A chip and snack display at a supermarket in Miami Beach, Florida.
Jeff Greenberg | Universal Images Group | Getty Images
Stocks of processed foods plunged on Friday as investors feared a crackdown under President-elect Donald Trump and his ally Robert F. Kennedy Jr.
Soda Titans PepsiCo And Coca-Cola fell more than 4% and 1.3%, respectively, in late trading on Friday. Cheerios cereal and Betty Crocker cake mix maker General Mills also fell by more than 2% Conagra brandsthe company behind Reddi-wip.
Campbell soupwhich makes Goldfish crackers and Pepperidge Farm cookies, fell nearly 3%. Kraft Heinzknown for its macaroni and cheese and Oscar Mayer hot dogs, fell 2%.
Supplier of frozen potatoes Lamb Westonwhose fries are sold in chains, including McDonald's and Chick-fil-A fell more than 6%.
The declines came after Trump named Kennedy his nominee to be secretary of the Health and Human Services Department, which oversees the Food and Drug Administration and the Centers for Disease Control and Prevention, among dozens of federal agencies. Trump's choice of Kennedy, a well-known vaccine skeptic and conspiracy theorist, drew criticism from some politicians on Capitol Hill as well as public health experts.
If Kennedy receives Senate approval, he will also oversee Medicare, Medicaid and the National Institutes of Health.
Traders fear Kennedy's “Make America Healthy Again” focus will lead to increased scrutiny of the companies behind some of the most recognizable snack, packaged food and soft drink brands. Kennedy, who ran as an independent for president before endorsing Trump, pushed for big changes at the FDA, including eliminating nutrition divisions.
“They are not protecting our children,” Kennedy said of current regulators in an interview with NBC News last week. “Why in this country do we have Fruit Loops with 18 or 19 ingredients and in Canada we have two or three?”
Fruit Loops are manufactured by WK Kellogg Co. The stock bucked the trend on Friday but ended the week down more than 4%.