Robert F. Kennedy Jr.’s Impact on Food IndustryThe same man who set pharmaceuticals dancing is now turning his attention to the food industry. Robert F. Kennedy Jr, head of the U.S. Department of Health, will meet today with top executives from General Mills (Ticker AT:GIS.US) and PepsiCo (Ticker AT:PEP.US), according to Politico. Pushed by the White House, this meeting aims to discuss the elimination of additives and ultra-processed products in schools, which could trigger significant regulatory changes in an industry already under pressure from rising raw material costs and demand for healthier products.
General Mills and PepsiCo: Two models of success
General Mills, founded in 1866, has a broad portfolio spanning cereals, baked goods, dairy and snacks. Iconic brands such as Cheerios, Haagen-Dazs and Yoplait attest to its commitment to sustainability and response to the growing demand for organic and lower-sugar foods. Its expansion into emerging markets has been key to its growth.
PepsiCo stands out as one of the largest food and beverage multinationals, with recognized brands such as Pepsi, Lay's, Gatorade, Quaker and Tropicana. Its innovation strategy, based on vertical integration and the acquisition of emerging functional food companies, has strengthened its global position and its commitment to healthier options.
Market Reactions and Stock Performance
Today's meeting could cause volatility in the stock market. The possibility of new food regulations may lead both companies to reformulate their flagship products, affecting margins and creating opportunities for competitors with more natural alternatives.
In the case of General Mills, the chart shows an upward trajectory until May 2023, followed by a correction towards the $60 area, considered a checkpoint, from its highs of $90.89. PepsiCo, on the other hand, experienced a similar development: a rise until May 2023, a pullback towards an accumulation zone around $168.66 and a recovery attempt in February. The RSI for both is in a neutral zone, reflecting a balance between buying and selling pressure.
Future outlook
Beyond the meeting, General Mills and PepsiCo continue to adapt to a market where demand for less processed and healthier products is steadily growing. However, regulatory pressure could accelerate the transformation of their product portfolios. Investors will be watching for post-meeting statements, as any concrete action could decisively influence their stock performance and redefine the FMCG landscape.
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