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Yahoo
24-07-2025
- Business
- Yahoo
PepsiCo struggles to reverse concerning customer behavior
PepsiCo struggles to reverse concerning customer behavior originally appeared on TheStreet. PepsiCo () , which owns popular food and drink brands such as Pepsi, Lay's, Gatorade, Quaker, Tostitos, and more, continues to suffer from a dramatic change in customer behavior, and it is making bold moves to address the problem. In PepsiCo's second-quarter earnings report for 2025, it revealed that U.S. revenue from its food brands declined by 2% year-over-year. Its convenient foods volume in the U.S. also dipped by 1%, while its beverages volume decreased by 2%. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Despite low sales, the company's net revenue increased by 1% year-over-year during the the earnings report, PepsiCo CEO Ramon Laguarta said the company is 'effectively navigating through a challenging environment.' PepsiCo announces major product changes to attract back customers The decrease in sales comes during a time when consumers are watching their spending as they battle inflation and higher costs of living. During an earnings call on July 11, Laguarta acknowledged that consumers have become more value-conscious and said that going forward, PepsiCo will address affordability with 'more precision.' Many Americans are also shifting more toward healthier food and beverage options as concerns over potential health risks associated with ingredients found in processed foods continue to erupt on social media, which is also impacting sales. Amid this challenge, PepsiCo is making a huge effort to attract health-conscious consumers, which it hopes will help fix its struggling sales. Part of this effort includes gradually removing artificial colors and artificial flavors from its food and beverages. 'We're following the consumer, and if the consumer is telling us that they prefer products that have sugar, and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients,' said Laguarta during the part of this initiative, PepsiCo plans to soon 'introduce extensions of Cheetos and Doritos' that will contain no artificial colors or flavors. The company is also relaunching its Lay's and Tostitos brands to 'elevate' their healthy ingredients and remove artificial ingredients from their products, starting during the fourth quarter of this year and the first quarter of next year. In addition, PepsiCo is also decreasing its reliance on seed oils in its food products. These oils have recently faced scrutiny from consumers on social media for being overly processed and contributing to inflammation in the human body. 'We will expand the use of avocado or olive oil across certain brand platforms and enhance certain products with protein, fiber, and whole grains later this year and into next year within our Frito-Lay and Quaker portfolios,' said Laguarta and PepsiCo Chief Financial Officer Jamie Caulfield in prepared remarks. The company will also focus on providing smaller portions of its food products to consumers by increasing multipack, variety pack, and single-serve options. It also plans to join the growing protein trend, in which consumers are focused on implementing more protein into their diets to improve health and wellness. 'I think protein is clearly a sub-segmenting in our food and beverages categories that is growing fast, consumers are adopting protein solutions in the diets at a pace that was not the case a few months back, a few years back,' said Laguarta. 'So as we always do, we follow the consumer.' PepsiCo faces pressure from consumers and the government The increased focus on healthier food options comes after a survey by the International Food Information Council last year found that 79% of Americans consider whether a food product is processed when deciding to purchase it. Also, 63% of Americans avoid processed foods, while over half follow a vegan, vegetarian, or plant-based diet to be healthier. More Food + Dining: Papa Johns makes major menu change to win back customers Steak 'n Shake's beef tallow fries aren't as healthy as they appear Chick-fil-A angers customers with major change in stores Amid this trend, PepsiCo has acquired brands Siete Foods and Poppi, which both recently gained traction among consumers for their healthy ingredients. U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. has also been pressuring food companies to remove processed ingredients from their products. Recently, he announced his goal to phase out synthetic dyes in food and beverages, which has prompted some food companies to alter their ingredients. 'For too long, some food producers have been feeding Americans petroleum-based chemicals without their knowledge or consent,' said Kennedy in an April press release. 'These poisonous compounds offer no nutritional benefit and pose real, measurable dangers to our children's health and development. That era is coming to an end.'PepsiCo struggles to reverse concerning customer behavior first appeared on TheStreet on Jul 19, 2025 This story was originally reported by TheStreet on Jul 19, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Gulf Insider
20-07-2025
- Business
- Gulf Insider
Pepsi Exec Floats Switch To Sugar After Trump Coca-Cola Announcement
