PepsiCo’s Strategy to Offer Healthier Versions of Popular Brands
PepsiCo is making significant changes to some of its popular brands to cater to the growing demand for healthier options. The company plans to introduce versions of Cheetos and other well-known products without artificial colors and flavors, while also increasing the use of avocado and olive oil. These changes come in response to consumer and regulatory pressure to eliminate synthetic additives and seed oils.
In its second-quarter earnings report, PepsiCo announced its intention to launch extensions of Cheetos and Doritos that are free from artificial colors or flavors. The company also plans to reposition its Lay’s and Tostitos brands to emphasize their natural ingredients and lack of synthetic additives.
CEO Ramon Laguarta revealed that PepsiCo aims to enhance the perception of its Lay’s chip brand as a simple and natural snack made with only potatoes, oil, and salt. Similar strategies will be implemented for Tostitos, with a focus on using fewer ingredients and fortifying products with protein, fiber, and other popular nutrients.
The shift towards healthier ingredients is not limited to snacks, as PepsiCo is also venturing into the “liquid protein space” with its beverages. The company is aligning with the “Make America Healthy Again” campaign to promote clean-label ingredients and remove artificial dyes from its products.
PepsiCo is open to incorporating sugar into more beverage products if there is consumer demand for it. The company already offers a sugar-sweetened version of its signature cola and plans to transition its entire portfolio to natural colors in the coming years.
Looking ahead, PepsiCo will expand the use of avocado and olive oil in some Frito-Lay and Quaker brands, as well as enhance products with protein, fiber, and whole grains. This proactive approach aligns with consumer preferences for healthier options and reflects PepsiCo’s commitment to evolving with changing market trends.
By following consumer demands and staying ahead of the curve, PepsiCo aims to provide a diverse range of products that meet evolving preferences for healthier, more natural ingredients. This journey towards healthier offerings applies to both beverages and food categories, demonstrating PepsiCo’s dedication to meeting consumer expectations.