The news: Retailers accepting SNAP benefits must significantly expand the staple foods they carry starting this fall.

Retailers must stock broader varieties of goods across protein, grains, dairy, and fruits and vegetables, per a rule finalized by the US Agriculture Department—effectively doubling the previous requirement to provide better access to healthy foods.

These changes take effect in early November:

• Retailers must include at least seven varieties in each of the four staple food categories, up from three.
• Stores must also carry at least one perishable food item in three of the four categories.
• Candy, chips, and sodas will no longer count toward staple food requirements.

Why it matters: The rules will push stores that accept SNAP to provide more of the foods associated with meals and close loopholes that allowed snack items to count toward minimum stocking standards. The government said the change ensures merchants offer more “real food.” Some food industry groups said the new standards should broaden access to a wider range of nutritious options.

Still, there is concern the tougher standards could push smaller rural and neighborhood stores out of the SNAP program because they may lack the refrigeration capacity and consumer demand needed to stock more perishable goods without taking on extra costs. The USDA estimates that 5,000 retailers in underserved communities might initially be excluded from the program.

The Food Research & Action Center said the rule comes during “a challenging policy and economic environment" after last year’s federal budget bill made more than 2.5 million people ineligible for SNAP benefits.

The retailer rule is part of a broader SNAP policy change. Many states are restricting which foods SNAP recipients can buy, especially candy and soda, as they prepare to take on a larger share of program costs under last year’s budget law.

Implications for retailers: Big grocery chains and mass merchants are likely to face little disruption under the new rule as they typically carry well beyond the required minimums. But smaller convenience stores and neighborhood retailers may need to add refrigeration, shelf space, and more perishable products to comply, changes that could raise their costs.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.