PepsiCo CEO Calls for Science-Based Elimination of Artificial Colors in Food
At the World Economic Forum in Davos, Switzerland, PepsiCo (PEP) CEO Ramon Laguarta emphasized the company's commitment to transforming the food industry.
Laguarta highlighted PepsiCo's leadership in reducing sodium, sugar, fat, and artificial colors from its products. The CEO acknowledged concerns raised by the Trump administration regarding packaged foods and health risks, including the appointment of Robert Kennedy Jr. as the head of Health & Human Services.
"We as an industry should aspire to, in three or four years, no artificial colors in food," said Laguarta, advocating for a science-based and collaborative approach.
However, PepsiCo faces challenges in its snacks and beverages businesses, with sales and earnings declining year-over-year. Lower-income household spending patterns and a rising US dollar have impacted the company's performance.
Analysts predict mixed results and a conservative 2025 outlook when PepsiCo reports earnings on February 4th. RBC analyst Nik Modi suggests a potential for muted earnings as the company focuses on reinvesting to address weaker areas of the business.
Despite market headwinds, Laguarta remains optimistic about PepsiCo's ability to adapt and innovate. The CEO's call for the elimination of artificial colors aligns with consumer health concerns and positions the company as a leader in responsible food production.