The Blubber

Processed food stocks took a hit on Friday amid investor concerns over potential regulatory changes under President-elect Donald Trump and his ally Robert F. Kennedy Jr.

Soda giants PepsiCo and Coca-Cola saw their shares drop over 4% and 1.3%, respectively, during late-day trading. General Mills, the maker of Cheerios and Betty Crocker products, fell by more than 2%, alongside Conagra Brands, known for Reddi-wip. Campbell Soup, which produces Goldfish crackers and Pepperidge Farm cookies, slid nearly 3%, while Kraft Heinz, the company behind mac and cheese and Oscar Mayer hot dogs, dipped 2%.

Lamb Weston, a major supplier of frozen potatoes to chains like McDonald’s and Chick-fil-A, experienced the steepest decline, tumbling more than 6%.

These declines followed Trump’s announcement naming Kennedy as his pick for Secretary of the Health and Human Services Department, an agency that oversees key organizations such as the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC). Kennedy, a vocal vaccine skeptic and proponent of regulatory overhauls, has drawn criticism from lawmakers and public health experts alike.

If confirmed by the Senate, Kennedy would also oversee Medicare, Medicaid, and the National Institutes of Health (NIH). His “Make America Healthy Again” initiative has raised concerns that stricter scrutiny could be applied to companies behind many iconic snack, packaged food, and soft drink brands. Kennedy has advocated for significant changes to the FDA, including removing nutrition-related departments, citing concerns over the safety and quality of food products.

“They’re not protecting our kids,” Kennedy remarked in an NBC News interview last week. “Why do we have Fruit Loops in this country with 18 or 19 ingredients, while in Canada, it’s only two or three?”

Fruit Loops, made by WK Kellogg Co., initially bucked the trend with a slight advance on Friday but ultimately ended the week down more than 4%.