The extra SNAP funding contained in the 2009 Recovery Act expires on November 1, unless Congress acts to put it back, which is highly unlikely. Not only will families receive lower monthly benefits (about $29 on average), but grocers and food makers will struggle with lost revenue (about $11 billion over 3 years) and how to keep consumers from swapping brands. As SNAP consumers need to feed the same number of mouths with fewer dollars, they will increasingly seek private-label and store-branded products to save money. For grocers, this could mean that the lost revenue is offset by the higher margins they make on store brands. But brand-name food makers could find themselves losing shelf space and market share.
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