Why The Hershey Company Rallied Today

There appeared to be a bit of a rotation today on the first day of the new quarter, with large-cap stocks mostly selling off and other stocks, such as small-caps and those in other left-behind sectors rising

However, Hershey also made a company-specific announcement today that added some extra oompf to its rally

The spokesperson said, "Removing these colors is a natural next step in our gram to ensure consumers have options to fit their lifestyle while maintaining trust and confidence in our ducts. " Consumer packaged foods companies have been under scrutiny since April, when Health and Human Services Secretary Robert F

Kennedy and Food and Drug Administration Secretary Marty Makary unveiled plans to remove synthetic dyes from the U

Back then, Kennedy said he had made a nonbinding "agreement" with major food companies to phase these dyes out

Additionally, several states have said they will ban synthetic dyes or require warning labels on foods with synthetic dyes in the 2027-2028 time frame

Image source: Getty Images

Investors cheer the news, if only for risk mitigation While it's not if more people will all of a sudden start eating more Hershey chocolates, Twizzlers, or Jolly Ranchers just because they no longer have artificial dyes, the news does somewhat de-risk the Hershey story at the moment

Billy Duberstein and/or his clients have no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Hershey

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