Hello GrocerTalk Fans!
This week I sat down with Kevin Billings, Vice President of Sales and Business Development at Sifter, for another edition of 5 Insightful Minutes.
We covered a lot of ground in five short minutes, but the conversation kept coming back to one central challenge: as state-level regulations around SNAP benefits shift, how can grocers and CPG brands protect their revenue while helping low-income shoppers navigate changing health guidelines?
Kevin brought a super pragmatic perspective to this, especially as Sifter works directly with state governments and retailers to solve compliance in real time. Here are my biggest takeaways from our conversation.
SNAP Waivers Are Rapidly Changing the Game
The first thing that stood out to me was the sheer scale of what’s happening with SNAP (Supplemental Nutrition Assistance Program) waivers. Over the past year and a half, states have been asking the USDA for waivers to restrict SNAP subsidies from being used on items linked to chronic disease—think sodas, candies, and products with high fructose corn syrup as the primary ingredient.
According to Kevin, 23 states already have active waivers moving through the pipeline. While some states face brief delays for open comment periods, the direction of travel is clear: state-level restrictions are here to stay, and the retail landscape is shifting fast.
High Stakes for Retailer Licenses and CPG Revenue
The risk for grocers who fail to comply isn’t just a slap on the wrist—it’s losing their SNAP license altogether. Considering that SNAP dollars can represent up to 30% to 40% of revenue for many grocers, non-compliance simply isn’t an option.
On top of that, CPG brands face immediate top-line exposure if their products fall into restricted categories. If an item is suddenly deemed ineligible, that revenue stream dries up overnight unless brands and retailers adapt quickly.
A Surprisingly Positive Impact on Grocery Margins
Here was one of the most interesting surprises from our chat: compliance might actually help grocers’ bottom lines.
Retailers initially worried about the financial hit from restricted items like soda and candy. However, because direct store delivery (DSD) items often carry very low margins for grocers, guiding shoppers toward SNAP-eligible alternative products is actually yielding higher margins for the retailer. What started as a compliance headache is turning into a margin-building opportunity.
The Challenge of State-by-State Granularity
Navigating SNAP waivers isn’t as simple as applying a blanket rule across the country. Every state is defining eligibility differently.
For example, Kevin pointed out that in Arkansas, a fruit juice product with less than 50% real juice is restricted from SNAP, while a product with more than 50% real juice remains eligible. Managing that level of granular ingredient analysis at the point of sale (POS) is nearly impossible without dedicated food intelligence tools.
Empathetic Solutions for the Shopper
Compliance is only half the battle; the other half is the shopper experience. Nobody wants a low-income shopper to reach the register only to find out a basket item isn’t covered.
In Arkansas, Governor Huckabee Sanders’ administration partnered with Sifter to launch a state-funded SNAP companion app. Arkansas SNAP recipients can scan items in the aisle to check eligibility before hitting the checkout lane. It reduces friction, eliminates stigma at the register, and empowers shoppers to make healthier choices.
The Takeaway: Compliance Requires Smarter Data
As Kevin explained, navigating this new landscape comes down to granular food intelligence. Whether it’s providing accurate restricted product lists to POS systems or powering shopper-facing scanning tools, solutions like Sifter are bridging the gap between state mandates and everyday retail operations.
A huge thanks to Kevin for dropping so much valuable insight in just five minutes!
Be careful out there,
Ben and the entire Omni Talk team
You can listen to or watch the full conversation with Kevin Billings, Vice President of Sales and Business Development at Sifter, wherever you get your podcasts.
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Omni Talk® is the retail blog for retailers, written by retailers. Chris Walton founded Omni Talk® in 2017 and have quickly turned it into one of the fastest growing blogs in retail.