Latest news with #Blue1
Yahoo
28-04-2025
- Business
- Yahoo
PepsiCo CEO addresses major customer concerns amid low sales
Over the past few months, PepsiCo () , which owns popular food and drink brands such as Pepsi, Lay's, Gatorade, Tostitos, Quaker, and more, has suffered from weaker consumer demand, which has negatively impacted its profits. In PepsiCo's first-quarter earnings report for 2025, it revealed that its net revenue declined by almost 2% year-over-year during the quarter. Specifically, PepsiCo foods in North America faced a 1% decrease in revenue, while volume for savory snacks shrunk by 4%. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Also, the company's U.S. revenue from its beverages remained flat as it faced a 6% decline in non-carbonated beverage volume and a 1% decline in carbonated soft drink the report, PepsiCo CEO Ramon Laguarta said that 'consumer conditions in many markets remain subdued' and 'have an uncertain outlook.' He said that the company will be 'taking actions to improve performance in North America.' During an earnings call on April 24, Laguarta said that PepsiCo will double down on offering lower prices to consumers through smaller-sized snack offerings as it recognizes that 'consumers are feeling more challenged with their disposable income.' 'We're putting more emphasis on those entry price points and making sure that we're not asking for a large amount of money for participating in our brands, and that's why smaller single-serve, smaller multi-packs, those are all tools for us to keep the consumers in the brand and make sure that the frequency is there as well,' said Laguarta. He also said that, in response to recent concerns about the ingredients in PepsiCo products, several of the company's brands will soon no longer contain artificial colors. 'Brands like Lay's will be out of artificial colors by the end of this year, the same with Tostitos, so some of our big brands," said Laguarta. "So we're well underway. Ideally, obviously, we stand by the science, and our products are very safe, there's nothing to worry about this. But we understand that there's going to be probably a consumer demand for more natural ingredients, and we're going to be accelerating that transition.'Currently, over 60% of the company's products doesn't contain artificial colors. Laguarta said that within 'the next couple of years,' all PepsiCo products will undergo a similar change. 'Ideally, we can do this in a very pragmatic, orchestrated way as an industry, and not create unnecessary panic or chaos,' said Laguarta. '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 obviously, every consumer will have the opportunity to choose what they prefer.' The move from PepsiCo comes at a time when synthetic dyes such as Blue 1, Red 40, and Yellow 6, despite being approved by the U.S. Food and Drug Administration, have come under fire for being linked to health issues such as cancer and hyperactivity in children. More Retail: AT&T quietly issues stern warning to customers Sam's Club makes a big change to a beloved membership perk GameStop announces risky move amid store closures Robert F. Kennedy Jr., the U.S. secretary of Health and Human Services, announced on April 22 that he plans to ban artificial dyes from all U.S. food products by the end of the year. 'For too long, some food producers have been feeding Americans petroleum-based chemicals without their knowledge or consent,' said Kennedy in a recent 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.' Previously, in February, Laguarta even warned that there has recently been a 'higher level of awareness' toward health and wellness among U.S. consumers, which has impacted PepsiCo's sales. 'We're seeing more conversation in social media about health and wellness, in general, and obviously, that's impacting consumption of food and consumption of beverages,' said Laguarta. Amid low sales, PepsiCo expects its organic revenue to increase only by a low single-digit for the full year of 2025. During the recent earnings call, PepsiCo Chief Financial Officer Jamie Caulfield said this expectation is based on the looming threat of tariffs (taxes companies pay to import goods from overseas), heightened macro and consumer uncertainty, and Frito Lay's recent subdued performance. "Relative to where we were three months ago, we probably aren't feeling as good about the consumer now as we were a few months ago," said Caulfield. The guidance also comes as the company faces a massive boycott threat from consumers over its recent decision to scale back its diversity, equity, and inclusion program.
Yahoo
24-04-2025
- Health
- Yahoo
FDA urges food manufacturers to halt use of controversial ingredients: 'Why are we taking a gamble?'
