News Bites – May 2025
FDA Pushes Cleaner Labels with Approval of Three New Natural Food Colorants
The FDA approved three natural food colorants—galdieria blue, butterfly pea extract, and calcium phosphate—to replace synthetic dyes. These approvals support the “Make America Healthy Again” campaign, urging companies to phase out petroleum-based colors by 2026. Although critics warn of supply challenges, major brands like PepsiCo are accelerating reformulation. Meanwhile, demand for natural alternatives continues rising as state-level bans and health concerns drive industry-wide change.
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Grocery Habits Evolve in 2025 as Shoppers Balance Cost, Convenience, and Nutrition
Consumers are making more in-store and online grocery trips to manage rising costs, tariffs, and inflation. According to FMI, shoppers prioritize fresh foods and adopt strategic trade-offs. While Gen Z prefers mass and convenience channels, Boomers stick to supermarkets. Additionally, online grocery use continues to rise. Despite economic pressures, 75% feel somewhat in control of spending, though concerns about prices and tariffs remain high heading into mid-2025.
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Court Halts Injunction, Keeping Trump Trade Tariffs Alive—for Now
A federal appeals court paused a ruling that struck down Trump-era tariffs, allowing duties to remain in place for now. The injunction had targeted tariffs imposed under the International Emergency Economic Powers Act, including those on China, Mexico, and Canada. However, tariffs from Section 232 and 301 investigations remain unaffected. Meanwhile, critics argue the executive overreached, while the administration vows to escalate the case if needed.
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WK Kellogg’s High-Stakes Push to Make Cereal Relevant Again
WK Kellogg launched its SPOONS framework to reposition cereal as a health food amid falling sales and tariff pressure. The campaign highlights protein, fiber, and clean ingredients. Additionally, the company plans product relaunches and increased marketing for brands like Kashi and Special K. However, earnings dropped sharply in Q1, raising investor concerns. With acquisition rumors swirling and margins tight, Kellogg must prove SPOONS can drive lasting consumer demand.
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Grocery Leaders Rally to Defend SNAP Amid Budget Battle
Industry groups are urging Congress to protect SNAP as lawmakers propose $300 billion in cuts and stricter state-level restrictions. Nebraska became the first state approved to ban soda and energy drink purchases under SNAP. Meanwhile, FMI and NGA warn that limiting benefits harms both food security and local economies. Additionally, survey data shows most Americans support maintaining federal oversight and oppose reducing or restricting SNAP program funding.
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Check out last month’s News Bites: News Bites – April 2025!
