Wednesday, September 3, 2025
Corporate maneuverings alone can't solve the problem of shifting consumer food tastes
Kraft Heinz (KHC) is splitting up. Keurig Dr Pepper (KDP) is unraveling into a coffee company and a separate beverage company. And Elliott Management is agitating to shake up PepsiCo (PEP).
While the maneuverings in the food world each have their own stories and contours, what the developments have in common is a struggle to keep up with shifting consumer preferences.
Shoppers are drifting to cheaper grocery store brands after years of higher prices. And a heightened aversion to processed foods has pressured iconic brands, as has the MAHA (Make America Healthy Again) movement. Where food executives used to lean on synergies and combinations, the strategy of the day appears to be price consciousness and product focus.
"Food stocks have just not really done well this year," Crossmark Global Investments chief market strategist Victoria Fernandez said in a live Yahoo Finance appearance. Snack foods in particular have taken a hit as the explosion of GLP-1 weight-loss drugs has led people away from food products, she noted.
But if weakening demand for marquee brands is at the heart of the problem, how can companies manage and market their way out of it? And can corporate reengineering even keep people interested in the engineered American staples?
Creating narrower, more thematically focused operations is one way to tackle the problem of shifting tastes. But there are other considerations alongside catering to health-conscious consumers that can move a ticker.
In explaining the Kraft Heinz breakup, the company said the two entities will be better positioned to focus on what they do best, investing in individual brands and lessening the complexity of their large array of food products. The grocery staples business, for instance, will center on a smaller geography, while the sauces and spreads unit will look to expand internationally.
Keurig Dr Pepper offered a similar justification for its unwinding, which will also involve the acquisition of the parent company of Peet's Coffee for $18 billion. Two entities, each optimized for their business, will be able to chase opportunities, the company said, like energy drinks for the cold beverage unit and growth outside the US for the coffee business.
Breakups aren't always the answer, either.
With PepsiCo, Elliot Management stopped short of calling for a food and beverage split. Instead, the activist investor encouraged Pepsi to cull its weakest products and lay out specific plans for a turnaround, among other recommendations. Elliot said Pepsi's shares could rise more than 50% if it follows through on a turnaround. Shares of Pepsi are roughly flat for the year, while rival Coca-Cola (KO) is up close to 11%.
If nimbleness to cater to trends is what food executives are after, shedding the baggage of a conglomerate or legacy operation sounds like a fine remedy. Over time, cultures change, people change, and companies follow or try to anticipate the next turn. But even the savviest corporate shake-up isn't a cure-all.
Pentagon Taps 600 Military Lawyers To Serve As Temporary Immigration Judges For DOJ
According to a federal government memo reviewed by The Associated Press, Defense Secretary Pete Hegseth has directed the branches of the armed services to transfer up to 600 military lawyers to the Justice Department to serve as temporary immigration judges, following an urgent request for assistance from the Department of Homeland Security. The move is intended to ensure that President Trump's deportation of criminal illegal aliens proceeds smoothly.
The Aug. 27 memo stated that the military will send the first tranche of 150 attorneys - both military and civilian - to the DOJ "as soon as practicable." The first group is expected to arrive at the DoJ next week.
Pentagon spokesman Sean Parnell told Bloomberg that members of the Judge Advocate General's Corps, or JAG, would "augment existing resources to help further combat a backlog of cases by presiding over immigration hearings."
Parnell did not confirm whether the AP's report about 600 military lawyers was accurate but noted that the request for legal personnel came from the DoJ.
This comes as immigration courts face mounting backlogs amid Trump's nationwide crackdown on criminal illegal aliens. It is important to note that immigration judges determine whether individuals are eligible for relief or face removal.
Bolstering immigration court capacity comes as the administration sent in National Guard troops into Washington, DC, to restore law and order after violent crime waves sparked by years of failed progressive policies transformed parts of the nation's capital into crime-ridden "no-go" zones.
Violent crime has fallen across the DC metro area in the last several weeks due to Trump's move to shore up the struggling police force...
On Tuesday, Trump told reporters about plans to deploy federal law enforcement to crime-ridden, far-left-controlled Chicago and Baltimore to combat violent crime.
If it's deporting illegal aliens or restoring law and order in cities, the Trump administration is cleaning up the mess left behind by the Democratic Party's nation-killing progressive policies that transformed parts of some metro areas into "hell holes."
Bessent: "We May Declare A National Housing Emergency In Fall"
Treasury Secretary Scott Bessent told the Washington Examiner on Labor Day that the Trump administration may declare a national housing emergency in the coming months to address the affordability crisis. Bessent's comments come just ahead of an expected interest-rate cut cycle, underscoring the administration's urgent effort to address the affordability crisis, which is set to be one of the key topics ahead of the 2026 midterms.
Bessent joined the Washington Examiner for breakfast on Labor Day at McLean Family Restaurant on Monday. He told the outlet that President Trump plans to make "affordability" a critical pillar of America First's 2026 midterm election platform.