The U.S. Food and Drug Administration announced it is urging food manufacturers to start reducing or eliminating the use of artificial food dyes — such as Red 40, Yellow 5 and Blue 1 — by the end of 2026. These synthetic colors are made from petroleum and are used in processed foods to create the typical bright or otherwise unnatural colors in everything from cereal to candy. The move is part of a nonpartisan public health effort — led by organizations such as the Center for Science in the Public Interest and Consumer Reports — to cut back on ingredients that may pose health risks, especially for children. Red 3, one of the dyes under the most scrutiny in recent years, was already banned by the FDA under the Biden administration, with an effective date of January 2027, as a result of studies linking it to cancer in laboratory animals. At the time of that ban, the FDA passed on taking action against the eight other artificial dyes used in food. A CBS report noted the FDA and Secretary of Health and Human Services Robert F. Kennedy Jr. again declined to pursue a wider ban and are instead directly asking companies to voluntarily make the switch to safer, plant-based alternatives. The push may yield some results, but some experts said they were disappointed at the lack of stronger action. "There was no ban, no regulation, no enforcement. Just a vague announcement and a hope that food companies might voluntarily change," said Dr. Jessica Knurick, a dietitian with a PhD in nutrition science, in an Instagram post to her 900,000 followers. "This is textbook performative politics: make a headline, say something vague, and let the internet celebrate it like a win." While there are many alternatives for food coloring already in wide use — especially outside the U.S., where artificial food dye usage is far less common — the agency has said it will work to speed up the approval process for any new alternatives to help ease the transition. Some companies have experimented with removing artificial dyes — General Mills said Trix went back to synthetic colors after customer feedback — while many popular brands have never stopped using them. An assessment from California's Office of Environmental Health Hazard found that synthetic food dyes can affect attention span, behavior, and learning in children. Many European countries already require food products containing certain dyes to carry warning labels, which has led to products like Froot Loops being made with a different recipe in order to avoid the label. It's a move that the U.S. could adopt to motivate companies to make the switch, though Kennedy and the FDA did not make such a promise. "Why are we taking a gamble? Parents, moms and dads have also tried to raise attention to this issue," Food and Drug Administration head Marty Makary said in the CBS report. "Some parents have observed that these chemicals cause hyperactivity and even aggressive behavior, and that it subsides when the chemicals are removed from the diet." Besides the direct health consequences, these dyes are made using petroleum from fossil fuels, which contribute to pollution and rising global temperatures. More natural color sources like beet juice, turmeric, and spirulina are not only safer and healthier but better for the environment, too. "To companies that are currently using petroleum-based red dye, try watermelon juice," Makary said in a report. If more food companies follow the FDA's lead, grocery shelves might start to look a little less colorful, but there's no reason to view that as a bad thing. For parents and shoppers trying to avoid ultra-processed foods, this change could make it easier to spot better options and make food shopping a little less complicated. Do you worry about having toxic forever chemicals in your home? Majorly Sometimes Not really I don't know enough about them Click your choice to see results and speak your mind. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
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Business Standard
23-04-2025
- Health
- Business Standard
US govt will work with food makers to stop use of artificial dyes
By Rachel Cohrs Zhang, Anna Edney and Deena Shanker The US Department of Health and Human Services plans to phase out artificial food dyes by working with food companies that rely heavily on them to produce everything from breakfast cereal to salad dressing. Food and Drug Administration Commissioner Marty Makary said Tuesday that the agency would work with the industry to eliminate six synthetic dyes by the end of 2026, including Red 40, Yellow 5 and Blue 1. The FDA will also ask the industry to eliminate Red 3 before 2027, the timeline set by the Joe Biden administration. The voluntary effort is a better outcome for food companies than a ban on most dyes many in the industry feared when HHS Secretary Robert F. Kennedy Jr. was appointed. Makary linked artificial colors to hyperactivity, obesity, diabetes and cancer in children. 'Why are we taking a gamble?' he said. 'This administration is not interested in continuing down a path of doing the same old things as we watch our nation's children get sicker.' While the FDA will work with the industry to phase out most dyes, Makary said it plans to revoke authorisation for two lesser-known ones, Citrus Red 2 and Orange B. Otherwise, Kennedy said HHS and FDA have an 'understanding' with the industry on getting dyes out of the food supply. 