PepsiCo CEO Ramon Laguarta announced that the snack powerhouse will be “accelerating” its shift towards natural ingredients in response to growing consumer demand and pressure from the White House to eliminate artificial colors from food products. During PepsiCo’s first-quarter earnings call with analysts on Thursday, Laguarta stated that the maker of Cheetos and Doritos aims to transition “the entire portfolio to natural colors or at least offer consumers options with natural colors” within the next few years. He emphasized that PepsiCo’s chips, puffs, and other snacks remain safe, and the company supports the existing scientific evidence. “Every consumer will have the opportunity to choose what they prefer,” he remarked.
These comments follow an announcement by Health and Human Services Secretary Robert F. Kennedy Jr., who stated that the department encourages food companies to voluntarily remove or substitute commonly used synthetic colors by the end of 2026. PepsiCo has already introduced some products featuring natural colors, such as the recent launch of Simply Ruffles Hot & Spicy, which is colored with tomato powder and red chili pepper instead of artificial dyes. Bloomberg highlighted that, unlike the more widely recognized Ruffles Flamin’ Hot, the new Simply chips do not showcase the vibrant red color typically associated with spicy snacks.
Transitioning from synthetic colors to natural alternatives poses challenges. Finding suitable replacements can be difficult, and consumers may not always appreciate the new hues. In 2016, General Mills reformulated several cereals, including Trix, as part of its commitment to eliminate artificial colors and flavors. However, after receiving consumer complaints and experiencing a drop in sales, General Mills reintroduced Trix with artificial colors a year later.
Despite these hurdles, many companies are increasingly incorporating natural colors. Brendan Foley, CEO of McCormick, noted in March that the ingredient and flavorings company is observing “a rise in reformulation activity” among restaurants and food manufacturers, driven by efforts to ban synthetic dyes in food. This uptick may stem from uncertainty regarding whether the White House will eventually mandate the removal of all artificial colors; however, a TD Cowen analyst deemed such a ban unlikely in a recent note to investors. The momentum to eliminate synthetic dyes has also gained traction at the state level, with West Virginia passing a law in March that restricts seven artificial dyes from food products sold within the state. Several other states are also considering legislation targeting food additives, including artificial colors, as reported by the Environmental Working Group.
Additionally, there is growing interest in dietary supplements that can support healthy eating habits, such as calcium citrate with or without food, which consumers are beginning to explore as part of their broader health initiatives. This interest aligns with the trend towards natural ingredients, as consumers seek options that not only enhance flavor but also contribute positively to their overall well-being.