PepsiCo CEO Pitches Healthier Products to Trump Administration
At the World Economic Forum in Davos, Switzerland, PepsiCo CEO Ramon Laguarta expressed his desire to address concerns raised by the new Trump administration regarding the food industry.
"We've been leaders in sodium reduction, sugar reduction, fat elimination, and artificial color reduction," Laguarta stated.
Despite these efforts, sentiment toward packaged food stocks has weakened due to recent regulatory actions and policy shifts. In response, Laguarta emphasized PepsiCo's commitment to phasing out artificial colors in its U.S. products through science-based, public-private collaboration.
"We aspire to eliminate artificial colors from food within three to four years," Laguarta said. "It's ambitious but doable."
However, PepsiCo's stock performance has been pressured by slower sales in its snacks and beverages businesses, as well as a stronger U.S. dollar. Analysts anticipate mixed results in the company's upcoming earnings report on February 4th.
RBC analyst Nik Modi rates PepsiCo shares as Sector Perform, citing the need for improvement. He believes the company will prioritize reinvestment to address challenges.
"We expect a below-algorithm guide on top and bottom lines," Modi said.
Despite these challenges, Laguarta remains optimistic about PepsiCo's ability to navigate the changing regulatory landscape while continuing its commitment to healthier products.