December 23, 2024
Robert F. Kennedy Jr. wants to take sugary drinks out of the shopping carts of food-stamp recipients. Coca-Cola, PepsiCo and Keurig Dr Pepper are mobilizing to stop him.
Kennedy, the president-elect’s nominee to run the Health and Human Services Department, aims to remove soda and processed foods from federal programs such as the Supplemental Nutrition Assistance Program, also known as food stamps . The move could have big repercussions for the beverage industry.
Lobbyists for Coke and its biggest rivals are pressing their case on Capitol Hill, highlighting the fact that the soda companies are selling more zero-sugar drinks. These, combined with clear calorie labels on beverages, allow consumers to make healthier choices, they say. Soda lobbyists also point to anti-hunger advocacy groups such as Share Our Strength, which argues that instead of restricting SNAP recipients’ options, Congress should fund programs that help low-income families access healthier foods. Coke and PepsiCo are corporate sponsors for Share Our Strength’s No Kid Hungry campaign.
Coke is looking to hire additional lobbyists from among a small and exclusive group who have close relationships with Trump, according to a person familiar with the matter. Lobbyists for the big soda companies are also trying to get in front of people close to Kennedy and Brooke Rollins, Trump’s nominee to head the Agriculture Department, which administers SNAP benefits. Rollins hasn’t endorsed Kennedy’s agenda , and it is unclear where she stands on the idea of making sugary drinks and foods ineligible for food stamps.
The American Beverage Association, an industry group that represents Coke, PepsiCo and Keurig Dr Pepper, plans to donate money to Trump’s inauguration, as it has for past presidents, said Kevin Keane, chief executive of the group.
Coca-Cola “is always active in engaging on policies important to our business,” a company spokeswoman said. PepsiCo and Keurig referred questions to the beverage association.
SNAP is a federally funded food-benefits program that provides money for low-income families to buy groceries. In fiscal year 2023, an average of 42.1 million people a month, or 12.6% of Americans, used the benefit, according to data from the Agriculture Department. Federal spending for the program was $112.8 billion and benefits averaged $211.93 per participant a month, the data show. The USDA said it doesn’t have national data on how much of that is spent on soft drinks.
Lawmakers have tried unsuccessfully for decades to restrict soda, desserts and candy from food-assistance programs. They have argued that government funds shouldn’t be used to buy unhealthy foods and that the inclusion of these foods in benefits programs has contributed to higher rates of obesity and diabetes.
In 2023, Sen. Marco Rubio (R., Fla.) co-sponsored legislation with Rep. Josh Brecheen (R., Okla.) to make soda, prepared desserts and other sugary foods ineligible for SNAP benefits. Brecheen said he plans to reintroduce the legislation in January, and is counting on help from Trump and Kennedy to get it passed. The food-stamp program shouldn’t pay for sugary drinks that increase the risk of obesity and diabetes, he said.
Soda companies are more concerned now about the prospect of a restriction on SNAP benefits because Trump has adopted Kennedy’s “Make America Healthy Again” agenda . Kennedy also has argued for restricting consumption of high-fructose corn syrup and certain dyes .
“It’s nonsensical for U.S. taxpayers to spend tens of billions of dollars subsidizing junk that harms the health of low-income Americans,” Kennedy wrote in an opinion piece published in The Wall Street Journal.
If the Trump administration does pursue changes to the food-stamp program, it wouldn’t happen overnight. It could take years to implement new restrictions, industry analysts said.
“Congress can push a lot of things, but when the [executive branch is] already on board, it makes it a lot easier to get things done,” Rubio said in an interview, speaking about renewed efforts to remove junk food from the food-aid program. “But there will be resistance.”
The Republican Party has long been divided over policing what people on food stamps eat. Some GOP lawmakers favor consumer choice.
“I believe in educating consumers on what is in their best interest,” said Rep. Frank Lucas (R., Okla.), a senior member of the House Agriculture Committee. “I’ve always had a hard time telling people what they cannot have.”
As consumers shift away from full-sugar sodas, Coke and other beverage makers are selling more low- and no-sugar drink options, including seltzers, sports drinks, bottled waters and teas. The American Beverage Association in conversations with lawmakers is highlighting this shift, saying zero- or low-calorie drinks represent 60% of nonalcoholic packaged and fountain drinks sold in the U.S. by volume.
“No other industry is doing what we are doing in terms of offering choice in zero-sugar products,” said Keane from the beverage association.
Write to Laura Cooper at [email protected] and Kristina Peterson at [email protected]
