CPG brands are juggling public health initiatives, inflation-driven consumer shifts and a legal landscape that places a magnifying glass on product transparency – all while striving to maintain growth and consumer trust.
Indiana, Arkansas and Iowa aim to remove candy and soda from SNAP
This week, industry groups, including the National Beverage Association and National Confectioners Association, are pushing back against proposed state-level bans in Indiana, Arkansas and Iowa on the purchase of soda and candy using SNAP benefits.
The controversial measures, which proponents argue promote public health, have drawn criticism from manufacturers and retailers who warn the bans could disproportionately impact low-income consumers while increasing the complexity of food distribution and compliance. Critics argue these policies stigmatize SNAP users and lack a clear definition of what constitutes “junk food,” creating logistical hurdles for retailers.
Brands, retailers and shoppers pull back on spending amidst tariff shifts
Meanwhile, despite tariff relief on Chinese imports announced last week, both consumers and CPG companies are still tightening their belts.
Shoppers remain cautious about discretionary spending in categories like snacks and beverages, while brands are scaling back promotions and innovation due to rising input costs and margin pressures. Retailers, too, are taking a more conservative approach to inventory and promotions as they watch consumer behavior shift.
Full story: Tariff ‘whiplash’ causes ‘paralysis’ among CPG businesses and retailers
Clean label litigations on the rise
On the legal front, clean label claims are facing renewed scrutiny. A growing number of class action lawsuits are targeting vague or misleading label language around “natural flavors,” “real fruit” and the presence of heavy metals or PFAS in food products. As regulatory oversight increases, brands may need to re-evaluate not just their ingredient decks but also their front-of-pack messaging and marketing practices to avoid litigation.
Interested in learning more about the evolution of clean label concerns?
FoodNavigator-USA’s webinar Clean label 2.0: Soothing safety concerns and navigating state bans explores the evolution of clean label – including what consumers, legislators and regulators expect. Registration is free and on demand. Click here to sign up.
