Decoding SNAP Compliance: Why Precision Matters for Retailers and Manufacturers 

Previously through SNAP benefits, shoppers were able to purchase nearly any food or beverage item aside from alcohol and tobacco across the country, making it fairly simple to decipher what products were able to be bought with SNAP benefits. For the first time, certain states have received USDA approval to inflict their own restrictions. With new regulations arising, limiting the products eligible through SNAP benefits, it is important that retailers and manufacturers are aware of how this could affect consumer buying behavior and impact their sales.  

It will become increasingly difficult for retailers and manufacturers to decide what is eligible or not, as more stipulations are added, which is where our attributes come into play to directly provide those answers for them. An anticipated challenge with these new regulations is for retailers who are present across several states with differing exemptions, as these changes will affect buying behavior of these products depending on the state in which they are purchased.  

By providing state-specific attributes to the retailer, they will be able to tell the difference in eligibility for each product and how that can differ from state to state.

We take the data for each product and strip it down to its most granular level to provide accurate attribution, meaning each individual SKU has category data specific to that product. It is important when determining SNAP eligibility that we understand the foundational categorization and nutritional implications of each item to assess whether the product is eligible or not.  

For instance, in Arkansas, an apple will be able to be purchased with SNAP benefits, but a bottle of apple juice with only 40% natural juice will not. Similarly, that same bottle of apple juice won’t be able to be purchased in Arkansas but would be eligible through SNAP EBT (Electronic Benefit Transfer) in its neighboring state of Missouri. It is our granular category, ingredient, and nutritional data on each SKU that is able to decipher that and consequently, informing the shopper and retailer of its eligibility, ensuring retailers stay in compliance.    

Retailers’ POS systems validate SNAP EBT transactions based on the UPC of the item. Because we are able to deliver these attributes to the retailer at the specific UPC level, letting them know if each distinct product qualifies as eligible or ineligible, this makes it one step easier for them to identify during this process, ensuring they stay within compliance.   

As SNAP regulations evolve consumer buying decisions, it also shifts the landscape of compliance for retailers and manufacturers. By identifying products that are eligible for SNAP benefit purchases, we help companies manage compliance with new regulation changes as we maintain category-specific data, as broad as the aisle and shelf it belongs to, down to the more granular category it is assigned.  

Through these attributes, companies will be able to immediately tell if a product is within compliance or not. For businesses that rely on SNAP customers, staying ahead of these regulations is not only a regulatory necessity, but will also aid in the retailer’s tracking of what products and brands are at risk for taking a dip in sales.   

Without this level of attribution, retailers may have to jump through hurdles of maintaining an exhaustive list of eligibility, which is where we come in to  help mitigate the risk of noncompliance by automating APLs to detect eligibility per UPC for the retailer. As more states continue to come out with waivers, we will apply the same framework to power attributes given their specific restrictions, whether it be the category of food, ingredient containment, or nutrient quantities.    

Using these attributes, shoppers can more efficiently shop for products that are compliant with these regulations. Whether consumers are shopping online or in store, they won’t have to wonder which products they can and can’t buy according to that state, as it will already be identified through our precise attribution. Having this data available to SNAP participants reduces the burden for them to figure any of these implications out on their own, aiding in shopper experience, so they can use their benefits to purchase healthier products that are in line with the Make America Healthy Again initiative.

Many of these shoppers rely on SNAP benefits to purchase food and beverage items for them and their families. It is critical that these individuals are aware of these changes to what they can buy and presenting them with these options makes it one step easier for them, by directly informing them of eligibility, building shoppers’ trust in both the retailers and brands. This is especially important for businesses in low-income areas who rely on SNAP users, so their shoppers have supplemental options available, and they don’t lose out on business. For instance, in Arkansas’ waiver request, they pointed out that soda, unhealthy snacks, candy, and dessert account for almost 23% of all SNAP purchases. Knowing that these new regulations will not allow for those purchases anymore, it is essential that there is transparency between brands, retailers, and consumers as their buying decisions will need to evolve.   

After the waivers go into effect, the states are allotted 3 optional annual extensions, with a maximum of 5 years to maintain the waiver, therefore, potential changes could arise to the current waivers within the next few years. In addition to the current approved waivers, we anticipate this to accelerate with more states to follow by imposing waivers of their own state-specific requirements in the near future.  

To help people stay up to date and compliant as trends evolve, there are educational resources, such as SNAP-Ed provided by the SNAP organization, that will likely increase not only by retailers to stay in compliance, but also by SNAP users to understand how their buying decisions may change. This also may affect the way brands choose to market their products as more budget-friendly to promote eligible items to SNAP users, and the way retailers choose to display their items online or in store to incentivize shoppers to choose the healthier, eligible items.   

The most common theme among the current waivers is the exemption of candy and soda, and we anticipate the upcoming states to incorporate these in their waivers as well as the Make America Healthy Again initiative continues to push for healthier alternatives.    

We utilize a combination of our nutritional and industry expertise, along with following the state and USDA guidelines to provide these eligibility attributes. Knowing that these waivers have the potential to evolve in the coming years, as well as the expectation that additional states will come out with new waivers, we will continuously maintain research around SNAP requirements, ensuring any changes are reflected in the attribution so they stay up to date and accurate at all times.