The plan comes after the food regulator urged such a change in April.
General Mills (GIS) and Kraft Heinz (KHC) are working to remove artificial colors from their packaged food products by the end of 2027, Reuters reported.
The move follows an April announcement by the U.S. food regulator outlining plans to urge the industry to eliminate artificial dyes from foods by the end of next year. However, it noted at the time that a formal agreement had yet to be reached.
Supporters argue that artificial colorants pose health risks, including increased hyperactivity, while the industry counters that such claims lack solid scientific evidence.
To be sure, consumer pressure over the years has previously prompted food companies to remove artificial dyes without regulatory action in some instances.
On Tuesday, General Mills and Kraft Heinz said that 85% to 90% of the products they sell in the U.S. are made without artificial colors.
General Mills, known for its cereals, said the change would impact only a small portion of the K-12 school portfolio, while the ketchup maker said it would replace artificial dyes with natural substances and reinvent the products where that is not feasible.
Earlier this month, Walmart's (WMT) Sam's Club said it would eliminate over 40 ingredients, including artificial colors, from its private label, Member's Mark, by the end of this year.
The planned shift would require packaged food companies to overhaul core formulas and adjust their production processes — changes that come with added costs. The companies have not disclosed details on the potential financial impact.
As of their last close, the shares of both General Mills and Kraft Heinz are down 16% year-to-date.
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