PepsiCo's top executive indicated on July 17 that the company may switch Pepsi's sweetener from high-fructose corn syrup to sugar, one day after President Donald Trump said Coca-Cola would soon be making the change. 'Same journey that we have in foods, we're following in beverages. This is a consumer-centric strategy. We're following the consumer,' Ramon Laguarta, PepsiCo's CEO, told investors on a call after being asked about Trump's announcement. 'If the consumer is telling us that they prefer products that have sugar and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients. So, this is a journey of following the consumer, trying to be a little bit maybe one step ahead of the consumer, but not too many steps. And it applies to both beverages and food.' As Jasper Fakkert reports for The Epoch Times, Trump said on Wednesday that he had been discussing with Coca-Cola the possibility of switching Coke's sweetener to cane sugar in the United States, 'and they have agreed to do so,' he said. A Coca-Cola spokesperson told The Epoch Times that the company appreciates Trump's enthusiasm for its brand and promised to soon share 'more details on new innovative offerings within our Coca‑Cola product range.' Some Coca-Cola products feature cane sugar, although most Coke sold in the United States is made with corn syrup. Both Coca-Cola and PepsiCo updated their soda formulas in the 1980s to use corn syrup instead of sugar. Laguarta's announcement came during a call in which executives said that PepsiCo will relaunch its Lay's and Tostitos brands later this year to highlight that they contain no artificial colors or flavors. 'We're trying to elevate the real food perception of Lay's. If you think about the simplest and most natural snack, it is a potato chip; it's a potato, it's oil, and it's a little bit of salt—the most simple, no artificial ingredients,' Laguarta said. The company also said it was expanding the use of avocado and olive oil across its brands, rather than the canola or soybean oil it uses. Some health influencers, including Health Secretary Robert F. Kennedy Jr., have promoted removing seed oils from food. PepsiCo officials had announced in April that they were quickening the company's transition to natural colors, in the wake of the Food and Drug Administration's banning of two artificial dyes. Lays and Tostitos will not contain artificial colors by the end of 2025, he said at the time. PepsiCo already offers Lays and Doritos without artificial colors or flavors under its Simply segment. 'The Simply line extension for existing chip brands is still in early innings,' F/m Investments senior portfolio manager Christian Greiner said. 'Consumers have not engaged so far, and given that, it will be seen how consumers react to a rebranding of Lays and Tostitos over the next couple of quarters.'
Miami Herald
19-07-2025
- Business
- Miami Herald
PepsiCo struggles to reverse concerning customer behavior
PepsiCo (PEP) , which owns popular food and drink brands such as Pepsi, Lay's, Gatorade, Quaker, Tostitos, and more, continues to suffer from a dramatic change in customer behavior, and it is making bold moves to address the problem. In PepsiCo's second-quarter earnings report for 2025, it revealed that U.S. revenue from its food brands declined by 2% year-over-year. Its convenient foods volume in the U.S. also dipped by 1%, while its beverages volume decreased by 2%. Don't miss the move: Subscribe to TheStreet's free daily newsletter Despite low sales, the company's net revenue increased by 1% year-over-year during the quarter. Related: Kellogg sounds alarm on unexpected shift in customer behavior In the earnings report, PepsiCo CEO Ramon Laguarta said the company is "effectively navigating through a challenging environment." Image source: Bloomberg/Getty Images The decrease in sales comes during a time when consumers are watching their spending as they battle inflation and higher costs of living. During an earnings call on July 11, Laguarta acknowledged that consumers have become more value-conscious and said that going forward, PepsiCo will address affordability with "more precision." Many Americans are also shifting more toward healthier food and beverage options as concerns over potential health risks associated with ingredients found in processed foods continue to erupt on social media, which is also impacting sales. Amid this challenge, PepsiCo is making a huge effort to attract health-conscious consumers, which it hopes will help fix its struggling sales. Part of this effort includes gradually removing artificial colors and artificial flavors from its food and beverages. "We're following the consumer, and if the consumer is telling us that they prefer products that have sugar, and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients," said Laguarta during the call. Related: PepsiCo makes swift move to avoid major boycott from consumers As part of this initiative, PepsiCo plans to soon "introduce extensions of Cheetos and Doritos" that will contain no artificial colors or flavors. The company is also relaunching its Lay's and Tostitos brands to "elevate" their healthy ingredients and remove artificial ingredients from their products, starting during the fourth quarter of this year and the first quarter of next year. In addition, PepsiCo is also decreasing its reliance on seed oils in its food products. These oils have recently faced scrutiny from consumers on