The CEO also teased new Gatorade and beverage products in an effort to provide consumers with more convenient and customizable options.
PepsiCo is a global leader in the food and beverage industry, known for its diverse portfolio of brands that generate billions of dollars annually.
These well-known brands include iconic beverages like Pepsi, Gatorade, and Mountain Dew, as well as popular snacks like Quaker foods and Frito-Lay products like Cheetos and Doritos.
At the PepsiCo 2025 first quarter earnings call on Thursday morning, CEO Ramon Laguarta reiterated the company’s commitment to healthier snacking.
In response to changing consumer preferences, PepsiCo’s CEO stated that the company would continue to make products like Cheetos and Doritos more natural.
The initiative began in 2016, and by 2019, PepsiCo had removed artificial flavors and colors from the vast majority of its products.
Laguarta explained how PepsiCo had long been at the forefront of the food and beverage industry’s transformation in terms of sodium, sugar, and fat reduction.
The CEO also discussed how the company’s iconic snacks would be impacted by rising consumer demand for natural ingredients and the impending FDA ban on eight artificial dyes, which will take effect at the end of 2026.
“There is probably going to be a consumer demand for more natural ingredients and we are going to be accelerating that transition,” said the CEO.
According to Laguarta, artificial colors are already absent from more than 60% of PepsiCo’s food business in the United States.
By the end of this year, the company intends to completely eliminate artificial dyes from brands such as Lay’s and Tostitos, which are manufactured by PepsiCo subsidiary Frito-Lay.
Other popular snacks and drinks, such as Doritos, Cheetos, and Gatorade, which are known for their vibrant colors, are likely to undergo changes as PepsiCo focuses more on health initiatives.
“In the next couple of years, we will have migrated all of the portfolio into natural colors, or at least provide the consumer with natural color options so every consumer will have the opportunity to choose what they prefer,” according to Laguarta.
In the next couple of years, we will have migrated all of the portfolio into natural colors, or at least provide the consumer with natural color options so every consumer will have the opportunity to choose what they prefer.”
EXCITING INNOVATIONS
PepsiCo’s CEO also announced the company’s plans to continue innovating with its Gatorade brand and beverage products to provide customers with convenient and customizable options.
It introduced Gatorade and Propel beverage tablets in 2023, followed by Gatorade Hydration Booster powder in 2024.
“We are investing in powders and tablets because we see the consumer moving there,” Laguarta stated during the earnings call.
“We are now going to have new infrastructure, new assets that help us increase our offerings and probably add more functionality to that part of the portfolio.”
These products reflect PepsiCo’s commitment to several key consumer trends, including convenience.
The tablets and powders provide a portable and user-friendly hydration solution, particularly for those who prefer reusable water bottles.
They also allow PepsiCo fans to customize their drinks by adjusting the concentration and flavor to their preference.
Beyond its powder and tablet lines, Laguarta discussed how the company plans to increase its share of innovative snack products.
For example, PepsiCo intends to introduce more fiber and protein-rich products for health-conscious consumers.
The food and beverage behemoth is also working to bring customers new products through partnerships with brands like Starbucks and Celsius, as well as acquisitions of companies like Poppi and Sabra Dipping Company.
PRICING POWER
During the earnings call, Laguarta discussed PepsiCo’s pricing strategy and future plans in light of the current economic uncertainty.
The CEO emphasized PepsiCo’s commitment to providing consumers with craveable yet affordable snacks and drinks, with a focus on lower entry prices.
According to Laguarta, customers are “giving a lot of value to absolute dollars now,” focusing on the total out-of-pocket cost of products.
“Clearly entry price points and outlay of money per unit is a very important relevant metric, so we are putting more emphasis on those entry price points and making sure that we are not asking for a large amount of money for participating in our brands,” according to the CEO.
Clearly entry price points and outlay of money per unit is a very important relevant metric, so we’re putting more emphasis on those entry price points and making sure that we’re not asking for a large amount of money for participating in our brands.”
In response to consumers being more cautious with their spending and prioritising affordability, he explained that PepsiCo was using single and multi-packs of Frito Lay products as a tool to keep customers coming back to the brand.
As PepsiCo focuses more on the health craze, Khloe Kardashian’s new healthy snack has been secretly released in stores – but only at a popular retailer.
Meanwhile, foodies looking for a more decadent option can head to Trader Joe’s for the brand’s “sweet and nutty” treat, which is finally back in stock.