Investors brace for increased scrutiny of processed food stocks under Trump and RFK Jr.

• On Friday, the price of processed food stocks decreased due to concerns among investors about potential regulatory action under President-elect Donald Trump and his ally Robert F. Kennedy Jr.
• After Trump announced Kennedy as his pick for HHS secretary, the declines occurred.
• Kennedy, previously an independent presidential candidate, has advocated for significant FDA reforms, including the elimination of nutrition departments.

On Friday, the price of processed food stocks decreased due to concerns among investors about potential regulatory action under President-elect Donald Trump and his ally Robert F. Kennedy Jr.

On Friday, in late-day trading, snack and soda titans dropped more than 3% and 1%, respectively. Cheerios cereal and Betty Crocker cake mix maker also fell about 3%, while Reddi-wip maker experienced a similar decline.

Goldfish crackers and Pepperidge Farm cookies, which are known for their macaroni and cheese and Oscar Mayer hot dogs, respectively, both experienced a decline of more than 3%.

The supplier of frozen potatoes, whose French fries are sold in chains such as McDonald's and Chick-fil-A, experienced a decline of more than 5%.

After Trump appointed Kennedy, a well-known vaccine skeptic and conspiracy theorist, as his nominee for the Health and Human Services Department, which oversees the Food and Drug Administration and Centers for Disease Control and Prevention, among other federal agencies, there were declines in support.

If the Senate approves Kennedy, he will oversee Medicare, Medicaid, and the National Institutes of Health.

Kennedy's "Make America Healthy Again" focus may lead to increased scrutiny of companies behind popular snack, packaged food, and soft-drink brands, as he has advocated for significant changes to the FDA, including the elimination of nutrition departments.

"In an interview with NBC News last week, Kennedy stated that current regulators are not adequately protecting children. He questioned why there are Fruit Loops in the US with 18 or 19 ingredients while in Canada, there are only two or three."

Fruit Loops are made by a company whose stock is higher Friday but down more than 4% on the week.