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Miami Herald
01-06-2025
- Business
- Miami Herald
Pepsi quietly discontinued popular soda it planned to bring back
Soda companies, love to follow the blueprint created by fast food chains like McDonald's and Burger King. Those companies will occasionally remove something from the menu only to bring it back with more interest at a later date. Sometimes the item was a limited time offer in the first place and, in other cases, it was a menu item that grew a little bit tired. Related: McDonald's brings back unexpected breakfast item after 6 years But as they say, absence makes the heart grow fonder. McDonald's bagel, breakfast sandwiches, were never huge sellers, but when they got removed, there was an outcry. Maybe people only occasionally ordered them, but they liked them and wanted them to be on the menu. Customers may not order an item very often, but they like it being there for the day they feel like eating it. Don't miss the move: Subscribe to TheStreet's free daily newsletter McDonald's has played this game with the Mc rib for decades. You would think that a sandwich made out of pork scraps would not be a giant draw, but because it comes in and out of availability on the predictable schedule, it has become a bit of a phenomenon. Consumers get especially upset when they think something is coming back and that ends up not happening. That's the case with a popular Pepsi drink that has been scheduled for a 2025 revival. Image Source: Pepsico Mountain Dew stopped making its Game Fuel: Citrus Cherry flavor last year. It was widely expected to be brought back and the company had even confirmed the return. That's not going to happen: "MTN Dew Game Fuel: Citrus Cherry is no more! While this soda was on Pepsi's internal release calendar for 2025 at the beginning of the year, multiple sources have now reported the return has been canceled," the SodaSeekers Instagram page shared. More Food: Applebee's brings back all-you-can-eat deal to take down Chili'sPopular Mexican chain reveals surprising growth plansStarbucks CEO shares plan for a whole new menu Some fans were upset at the change. "This is so devastating because we were really looking forward to finally getting it as a Zero Sugar version. The upcoming Trolli flavor seems close enough though, so maybe they'll bring Citrus Cherry back another time," @mnmtwinz wrote. @mamcinch was disappointed as well. "This is the worst news! Cherry Citrus Game Fuel is literally the best flavor," they posted. Others just seemed surprised. "So strange considering it seems to sell really well too," added @nolanvoid_13. PepsiCo (PEP) CEO Ramon Luis Laguarta did no speak about Game Fuel: Citrus Cherry, but he did comment on another Mountain Dew franchise in response to a question during his company's fourth-quarter earnings call. "Baja Blast is a big part of our strategy to make Mountain Dew a bigger contributor to our growth in beverages. It's a large franchise. It's almost $1 billion already between our away from home and our retail business in the neighborhood of $1 billion," he shared. Laguarta has big plans and expectations for Mountain Dew. "We see it is incremental in driving penetration from Mountain Dew with new - especially with Gen Zs and especially in parts of the country where our core Mountain Dew is less developed. So we see a very good incrementality for us, and we will continue to invest in Baja Blast is one of our bets for the year," the CEO explained. Related: Pepsi makes major change that will anger some customers He also expects PepsiCo to invest heavily in this specific Mountain Dew segment. "It's continuing the development of Baja Blast. We'll have it for Super Bowl, and there's a whole program throughout the year to continue to develop this platform," he added. "I think it's sustainable. It's incremental. It brings new consumers into the franchise. So that's regarding Baja Blast." The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
30-04-2025
- Business
- Yahoo
PepsiCo CEO was grilled about GLP-1s by a 13-year-old on his Q1 conference call
The 13-year-old daughter of a Jefferies analyst asked about the effect of GLP-1 oral medications during PepsiCo's most recent quarterly earnings call, as part of 'Bring your Kid to Work Day.' CEO Ramon Laguarta took the question seriously, saying his company was marketing snacks in smaller portions to target consumers with smaller appetites. PepsiCo CEO Ramon Laguarta was no doubt expecting tough questions during the company's Q1 earnings call; what he probably wasn't expecting was to be interrogated about the effect of pharmaceuticals on the human digestive system by a 13-year-old. Amid inquiries on revenue, tariffs, and volumes that could have comprised any other earnings call that day, Jefferies analyst Kaumil Gajrawala surprised Laguarta by letting his daughter Milena Gajrawala ask a question. 'Hey guys, it's 'Bring Your Kid to Work Day' at Jefferies. So, if you don't mind, my daughter Milena's going to ask the question,' Gajrawala said. Far from lobbing a softball question, the 13-year-old Milena Gajrawala struck at a core issue for PepsiCo and other food companies: the threat of weight-loss inducing GLP-1 medications that curb the appetites of consumers. 'So what do you think about the launch of GLP-1 oral medications coming to market next year?' she asked. Before answering, Laguarta said, 'That's awesome,' and then launched into a serious response that highlighted the company's 'fiber and hydration solutions.' 