• 📝 Kroger/Albertsons Appeal Deal
• 👋 Eat Well Offloads Amara 
• 🤝 Marquez Acquires YoGusto
• 🔀 Monday Moves

Et tu, Utah?

Last week, the Beehive State followed California, Virginia and West Virginia in banning certain food additives in public schools.

The new state law prohibits public schools from serving, selling or donating food and beverage products made with Blue No. 1, Blue No. 2, Red No. 3, Red No. 40, Yellow No. 5, Yellow No. 6, Green No. 3, potassium bromate or propylparaben. 

The law, which goes into effect for the 2026-27 school year, does not apply to items sold in vending machines or concession stands at school-sponsored events and extracurricular activities.

Similar bills to restrict synthetic dyes are in the works in Hawaii, Iowa, Louisiana, Massachusetts, Missouri, Florida, Connecticut and Indiana, but proposed regulations vary, and a state-by-state patchwork could pose major headaches for food manufacturers.

But Health and Human Services (HHS) secretary Robert F. Kennedy Jr. has stated he wants more states to take action and ban food additives. Numerous industry trade groups are defending the safety of dyes, challenging misinformation or calling for a national regulatory framework.

Just how prevalent are synthetic dyes? A recent Wall Street Journal analysis found that more than 1 in 10 food and beverage products contain at least one artificial dye. More than 40% of products with dyes use three or more. Red 40 is used in about 39,000 products. More than half of confectionery products sold in the U.S. have artificial dyes.

Side Note: Utah Gov. Spencer Cox also signed a bill last week outlawing the addition of fluoride in public drinking water, marking the first major ban of its kind. Fluoride has been added to water for eight decades to support dental health; however, Kennedy is leading a push to remove the mineral from all U.S. water systems, claiming it’s linked to arthritis, bone fractures, neurodevelopmental disorders and more.

Go Deeper: Ultraprocessed Food: Regulatory Moves and Resource Allocation Create Conflict

Will this deal ever truly be dead? The tone between Kroger and Albertsons has shifted from complete animosity (read: lawsuits flying between the two as recently as two weeks ago and ever since the $24.6 billion mega-merger was blocked in December), to some semblance of common ground.

🧑‍⚖️ The duo filed an appeal on March 27 against a Washington state judge’s ruling that permanently blocked the deal, per Law360, as they look to free themselves from having to cover even more legal fees. 

🍴 The move won’t revive the transaction (Remember: a federal judge in Oregon also blocked the deal in the Federal Trade Commission case) but comes after both Albertsons and the deal’s divestiture plan partner C&S sued Kroger for not forking over termination fee payments.

💰 The Washington ruling stipulated that the state was also entitled to recover attorney fees, to a tune of about $32.4 million, since it was the prevailing party.

Catch Up: C&S Sues Kroger

Eat Well Investment Group has sold its remaining equity stake in PataFoods, Inc., the maker of baby food brand Amara Organic Foods, per an announcement Friday. 

💰 Eat Well acquired its Amara shares for an aggregate purchase price of $909,804 and generated $1.25 million in gross proceeds from the sale, Eat Well said, which will be used to repay a portion of the company’s debt obligations. 

💭 “This sale is another step towards sharpening our focus on our core agribusiness while reducing overall debt. We’re enhancing financial flexibility and positioning the company for stronger long-term profitability,” said Daniel Brody, president and CEO of Eat Well, in a press release. 

Go Deeper: Eat Well Group Acquires Majority Stake In Amara

Multi-national food company Marquez Brothers has acquired Hato Potero Farms, the owner of YoGusto drinkable yogurt, as it expands its product offerings and strengthens its stateside presence. 

• YoGusto’s portfolio also includes lactose-free milk, chocolate milk, sour cream and cheeses.
• The transaction includes the brand’s plant in Clewiston, Fla., and a distribution center in Miami, Fla. 
• The deal gives Marquez Brothers a strong foothold in the Hispanic food set, which is rapidly “gaining space in mainstream consumption,” said CEO Gustavo Marquez Jr.

Catch Up On Similar Moves: Benestar Brands and Palmex Become Monarca Snacks

Here’s a taste of the people and products moving around the industry to start off your week.

🐗 Boar’s Head appointed Natalie Dyenson as chief food safety officer, effective May 12. The hire comes months after a multi-state listeria outbreak linked to Boar’s Head deli meats that resulted in 10 deaths and 59 hospitalizations. 

🍓 Smoothie powder producer Kencko is going international, making its brick-and-mortar debut at Auchun stores in Portugal (ICYMI: all Kencko products are produced in Portugal). The launch includes the brand’s instant fruit and vegetable smoothies, patented mixer bottles, iced lattes, vegan protein smoothies and breakfast oats. 

🌾 Better with Buckwheat and The Maine Crisp Company founder Karen Getz has resigned from her position to pursue new personal and professional ventures. In a statement, Getz said, “It has been an incredibly rewarding experience to build [the company] and share my passion with buckwheat with the world.” 

🔥 Low and Slow Snacks, which uses a proprietary manufacturing process to smoke chips at scale, has secured its first national retail partner: The Home Depot. 

🫐 GOOD GOOD has landed its no-added-sugar jams in Sprouts Farmers Market stores nationwide.