PURCHASE, NY. — Two days after federal officials took action against synthetic dyes for food and beverages, PepsiCo Inc. chairman and chief executive officer Ramon Laguarta said his company already has been phasing out artificial colors and reducing other ingredients in its products to meet consumer preferences.

“We’ve been leading the transformation of the industry now for a long time on sodium reduction, sugar reduction and better fats,” Laguarta said in an April 24 conference call with analysts on PepsiCo’s fiscal 2025 first-quarter results. The Purchase, NY-based company’s food businesses include Frito-Lay and Quaker Foods, now combined into PepsiCo Foods North America.

“When we talk about the US food business, 60%-plus of our (portfolio) today doesn’t have any artificial colors, so we’re undergoing that transition,” he said. “For example, brands like Lay’s will be out of artificial colors by the end of this year, and the same with Tostitos — some of our big brands. So we’re well underway.”

At an April 22 news conference, Robert F. Kennedy Jr., secretary of the US Department of Health and Human Services, and Marty Makary, commissioner of the Food and Drug Administration, launched measures to eliminate all petroleum-based synthetic dyes from the US food supply and steer food companies to natural alternatives.

Plans call for the FDA to phase out the six remaining synthetic dyes for food — Green No. 3, Red No. 40, Yellow No. 5 and No. 6, and Blue No. 1 and No. 2 — by the end of 2026. In January, the FDA had ordered that Red No. 3 be out of US foods and beverages by 2027, but the agency now requests that food companies do so sooner. The FDA, too, aims to revoke authorization for Citrus Red No. 2 and Orange B as well as “fast-track” reviews of calcium phosphate, Galdieria extract blue, gardenia blue and butterfly pea flower extract as natural options for food colorings.

At the press event, Kennedy also called sugar a “poison” that’s fueling the US diabetes epidemic and said the National Institutes of Health will target other food additives for scientific study to assess their safety.

“We obviously stand by the science,” Laguarta said. “Our products are very safe, and there’s nothing to worry about. But we understand that there’s probably going to be a consumer demand for more natural ingredients, and we’re going to be accelerating that transition. Ideally, we can do this in a very pragmatic, orchestrated way as an industry and not create unnecessary panic or chaos.

“But we’ll lead that transition, and in the next couple of years, we’ll have migrated all the portfolio into natural colors or at least provide the consumer with natural color options. And every consumer will have the opportunity to choose what they prefer. So that’s the journey we’re undergoing.”

SNAP waivers on processed foods

In response to an analyst question, Laguarta said PepsiCo will keep an eye on states seeking waivers from the US Department of Agriculture to exclude candy, sugary drinks and other processed foods from the Supplemental Nutrition Assistance Program (SNAP).

States that have requested waivers or plan to do so reportedly include Arkansas, Indiana, Utah, Nebraska, West Virginia, Idaho, Tennessee and Arizona. Overall, more than 40 million Americans rely on SNAP, also known as food stamps, to afford food for themselves and their families.

“In terms of SNAP, there is a lot of conversation in different states, and we’re seeing that some of our categories could be exposed to some restrictions,” Laguarta said. “I think this will have a very limited impact on the business, as we are calculating today. And we will need to see how the eventual legislation gets implemented. It’s still a lot of unknowns on how this is going to be happening.”

Catering to GLP-1 users

Also on the health and wellness front, PepsiCo is adapting its product lineup to cater to the surging use of GLP-1 weight-loss drugs and other consumer dietary needs, Laguarta told analysts.

“We’ve been transforming the portfolio, and we’ll continue to give the consumer offerings that help them in any sort of dietary preferences that they have,” he said. “So, whether they’re in a GLP situation or they’re not, we will keep providing them.

“What we’re seeing with GLP consumers is they’re driving more consumption on protein, on fiber, on hydration. I think we’re well-positioned for both fiber and hydration solutions, and we will increase the availability of products in those two areas. I think we’re a bit less well-positioned in protein. Our teams are working on innovation for protein, both in the beverage and the food business. And you will see some late this year, early next year. And that’s the space that I think we can capture more incremental value.”

PepsiCo’s moves to adjust its price-pack architecture to give consumers more value also play toward those concerned about portion control, Laguarta added.

“The other thing we’re seeing in GLP consumers is that they’re keeping our brands in their repertoire, probably in a smaller portion, and that’s the way they’re actually eating across most of their choices,” he said. “They’re eating less quantities, so our offerings in the small portions — whether it’s multi-pack or some other options — keep our brands in their repertoire. So portfolio transformation, portion control and the right offerings will make sure that our brands stay relevant to those consumers.”