PepsiCo just announced changes coming to specific products, as the company focuses on cleaner products and better ingredients. “We’ve been focusing on the no sugar colas, we’ve been focusing on food and Pepsi, and we’ve been focusing on the taste challenge, and those three elements have driven positive share performance for Pepsi, which is something we feel very good about, not only in the U.S., but globally,” Chairman and CEO Ramon LaGuarta said in an earnings call on July 17. Here’s what consumers should expect.
Pepsi With Real Sugar is a Possibility
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LaGuarta made it clear Pepsi would switch to cane sugar if there was customer demand. “This is a consumer centric strategy, we’re following the consumer, and if the consumer is telling us that they prefer products that have sugar and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients,” he said.
Combining Energy and Sports Drinks
Celsius
PepsiCo’s energy drinks portfolio includes fan-favorite products like Celsius. “As the consumer evolves, and there might be different spaces that get created, how maybe sports drinks and energy get combined in the future, we’ll be able to create solutions with some of our platforms that satisfy those needs for consumers,” LaGuarta said.
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Thinking About Removing Artificial Colors and Flavors
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Your favorite PepsiCo drinks could soon be reformulated to remove unhealthy additives. “This is a journey of following the consumer, trying to be a little bit, maybe one step, ahead of the consumer, but not too many steps,” LaGuarta said. “And it applies to both beverages and food. In particular, we have a journey and a technical roadmap to eliminate artificial colors and artificial flavors from our beverages, the same as we do for our food business.”
Sugar-Free Options
Pepsi
PepsiCo is not only considering switching to real sugar, but has an increased focus on sugar-free drinks. “I’m also extremely, obviously, optimistic about the growth opportunities in our beverage business, clearly permissibility within the no-sugar offerings, and the functionality of the category, both with hydration, with energy, with protein, is already more developed than it is in the food business,” LaGuarta said.
Streamlining Operations
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Pepsi is eliminating all unnecessary spending and “rightsizing” in an effort to improve profitability. “We’re going after everything, travel and expense. We’re looking at third party contracts. So we’re pushing on every cost lever that is available and that’s what’s going to drive the incremental productivity in the second half,” LaGuarta said.
