Shares of packaged food giant Kraft Heinz fell 3.9% in trading Monday, while spice maker McCormick dropped 2.7% and Campbell's, which sells soups and snacks, declined 1.8%.

Investors have long flocked to food as a safe haven during market convulsions, but sweeping tariffs unveiled last week could exacerbate pressure tied to commodities like cocoa and coffee, Wall Street analysts said. That would squeeze companies such as Hershey and J.M. Smucker, which sells the Folgers and Café Bustelo brands.

McCormick is likely among the food manufacturers most exposed to new tariffs, analysts said, given the numerous ingredients it sources from all over the world. Black pepper, garlic and vanilla have previously prompted challenges for McCormick when those costs have spiked, according to Bernstein analyst Alexia Howard.

Tariffs are also expected to weigh on Campbell's, which last year spent $2.7 billion to acquire the parent of Rao's pasta sauces. TD Cowen analyst Robert Moskow said that Campbell's imports much of Rao's sauces from Italy in drums, after which it is bottled domestically, meaning that higher costs could be shared between Campbell's and its Italian co-packer.

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April 07, 2025 16:42 ET (20:42 GMT)

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