It's time to talk about food dyes.

CPG and Retail news from the week of 6/30/25

Nate Rosen

and

Jenna Movsowitz

Jul 07, 2025

Hello hello!

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News From the Week

Twizzlers, Froot Loops, M&Ms—America's most iconic snacks are about to look a lot different (and cost more 💰).

This week, the synthetic dye exodus accelerated as Hershey's joined the long line of major CPG conglomerates to announce they would remove synthetic dyes from their products by the end of 2027. This follows similar commitments from Kraft Heinz, General Mills, Conagra, Nestlé, and J.M. Smucker affecting over $46 billion in consumer purchases and transforming nearly 20% of the food Americans buy every year.

So why the sudden rush? Four words: Make America Healthy Again (AKA, MAHA). RFK Jr.'s crusade against food dyes—rooted in concerns about children's health and behavioral issues—has created this bizarre political moment where a Republican administration is pushing for more regulation while companies scramble to comply voluntarily to avoid stricter federal mandates. Mix in social media fear mongering (turns out "Your kid's cereal contains PETROLEUM BYPRODUCTS?!" gets clicks) and "MAHA moms" becoming a real voting bloc, and you've got companies racing to reformulate before someone makes them.

The FDA isn't messing around. Here’s what they announced:

Revoking authorization for Citrus Red No. 2 and Orange B within months
Working with industry to eliminate the remaining six synthetic dyes (including Red 40, Yellow 5 & 6, Blue 1 & 2) by end of 2026
Fast-tracking approval of natural alternatives like butterfly pea flower extract and gardenia blue
Requesting the removal of Red No. 3 from food products by 2027
Partnering with NIH to study how food additives impact kids' health

Companies saw the writing on the wall when Red 3 got banned in January—nobody wants to be caught flat-footed when the next ban drops.

The science? It's... complicated. California's 2021 comprehensive review found that 64% of studies showed some link between synthetic dyes and behavioral effects, particularly in children with ADHD. According to this review, about 8% of kids with ADHD might be sensitive to these colors.

But, there’s a caveat: Most of these studies have major limitations. We're talking tiny sample sizes, tests on dye mixtures rather than individual colors, and classic publication bias where negative results don't see the light of day. Red 3 has been shown to cause cancer in rats (at large exposure levels), and there are claims that Blue No. 1 can cross the blood-brain barrier (jury’s still out), but the actual health implications remain murky. The FDA itself admits that "most children have no adverse effects" while acknowledging "some evidence suggests certain children may be sensitive." Real concerns? Maybe. Worth the exorbitant costs in reformulation costs? That's the $46-billion-dollar question. 🤷‍♀️

The reformulation nightmare is real. Remember when General Mills tried to make Trix with natural colors in 2016? The cereal looked so sad and washed out that consumers revolted—they literally brought back the artificial dyes because people missed their neon breakfast. Now they're trying again, but the challenges haven't gotten easier:

Natural blue is nearly impossible (RIP bright blue Gatorade)
Natural alternatives are temperature-sensitive and pH-dependent, affecting everything from flavor to shelf life
The International Association of Color Manufacturers warns we literally don't have enough agricultural supply to make this happen by 2027
Natural colors cost 10x more than synthetic—hello, price hikes

But here's what's been bugging us: While everyone's scrambling to make Twizzlers with beet juice, 47 million Americans are food insecure. We're spending billions to remove cosmetic additives that might, MIGHT, affect some kids' behavior, while:

1 in 8 children don't have reliable access to nutritious food
Fresh produce remains unaffordable in food deserts
Many school lunch programs are underfunded
And as of last week, Trump’s new budget will cut nearly $200 billion from nutrition programs (like SNAP) over the next decade

Don't get us wrong—removing petroleum-based dyes from food is probably a good thing. Nobody needs Red 40 in their life. But watching companies pour resources into making Skittles look pretty with "natural" colors while millions can't afford fresh vegetables feels like we're rearranging deck chairs on the Titanic. 🤷