social media for being overly processed and contributing to inflammation in the human body. "We will expand the use of avocado or olive oil across certain brand platforms and enhance certain products with protein, fiber, and whole grains later this year and into next year within our Frito-Lay and Quaker portfolios," said Laguarta and PepsiCo Chief Financial Officer Jamie Caulfield in prepared remarks. The company will also focus on providing smaller portions of its food products to consumers by increasing multipack, variety pack, and single-serve options. It also plans to join the growing protein trend, in which consumers are focused on implementing more protein into their diets to improve health and wellness. "I think protein is clearly a sub-segmenting in our food and beverages categories that is growing fast, consumers are adopting protein solutions in the diets at a pace that was not the case a few months back, a few years back," said Laguarta. "So as we always do, we follow the consumer." The increased focus on healthier food options comes after a survey by the International Food Information Council last year found that 79% of Americans consider whether a food product is processed when deciding to purchase it. Also, 63% of Americans avoid processed foods, while over half follow a vegan, vegetarian, or plant-based diet to be healthier. More Food + Dining: Papa Johns makes major menu change to win back customersSteak 'n Shake's beef tallow fries aren't as healthy as they appearChick-fil-A angers customers with major change in stores Amid this trend, PepsiCo has acquired brands Siete Foods and Poppi, which both recently gained traction among consumers for their healthy ingredients. U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. has also been pressuring food companies to remove processed ingredients from their products. Recently, he announced his goal to phase out synthetic dyes in food and beverages, which has prompted some food companies to alter their ingredients. "For too long, some food producers have been feeding Americans petroleum-based chemicals without their knowledge or consent," said Kennedy in an April press release. "These poisonous compounds offer no nutritional benefit and pose real, measurable dangers to our children's health and development. That era is coming to an end." Related: Coca-Cola may soon make a drastic change to its sodas The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yomiuri Shimbun
18-07-2025
- Business
- Yomiuri Shimbun
Pepsico Overcomes Lagging US Sales in a Strong Second Quarter
PepsiCo reported better-than-expected earnings and revenue in the second quarter and expressed confidence that new and revamped products can boost its lagging North American sales in the second half of this year. In a conference call with investors Thursday, PepsiCo Chairman and CEO Ramon Laguarta said the company plans to introduce protein-enhanced versions of snacks like Pop Corners in the next few months and will eventually make high-protein versions of some of its biggest sellers. Protein beverages are also going on sale later this year. 'Consumers are adopting protein solutions in their diets at a pace that was not the case in a few years back,' Laguarta said. 'We can provide democratized solutions at large scale. That's what we're trying to do.' Laguarta said a relaunch of Lay's potato chips and Tostitos tortilla chips without artificial colors or ingredients is also coming later this year. PepsiCo said in April that it was accelerating a planned phase-out of artificial colors and ingredients after U.S. health officials called on companies to make that shift. But Laguarta didn't say whether PepsiCo is planning a shift to real sugar in its U.S. sodas. Late Wednesday, President Donald Trump said in a social media post that Coca-Cola had agreed to use real cane sugar in its flagship product in the U.S. instead of high-fructose corn syrup. Coke didn't confirm the change but promised new offerings would be shared soon. 'If the consumer is telling us that they prefer products that have sugar and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients,' Laguarta said. 'So this is a journey of following the consumer, trying to be maybe one step ahead of the consumer but not too many steps.' Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said Thursday, while beverage sales slid 2% in the region. Years of double-digit price increases from PepsiCo and changing consumer preferences has weakened demand for the company's drinks and snacks, the company said in February. It said Thursday that it's trying to combat perceptions that its products are too expensive by expanding distribution of value brands like Chester's and Santitas. Sales rose in some other regions, including Latin America and Asia. PepsiCo said low- or no-sugar versions of its trademark Pepsi saw strong sales globally. Revenue rose less than 1% to $22.7 billion in the April-June period. That was higher than the $22.3 billion Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to $1.3 billion. Adjusted for one-time items, including impairment charges related to its Rockstar and Be & Cheery brands, PepsiCo earned $2.12 per share. That was also higher than the $2.03 analysts had forecast. PepsiCo shares rose nearly 6% in morning trading Thursday. PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance Thursday.
