Walmart to remove synthetic dyes and 30 other ingredients from private brands

Published 01/10/2025, 13:06
© Reuters.

BENTONVILLE, Ark. - Walmart announced Wednesday it will eliminate synthetic dyes and 30 additional ingredients from its private brand food products in response to customer demand for simpler ingredients. The retail giant, which InvestingPro data shows has maintained dividend payments for 53 consecutive years, continues to demonstrate its market leadership with a current market capitalization of $822 billion.

The initiative affects all Walmart U.S. food private brands including Great Value, Marketside, Freshness Guaranteed and bettergoods. The list of ingredients to be removed includes certain preservatives, artificial sweeteners, and fat substitutes.

"Our customers have told us that they want products made with simpler, more familiar ingredients – and we’ve listened," said John Furner, President and CEO of Walmart U.S., according to the press release.

The retailer cited a recent survey showing 62% of Walmart customers want more transparency in their food, while 54% review food ingredients before purchasing. Currently, about 90% of Walmart’s private brand food products are already free from synthetic dyes.

The company is working with suppliers to adjust formulations while maintaining product taste. Customers will begin seeing reformulated products in the coming months, with the full transition expected to be completed by January 2027.

This reformulation follows Walmart’s launch last year of bettergoods, a private brand that includes plant-based items with 70% of products priced under $5.

Walmart (NYSE:WMT), which serves approximately 270 million customers weekly across more than 10,750 stores in 19 countries, reported fiscal year 2025 revenue of $681 billion. The stock is currently trading near its 52-week high, with a robust revenue growth of 4.2% in the last twelve months. For deeper insights into Walmart’s financial performance and future prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to 14+ additional ProTips and detailed valuation metrics.

The information in this article is based on a press release statement from Walmart.

In other recent news, Walmart has seen a flurry of activity and analyst evaluations. KeyBanc Capital Markets reiterated its Overweight rating on Walmart, setting a price target of $110. The firm highlighted Walmart’s strong performance despite rising input costs, with expectations that pricing adjustments will continue in general merchandise. Similarly, Piper Sandler maintained an Overweight rating and a $111 price target, praising Walmart’s progress in enhancing its private label apparel to attract younger and higher-income shoppers. UBS also maintained a Buy rating with a $110 price target after visiting Walmart’s apparel pop-up shop, noting the potential for growth in its apparel segment.

Additionally, Walmart announced an expansion of its pharmacy delivery service to include refrigerated and reconstituted medications, becoming the first retailer to offer such prescriptions alongside groceries in a single online order. This service includes temperature-sensitive medications like insulin, which account for over 30% of Walmart Pharmacy sales. In corporate news, Walmart’s Executive Vice President, Donna Morris, has set up a Rule 10b5-1 trading plan for stock sales as part of her long-term financial planning. These developments reflect Walmart’s strategic efforts in both retail innovation and corporate governance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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