Press Release: For The First Time Ever, Reese's Puffs Cereal Goes Dark With New Dark Chocolate Flavor

By Jesse Newman

Food-company stocks sagged Tuesday as the San Francisco city attorney filed a lawsuit against some of the nation's biggest food manufacturers, accusing them of knowingly making and marketing harmful foods.

The lawsuit, filed in San Francisco Superior Court, alleges that 11 leading food makers, from Kraft Heinz to General Mills, violated California's unfair competition law and public nuisance statute by engaging in "unfair and deceptive acts."

San Francisco City Attorney David Chiu blamed the suppliers for American diets high in ultraprocessed foods, and soaring healthcare costs. "These companies engineered a public health crisis, they profited handsomely, and now they need to take responsibility," said Chiu.

Standing near a table stocked with Cheerios, Cheetos, Lunchables, Oreos and other popular products, Chiu likened big food companies' tactics to those of the tobacco industry. "Addictiveness is a feature not a bug," he said.

The lawsuit seeks an order prohibiting deceptive marketing by the food companies and requiring that they take steps to mitigate the health effects of their products. It seeks civil penalties and other awards, in part to help local governments offset high healthcare costs.

Kraft Heinz and General Mills didn't respond to a request for comment. An S&P index tracking packaged food and meat companies fell about 1.6% on Tuesday afternoon while the overall market inched higher.

San Francisco's lawsuit piles more pressure on food companies. Under the banner of his "Make America Healthy Again" agenda, Health and Human Services Secretary Robert F. Kennedy Jr. has blamed ultraprocessed foods for fueling America's obesity epidemic and contributing to widespread health problems.

Researchers consider the foods as those made with ingredients not normally found in a home kitchen, including high-fructose corn syrup and emulsifiers such as soy lecithin.

The food industry has pushed back, arguing that processing helps make food safe, convenient, accessible and affordable. The Consumer Brands Association, an industry trade group, rolled out a new ad campaign this week promoting the industry's commitment to transparency and its role in American's lives — including a 30-second ad featuring a woman overrun by chickens in her living room.

"Growing food is great," the ad says. "But sometimes, you just need convenient, nutritious and affordable. America's favorite brands make that possible."

Sarah Gallo, CBA's senior vice president of product policy, said there is no agreed-upon scientific definition of ultraprocessed foods. She said food and beverage makers are introducing new products with more protein and fiber, reduced sugar and sodium, and no artificial colors.

"Attempting to classify foods as unhealthy simply because they are processed, or demonizing food by ignoring its full nutrient content, misleads consumers," Gallo said. "Americans deserve facts based on sound science in order to make the best choices for their health."

Researchers say not all ultraprocessed foods are nutritionally equal; some yogurts or whole-grain products still have health benefits, according to the U.S. Agriculture Department.

Write to Jesse Newman at jesse.newman@wsj.com

General Mills, Inc. (GIS) is currently at $45.72, down $1.35 or 2.87%

• Would be lowest close since Feb. 15, 2019, when it closed at $45.04
• On pace for largest percent decrease since Oct. 29, 2025, when it fell 3.08%
• Currently down two consecutive days; down 3.44% over this period
• Worst two day stretch since the two days ending Oct. 29, 2025, when it fell 3.56%
• Down 28.3% year-to-date; on pace for worst year since 2018, when it fell 34.32%
• Down 49.54% from its all-time closing high of $90.61 on May 12, 2023
• Down 30.98% from 52 weeks ago (Dec. 3, 2024), when it closed at $66.24
• Down 31.44% from its 52-week closing high of $66.69 on Dec. 13, 2024
• Would be a new 52-week closing low
• Traded as low as $45.60; lowest intraday level since Feb. 22, 2019, when it hit $44.13
• Down 3.13% at today's intraday low; largest intraday percent decrease since Nov. 24, 2025, when it fell as much as 3.45%
• 10th worst performer in the S&P 500 today

All data as of 1:49:30 PM ET

Source: Dow Jones Market Data, FactSet