by By Jessica Dinapoli and Juveria Tabassum
(Reuters) -Spepsico plans to highlight what no longer in the potato or tortilla chips -artificial colors or flavors -if you will restart the brands of Lay’s and Tostitos later this year, executives said on Thursday.
The overhaul for the best-selling snack brands of the company, as US health secretary Robert F. Kennedy Jr. urges the Americans to eat “Whole Foods” and to eat the manufacturers of the print to the dyes.
US food manufacturers have announced plans to remove dyes from their products and bring new ones without the colors under pressure from Kennedy and The Make America Healthy (Make America Healthy) that supports him.
“We try to improve the true perception of laypersons. If you think about the simplest and most natural snack, it is a potato chip; it is a potato, it is oil and it is a bit of salt – the simplest, no artificial ingredients,” said CEO Ramon Laguara in a call with systems.
The company also said that it expands the use of avocado and olive oil in its brands and not the rapeseed or soybean oil used by it. The Maha movement has questioned the health benefits of certain food oils.
In April Pepsico said that it was planned to migrate its entire portfolio in natural colors or give consumers the opportunity to have a product without synthetic dye. His chetos snacks and gatorade drinks are based on synthetic dyes for their bright colors.
It already offers Lay’s and Doritos without artificial colors or aromas under its simple segment.
“The Simply Line expansion for existing chip brands is still in early inner sings -consumers have not yet been committed. In view of the fact that consumers react to the renaming of laypersons and tostitos in the next quarters,” said Christian Greiner, F/M Investments Senior Portfolio Manager.
Expensive premium products?
The Soda -Pop manufacturer also said on Thursday that he would use sugar in its products such as Pepsi drinks if consumers wanted it.
On Wednesday, President Donald Trump said that Coca-Cola would start using cane sugar in his drinks in the United States, a dietary preference of Kennedy’s Maha movement. Both pepsi and cola use with high fructose corn syrup for their lemonades, which is generally cheaper.
The movements come at a time when packed food companies such as Pepsico appeared in their expenses after the industry has increased prices over the years since the Covid 19 pandemic to protect their margins.
Pepsico offers more products at lower prices and smaller pack sizes in its food segment to meet the demand for affordable snacks.
“While there is clearly the demand for cleaner ingredients in food and drinks, it remains to be seen whether consumers are willing to pay these more premium products, especially in today’s inflation environment and the price-sensitive consumer basis,” said Arun Sundaram, analyst at CFRA Research.
Laguara also said on Thursday that the company would enter the “liquid protein” room because protein shaking is becoming increasingly popular.
He also said that the company would add its Popcorn brand Popcorner and Quaker snacks to protein options.
(Reporting by Jessica Dinapoli in New York and Juveria Tabassum in Bengaluediting by Marguerita Choy)
