PepsiCo announces ambitious plan to reduce sugar level in most drinks by 2025

Soft drink giant PepsiCo said on Monday that two-thirds of its drinks will contain 100 calories or less from added sugar per 12 oz serving by 2025. The company added that it will put more effort to producing products with fewer or no calories.

PepsiCo’s CEO Indra Nooyi said, “Technology breakthroughs right now are resulting in better-tasting colas almost as good as the full-sugar colas, but with lower calories. So we’re now faced with [an] interesting opportunity to step the consumer down to lower sweetness levels.

The company’s new global target is more ambitious than what it said a few years ago when it set a target of 25% reduction in sugar levels in most markets by 2020. PepsiCo sells its products in over 180 countries and makes about $1bn a year from its flagship Pepsi cola. However, the company said that only 12% of its $63bn annual revenue comes from Pepsi cola.

PepsiCo’s new global target comes on the heels of an announcement by the World Health Organisation (WHO) over a week ago, where it suggested that nations follow the footsteps of France and Mexico and tax sugary drinks to fight obesity and other health related problems. The soft drinks industry has opposed the tax surcharge.

The soft drink giant’s chief scientific officer of research and development, Mehmood Khan, said:

It’s not just about sweeteners; it’s about understanding the flavor ingredients and having proprietary knowledge and access to them.

PepsiCo’s other goals include reducing sodium and saturated fat contents in its food products.

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