'We thought Milena asked a fair question and Ramon was happy to answer it. Hearing from her was a pleasant surprise on what is always a busy day," a PepsiCo spokesperson said in a statement to Fortune. The younger Gajrawala mentioned oral GLP-1 medications, one of which—orforglipron by Eli Lilly—is already in late-stage clinical trials. Orforglipron's potential advantage is that it is an oral medication—competitor Ozempic requires regular injections—but has a similar weight-loss effect. The drug could thus supercharge the adoption of this class of medication, which helps suppress appetite and is already cutting into the profits of snack makers and other food companies. Laguarta mentioned that another way the company is battling a potential GLP-1 slump is by emphasizing its smaller-portion snacks. 'They're eating less quantities, so our offerings in the small portions and whether it's in multipack or some other options that we provide keeps our brands in their repertoire and it's still relevant,' he said in response to Gajrawala's question. On another earnings call that day, Gajrawala also let his son, 13-year-old Kamran Gajrawala, get in on the action. Kamran Gajrawala asked the CEO of Keurig Dr Pepper a question about Dr Pepper's new blackberry-flavored soda. 'Wow, fantastic. I think it's my first ever question from a young person, and I appreciate it, Kamran. And I hope Kamran is a big fan of Dr Pepper Blackberry,' CEO Tim Cofer said. Wall Street has a venerable history of extracting investment wisdom from teenagers. In 2009, 15-year-old Matthew Robson, an intern at Morgan Stanley, was allowed to write a research note on how he and his friends consumed media. He reported that they didn't read newspapers and that few watched TV. None of them used Twitter, he wrote. And earlier this year Fortune asked a 14-year-old to canvass her friends on why they stopped trusting traditional media in favor of influencers they know are unreliable. Influencers feel like trustworthy friends, whereas adults are the enemy, she found. This story was originally featured on
New York Post
30-04-2025
- Business
- New York Post
PepsiCo to remove artificial ingredients from popular food items by end of 2025
Heeding the call to ban artificial ingredients by Health and Human Services Secretary Robert F. Kennedy Jr., PepsiCo isn't wasting any time getting started. Ramon Laguarta, PepsiCo Inc. chair and chief executive officer, said in an April 24 conference call that the company will reduce artificial ingredients and has already begun doing so, as Food Business News reported. Advertisement 'We've been leading the transformation of the industry now for a long time on sodium reduction, sugar reduction and better fats,' Laguarta said. 'Sixty percent-plus of our (portfolio) today doesn't have any artificial colors,' he said — and the company is 'undergoing that transition.' Laguarta cited examples such as Lay's and Tostitos, which 'will be out of artificial colors by the end of this year.' He added, 'So, we're well underway.' Advertisement RFK Jr. and Dr. Martin Makary, U.S. Food and Drug Administration commissioner, announced a ban on petroleum-based synthetic dyes from America's food supply last Tuesday. As the HHS noted in its news release, among the steps to be taken are 'establishing a national standard and timeline for the food industry to transition from petrochemical-based dyes to natural alternatives.' 'Initiating the process to revoke authorization for two synthetic food colorings — Citrus Red No. 2 and Orange B — within the coming months; and working with industry to eliminate six remaining synthetic dyes — FD&C Green No. 3, FD&C Red No. 40, FD&C Yellow No. 5, FD&C Yellow No. 6, FD&C Blue No. 1, and FD&C Blue No. 2 — from the food supply by the end of next year.' 3 In an April 24 conference call, PepsiCo Inc. chair and chief executive officer, Ramon Laguarta, said the company will reduce artificial ingredients. jetcityimage – Advertisement 3 Food Business News reported that the company has already started doing so after the ban was placed on artificial ingredients by Health and Human Services Secretary Robert F. Kennedy Jr. tanvirshafi – Certified nutritionist and 'Make America Healthy Again' supporter Liana Werner-Gray told Fox News Digital, 'This is a huge win for public health and long overdue.' Werner-Gray is the author 'The Earth Diet,' which began as a blog about what she ate to help promote healing and remedy her health problems after she was diagnosed with cancer. The Earth Diet, she said, is 'all about going back to nature and eating foods from nature, eating real nutrition, eating foods that God provides us with naturally,' she told Fox News Digital. Advertisement 3 Laguarta said Lay's and Tostitos 'will be out of artificial colors by the end of this year.' billtster – 'I've personally eliminated artificial dyes like Red 40, Yellow 5, Yellow 6, Blue 1 and others from my diet over 16 years ago when I started The Earth Diet, living a natural lifestyle,' Werner-Gray said. She would suffer from frequent major mood swings, anxiety, skin breakouts and energy crashes, as well as strong impulsive urges to eat processed food, she said. 'Once I removed these dyes and switched to natural, whole-food-based alternatives, those symptoms went away, too,' Werner-Gray said, adding that her clients have reported similar outcomes. In Werner-Gray's opinion, the manipulation of food has gone on far too long, she said. 'This move by the FDA under Secretary Kennedy and Commissioner Makary's leadership is a pivotal step toward restoring integrity in our food system,' she said. 'It's time we raise the standard. Clean, natural and nourishing food should be the norm, not a luxury.' Advertisement In the April 24 conference call, PepsiCo's CEO noted that its chips, puffs and other snacks are safe to consume and that the company stands by the existing science, according to reports. 'Every consumer will have the opportunity to choose what they prefer,' said Laguarta. Fox News Digital reached out to PepsiCo for additional comment.
