PepsiCo Doubling Down on Health Push
October 17 2016 - 12:18PM
Dow Jones News
By Mike Esterl
PepsiCo Inc. is doubling down on its health push, announcing new
targets Monday to reduce sugar, salt and fat in its beverages and
snacks by 2025.
The new goals by the maker of Lay's potato chips, Gatorade
sports drinks and Quaker oatmeal coincide with global concerns
about rising obesity, including growing calls in many countries to
tax or curb sugar consumption.
PepsiCo is one of several large food and beverage companies,
including Nestlé SA and Coca-Cola Co., that have been moving to
overhaul their portfolio and offer healthier products amid shifting
consumer tastes even as many shoppers continue stocking up on
longtime staples like candy, salty snacks and sugary sodas.
PepsiCo said Monday it aims for at least two-thirds of its
global beverage volume to have no more than 100 calories per 12
ounces from added sugars by 2025, up from about 40% currently. A
12-ounce can of regular Pepsi-Cola, the company's namesake soda,
has 150 calories.
The company also set the goal that at least three-quarters of
its food volumes not exceed 1.3 grams of sodium per calorie and 1.1
grams of saturated fat per 100 calories by 2025. About half of
volumes currently meet the sodium target, said a company spokesman,
who didn't have a comparable figure for saturated fat.
The new goals replace 2020 targets that PepsiCo set in 2009.
Added sugars rose 4% between 2006 and 2015, compared with the
company's 25% reduction target for 2020. PepsiCo has cut sodium by
12% and saturated fat by 3% over the same period. It said in 2009
it wanted to cut sodium and saturated fat by 25% and 15%,
respectively.
The company said nearly 25% of its revenue last year came from
"everyday nutrition" products with positive nutrition like whole
grains, fruits, vegetables, dairy, protein and hydration.
"PepsiCo's journey is far from complete, and our new goals are
designed to build on our progress and broaden our efforts,"
Chairman and Chief Executive Indra Nooyi said in a statement.
The company also issued new environmental targets for 2025,
including improving water-use efficiency in its manufacturing by
25% and reducing food waste in its operations by 50%. It also aims
to cut greenhouse-gas emissions by 20% by 2030, among other
goals.
Write to Mike Esterl at mike.esterl@wsj.com
(END) Dow Jones Newswires
October 17, 2016 13:03 ET (17:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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