CPG & Consumer Goods

Canned goods in crisis! Del Monte, a 139 year old staple files for bankruptcy—securing ~$ 1 billion in financing to revive its brand amidst changing tastes and rising costs. The brand attributes its financial struggles to a growing shift toward private-label, while external sources claim it has more to do with “consumer preferences shifting away from preservative-laden canned food in favor of healthier alternatives.”
- This is a perfect example of how fear-mongering can steer consumers away from healthy options. The reality is, 95% of Del Monte’s canned products do not contain preservatives, and it’s a common misconception that canned or frozen produce (read: more affordable options) are somehow “lesser than” their fresh alternatives. I’m excited that brands like Heyday Canning are making canned food “cool” again—reminding us that practical and plant-forward meal options can come in many different (and affordable) packages. - J
  LOOK HOW CUTE! (and tasty)
Noodle giant gets a GLP-1 makeover. Instant ramen giant Nissin—makers of the iconic CUP NOODLES—is entering frozen meals in the US with Kanzen Meal: nutrient-dense noodle-based dishes packing 23g of protein and 10g of fiber. This move clearly targets health-conscious consumers and GLP-1 users—a stark departure from CUP NOODLES’ M.O.
The BFY soda market is expanding…again. Bloom Nutrition, the brand most known for its viral Greens & Superfoods Powder, just launched Bloom Pop, a healthier soda with ~4 grams of sugar, 20 calories, and prebiotics. Following the success of Bloom Sparkling Energy (selling over 35 million cans), it rolls out in five flavors in Walmart nationwide.
Speaking of better-for-you soda... OLIPOP recently caused a frenzy with its limited-time influencer PR boxes, which sold out in just 2 minutes to over 30,000 eager fans waiting in line. For a mere 5 cents, fans could purchase a PR box packed with summer essentials, plus access to a unique retro motel experience in Austin.
- We’ve been seeing more and more brands start to treat their customers like press, offering access to PR boxes or even inviting them on influencer trips. OLIPOP’s move here is a smart one: it gets makes customers feel special, generates press (how meta of me to say…), and perhaps most valuable to the brand, produces UGC—which has become increasingly favorable over paid influencer marketing. - J
This is an ICONIC collab. Jarritos teamed up with Taste Salud to launch four powdered drink mixes.
- I have been drinking salud ever since my friend Jess Cervellon introduced me to it. I love the authenticity in the brand, the flavors, and the variety. They have been quietly CRUSHING it, especially on TikTok shop. - N
Protein for all. Premier Protein launched an almond milk based protein shakes, packing 20g of protein and only 5g of sugar in Chocolate, Vanilla, and Coffee flavors.
- As protein drinks and snacks continue to dominate it makes sense we’ll see more options for wider dietary needs
Clooney’s cocktails are here! Casamigos launched Margarita RTDs in four flavors, each featuring 10% ABV, aiming to capitalize on the growing tequila trend and position itself as a premium choice in the ready-to-drink market.

They’re betting big as premium bottle sales flatten and high-ABV RTDs take off….My investors and I are all for it, it’s proof that premium RTDs are the future and this will graduate more consumers from seltzer into this emerging sub-category (High-ABV, premium RTD). People want real spirits and quality in the convenience of a can. And while big names draw attention, drinkers still look for variety, leaving room for smaller brands (like DIO!!) to shine.

-Nick Bradley, founder Dio Cocktails

Caffeinated. Chips. Yea, you read that right—and yes, we’re equally terrified. Bangers Snacks just launched caffeinated chips into 1,100+ convenience stores nationwide, packing 200mg of caffeine per bag—equivalent to two cups of coffee.
- Every extreme needs its counterbalance. I see products like these as the industry’s answer to being pushed too far into the “all natural” direction—”you think ‘processed’ is bad? Try chips with two coffee cups worth of caffeine!” - J

eCommerce

Uber Eats goes regional. Uber Eats is partnering with six regional supermarkets—including CPG frenemy Foxtrot in the Midwest—to make “foster community growth” with trusted local faves.

Retail

The cost of dupes. Lululemon is taking Costco to court, claiming the retailer is selling cheap imitations of its popular athleisure products. This lawsuit highlights the ongoing battle against "dupe" culture in fashion, where creativity meets imitation, complicating brand protection efforts.
Smart carts enter Wegmans. Despite scaling back some checkout technology in the past due to "losses," Wegmans is testing Instacart's Caper Carts at four stores in Upstate NY to provide customers with more convenient checkout solutions.
- and this trend is spreading fast…Wegmans joins the ever-growing list of retailers taking a modern swing at this grocery thing. Wakefern Food, Kroger, Schnuck Markets, Aldi all are testing these fun new shopping tools.
Stealing the spotlight from Bezos. You know what’s better than a $55 million dollar Billionaire’s wedding in Venice? A $10,000 high school sweetheart’s wedding In Venice…California. Hosted by JCPenny of course.

Funding news

Replacing AI with Humans. Remark raised $16 million in Series A funding to enhance its human-powered expert models for eCommerce, aiming to improve online shopping conversion rates by connecting users with knowledgeable experts during their purchasing journey.
A sweet frozen expansion. Bubbies Ice Cream, the top mochi ice cream brand, was acquired by Marubeni Corporation to leverage global resources for growth. This move positions Bubbies for expansion in the competitive frozen dessert market.
- Marubeni Corporation is a Japanese multinational conglomerate covering almost every industry imaginable
More moola for food + bev. Shore Capital Partners just closed its third food and beverage fund, at $450 million. This capital boost aims to target companies with $5M-$100M in revenue, enhancing growth through strategic support and M&A. With assets now totaling around $13 billion, Shore is poised to make significant waves in the industry.
Gluten-free growth spurt. Eshbal Functional Food, an Israeli food manufacturer specializing in better for you products, is acquiring Texas-based Gluten Free Nation, expanding its gluten-free product line and North American footprint. This follows their recent acquisition of Swonder Bread in Israel.

Weekly Pickups

Last week, we traded in our typical weekly pickups for our coveted Fancy Food Finds! Learn about the themes we saw from the show, our favorite bites and sips, and our friend Fred Hart’s thoughts and finds. Check it out here! 👇