With brief, occasional, italicized and sometimes gratuitous commentary…
• HHS To Ban Synthetic Food Dyes in Food By End of 2026
From the New York Times:
“In his first attempt to significantly change the nation’s food supply, Robert F. Kennedy Jr., the health secretary, will direct food manufacturers to phase out eight petroleum-based food dyes that are found in hundreds of thousands of grocery-store staples, the Department of Health and Human Services said on Monday.
“The plan, expected to be described in detail at an event in Washington on Tuesday, targets dyes used in cereals, sports drinks and a host of other foods. The department has not outlined a regulatory path to enforce the changes, but wants them to be made by the end of 2026.
“Health advocates have long criticized food dyes, citing a limited body of research connecting them to hyperactivity and other neurobehavioral problems in children. The Food and Drug Administration, which regulates about 80 percent of the nation’s food supply, banned Red Dye No. 3 shortly before Mr. Trump took office, after studies connected it to cancer in laboratory animals. That followed a 2023 California law that banned the dye.
“The eight dyes Mr. Kennedy wants to phase out are widely used within the United States, but products made for the European markets — where companies are required to use warning labels if they add them — and Canadian markets already use natural color substitutes. The secretary is expected to announce the approval of additional natural dyes at Tuesday’s event.
“Mr. Kennedy, long a champion of removing certain chemicals from the food supply, made food dyes an issue as soon as he was selected to head the health department, pointing out that in Canada, Froot Loops gets its bright colors from blueberries and carrots instead of the Red No. 40, Yellow No. 5 and Blue No. 1 in the American version.
“The changes would have a sweeping impact on major food companies like General Mills, the Kraft Heinz Company and PepsiCo, which have argued that there hasn’t been enough science connecting ingredients with health outcomes.
“Martin Makary, the F.D.A. commissioner, said in an exclusive interview Tuesday that the time had come to shift the thinking on what constitutes risk in the food supply and what scientific evidence is required to regulate food ingredients.
‘My feeling is, why gamble with the health of our children?’ he said. ‘We have some data points. We have some observational studies. We believe that these artificial food chemicals are implicated. My feeling is, Why not err on the side of safety? Why say, ‘Let’s just take the risk because the vibrance of the colors is so appealing, it’s worth it.’'”
While I agree with the general principle of eliminating these artificial food dyes from the nation’s processed food supply, I think we should all be really, really concerned with the following quote:
“‘We have some data points. We have some observational studies. We believe that these artificial food chemicals are implicated. My feeling is, Why not err on the side of safety?”
I’m pretty sure that this is not how science works. “Some” ain’t the standard by which real scientists reach conclusions and make recommendations. And when “some” and “observational” become the standards, then we’re going to see a lot of decisions and recommendations being made that are far more impactful. Like when it comes to vaccines, which likely is the next step, with the food dye criteria a way of softening us up and getting us ready.
• Stock Market In April The Worst Since Great Depression.
From the Wall Street Journal:
“The Trump rout is taking on historic dimensions.
“The Dow Jones Industrial Average shed almost 1,000 points on Monday and is headed for its worst April performance since 1932, according to Dow Jones Market Data. The S&P 500’s performance since Inauguration Day is now the worst for any president up to this point in data going back to 1928, according to Bespoke Investment Group.
“Worries about trade restrictions and the prospect of President Trump firing Federal Reserve Chairman Jerome Powell have investors bracing for greater losses ahead. Corporate earnings reports are rolling in, along with executives’ tariff-dented outlooks for the months ahead. Few think the administration’s negotiations with trade partners will yield results soon enough to ease the strain.
“Meanwhile, counterweights that usually strengthen when stocks fall – such as government bonds and the U.S. dollar – are also under pressure, leaving investors with few havens to wait out the storm.
“‘It’s the hallmark of the ‘no confidence’ trade,’ said Scott Ladner, chief investment officer at Horizon Investments. The Charlotte-based firm trimmed its U.S. equity position several weeks ago to favor more international stocks. ‘It’s impossible to commit capital to an economy that is unstable and unknowable because of policy structure’.”
I don’t generally do a lot of stock market reporting, but it seems to me that this is important for any retailer that has a significant Baby Boomer customer base, and is counting on those folks having a lot of disposable/retirement income to spend in their stores. At the moment, they have less of that money to spend than they did just a few weeks ago.
• IMF Predicts Tariffs Will Result In Global Economic Slowdown.
From the Washington Post:
“The global economy will slow sharply this year, weighed down by President Donald Trump’s imposition of the highest import taxes in more than a century and the cloud of uncertainty that has billowed in their wake, the International Monetary Fund said Tuesday.
