Kraft Heinz and Mondelez shares drop as Trump officials blast ultraprocessed foods and unveil new food pyramid

By Victor Reklaitis

RFK Jr. says past administrations lied to 'protect corporate profit-taking'

U.S. Agriculture Secretary Brooke Rollins speaks during a news briefing at the White House on Wednesday, where she was joined by other top Trump administration officials (from left) Marty Makary, Robert F. Kennedy Jr., Mehmet Oz and Karoline Leavitt.

Shares in giant food companies such as Kraft Heinz and PepsiCo lost ground Wednesday as top officials in the Trump administration criticized ultraprocessed foods and sugary drinks while releasing new dietary guidelines.

"The hard truth is that our government has been lying to us to protect corporate profit-taking, telling us that these food-like substances were beneficial to public health," said Robert F. Kennedy Jr., secretary of the U.S. Department of Health and Human Services, during a briefing for reporters.

"Federal policy promoted and subsidized highly processed foods and refined carbohydrates and turned a blind eye to the disastrous consequences," Kennedy said. "Today, the lies stop. The new guidelines recognize that whole, nutrient-dense food is the most effective path to better health and lower healthcare costs."

Kraft Heinz's stock (KHC) recently traded lower by about 1.6%, building on a drop Tuesday that occurred as preliminary reports about the new dietary guidelines came out. Mondelez International shares (MDLZ) slid 2.1%, PepsiCo (PEP) was down 0.8%, General Mills (GIS) fell 1%, and Coca-Cola (KO) dropped 0.4%.

Shares in Kraft Heinz and Mondelez were flirting with their lowest closing levels since 2020, while General Mills was on track for its lowest finish since 2019.

Meanwhile, the broad S&P 500 stock index SPX was gaining 0.3% Wednesday.

Kennedy took shots at an old food pyramid while standing by a poster showing his new pyramid, which looks like a triangle pointing down. The new pyramid is dominated by foods labeled as "protein, dairy and health fats," as well as vegetables and fruits, while whole grains have a small spot at the bottom.

"It's upside down. A lot of people say that it was actually upside down before, and we just righted it," he said.

The new pyramid says that one meal should contain no more than 10 grams of added sugars, or about 2 teaspoons. Five years ago, the recommendation was up to about 50 grams a day.

Notably absent were guidance or praise for seed oils, which Kennedy frequently has criticized. However, a document outlining the scientific rationale for the guidelines detailed the possible impact of thermally stressed oils - which occurs when they are used to cook with high heat - on cardiometabolic health.

The Trump administration's new website, realfood.gov, urges people to "prioritize oils with essential fatty acids, such as olive oil" when cooking or adding fats to meals. "Other options can include butter or beef tallow," it adds, which goes against most nutrition advice about limiting saturated fats.

The U.S. Agriculture Department also said it's the first time that the dietary guidelines "have addressed the issue of processed foods and their impact on health outcomes."

Elsewhere in the food-processing industry, shares of Archer Daniels Midland (ADM), Bunge Global (BG) and Conagra Brands (CAG) were all down more than 3%.

Claudia Assis and Jaimy Lee contributed.

-Victor Reklaitis

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