Estimated reading time: 4 minutes
If you run a convenience store or a gas station, you know that EBT transactions are a huge part of your daily traffic. According to NACS, the average SNAP transaction at a c-store is around $10, which might seem small until you realize how many of those customers are grabbing a drink on the way to work. But things just got a lot more complicated because EBT-approved beverage rules are evolving fast.
Recent updates to state EBT schedules have expanded or restricted the list of approved beverages in several states and retailers must stay informed to ensure proper eligibility at checkout and avoid customer confusion. If your POS isn’t updated, you’re going to have long lines and frustrated shoppers which nobody wants on a Monday morning.
Why EBT Beverage Rules Vary by State
Basically, while the federal government sets the baseline for SNAP, the state level is where the real “yes” or “no” happens now. Some states are pushing for “Healthy SNAP” initiatives that ban sugary drinks, while others are actually expanding what you can buy to include more plant-based options.
This creates a massive headache for owners with stores in multiple states because a bottle of Gatorade might be “green lit” in one town but a “red light” ten miles away across the state line. Also, did you know that the NRF found that retail sales showed healthy gains recently but compliance costs for these SNAP changes could cost c-stores over $370 million annually? That is a lot of money to spend just on updating stickers and software. By the way, I saw a great deal on bulk car wash soap yesterday, but back to the EBT stuff.
State-by-State Breakdown of New or Updated Approved Drinks
The following states have seen the biggest shifts in early 2026. If you operate here, you need to check your price book immediately.
States with Changes Effective January 1, 2026:
- Indiana: Restricts soft drinks and candy. Pure juice and milk are still fine.
- Iowa: The strictest in the nation. Restricts almost all “taxable food items,” including soda and flavored water.
- Nebraska: Restricts soda and energy drinks.
- Utah: Focuses on restricting carbonated soft drinks.
- West Virginia: Restricts soda and sweetened beverages.
Upcoming State Implementation Dates (2026):
- Idaho (Feb 15): Bans soda and candy.
- Oklahoma (Feb 15): Bans soft drinks and candy.
- Louisiana (Feb 18): Bans soft drinks, energy drinks, and candy.
- Colorado (March 1): Focuses on a soft drink ban.
- Texas (April 1): Bans sweetened drinks and candy.
- Virginia (April 1): Restricts “sweetened beverages.”
- Florida (April 20): Restricts soda, energy drinks, candy, and prepared desserts.
- Arkansas (July 1): Restricts soda and fruit drinks with less than 50% natural juice.
- Tennessee (July 31): Broad restrictions on processed foods and soda.
- Hawaii (Aug 1): Restricts soft drinks.
- South Carolina (Aug 31): Restricts candy, energy drinks, and soda.
- North Dakota (Sept 1): Comprehensive ban on sugary snacks and energy drinks.
- Missouri (Oct 1): Restricts “unhealthy beverages” and prepared desserts.
What Retailers Should Watch For
The biggest risk is incorrect EBT tagging. If a customer tries to buy a drink they think is covered and the POS denies it, it creates a scene. This leads to customer frustration at checkout and can actually hurt your brand loyalty. NACS reports that many retailers are worried about these “hidden costs” of compliance.
You also have to watch out for the “Supplement Facts” vs. “Nutrition Facts” label. Traditionally, anything with a “Supplement” label was banned, but now even items with “Nutrition” labels (like energy drinks) are being banned by specific state waivers.
How Petrosoft Helps Retailers Stay EBT-Compliant
This is where having a solid back-office system makes life easier. Petrosoft helps simplify EBT compliance at the POS by allowing you to bulk-update item flags based on state-specific rules. Instead of clicking through 500 different SKUs of soda, you can manage your price book more efficiently.
When state rules change, you need a system that supports EBT-eligible item tracking without a manual meltdown. It makes for easier updates and significantly reduces the risk of compliance issues that could lead to you losing your SNAP license.
FAQ:
If a drink has 50% juice, is it still EBT eligible?
In most states like Arkansas and Indiana, the drink must be at least 50% to 100% natural juice to remain eligible under the new “healthy” waivers. Always check your specific state’s percentage threshold.
Do I need to change my shelf tags?
While not always legally required, it is a “how to” best practice to mark shelves so customers know before they get to the register.
What happens if I accidentally sell a restricted drink on EBT?
Frequent violations can lead to fines or the temporary suspension of your SNAP authorization, which can be devastating for a gas station’s inside sales.
Staying ahead of EBT eligibility changes is critical for retailers who want to keep their lines moving. With Petrosoft, managing state-specific EBT rules becomes simpler and more reliable.
