Report

Just two days after U.S. officials moved to ban petroleum-based synthetic dyes in food, PepsiCo CEO Ramon Laguarta confirmed the company is already phasing out artificial colours and reformulating its products to meet evolving consumer preferences.

Speaking on an April 24 earnings call, Laguarta said over 60% of PepsiCo’s U.S. food portfolio is now free of artificial colours. Flagship brands like Lay’s and Tostitos will fully transition to natural colours by the end of 2025. “We’ve led industry efforts on reducing sodium, sugar, and unhealthy fats. Now we’re speeding up the shift to natural ingredients,” he said.

The FDA plans to eliminate six synthetic dyes—Green No. 3, Red No. 40, Yellow No. 5 and 6, and Blue No. 1 and 2—by the end of 2026, and is reviewing natural alternatives like butterfly pea flower extract and gardenia blue. Laguarta assured stakeholders that PepsiCo products are safe but emphasised the company’s commitment to staying ahead of consumer trends. “We aim for a smooth transition without causing alarm. Consumers will soon have more natural options across our entire portfolio,” he added.

SNAP Restrictions and Minimal Business Impact

Laguarta also addressed potential SNAP (Supplemental Nutrition Assistance Program) (food stamp) restrictions, as several states seek to ban processed foods and sugary items from the program. He said the impact on PepsiCo’s business is expected to be minimal but noted that the company is monitoring how regulations evolve.

Tapping Into the GLP-1 Wellness Market

With the rise of GLP-1 weight-loss drugs, PepsiCo is expanding its offerings in fibre, hydration, and protein. “GLP users are prioritising protein and fibre. We’re strong in hydration and fibre, and are ramping up innovation in protein,” Laguarta said. New high-protein products are expected later this year. He also noted a growing preference for portion control, especially among health-focused consumers. PepsiCo is adapting its pack sizes and value offerings to ensure its brands remain relevant. “Smaller portions and diversified choices help us stay in the consumer’s basket,” he concluded.