Latest news with #Tostitos
Yahoo
a day ago
- Business
- Yahoo
Tariff uncertainty is hammering one of America's favorite food escapes — snacks
Tariff uncertainty and inflation are driving consumer decisions at the grocery stores, and for big packaged food companies, one key area is bearing the brunt of these changes: snacking. In its quarterly report released Monday, Campbell's (CPB), which owns snack brands like Goldfish crackers and Cape Cod chips, said that it saw "increased headwinds" in snacking, leading to a 5% decline in volume mix and an 8% decrease in revenue in its fiscal third quarter results. Consumers "are increasingly intentional about the discretionary snack purchases," CEO Mick Beekhuizen told investors on the company's earnings call, a trend that has only gotten worse as the year's gone on. "If you look at the quarter, Q3, and you put it in perspective versus Q2, you see... the aggregate categories deteriorated... driven by the deteriorating consumer confidence," Beekhuizen added. Campbell's is only the latest in a series of packaged food giants to call out a shift in snacking behavior. "Revenue management clearly is becoming more complex," PepsiCo (PEP) CEO Ramon Laguarta told investors on the company's earnings call in late April, "as consumers are feeling more challenged with their disposable income." Laguarta said consumers' approach to shopping changed in the quarter. In early April, consumers were looking to see how much they got per item, and by the end of the month, they were more focused on the "absolute price per unit." Pepsi's snack portfolio includes Frito-Lay brands like Lays, Cheetos, Doritos, and Tostitos, among others. Kraft Heinz's (KHC) portfolio overall — ranging from Jell-O to Lunchables — saw its volume mix drop 5.6 percentage points in the quarter. Kellanova (K), which is behind brands like Cheez-Its and Pringles, saw its volume decline in North America. The company is in the process of being acquired by Mars. The summer months could potentially catalyze a turnaround in consumer habits, with holidays offering what Kraft Heinz CEO Carlos Abrams-River called "volume opportunities" on the company's latest earnings call in late April. Winning holidays is crucial. "Holidays matter... It's like holidays are almost worth double relative to a regular week," Bank of America analyst Peter Galbo told Yahoo Finance. Better weather also plays a key role. For example, if Memorial Day weather isn't very good in much of the country, it can create a "meaningful swing factor" for snacks. If "the weather is bad," Galbo added, "You're not going to have a barbecue, so you don't buy Tostitos or Lays." This snacking slowdown also comes as consumer confidence has fallen sharply, rising in May for the first time all year. At the same time, the US labor market is beginning to show some cracks, with the number of Americans collecting unemployment checks in mid-May standing at the highest in 3.5 years. Uncertainty surrounding tariffs has also weighed on pricing and the consumer outlook. Data from PwC found prices for shelf-stable categories like sauces, pasta, canned beans, and snacks are up 1%-6% over the last week due to the impact of tariffs. Read more: What Trump's tariffs mean for the economy and your wallet From a product packaging and ingredient standpoint, Galbo said he doesn't expect tariffs to impact snacks, which are mostly sourced domestically or from Canada, which is likely exempt as a result of the USMCA. Inflation data out last month showed grocery prices fell 0.4% in April while overall food inflation fell 0.1%, the sharpest drop in both measures since 2020. Still, measures like this year's spike — and then sharp decline — in egg prices show consumers navigating a volatile food pricing environment and acting with caution as they roam the aisles. "Snacking is way more discretionary than we probably all thought it was, as opposed to being a staple," Galbo said. "Which is what these companies were supposed to be." Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
07-05-2025
- Business
- Fox News
Food maker eliminating synthetic dyes from ingredients by end of May
The company behind Jimmy Dean and Hillshire Farm food products is making a key ingredient change amid a push from U.S. Health and Human Services Secretary Robert F. Kennedy Jr. Tyson Foods will remove all petroleum-based synthetic dyes from its products by the end of this month. Donnie King, president and chief executive officer of the Arkansas-based company, announced the news during an earnings call on Monday. EVERYTHING TO KNOW ABOUT MAHA "As a recognized leader in protein, none of the products Tyson Foods offers through our school nutrition programs include petroleum-based synthetic dyes as ingredients," King said. Most of the company's retail-branded Tyson products, including its chicken nuggets, "do not contain any of these types of dyes, and we have been proactively reformulating those few products that do," he said. "We expect that our work to eliminate the use of petroleum-based synthetic dyes in production will be completed by the end of May." CLICK HERE TO SIGN UP FOR OUR LIFESTYLE NEWSLETTER That's ahead of the U.S. Food and Drug Administration's (FDA) deadline for food manufacturers "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," he said. The FDA previously called for the removal of red dye from foods, dietary supplements and ingested medicines in January, as Fox News Digital reported at the time. For more Lifestyle articles, visit PepsiCo's chair and chief executive officer announced on April 24 that its popular snack foods like Lay's and Tostitos "will be out of artificial colors by the end of this year." Tyson Foods, along with its subsidiaries, operates several major brands, including Ball Park, Hillshire Farm, Jimmy Dean and Wright Brand. CLICK HERE TO GET THE FOX NEWS APP A spokesperson for Tyson Foods told Fox News Digital the company declined to provide further comment.
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.
Daily Mail
29-04-2025
- Health
- Daily Mail
America's largest food company makes major recipe change to appease RFK Jr that'll change taste of snacks
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. Some of the most popular PepsiCo beverages utilizing artificial flavors in their products, include brands like Pepsi, Diet Pepsi, Mountain Dew, Gatorade, and Aquafina. Meanwhile, several Frito-Lay snack brands such as Lay's, Doritos, Cheetos, and Ruffles, use synthetic flavorings too. In a bid to make its foods healthier all round, he 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.
