PepsiCo (PEP, Financial) has announced its willingness to use sugar in its beverage products if consumer demand exists. This follows a statement by President Trump about Coca-Cola's plans to incorporate sugar in its U.S. beverages. Both Pepsi and Coca-Cola currently use high-fructose corn syrup, which is more cost-effective. However, U.S. Health Secretary Kennedy's "Make America Healthy Again" campaign is advocating for the removal of corn syrup, seed oils, and artificial colors from products due to health concerns.
PepsiCo executives also highlighted plans to reintroduce their Lay's and Doritos brands with a focus on eliminating artificial colors and flavors. This aligns with the broader industry trend of food manufacturers removing artificial additives. PepsiCo's CEO, Ramon Laguarta, emphasized the company's efforts to promote Lay's as a "real food" option, with simple ingredients like potatoes, oil, and salt.
The company is also exploring the use of avocado and olive oils in place of canola or soybean oils, reflecting health campaign concerns about certain oils. Earlier this year, PepsiCo committed to using natural colors across its product range, offering options without synthetic additives.
