PepsiCo sets global target for sugar reduction
By Martinne Geller
LONDON (Reuters) - PepsiCo Inc (PEP.N: Quote) has set a target for reducing the amount of sugar in its soft drinks around the world as part of a suite of goals aimed at tackling problems ranging from obesity to climate change.
The New York-based company will announce on Monday that by 2025 at least two thirds of its drinks will have 100 calories or fewer from added sugar per 12 oz serving, up from about 40 percent now.
The move, which it plans to achieve by introducing more zero and low-calorie drinks and reformulating existing drinks, comes as PepsiCo and rival Coca-Cola (KO.N: Quote) come under increasing pressure from health experts and governments who blame them for fuelling epidemics of obesity and diabetes.
PepsiCo says the new global target is more ambitious than its previous goal of reducing sugar by 25 percent in certain drinks in certain markets by 2020.
"The science has evolved," Mehmood Khan, PepsiCo's chief scientific officer of research and development, told Reuters.
He gave an example of new flavor ingredients that require less sweetening, saying: "It's not just about sweeteners, it's about understanding the flavor ingredients and having proprietary knowledge and access to them."
The World Health Organization this month recommended taxes on sugary drinks, as France and Mexico have done, to curb consumption and improve health. The soft drinks industry opposes such taxes.
Despite its name, PepsiCo generates only 12 percent of its $63 billion in annual revenue from its famous cola brand. It makes 25 percent from carbonated soft drinks such as Mountain Dew, with the rest coming from waters and juices including the Tropicana brand, plus snacks and dips such as hummus and guacamole. Continued...