Daily Mail
29-04-2025
- Health
- Daily Mail
America's largest food company makes major recipe change
By Published: | Updated: PepsiCo has announced that it has already started phasing out artificial ingredients in line with Health Secretary Robert F Kennedy Jr's drive to ban them from foods. The food giant's CEO, Ramon Laguarta, said that it would continue to transition products such as Cheetos, Lay's, Tostitos and Doritos to be more natural in response to a change in consumer preferences. Laguarta confirmed that Lay's and Tostitos 'will be out of artificial colors by the end of this year.' Used in the American food supply for decades to give treats an appealing hue, in recent years concerns have been raised over the health effects of food dyes - including animal studies suggesting they can cause hyperactivity, cancer and other health problems. PepsiCo, headquartered in Harrison, New York, owns more than 200 food and beverage brands worldwide, including 23 that each generate over $1 billion in sales annually. Laguarta claims that 60 percent of the company's portfolio currently doesn't contain any artificial dyes and they are working at finding natural alternatives for the rest of the brands. Among the most scrutinized dyes in the food and beverage industry are Red 3, Red 40, Yellow 5, and Yellow 6. Natural alternatives to these include ingredients like beet juice, pomegranate juice, turmeric, saffron, carrot juice, and paprika. In March, PepsiCo launched 'simply' Ruffles Hot & Spicy crisps, which contain no artificial colors or flavors, reflecting this shift. The new seasoning still has a fiery kick, thanks to a blend of red pepper and 'bold' spices, but without the signature fiery hue. Other products from the company which are now free from synthetic dyes and flavorings include 'simply' lines of Lay's, SunChips, Tostitos Tortilla Chips, and Cheetos. However, many of the brand's popular products are still laced with artificial dyes. For example, Flamin' Hot Cheetos contain Red 40, Yellow 5, Yellow 6, while the Lemon Lime flavor of Gatorade has Yellow 5. In a bid to make its foods healthier all round, Laguarta highlighted that PepsiCo has 'been leading the transformation of the industry now for a long time on sodium reduction, sugar reduction and better fats'. FDA Commissioner Dr Marty Makary announced last Tuesday that the agency will phase out the use of eight artificial food dyes in America's food supply within the next two years. The massive shakeup will free children from the 'toxic soup' that makes up much of America's food supply, Dr Makary said. Dr Makary, a trained surgeon, began his remarks by calling attention to an oft-cited review in The Lancet , which reported ties between artificial food dyes and hyperactivity in children. 'So why are we taking a gamble,' Makary said. The Trump administration will ask food companies to phase out the use of Red 40, Yellow 5, Yellow 6, Blue 1, Blue 2, and Green 3 by the end of 2026 and start using natural alternatives, which the FDA will approve or deny first. The move is not legally binding and companies do not have to comply. 'For companies that are currently using petroleum based red dye, try watermelon juice or beet juice,' Makary said, lifting small bottles of juice off his podium. 'For companies currently combining petroleum-based yellow chemical and red dyes together, try carrot juice.' The latest proposal also revokes approval for two dyes, citrus red 2 and orange B, which are not as common as the other dyes. The FDA has not reached any formal agreement with the food industry to carry out these goals, though they apparently have 'an understanding,' and the agency has not put forward a detailed plan for achieving them.
Yahoo
29-04-2025
- Business
- Yahoo
PepsiCo Slashes 2025 Guidance. Is the High-Yield Dividend King Stock a Buy Anyway?
