Soft Drink Manufacturers NAICS 312111

Apr 21, 2025 - Efforts to Ban Soda From SNAP Accelerate

• Pressure is mounting to remove soda and other sugary drinks from the list of items people can buy with Supplemental Nutrition Assistance Program benefits, NPR reports. In April, Republican-led Arkansas and Indiana moved to remove soda, candy, and drinks with less than 50% natural juice from SNAP eligibility in an effort to promote healthier diets and combat chronic diseases like obesity. Previously, left-leaning states, including New York and Minnesota, had requested waivers from the USDA – which administers SNAP and currently allows soda purchases – but were denied. Other states including Nebraska and West Virginia have said they will soon submit requests of their own to the USDA. In all, 10 US states, all Republican-led, are considering barring SNAP recipients from buying "junk" foods - such as candy, soda, and other items that are high in sugar and fat - using their benefits, according to Newsweek.
• The soft drink industry is fighting back against a growing movement among US states to prevent people from spending food-aid benefits on sugary, carbonated beverages, The Wall Street Journal reports. Its efforts are getting a warm reception from HHS Secretary RFK JR. who, as part of his Make America Healthy Again (MAHA) campaign, has proposed prohibiting SNAP (aka food stamp) recipients from using their benefits to purchase soda and candy. While the USDA has denied such requests in the past, Trump's new Secretary of Agriculture Brooke Rollins has indicated she's inclined to grant such waivers, according to WSJ. The beverage industry is lobbying President Trump to persuade him such steps would alienate his core voters. The American Beverage Association, which represents soda makers, commissioned polling this year showing that nearly 60% of those who voted for Trump last fall support allowing soda purchases with food aid, per WSJ.

• New 25% tariffs on US aluminum imports imposed by the Trump administration will increase the cost of beverage cans and could raise the retail price of the soda and beer they contain. Beverage giant Coca-Cola said the new tariffs will increase the cost of beverage cans it sells in the US. However, Coke’s CEO James Quincey said the company has strategies to adapt, including shifting to more PET plastic bottles and raising prices. It can also make changes to its supply chain and use hedging on key materials — including aluminum — to manage costs and supply, he told analysts on a recent conference call. Aluminum beverage cans are popular because they’re lightweight and recyclable. According to the American Beverage Association, in 2018 when Trump set aluminum tariffs at 10%, they added half a billion dollars to production costs. The metals tariff is set to take effect March 12.
• New research linking high-fructose corn syrup (HFCS) to cancer growth could challenge the food and beverage industry’s reliance on the widely-used sweetener, Food Navigator reports. A new study from Washington University, Saint Louis published in the journal Nature analyzed the behavior of HFCS in the body and found that the liver converts dietary fructose into nutrients, which feed tumor growth. Animals with tumors fed a diet rich in fructose saw accelerated tumor growth, per the study. President-elect Donald Trump’s nominee to head the Department of Health and Human Services, Robert F. Kennedy Jr., is no fan of HFCS saying it “is just a formula for making you obese and diabetic.” HFCS is a central ingredient in many traditional soft drinks, including Coke, Pepsi, and Sprite. While diet sodas with zero calories don’t contain HFCS, they’re made with artificial sweeteners, which have also been subject to health concerns and RFK's ire.