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Morgan Stanley makes bold call on Kraft Heinz, Conagra
Morgan Stanley makes bold call on Kraft Heinz, Conagra

Miami Herald

time27-05-2025

  • Business
  • Miami Herald

Morgan Stanley makes bold call on Kraft Heinz, Conagra

What will happen with food stamps benefits? Are retailers affected? What about the packaged food companies and beverage manufacturers? These are the key questions raised after the House Committee on Agriculture proposed major reforms. The Republican-led Committee recently proposed cutting more than $290 billion from the Supplemental Nutrition Assistance Program (SNAP) over the next 10 years. Around 42 million people across the country rely on SNAP to buy groceries. Related: Reports may show if economy is toughing out tariffs The Committee argued that the program has become too expensive and inefficient, which is why it is proposing a reform that would include stricter work requirements, tighter eligibility rules, ending programs like SNAP-Ed, and giving states a financial responsibility in the program. The goal behind the proposed changes is to reduce fraud, fix loopholes, and end "the Biden Administration's illegal overreach." Anti-hunger advocates quickly criticized the proposal, warning that it could result in high rates of food insecurity, especially for parents who are unable to document enough work hours, reported NBC news. "A vote for this bill will result in more kids facing hunger - in every state, in every community, in every zip code," said Senior Director Jason Gromley, of the nonprofit Share Our Strength. On the other hand, Morgan Stanley analysts estimate that the overall economic impact may not be as significant as it initially appears. Food and beverage industries would, however, be affected the most. Even before the Agriculture Committee revealed its actual proposal on SNAP cuts, the Center for American Progress (CAP), an independent nonpartisan policy institute, projected a serious impact on retailers. According to CAP, more than 27,000 retailers in largely rural counties carry the highest risk of being negatively impacted by SNAP cuts. "Some stores in low-income neighborhoods have more than 50 percent SNAP sales. A 20 percent cut to SNAP would make it very difficult for stores like this, in food deserts, to remain open," said Stephanie Johnson of the National Grocers Association. More on Retail: Iconic retailer returns after 13 years to take on AmazonIkea's new product offering could be a game changer for consumersBankruptcy forces ice cream chain to close 500 locations In addition to small retailers, even giants like Walmart (WMT) will be affected. About 94% of SNAP shoppers purchased groceries at Walmart in the 12 months ended July 31, 2024, according to data from Numerator. Further, budget retailers like 7-Eleven, Dollar General (DG) , Dollar Tree (DLTR) , and Winco Foods captured roughly twice the market share among SNAP shoppers, compared to those not using SNAP benefits. Meanwhile, Morgan Stanley analysts project that actual SNAP cuts may amount to only $150 billion, with only about $90-100 billion of direct reductions in SNAP benefits as increased state contributions would offset federal cuts, writes Barron's. "For packaged foods, SNAP cuts and category restrictions present another volume headwind (albeit modest) to an industry that is already struggling with weak underlying demand. For beverages, we view SNAP benefit cuts and state restrictions on SNAP use for soda (and potentially energy drinks) as a manageable incremental headwind for corporate sales growth," Morgan Stanley said as reported by Supermarket Perimeter. Companies with the highest level of exposure include Kraft Heinz Co. (KHC) and Conagra Brands Inc. (CAG) , while Coca-Cola (KO) , Keurig Dr Pepper (KDP) , and Monster Beverage Co. (MNST) are "well positioned despite moderate incremental SNAP risk, with strong pricing power, market share gains, and existing historical volume growth." According to Morgan Stanley experts, the most affected packaged-food companies besides Conagra are WK Kellogg (KLG) and J.M. Smucker (SJM) , because more than 22% of their sales are coming from low-income consumers. With inflation already widely hurting people's wallets and reducing their spending, low-income consumers might start to focus more on the more affordable private-label products. Related: Iconic brand from your childhood finds new life Analysts say SNAP shoppers are more likely to buy products from Conagra, Kellogg, and Kraft Heinz than from Mondelez (MDLZ) , Campbell's, or Hershey (HSY) . Mondelez is less exposed, with only 25% of its sales in the U.S. However, analysts think that most of the SNAP-related risks are already reflected in the stock prices of packaged-food companies. Year-to-date, Conagra stock is down 19.05%, and Kraft Heinz dropped 14.53%. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

High school students give Hurricane Helene survivor fresh start by building her new home
High school students give Hurricane Helene survivor fresh start by building her new home