Miami Herald
01-06-2025
- Business
- Miami Herald
Pepsi quietly discontinued popular soda it planned to bring back
Soda companies, love to follow the blueprint created by fast food chains like McDonald's and Burger King. Those companies will occasionally remove something from the menu only to bring it back with more interest at a later date. Sometimes the item was a limited time offer in the first place and, in other cases, it was a menu item that grew a little bit tired. Related: McDonald's brings back unexpected breakfast item after 6 years But as they say, absence makes the heart grow fonder. McDonald's bagel, breakfast sandwiches, were never huge sellers, but when they got removed, there was an outcry. Maybe people only occasionally ordered them, but they liked them and wanted them to be on the menu. Customers may not order an item very often, but they like it being there for the day they feel like eating it. Don't miss the move: Subscribe to TheStreet's free daily newsletter McDonald's has played this game with the Mc rib for decades. You would think that a sandwich made out of pork scraps would not be a giant draw, but because it comes in and out of availability on the predictable schedule, it has become a bit of a phenomenon. Consumers get especially upset when they think something is coming back and that ends up not happening. That's the case with a popular Pepsi drink that has been scheduled for a 2025 revival. Image Source: Pepsico Mountain Dew stopped making its Game Fuel: Citrus Cherry flavor last year. It was widely expected to be brought back and the company had even confirmed the return. That's not going to happen: "MTN Dew Game Fuel: Citrus Cherry is no more! While this soda was on Pepsi's internal release calendar for 2025 at the beginning of the year, multiple sources have now reported the return has been canceled," the SodaSeekers Instagram page shared. More Food: Applebee's brings back all-you-can-eat deal to take down Chili'sPopular Mexican chain reveals surprising growth plansStarbucks CEO shares plan for a whole new menu Some fans were upset at the change. "This is so devastating because we were really looking forward to finally getting it as a Zero Sugar version. The upcoming Trolli flavor seems close enough though, so maybe they'll bring Citrus Cherry back another time," @mnmtwinz wrote. @mamcinch was disappointed as well. "This is the worst news! Cherry Citrus Game Fuel is literally the best flavor," they posted. Others just seemed surprised. "So strange considering it seems to sell really well too," added @nolanvoid_13. PepsiCo (PEP) CEO Ramon Luis Laguarta did no speak about Game Fuel: Citrus Cherry, but he did comment on another Mountain Dew franchise in response to a question during his company's fourth-quarter earnings call. "Baja Blast is a big part of our strategy to make Mountain Dew a bigger contributor to our growth in beverages. It's a large franchise. It's almost $1 billion already between our away from home and our retail business in the neighborhood of $1 billion," he shared. Laguarta has big plans and expectations for Mountain Dew. "We see it is incremental in driving penetration from Mountain Dew with new - especially with Gen Zs and especially in parts of the country where our core Mountain Dew is less developed. So we see a very good incrementality for us, and we will continue to invest in Baja Blast is one of our bets for the year," the CEO explained. Related: Pepsi makes major change that will anger some customers He also expects PepsiCo to invest heavily in this specific Mountain Dew segment. "It's continuing the development of Baja Blast. We'll have it for Super Bowl, and there's a whole program throughout the year to continue to develop this platform," he added. "I think it's sustainable. It's incremental. It brings new consumers into the franchise. So that's regarding Baja Blast." The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
