TD says RFK nomination ‘more unwelcome uncertainty’ for processed foods

TD Cowen says the nomination of Robert F. Kennedy Jr. to lead Health and Human Services with oversight over the FDA “creates more unwelcome uncertainty” for processed foods and beverages companies “that are already reeling” from price, elasticity and uncertainty about weight loss drugs. However, the nomination is unlikely, as Senators would likely vote against him based on his controversial views on vaccines, the analyst tells investors in a research note. TD, however, assumes RFK Jr. would accelerate the evaluating of ultra processed foods and whether to introduce new labeling requirements. It’s possible that RFK Jr. could accelerate front of package labeling requirements for nutritional value in general, which would theoretically force food and beverage companies to display unhealthy ingredients more predominantly on the packaging, says TD. It thinks meat packers like Tyson Foods (TSN) and makers of ultra-processed convenient meals positioned as “healthy” like Kraft (KHC), Campbell (CPB), General Mills (GIS), and Conagra (CAG) would face the biggest risk of tighter regulations.