Latest news with #Yellow6
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.
Time of India
22-04-2025
- Health
- Time of India
USFDA to 'phase out' eight approved synthetic food dyes by 2027
United States Food and Drug Administration US President Donald Trump's administration on Tuesday announced its plans to ban synthetic dyes from the country's food supply, a move which would see the eight approved artificial food dyes being phased out by the end of 2026. "For the last 50 years, American children have increasingly been living in a toxic soup of synthetic chemicals," Food and Drug Administration (FDA) commissioner Marty Makary said at a press conference surrounded by young families. Makary cited studies linking synthetic dyes to conditions including attention deficit hyperactivity disorder, diabetes, cancer, genomic disruption, gastrointestinal issues and more. Of the eight synthetic dyes derived from petroleum, Yellow 5, Yellow 6 and Red 40 constitute the lion's share of those in use, according to Peter Lurie, president and executive director of the non-profit Center for Science in the Public Interest. These are found in a range of products from beverages and candies to cereals, sauces and dairy products. "None of them convey anything of any nutritional significance, and what they're really there for is to mislead -- to make food appear somehow redder, somehow bluer, somehow fruitier or more attractive than it is. And the purpose of all that is to drive up sales, it's not anything that benefits the American public," Lurie told news agency AFP. FDA commissioner Makary's announcement on synthetic dyes builds upon a prohibition on Red Dye 3 by the previous Joe Biden administration. However, it accelerates the timeline, and directs the National Institutes of Health to carry out "comprehensive research" on how additives impact kids' development. US health secretary Robert F Kennedy Jr. has repeatedly vowed to "overhaul" America's food system under the banner of his "Make America Healthy Again" agenda. However, industry opposition to the announced ban could still emerge. Food manufacturers have historically lobbied against tighter regulations, but Lurie believes resistance may be more muted this time. "The question that industries are wrestling with now is whether or not to oppose this, and you know, the signs that I see are that they may just suck it up in the end," he stated. He cited "tepid" statements made when Red 3 was banned and the limited response when Kennedy first warned he would be targeting dyes.
Miami Herald
22-04-2025
- Business
- Miami Herald
Cheerios, Betty Crocker maker faces massive boycott from consumers
General Mills (GIS) , which owns popular food brands such as Lucky Charms, Cheerios, and Betty Crocker, recently suffered a significant dip in sales. In its latest earnings report, General Mills revealed that net sales declined by 5% year-over-year during the third quarter of fiscal year 2025. Specifically in the U.S., retail sales shrank by 7%, with morning foods, snacks, meals and baking solutions all facing a decrease in sales. Don't miss the move: Subscribe to TheStreet's free daily newsletter Amid the decline in sales, General Mills generated an operating profit (the company's profit after expenses) of $891 million, which is 2% lower than what it earned during the same quarter in 2023. Related: Cheerios, Lucky Charms owner sounds alarm on growing problem During an earnings call on March 19, General Mills CEO Jeffrey Harmening said consumers have become more "value conscious," and they are scaling back spending on discretionary items at the grocery store. Amid this growing threat to sales, General Mills now has another significant problem that can also harm its profits. The People's Union USA, a group that recently organized seven-day boycotts of Amazon, Walmart, and Nestlé, has just chosen General Mills as its next target. Image source:The group's General Mills boycott officially kicked off on April 21 and will conclude on April 28. In a recent Instagram post, The People's Union USA founder John Schwarz said one reason the group decided to boycott the company was because of the alleged "toxic ingredients" General Mills puts in its food products. "General Mills represents everything that is wrong with the corporate grip on our food system," said Schwarz. "This is a company that owns half the cereal aisle, floods our stores with ultra-processed garbage and targets our children with sugary poison. They have spent millions lobbying against GMO transparency and better food labeling, just so we stay blind to what we're really feeding our families." Related: General Mills faces lawsuit alleging egregious incidents of racism Some of the ingredients found in General Mills' food products include seed oils such as canola, sunflower, and palm, which have recently drawn scrutiny from consumers