“Global growth will downshift to an annual rate of 2.8 percent, half a percentage point lower than projected in January and a ‘significant slowdown,’ the fund said. Only a tepid rebound to 3 percent growth is likely in 2026, leaving the world economy’s expanding for the next two years well below its long-run average of 3.7 percent, according to the fund. Progress on bringing inflation under control also will be hurt.
“Trump’s double-barreled tariff plan — a 10 percent tax on nearly everything the United States imports each year plus significantly higher levies on goods from dozens of nations — will hurt the United States and its trading partners, the fund said.
“But the slowdown will be particularly sharp for the U.S. economy, which will grow this year at an annual rate of 1.8 percent, one third lower than its January estimate and a full percentage point below last year’s mark, the fund said.”
More reasons that retailers need to be candid, transparent and specific with their shoppers about how tariffs and trade wars are affecting prices. Don’t let customers reach their own conclusions about why prices are going up. Explain it. Control the narrative the best you can. Price increases are going to be problematic, but this also is an opportunity to heighten your shopper communications and emphasize your role as an advocate for the consumer.
• Target Hit Hard By Boycott After It Steps Away From DEI.
From CNN:
“When Target announced on January 24 that it would scale back diversity, equity and inclusion (DEI) commitments, customers reacted swiftly, upset that a company that had so loudly touted its diversity initiatives appeared to be backtracking.
“For 10 consecutive weeks, foot traffic at Target stores has declined — down 9% year-over-year in February and 6.5% year-over-year in March, according to data from analytics firm Placer.ai. While Placer.ai notes a variety of factors were likely to blame, like weather and a drop in post-holiday spending, Rev. Jamal Bryant has driven another reason for a drop-off: a fast — from shopping.
“Bryant, the senior pastor of New Birth Missionary Baptist Church near Atlanta, spearheaded a 40-day ‘fast’ from shopping at the big-box store during Lent (March 5 to April 17). The Target Fast boycott had more than 200,000 participants, he said.
“Target is just one of the companies now walking a tightrope, balancing the demands of President Donald Trump to end diversity efforts with what customers might want from the corporations they do business with … The pressure is particularly acute at companies like Target, that had previously championed diversity in hiring and in sourcing their products.
“Already, Bryant said, Target has ceded to one demand. After meeting with Target CEO Brian Cornell on Thursday, Bryant announced Sunday that Target agreed to honor its pledge to spend $2 billion with Black-owned businesses — a commitment initially made in 2021.
“But that’s not enough. Bryant called for the boycott to continue and hopes Cornell will attend a town hall on Tuesday to address community concerns.”
At stake, CNN writes, is a lot of money: “Black Americans are expected to have a buying power of $2 trillion by 2026, up from $1.7 trillion in 2024, according to a report from The Nielsen Company.”
The argument here always has been twofold.
First, that companies need to believe in something and act according to those beliefs. They get into the most trouble when they behave like invertebrates, not standing firm by what everyone thought were long-held beliefs.
Second, the people encompassed by DEI initiatives spend money, too – and so when you disenfranchise them, you encourage them to shop elsewhere. They don’t trust you anymore … and to quote the Latin proverb we often cite here, “Trust, like the soul, never returns once it goes.”
• Walgreens To Settle Opioid Rx Case For $350 Million.
From the Associated Press:
“Walgreens has agreed to pay up to $350 million in a settlement with the U.S. Department of Justice, who accused the pharmacy of illegally filling millions of prescriptions in the last decade for opioids and other controlled substances.
“The nationwide drugstore chain must pay the government at least $300 million and will owe another $50 million if the company is sold, merged, or transferred before 2032, according to the settlement reached last Friday.
“The government’s complaint, filed in January in the U.S. District Court for the Northern District of Illinois, alleges that Walgreens knowingly filled millions of illegal prescriptions for controlled substances between August 2012 and March 2023. These include prescriptions for excessive opioids and prescriptions filled significantly early.
“‘We strongly disagree with the government’s legal theory and admit no liability,’ Walgreens spokesperson Fraser Engerman said in a statement. ‘This resolution allows us to close all opioid related litigation with federal, state, and local governments and provides us with favorable terms from a cashflow perspective while we focus on our turnaround strategy’.”
I always have the same reaction when companies write checks for millions and billions of dollars to settle litigation, and then say they admit no liability. Which is that the government should’ve gone to court – in the end, I think forcing companies to concede liability is as important as getting the money.
• SpartanNash Hires Meijer Vet As VP, Retail Operations.
SpartanNash announced that it has hired Jay Mahabir, most recently Market Director for Meijer, as its new Vice President, Retail Operations.
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