PepsiCo (NASDAQ: PEP) kicked off its 2025 reporting year with weak results and cut its full-year guidance -- pushing shares down to a new 52-week low. In fact, Pepsi is down over 24% in the past year and is knocking on the door of a five-year low. The sell-off has pole-vaulted Pepsi's yield up to 4.1%. And with 53 consecutive years of dividend increases, the beverage and snack giant has an extensive track record of delivering reliable passive income to shareholders. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's why the fizz has evaporated from Pepsi stock and whether the Dividend King is worth buying now. Pepsi reported a 1.8% decline in revenue and a 4% decline in constant currency earnings per share (EPS). Constant currency adjusts for changes in currency conversions between reporting periods, making it a more accurate way to measure operating results. The owner of several beverage brands as well as Frito-Lay and Quaker Oats saw flat beverage volume growth and a 3% decline in convenient foods -- illustrating strain on consumer demand. The opening quote from CEO Ramon Laguarta in Pepsi's earnings release was bleak: Our businesses remained resilient in the midst of increasingly dynamic and complex geopolitical and macroeconomic conditions in the first quarter. As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs. At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook. In 2025, Pepsi is now guiding for a low-single-digit organic revenue increase, $7.6 billion in dividends, and $1 billion in buybacks. It expects flat year-over-year core constant currency EPS compared to prior guidance of mid-single-digit growth. Core EPS excludes restructuring, acquisition, and one-time costs. All told, Pepsi expects 2025 core EPS to decline by 3% compared to previous guidance for a slight increase. Pepsi attributed three factors to its guidance cut: tariffs, macroeconomic uncertainty, and consumer weakness. On past earnings calls, Pepsi has discussed balancing quantity and price by offering more chips per bag to drive value and boost demand. However, pressure on consumers has intensified. Laguarta said the following on the call: What we're seeing is that consumers are giving a lot of value to absolute dollars now. So clearly, entry price points and absolute outlay of money per unit is a very important relevant metric. And so, 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 ... that's why smaller, single-serve, smaller multi-packs, those are all tools for us to keep the consumers in the brand. In sum, tariffs are far from Pepsi's only challenge. Consumer demand continues to deteriorate, which is pressuring Pepsi to make changes just to keep buyers engaged. Pepsi's struggling snack business is relying on single-serve options below the $2 price point. When buyers spend more, they often gravitate toward multipacks. Pepsi has lowered the price of its 10-count multipacks to increase consumer frequency and shift its focus to a price-per-pack mindset. In other words, if consumers can think of a low cost per pack rather than a higher cost for a larger quantity in a single bag, then it could make the purchase more appealing. Despite years of challenges and slowing growth, it may come as a surprise that Pepsi has continued to invest in product innovation and acquire new brands. In the last six months, Pepsi has become the sole owner of Sabra and Obela snack and dip products, completed its acquisition of the Mexican-American food brand Siete Foods, and announced its intention to acquire the prebiotic soda brand Poppi. Together, these acquisitions diversify Pepsi's convenient food and beverage lineup, making it less centered on chips and high-sugar soda, more adaptable to health-conscious consumers, and featuring ready-to-eat meal replacements. These deals are too small on their own to move the needle in the near term. However, they reveal an element of self-awareness, suggesting that Pepsi is overly reliant on unhealthy snacks and beverages and recognizes the need to diversify to adapt to shifting consumer preferences. However, Pepsi has been having some noteworthy successes with its core bands. The Pepsi brand has been gaining market share and focusing on the zero-sugar category. Gatorade and Propel have helped Pepsi maintain its leadership in the sports drink category. Pepsi believes it can improve its value chain by optimizing the processes of making, moving, and selling products, which can drive long-term margin growth. Tariff turmoil adds another layer of complexity to what has already been a challenging few years for Pepsi. However, Pepsi has simply become too cheap to ignore. A 3% decline implies 2025 core EPS of $7.92 -- giving Pepsi a price-to-earnings ratio based on its core EPS forecast of just 16.8. That's a dirt cheap valuation for a high-yield Dividend King stock. What's more, Pepsi can continue supporting its capital return program even during this period of slowing growth. The company remains highly profitable, so its challenges are not severe enough to threaten a dividend cut. However, Pepsi's acquisition spree, paired with slowing growth, has added debt to its balance sheet. Its leverage ratios remain in decent shape, but investors should monitor Pepsi's net debt position to see if it can decrease over time as the company leverages its global supply chain, distribution, and marketing to maximize the benefits of its recently acquired brands. Entering 2025, Pepsi was not at the top of its game. And now that tariffs are expected to add further cost pressure, short-term investors may feel compelled to sell the stock. Management's lack of enthusiasm for Pepsi's 2025 outlook is palpable, but the stock is simply too cheap to ignore. With expectations down, Pepsi doesn't have to do much to surprise to the upside. In the meantime, the 4.1% dividend yield offers a worthwhile incentive to hold the stock during this period. Add it all up, and Pepsi stands out as a high-conviction buy for value investors with at least a three to five year investment time horizon to boost their passive income stream. 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