By Evie Liu

McCormick, a food company that sells spices, herbs, and other flavoring products, said more of its corporate clients are reformulating their products in the face of the new administration's agenda to reduce artificial additives from America's food supply, the company's CEO Brendan Foley said at the latest earnings call on Tuesday.

This is one of the latest signs that the food industry might be adjusting its strategies to contend with the demand from Robert F. Kennedy Jr., the new secretary of the Department of Health and Human Services, to "Make America Healthy Again".

Highly processed packaged food with artificial ingredients is a major target for Kennedy. The Food and Drug Administration said in January that it would ban the use of Red No. 3, a synthetic dye in thousands of foods like candy and cereals, that has been linked to cancer risks.

Many states are considering even broader laws to restrict the use of chemicals in food products. This week, West Virginia said it would ban the use of seven artificial food dyes and two preservatives statewide starting in 2028. California passed a similar law last year to ban four food additives from 2027.

Many synthetic dyes and other food additives are already banned or restricted in Europe and other regions. American companies have been using alternative formulas in those markets that likely could be adopted in the U.S. as well.

Kennedy's proposals would accelerate a trend already going on in the food industry. Companies have been offering more "better-for-you" products that often boast a "cleaner label", which means less processing and fewer ingredients, as well as healthier recipes such as low sodium, low sugar, high protein, and high fiber.

Pepsi, for example, has reduced sodium and saturated fats in products like Lay's and Doritos chips. The snack giant has also been expanding its portfolio to include healthier snacks, most recently closing a deal to acquire prebiotic soda brand Poppi, whose drinks contain added fiber that's good for gut health.

The restaurant industry is catching up as well. Over the past decade, fast-food giants including McDonald's, Burger King, and Taco Bell have been working to make their products healthier.

In 2021, Burger King announced that it has permanently banned 120 artificial colors, flavors, and preservatives from its menus across the country. According to a 2023 report by public policy economic consulting firm Keybridge, from 2018 to 2022, McDonald's has reduced average calories in its Happy Meal Bundle Offerings by 6%, sodium by 9%, saturated fat by 15%, and added sugar by 26%.

Sweetgreen, a fast-casual chain known for salad bowls, recently launched its own fries that's marketed as healthier. "Instead of being made of the many ingredients you can't pronounce and chemicals you probably should not consume and then deep fried in seed oils, we make them with five ingredients, air fried in avocado oil at a really compelling price, " said CEO Jonathan Neman at a recent conference.

While Kennedy's opposition against ultraprocessed food and artificial ingredients has won general support among the public health community, some of his stands have been controversial. They are starting to have real-life impact.

Last month, fast food chain Steak 'n Shake announced that it would ditch seed oil -- repeatedly criticized by Kennedy as a culprit for chronic diseases -- for beef tallow, a type of rendered beef fat similar to lard that he claims is more natural and therefore healthier.

While Kennedy believes the industrial processes used to extract and refine seed oils strip them of beneficial nutrients and create harmful byproducts, the scientific community generally thinks moderate use without overheating poses low risks. Meanwhile, beef tallow, although less processed, is higher in saturated fat, which could raise heart disease risk. McDonald's used beef tallow for its french fries until the early 1990s, but switched to seed oil as public health campaigns targeted saturated fat as a major cause of heart disease.

Kennedy said fluoride in water is associated with various diseases despite its proven benefits for dental health. He also promotes the consumption of raw milk due to its richer nutrients and active microbes, but health experts have warned against the risk of bacterial contamination.

Write to Evie Liu at evie.liu@barrons.com

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March 26, 2025 01:00 ET (05:00 GMT)

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