"We may declare a national housing emergency in the fall," Bessent told the Washington Examiner.
A toxic combination of elevated mortgage rates and record-high home prices has sparked one of the worst housing affordability crises in a generation, sidelining many working-class folks from homeownership.
"We're trying to figure out what we can do, and we don't want to step into the business of states, counties, and municipal governments," Bessent noted, adding, "I think everything is on the table."
The treasury secretary did not elaborate on specific actions Trump could take, but he did mention officials within the administration are analyzing ways to standardize local building and zoning codes and decrease closing costs. He added that the possibility of considering some tariff exemptions for housing materials will be considered.
"I think we're going to see a big economic pickup in 2026," Bessent continued. "This very, very, very nice young lady here, who's had this restaurant for 32 years, she's going to get a large tax refund of the 'No Tax on Tips.' So 2026 is going to be a good year."
Another way the Trump admin is seeking to boost housing supply is by removing illegal aliens from federal housing assistance programs. In addition, efforts to restore law and order in crime-ridden, Democrat-controlled cities could also free up housing stock.
We'll leave readers with one chart that shows America's "civilization crisis"...
America First is about rebuilding the middle class after globalists spent decades chipping away at the working class that built this nation. Making homeownership, family, and country "Great Again" seems to be all the rage today - especially on the internet.
US Tariffs Top $31 Billion In August, A New Record High
by Victoria Freedman via The Epoch Times,
Treasury Secretary Scott Bessent announced on Sept. 2 in a post on X that tariff revenues exceeded $31 billion in August, setting a new record high.
The Treasury’s latest Daily Statement showed $31.37 billion in tariff revenue as of Aug. 29, totaling $183.56 billion in the fiscal year to date.
Bessent wrote on X: “Now that August is in the books, tariff revenues topped over $31 billion in the month: a new record high. As collection continues to grow, the Trump Administration is fixing the financial shambles it inherited.”
Now that August is in the books, tariff revenues topped over $31 billion in the month: a new record high. As collection continues to grow, the Trump Administration is fixing the financial shambles it inherited. pic.twitter.com/aYm3pVBffQ
— Treasury Secretary Scott Bessent (@SecScottBessent) September 2, 2025
Last week, the Treasury secretary said that President Donald Trump’s tariffs could exceed $500 billion a year—higher than Bessent’s initial $300 billion estimate.
“I think we could be on our way well over half a trillion, maybe towards a trillion-dollar number. This administration, your administration, has made a meaningful dent in the budget deficit,” Bessent said on Aug. 26.
Last month, the Congressional Budget Office, a nonpartisan budget watchdog, projected that Trump’s tariffs could lower the budget deficit by about $4 trillion over a decade, comprising $3.3 trillion in lower primary shortfalls and $700 billion in reduced interest costs. This is up from the previous estimate of $2.5 trillion.
Court Rules on Tariffs
Minimizing the trade deficit between the United States and its global partners has been a key pillar of the president’s trade policy. On April 9, Trump announced that dozens of countries would be subject to reciprocal tariffs to correct what he has described as unfair trade practices at the expense of the United States.
In the months that followed, the White House worked with partners—including the EU, the UK, China, and Japan—to sign bilateral deals before the Aug. 1 deadline for the import taxes to come into effect.
Last week, a federal appeals court determined that most of Trump’s tariffs are illegal.
The U.S. Court of Appeals for the Federal Circuit ruled 7–4 on Aug. 29 that the president had overstepped his authority under the 1977 International Emergency Economic Powers Act (IEEPA).
“The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax,” the court stated.
The import taxes will stay in place until the decision comes into effect on Oct. 14, allowing the White House time to appeal the decision at the Supreme Court.
Trump responded in a Truth Social post that ending the tariffs “would be a total disaster for the Country.”
“It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America,” he wrote on Aug. 29.
Supreme Court Review
On Sept. 2, Trump said his administration will ask the Supreme Court on Sept. 3 for an expedited review of the ruling.
“Without the tariffs, this country is in serious, serious trouble. We’ve taken in almost $17 trillion of investment [which] is coming in. Most of it is coming because of tariffs,” the president told reporters.
Treasury Secretary Scott Bessent attends a press conference in Stockholm, Sweden, on July 29, 2025. Magnus Lejhall/TT News Agency/via Reuters
Bessent said that if the Supreme Court does not uphold the president’s use of the IEEPA, there are other means the White House can use to implement the import taxes.
“I’m confident the Supreme Court ... will uphold the president’s authority to use IEEPA. And there are lots of other authorities that can be used—not as efficient, not as powerful,” he said.
He also said that the U.S. trade imbalances could have consequences for the economy.
“We’ve had these trade deficits for years, but they keep getting bigger and bigger,” Bessent said. “We are approaching a tipping point ... so preventing a calamity is an emergency.”
https://www.zerohedge.com/political/us-tariffs-top-31-billion-august-new-record-high