Yahoo

time09-05-2025

  • Climate
  • Yahoo

High school students give Hurricane Helene survivor fresh start by building her new home

BURNSVILLE, N.C.– A North Carolina woman who lost her house in Hurricane Helene nearly eight months ago is finally getting a new place to call home. Sherry Housley said Friday during an interview with FOX Weather that she is doing well. "I am phasing out of the fight or flight mode," Housley said. Housley has been living in an RV since the hurricane destroyed her home. "I'm just counting the moments for my little house," she said. A group of high school students partnered with a nonprofit called Rebuilding Hollers, and together, they are building a tiny house for Housley. She said she got a call from Stephanie Johnson, the founder of Rebuilding Hollers, who told her she would be getting a house, and the first one. "I was just blown away," Housley said. "I thought I was going to live in an RV for the rest of my life." Housley said she struggles to come up with words to express how she's feeling, knowing she'll have a real home again. "What they're doing is just beyond anything I've ever experienced in my life as far as someone coming to my rescue," she said. Florida Mother, Daughters Give Dolls To Girls Affected By Helene To 'Rebuild A Childhood' Housley evacuated her home during Helene. She and her family had gotten several warnings that it was going to be bad, and she knew she couldn't stay. She went to stay with her sister who lived nearby. She said she was stranded there for a week. "I walked the 3.5 miles off the mountain, and came and saw that my little house was gone," Housley said. Beryl, Helene, Milton Retired From Atlantic Hurricane Naming List After Their Historic Impacts She said her home and studio were destroyed. "Everything you can imagine was picked up and churned inside my workspace," Housley said. The tiny house is being built at the school, and will be moved to where her home used to be. How To Watch Fox Weather Housley said she was born and raised on the property she lived on. She inherited it from her parents. "To be able to rise back up here, at my roots, in my beautiful mountains … I am part of these mountains," she said. Despite the mud and debris still left behind, Housley said she couldn't imagine living anywhere but her property. "I can see beauty here already," she said. "It's already blooming, and things are greening up." Housley said she's excited to get into her new home and start planting, too. Her tiny house is expected to be completed and moved by the end of article source: High school students give Hurricane Helene survivor fresh start by building her new home

New Economic Data Underscores SNAP's Critical Role in Supporting American Jobs and Local Economies
New Economic Data Underscores SNAP's Critical Role in Supporting American Jobs and Local Economies

Yahoo

time08-05-2025

  • Business
  • Yahoo

New Economic Data Underscores SNAP's Critical Role in Supporting American Jobs and Local Economies

Efficient and effective nutrition program supports over 388,000 jobs Washington, D.C., May 08, 2025 (GLOBE NEWSWIRE) -- The National Grocers Association (NGA), the nation's leading trade association representing the independent grocery industry, today released new economic data demonstrating the Supplemental Nutrition Assistance Program's (SNAP) powerful impact on sustaining American jobs and driving economic activity in communities across the country. According to the new economic analysis, SNAP funding supports approximately 388,000 jobs, over $20 billion in direct wages, resulting in over $4.5 billion in state and federal tax revenue. These findings reaffirm that SNAP not only helps over 40 million Americans combat food insecurity but also supports American jobs and keeps local economies strong, particularly in rural and underserved communities where independent grocers are often a key employer and economic anchor. 'SNAP is not just food assistance for families — it's an economic engine that bolsters jobs on Main Street,' said Stephanie Johnson, RDN, NGA's group vice president for government relations and a registered dietitian. 'This data confirms what independent grocers see every day: SNAP dollars circulate directly through local businesses, helping to pay local wages, keep shelves stocked, and support essential services in communities nationwide.' Independent community grocers serve as a crucial access point for SNAP beneficiaries, accepting benefits in areas where national chains may not operate. The program helps ensure the availability and purchase of nutritious food at local retailers, which sustains jobs in stores, warehouses, trucking companies, farms, and food manufacturing facilities — sectors that collectively employ millions of Americans. NGA urges lawmakers to maintain a strong and adequately funded SNAP program in the upcoming reconciliation bill and cautions that cuts or structural changes could have far-reaching consequences for food access, economic growth, and employment. 'As policymakers debate the future of SNAP, we urge them to recognize its full economic impact,' Johnson added. 'A robust and efficient SNAP program is more than food assistance for families who have fallen on hard times — it's a sound investment in America's workers, businesses, and communities,' she remarked. NGA's latest SNAP data, which includes state and congressional district-level dashboards, can be accessed here. CONTACT: National Grocers Association National Grocers Association epayne@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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