financetom
Business
financetom
/
Business
/
PepsiCo to rebrand Lay's, Tostitos without artificial dyes, flavors
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
PepsiCo to rebrand Lay's, Tostitos without artificial dyes, flavors
Jul 17, 2025 11:51 AM

(Reuters) -PepsiCo is planning to highlight what will no longer be in its potato or tortilla chips - artificial colors or flavors - when it re-launches its Lay's and Tostitos brands later this year, executives said on Thursday. 

The overhaul for the company's top-selling snack brands comes as U.S. Health Secretary Robert F. Kennedy Jr. pushes Americans to eat "whole foods" and pressures manufacturers to ditch dyes.

U.S. food makers have been announcing plans to remove dyes from their products and introduce new ones without the colors under pressure from Kennedy and the Make America Healthy Again (MAHA) social movement backing him. 

"We're trying to elevate the real food perception of Lay's. If you think about the simplest and most natural snack, it is a potato chip; it's a potato, it's oil, and it's a little bit of salt-the most simple, no artificial ingredients," said CEO Ramon Laguarta in a call with investors. 

The company also said it was expanding use of avocado and olive oil across its brands, rather than the canola or soybean oil it uses. The MAHA movement has questioned the health benefits of certain food oils.

In April, PepsiCo said it planned to migrate its entire portfolio to natural colors, or give consumers the option to have a product without a synthetic dye. Its Cheetos snacks and Gatorade drinks rely on synthetic dyes for their bright hues.

It already offers Lay's and Doritos without artificial colors or flavors under its Simply segment. 

"The Simply line extension for existing chip brands is still in early innings - consumers have not engaged so far, and given that, it will be seen how consumers react to a rebranding of Lay's and Tostitos over the next couple of quarters," said Christian Greiner, F/m Investments senior portfolio manager.

COSTLY PREMIUM PRODUCTS?

The soda pop maker also said on Thursday it would use sugar in its products like Pepsi beverages if consumers want it.

On Wednesday, President Donald Trump said Coca-Cola will start using cane sugar in its beverages in the U.S., a dietary preference of Kennedy's MAHA movement. Both Pepsi and Coke use high-fructose corn syrup for their sodas, which is generally more cost-effective. 

The moves come at a time when packaged food companies like PepsiCo are seeing consumers reel in their spending after the industry raised prices over the years since the COVID-19 pandemic to shield their margins.

PepsiCo has been offering more products at lower price points and smaller pack sizes in its food segment to meet the demand for affordable snacks.

"While there is clearly demand for cleaner ingredients in food and beverage products, it remains to be seen if consumers will be willing to pay up for these more premium products, especially in today's inflationary environment and more price-sensitive consumer base," said Arun Sundaram, analyst at CFRA Research.

Laguarta also said on Thursday the company would be entering the "liquid protein" space, as protein shakes grow increasingly popular.

He also said the company would be adding protein options to its popcorn brand PopCorners and Quaker snacks.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Under Armour forecasts annual sales below estimates
Under Armour forecasts annual sales below estimates
May 16, 2024
May 16 (Reuters) - Apparel maker Under Armour ( UAA ) forecast its annual revenue below analysts' expectations on Thursday, signaling soft demand for its sportswear in the U.S. as consumers cut back on discretionary spending in the face of sticky inflation. The company also outlined a restructuring plan and expects to incur total estimated pre-tax restructuring and related charges...
Coatue Divested 2.4 Million Apple Shares in Q1, While Viking Global Acquired 3.9 Million Shares
Coatue Divested 2.4 Million Apple Shares in Q1, While Viking Global Acquired 3.9 Million Shares
May 16, 2024
07:34 AM EDT, 05/16/2024 (MT Newswires) -- Coatue Management divested all of its 2.4 million shares of Apple ( AAPL ) in Q1, while Viking Global Investors acquired almost 3.9 million shares in the technology giant, according to separate Form13F-HR filings. Viking Global did not previously hold Apple ( AAPL ) shares. Viking Global sold all of its Alphabet (GOOGL)...
Walmart lifts full-year sales and profit forecast, shares rally
Walmart lifts full-year sales and profit forecast, shares rally
May 16, 2024
May 16 (Reuters) - U.S. retail giant Walmart ( WMT ) raised its full-year forecast and reported better-than-expected first-quarter results on Thursday, betting on easing inflation to further boost demand for essentials and bring a rebound in sales of discretionary products like apparel and electronics. Shares of the Bentonville, Arkansas-based company were up 6%in premarket trading. If these gains hold,...
Canada Goose Holdings' Fiscal Q4 Adjusted Earnings, Revenue Increase; Shares Rise Pre-Bell
Canada Goose Holdings' Fiscal Q4 Adjusted Earnings, Revenue Increase; Shares Rise Pre-Bell
May 16, 2024
07:37 AM EDT, 05/16/2024 (MT Newswires) -- Canada Goose Holdings ( GOOS ) reported fiscal Q4 adjusted earnings Thursday of 0.19 Canadian dollars ($0.14) per diluted share, up from CA$0.13 a year earlier. Analysts polled by Capital IQ expected CA$0.06. Revenue for the quarter ended March 31 was CA$358 million, up from CA$293.2 million a year earlier. Analysts surveyed by...
Copyright 2023-2026 - www.financetom.com All Rights Reserved