To address the escalating health costs stemming from chronic illness and the highest level of obesity and Type 2 diabetes in the developed world, the Trump Administration released new dietary guidelines for Americans, calling it “the most significant reset of federal nutrition policy in decades.”
“For decades, the Dietary Guidelines favored corporate interests over common sense, science-driven advice to improve the health of Americans. That ends today,” the Department of Health and Human Services (HHS) said in a public statement.
Under the direction of Secretary Robert F. Kennedy, Jr, HHS guidelines – which are required every five years — recommend American diets should contain “real foods” that include a variety of high-quality protein, full-fat dairy products, fruits and vegetables (dried, frozen, and canned), and whole grains, while avoiding highly processed foods, refined carbohydrates, and sugar-sweetened beverages, including energy drinks.
The 10-page report is in sharp contrast to the previous 164-page report in not just size, but reversal in the long-standing “war” on saturated fats.
In contrast to the previous guidelines, HHS now encourages full-fat dairy over low-fat options, includes foods to promote “gut health” like kimchi and kefir, removed specific daily limits on alcohol, instead encouraged Americans to “consume less alcohol for better overall health,” and takes a hard line against added sugar.
“No amount of added sugars or non-nutritive sweeteners is recommended or considered part of a healthy or nutritious diet,” calling on parents to completely avoid added sugar for children four years old and younger.
Another change to previous guidelines is the new stance on healthy fats. Americans should receive the bulk of their fat intake from red meat, poultry, eggs, omega 3-rich seafood, nuts, seeds, full-fat dairy, olives and avocados. Saturated fats should not exceed 10% of total dairy calories, consistent with the previous guidelines established in 2020.
The response from the food industry was predictable with the American Beverage Association — whose members include Coca-Cola Company (KO), PepsiCo (PEP), and Keurig Dr Pepper (KDP) – arguing that “Americans deserve pragmatic advice they can use in daily life. Guidance that discourages sugar but dismisses safe, effective no sugar options is impractical and inherently contradictory.”
While the Sugar Association applauded HHS’s recommendation to limit sugar intake, they objected to how the report overstates and extrapolates the actual science, studying just the relationship between sugar-sweetened beverages and various health outcomes.
“Rather than specify ‘sugar-sweetened’ beverages, the [Dietary Guidelines Advisory Committee- DGAC] uses the misleading term of ‘added sugars’ throughout the report. Evidence about sugar-sweetened beverages does not apply to sugar in food, and the agencies should be responsible in how the final DGA communicates the important differences between different sources of added sugars.
While its unlikely most Americans will strictly adhere to the new government nutritional guidelines, the release has weighed on shares of companies whose revenue relies heavily on processed foods and sugar-sweetened beverages.
Accordingly, shares of Hormel (HRL), Conagra Brands (CAG), Kraft Heinz (KHC), PepsiCo (PEP), Coca-Cola (KO), Keurig Dr Pepper (KDP), and Mondelez (MDLZ) were all trading defensively on Wednesday.