat with their eyes, a,nd the U.S. market i,s not accustom,ed to seeing food that hasn’t been “dressed up” a bit to better meet an expected look. Add into the equation that there are surprisingly few “natural” food dyes that are as effective in coloring food items, and most are sourced in ways that are, shall we say, less than appetizing if you know the source.
This is a moment in time, however, where financial concerns may be overcome by both the true and the perceived health concerns that the dyes may present. The “Make America Healthy Again” movement has been picking up steam for years, well before it got its shiny new branding to fall inline with the Trump 2.0 administration. The American consumer has never been more conscious of what goes into their food and what the effects could be. This could put the food companies at more considerable risk of losses if the public believed that they were happy to risk your children’s health to pocket a little extra coin per unit sold. Especially given that companies like PepsiCo, Kraft Heinz, General Mills, WK Kellogg, and JM Smucker have different formulations, without many of the food dyes, that they have been selling in Europe for decades.
Further evidence of the moment we find ourselves in (regarding food colors and safety) is the fact that many states did not wait for the RFK, Jr. ultimatum to begin taking action. California has outlawed Red 40, Yellow 5, Yellow 6, Blue 1, and Green 3 in school meals. West Virginia is moving forward with bipartisan legislation that would ban a wide range of dyes and additives from all food products sold in the state. Removing harmful additives from our food supply seems to be one of the few truly bipartisan issues in our current political chaos.
As impactful as removing food dyes from our diets will be, RFK Jr. has his sights set on a much bigger target, the GRAS system. That is the FDA’s “Generally Recognized As Safe” program that gives food manufacturers great latitude in using ingredients based on claims that an ingredient has been safe in other applications as scientific grounds to claim without the FDA officially, independently approving the ingredient for use in the manner the food company is intending. But that is a different topic for another day; just keep it on your radar.
The question now isn’t, “does the American consumer want healthier options,” that has been made clear, and the answer is a resounding YES. The question is how those same consumers will react when they get what they are asking for. Will steak and ground beef sales hold steady when all the beef looks grey instead of red? Will they be as drawn to that banana pudding that is a natural off-white color instead of the yellow we all think of when we think banana? Well, we certainly can get used to these things if we have enough time. The US consumer, however, is notoriously impatient and very vocal during this kind of transition. So expect grumbling from the public and a bumpy ride for the food companies (in fact, some of the smaller companies may not survive to change.
Will MAHA succeed? It all depends on your definition of success, but time will tell.