Pepsi to target global sugar reduction

Soft drink maker Pepsi has set itself the goal of reducing the amount of sugar its drinks contain to address global obesity levels

 
PepsiCo's flagship product, Pepsi, only accounts for 12 percent of the company's sales 

PepsiCo is targeting a reduction in the amount of sugar in its drinks by 2025, as the company aims to limit its part in global health epidemics. The initiative is looking to address criticism that sugary drinks are partly responsible for a global increase in obesity and related health conditions, such as diabetes.

As reported by Reuters, PepsiCo will be announcing a range of goals to be implemented by 2025, including a commitment to making sure two-thirds of its drinks range has 100 calories or fewer from added sugar per 12oz serving. Currently, approximately 40 percent of its range meets this standard. The company plans to use non-sugar sweeteners to achieve this goal.

The amount of sugar in soft drinks has come under increasing scrutiny recently, and the World Health Organisation recently recommended all countries place a tax on sugary drinks

The amount of sugar in soft drinks has come under increasing scrutiny recently, and the World Health Organisation recently recommended all countries place a tax on sugary drinks to curb negative global heath trends. Last week, Portugal announced it would be introducing a tax on sugary drinks in 2017. It joins France and Mexico, who currently have a tax in place.

While Pepsi is the company’s flagship product, it only generates approximately 12 percent of its annual revenue. The majority comes from its range of other drinks, snack foods and dips. This diverse portfolio of products has allowed PepsiCo to become the second-largest food and beverage company in the world.

This is not the first time Pepsi has announced its intentions to combat obesity. In 2010, Pepsi CEO Indra Nooyi led an initiative to reduce portion sizes for some of the company’s products and promote its ‘diet’ range as prominently as sugary alternatives. For more about Nooyi’s efforts to expand Pepsi’s portfolio of products and revitalise the firm’s branding, pick up a copy of the latest edition of World Finance or read the story online.