'Let's start in a friendly way and see if we can do this without any statutory or regulatory changes, but we are exploring every tool in the toolbox to make sure this gets done very quickly,' Makary said. But a food reviewer at the FDA said employees who work on food safety were not informed of the announcement, and it remains unclear how the agency plans to implement its plan. The Consumer Brands Association said in a statement that ingredients in America's food supply 'have been rigorously studied.' The association said it's urged the government to prioritise ingredient research 'that is objective, peer reviewed and relevant to human health and safety.' Scott Faber, senior vice president of government affairs at Environmental Working Group, called the announcement 'less than a nothing burger,' adding that there was no corresponding agreement from the food industry. Consumer Reports said in a statement that a voluntary federal effort to remove dyes 'could take years to achieve' and that states should pursue their own bans to ensure Americans are protected. And the Center for Science in the Public Interest pointed out that there was no rulemaking announcement on banning dyes. 'History tells us that relying on voluntary food industry compliance has all-too-often proven to be a fool's errand,' the center said in a statement. Dye concerns Kennedy has targeted artificial food dyes as part of his agenda to address the underlying causes of chronic illness. Health advocates have said for years that synthetic colours add no taste or nutritional value but make unhealthy foods more visually appealing. There are also concerns that the dyes may be carcinogenic or trigger hyperactivity in some children. Food and beverage companies have argued that synthetic dyes are safe. They've said it could take time to remove them from the supply chain and natural dyes are more expensive. The FDA also said it would work quickly to authorise natural dyes, including butterfly pea flower extract. Artificial dyes are used in a wide number of foods, especially those popular with kids, such as WK Kellogg Co.'s Froot Loops and General Mills Inc.'s Lucky Charms. They're also in sugary drinks, including Coca-Cola Co.'s Fanta and PepsiCo Inc.'s Mountain Dew and Gatorade. The dyes even appear in some pickles, smoked salmon and flavoured applesauce. 'I can't wait to enter a grocery store and not have to worry about artificial food dyes anymore,' food activist Vani Hari said in an interview. Hari, also known as her social media moniker Food Babe, called the FDA's move the result of a 'massive grassroots campaign.' States including West Virginia and California have passed laws to regulate the use of food dyes. Kennedy traveled to West Virginia last month to tout the state's new law to ban seven artificial dyes from school lunches and eventually from all food items in the state. Food and beverage lobbying groups have railed against West Virginia's law. The American Beverage Association points to industry-supported studies that found no clear link between synthetic food dyes and neurobehavioral effects, like hyperactivity. Companies pressured Consumer demand for healthier food has prompted some companies to seek alternatives. Additionally, companies were warned that policy changes were coming. In March, Kennedy told executives from Kraft Heinz Co., General Mills and other food makers he wanted artificial dyes out of their products by the end of his term. McCormick & Co. said last month it was working with more food and restaurant companies to reformulate products, including baking ingredients that use food colorings. On Tuesday, the company said it would speed up efforts to reformulate the products in its branded retail offerings that use artificial dyes. PepsiCo aims to develop products without artificial dyes, and created spicy potato chips that don't use the signature red color created by food dyes. Other food makers are embarking on similar efforts. Earlier Tuesday, the International Dairy Foods Association pledged to eliminate the use of artificial colors in dairy products sold to schools by July 2026, as pressure on the ingredients mounts from health advocates and Kennedy. Dairy companies will be discontinuing products with synthetic colors or reformulating them with natural ingredients, the IDFA said in a statement. Every dairy company selling a milk, cheese or yogurt product to public schools participating in federally funded lunch and breakfast programs has joined the voluntary pledge, according to the IDFA. There could be federal regulation on other additives. Kennedy asked the FDA earlier this year to look into changing a rule that allows food companies to self-affirm that food additives are what the agency calls generally recognized as safe, or GRAS.
Bloomberg
22-04-2025
- Health
- Bloomberg
US Will Work With Foodmakers to Stop the Use of Synthetic Dyes
The US Department of Health and Human Services plans to phase out artificial food dyes by working with food companies that rely heavily on them to produce everything from breakfast cereal to salad dressing. Food and Drug Administration Commissioner Marty Makary said Tuesday the agency would work with the industry to eliminate six synthetic dyes by the end of 2026, including Red 40, Yellow 5 and Blue 1. The FDA will also ask the industry to eliminate Red 3 before 2027, the timeline set by the Joe Biden administration.
