PepsiCo to make its drinks healthier, chief executive Indra Nooyi

PepsiCo to make its drinks healthier, chief executive Indra NooyiPepsiCo Inc. soda products sit on display during a PepsiCo investor meeting at Yankee Stadium in New York, U.S., on Monday, March 22, 2010. PepsiCo, the world's second-largest soft-drink maker, redesigned its beverage packaging and marketing in 2009, and purchased its two largest drink distributors to boost sales in the U.S. and take greater control over delivery. The company, which has relied on emerging markets for soft-drink growth, is pushing no-calorie offerings overseas. Photographer: Jin Lee/Bloomberg ORG XMIT: 97815573 AMERICA; AMERICAS BEVERAGE; BEVERAGES SODA BUSINESS; FINANCE SOFT DRINK; SOFT DRINKS

The beverage giant PepsiCo has announced a plan to cut the sugar content and calories of drinks it sells around the globe. PepsiCo will bring down sugar content in at least two-thirds of its beverages by 2025 and focus on healthier food options, Chairperson and Chief Executive Officer (CEO) Indra Nooyi said on Monday. This comes a week after the WHO recommended governments adopt taxes on sugary drinks

“So we’re now faced with [an] interesting opportunity to step the consumer down to lower sweetness levels,” Nooyi added.

Sodium was also a part of this list.

While sodium targets have not been indicated this time, countries are expected to work on reducing this as part of the new mandate to launch low-calorie products.

PepsiCo India’s chairman and CEO D Shivakumar said, “We launched a lower sugar 7UP in Gujarat recently, which replaces the existing formulation. The new product has stevia and a 30 per cent reduced sugar level. We had also launched 7UP Revive, which has 30 per cent lower sugar than the core 7UP. We will continue to expand the low-sugar range as part of the new road map.”

Stevia is a sugar substitute.

Additionally, PepsiCo has increased the use of grains, real fruits and vegetables in Quaker Oats in India and is expected to step up this focus as part of the new mandate.

PepsiCo, based in Purchase, N.Y., still makes a significant amount of its $5.45 billion in annual profit from sugary drinks. The company sold $63 billion in food and beverages across 180 countries in 2015, including its flagship Pepsi brand as well as Diet Pepsi, Gatorade, Mountain Dew, Aquafina, Tropicana and a host of snacks including Lay’s, Doritos and Ruffles.

The UK announced a sugar tax this year, while Mexico, Hungary and Philadelphia in the US have implemented similar measures to reduce obesity and diabetes.

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