PepsiCo to Transition to Natural Colors Amid Regulatory Push

Ramon Laguarta, CEO, PepsiCo has announced plans to accelerate the company’s transition to natural ingredients, responding to rising consumer demand and pressure from the US government to remove artificial colors from food products. The company intends to fully transition its portfolio to natural colors or offer natural color options within the next couple of years.

Laguarta emphasized that while the company remains confident in the safety of its existing products, it recognizes the growing consumer preference for more natural ingredients. “Every consumer will have the opportunity to choose what they prefer,” he said. The transition is in line with broader efforts by the US Department of Health and Human Services (HHS) to encourage food companies to remove synthetic dyes by 2026.

PepsiCo has already begun introducing products with natural colors. One recent example is Simply Ruffles Hot & Spicy, which uses tomato powder and red chili pepper for color instead of artificial dyes. However, transitioning to natural colors poses challenges, including difficulties in finding suitable replacements and ensuring consumer acceptance of the new hues.

Laguarta further elaborated on the company’s efforts to lead the industry in reducing harmful ingredients, referencing past initiatives to cut sodium, sugar, and unhealthy fats. "We have been leading the industry’s transformation for a long time on sodium reduction, sugar reduction, and better fats,” he stated.

Beyond color reformulations, PepsiCo is also adapting to new consumer dietary preferences, including the rising popularity of GLP-1 weight-loss drugs. Laguarta noted that PepsiCo is adjusting its product portfolio to cater to consumers focusing on protein, fiber, and hydration, with new innovations expected in the coming months. “We will continue to give the consumer offerings that help them in any sort of dietary preferences that they have,” he added.

An additional concern for PepsiCo is the growing movement to limit the sale of unhealthy food through the Supplemental Nutrition Assistance Program (SNAP). Several states are considering waivers that would exclude candy, sugary drinks, and processed foods from SNAP benefits. While Laguarta acknowledged the potential impact, he downplayed any significant effect on the company’s operations. “I think this will have a very limited impact on the business.”