New York Post
22-04-2025
- Health
- New York Post
All the health risks of the 8 food dyes the FDA is banning — including cancer and behavioral issues
The hateful eight? The US Food and Drug Administration announced a plan Tuesday to phase out eight petroleum-based synthetic food dyes from America's food supply in the coming months. 'Food dye is just a no-brainer. Nobody wants to eat petroleum. Everybody knows there's enough science out there that we know it's terrible for you. It causes health problems but also behavioral problems,' Health and Human Services Secretary Robert F. Kennedy, Jr. said at a Tuesday news conference. Advertisement 7 US Health and Human Services Secretary Robert F. Kennedy, Jr. has long targeted artificial dyes found in candy, cereals, sports drinks and processed snacks. Kennedy is pictured here at a March 2025 event. AP The FDA already banned the dye known as Red No. 3 in January after it was shown to cause cancer in lab rats. A deadline was set to remove Red 3 from food by January 2027 and from medications by January 2028. FDA commissioner Dr. Marty Makary said the agency is requesting food companies remove Red 3 sooner than these deadlines. Kennedy has long targeted artificial dyes found in candy, cereals, sports drinks and processed snacks. Advertisement The FDA plans to revoke authorization for two synthetic food colorings — Citrus Red No. 2 and Orange B— in the coming months. The other six would be removed from the food supply by the end of 2026. Here's a look at the health concerns surrounding the eight artificial dyes on the chopping block. Blue 1 7 The artificial coloring Blue 1 gives Takis their blue hue. Mdv Edwards – Also known as Brilliant Blue FCF, Blue 1 is derived from petroleum to give foods such as M&Ms and Takis a blue hue. Advertisement An unpublished study on mice suggested a potential link between Blue 1 and kidney tumors, according to the Center for Science in the Public Interest. The non-profit watchdog has been calling for more Blue 1 testing, as a preliminary test-tube study raised questions about its possible effects on nerve cells. Blue 2 7 This photo shows blueberry Pop-Tarts on display at a confectionery shop in London. Blue 2 is banned in some European countries due to concerns about its potential carcinogenicity. I-Wei Huang – Blue 2, also known as indigo carmine or indigotine, mimics the color and properties of plant-based indigo dye in products like Skittles and blueberry Pop-Tarts. Advertisement Research indicates a higher occurrence of certain tumors, particularly brain gliomas, in male rats exposed to Blue 2. 'Blue No. 2 cannot be considered safe for human consumption,' researchers from Poland wrote in a 2021 study. Citrus Red No. 2 7 Florida oranges are sometimes treated with Citrus Red No. 2 to enhance their appearance. Jan Ebling – It's used to color the peels of oranges, particularly those grown in Florida, that are not intended for processing. Citrus Red No. 2 is not allowed on the edible parts of oranges — like the pulp or flesh — and it's banned for citrus grown in California and Arizona. It can cause cancer in rats and mice. Green 3 The artificial green dye, called Fast Green FCF, is produced through chemical synthesis. It's not as widely used as the other food dyes, but it can be found in processed foods like canned peas and sherbet. Banned in Europe, the additive has been linked to a significant increase in bladder tumors in rats. Orange B Advertisement 7 Orange B use in the US is limited to hot dog and sausage casings. Getty Images The color additive is only permitted for use in hot dog and sausage casings. In high doses, it can damage the liver and bile duct. Red dye 40 Red 40, aka Allura Red AC, gives red color to products like Kool-Aid, Starburst and NyQuil. Studies suggest that the dye may increase hyperactivity and irritability in children, especially if they have ADHD, and trigger allergic reactions in others. Yellow No. 5 Advertisement 7 Mountain Dew gets its neonish hue from Yellow No. 5. gubernat – Commonly known as tartrazine, Yellow No. 5 can be found in brightly colored sodas like Mountain Dew and processed snacks like Twinkies. Some research has warned that it can damage DNA, cause inflammation and increase hyperactivity in children. It is known to cause allergic reactions. Yellow No. 6 Advertisement 7 Lucky Charms contains Yellow No. 6, as well as Red 40, Yellow 5 and Blue 1. Getty Images Yellow No. 6, or Sunset Yellow FCF, imparts a vibrant yellow-orange hue to Airheads, Jolly Ranchers, Lucky Charms and other processed foods. It can be contaminated with the carcinogen benzidine during the manufacturing process. Studies have linked Yellow No. 6 to neurobehavioral issues in children as well as allergic reactions.
