Campbell’s to Eliminate Synthetic Dyes and Forecasts Lower-Than-Expected Profits in 2026 Due to Tariffs

Campbell’s Company announced that starting in fiscal year 2026, it will eliminate FD&C synthetic dyes from its entire range of food and beverages, while also projecting an annual profit lower than Wall Street expectations, affected by increased tariffs. The measure is part of a shift in consumer preferences and in response to the “Make America Healthy Again” initiative of the U.S. Secretary of Health.

CEO Mick Beekhuizen noted that the dyes are used only in limited products, such as Lance crackers and V8 Splash, which will be replaced by natural colors extracted from annatto and purple carrot juice, while other regional snack and cookie brands will also eliminate artificial colors.

Despite tariff pressure, Campbell’s expects these to represent about 4% of the cost of goods sold in 2026 and plans to mitigate approximately 60% of the impact through selective price increases and efficiency measures. The company projects that its adjusted earnings per share could decrease between 12% and 18%, settling between $2.40 and $2.55, below the $2.63 estimated by Wall Street.

Net sales are forecast to be flat or down as much as 2%, compared to expectations of a 2.4% decline. The company noted that demand is stabilizing, a positive sign for short-term investors, according to analyst Brian Holland of D.A. Davidson.

The news comes amid growing challenges for consumer companies, which face high tariffs stemming from trade policies and moderate demand from inflation-concerned consumers. Beekhuizen stressed that shoppers are increasingly deliberate in their food choices, with a growing trend toward cooking at home.