The U.S. Health Secretary Robert F. Kennedy Jr.‘s announcement that ice cream makers will eliminate synthetic dyes in their formulations could impact the listed ice cream makers who would be required to execute the change.
What Happened: According to federal health officials cited by Fortune, ice cream makers representing about 90% of the U.S. supply will be required to eliminate synthetic dyes by 2028.
This move, part of a broader Donald Trump administration push to remove petroleum-based dyes linked to ADHD and cancer, marks a significant shift in the food industry, with Michael Dykes, the president and CEO of the International Dairy Foods Association, saying that it is "a great day for ‘Make America Healthy Again” to the Guardian.
The initiative sees 40 ice cream and frozen dairy dessert makers, including major players, pledging to phase out seven dyes—Red 3, Red 40, Green 3, Blue 1, Blue 2, Yellow 5, and Yellow 6—by 2028, according to Dykes.
Already, 40% of the food industry has committed to removing these dyes by 2026, with 35% having done so, Kennedy noted in an interview with Fox Business.
The FDA is fast-tracking veggie-based alternatives, approving a new gardenia blue dye for use in candies and sports drinks, FDA Commissioner Marty Makary announced.
Why It Matters: Stocks likely impacted include Nestle SA ADR (OTCPK: NSRGY), which produces Häagen-Dazs and Dreyer's.
General Mills Inc. (NYSE:GIS) with its Häagen-Dazs stake, and The Kroger Co. (NYSE:KR) for its private-label ice cream, alongside Kraft Heinz (NASDAQ:KHC), which has pledged to remove dyes from foods, per Fortune.
| Stocks | YTD Performance | One-Year Performance |
| General Mills, Inc. (NYSE:GIS) | -19.78% | -18.92% |
| Unilever PLC (NYSE:UL) | 7.87% | 7.04% |
| The Kroger Co. (NYSE:KR) | 16.68% | 38.66% |
| Hershey Creamery Company (OTCEM: HRCR) | 4.56% | -1.26% |
| Danone ADR (OTCQX:DANOY) | 19.98% | 25.18% |
| Nestle SA ADR (OTCPK: NSRGY) | 18.18% | -6.72% |
| Kraft Heinz Co. (NASDAQ:KHC) | -9.65% | -13.91% |
However, experts like Deanna Hoelscher from the University of Texas caution that removing dyes won't make ice cream healthy due to high sugars and fats, while Thomas Galligan of the Center for Science in the Public Interest questions voluntary compliance, per Fortune.
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.43% at $627.48, while the QQQ advanced 0.63% to $559.73, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image Credit: © Henrietta Wildsmith/The Times / USA TODAY NETWORK via Imagn Images