for being overly processed and contributing to inflammation in the body. Despite General Mills' previous efforts to remove artificial flavors and colors from almost all of its cereals, a number of its products contain synthetic dyes such as Blue 1, Red 40, Yellow 6, etc. These dyes, which are commonly found in processed foods, have come under fire for being linked to health issues such as cancer and hyperactivity in children, despite being approved by the U.S. Food and Drug Administration. Schwarz also alleged that General Mills dodges "their fair share of taxes" and exploits its workers, prioritizing profits over people. "This company has exploited farmers, drained our soils with unethical farming, and done nothing to fix their role in the plastic pollution crisis," said Schwarz. "Their executives rake in millions while factory workers struggle to make ends meet. General Mills isn't just a cereal company. They are a symbol of unchecked corporate power, one that answers to profits, not people." View the original article to see embedded media. His comments come after General Mills investors last September voted against a proposal from a group of its shareholders that called on the company to reduce its use of plastic packaging. The company's investors also knocked down a shareholder proposal that aimed to gather additional details on how it is decreasing pesticide use in its farming. More Retail: AT&T quietly issues stern warning to customersSam's Club makes a big change to a beloved membership perkGameStop announces risky move amid store closures The People's Union USA is encouraging consumers to boycott all of the company's food products in categories such as snacks, frozen food, breakfast and cereals, and pet food. The boycott follows General Mills' expected continuation of declining sales during the first few months of this year. In its latest earnings report, the company predicted that its organic net sales for the fourth quarter of fiscal year 2025 will decline by 1.5% to 2% after previously expecting sales to be flat or up by 1%. The company also expects its operating profit to shrink by 7% to 8%. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
BBC News
21-04-2025
- Health
- BBC News
Kennedy set to announce ban on artificial food dyes
Health Secretary Robert F Kennedy Jr is set to announce a ban on certain artificial food dyes in the US, according to a statement from the health agency. Kennedy plans to announce the phasing out of petroleum-based synthetic dyes as a "major step forward in the Administration's efforts to Make America Healthy Again" the US Department of Health and Human Services (HHS) said on Monday. No exact dates for the changes were provided, but HHS said Kennedy would announce more details at a news conference on dyes - which are found in dozens of foods, including breakfast cereals, candy, snacks and beverages - have been linked to neurological problems in some children. On the campaign trail alongside Donald Trump, Kennedy last year pledged to take on artificial food dyes as well as ultra-processed foods as a whole once confirmed to lead to top US health agency. The move comes after the Food and Drug Administration (FDA) earlier this year banned one dye, Red Dye 3, from US food and pharmaceuticals starting in 2027, citing its link to cancer in animal studies. California banned the dye in 2023. Most artificially coloured foods are made with synthetic petroleum-based chemicals, according to nutrition nonprofit Center for Science in the Public Interest, which says the dyes are used to make junk foods more colourful and attractive to children. Some of the petroleum-based food dyes include Blue 1, used in candy and baked goods; Red 40, used in soda, candy, pastries and pet food; and Yellow 6, also used in baked goods and drinks. Synthetic food dyes are found in dozens of popular foods including M&M's, Gatorade, Kool-Aid and Skittles. Companies have found ways to eliminate many of the dyes in other countries, including Britain and New Zealand, said former New York University nutrition professor Marion Nestle. For example, in Canada, Kellogg uses natural food dyes like carrot and watermelon juice to colour Froot Loops cereal, despite using artificial dyes in the US. How harmful the synthetic dyes are is debatable, said Ms Nestle. "They clearly cause behavioural problems for some - but by no means all - children, and are associated with cancer and other diseases in animal studies," she said."Enough questions have been raised about their safety to justify getting rid of them, especially because it's no big deal to do so," she added. "Plenty of non-petroleum alternative dyes exist and are in use."In 2008, British health ministers agreed to phase out six artificial food colourings by 2009, while the European Union bans some colourings and requires warning labels on others. In recent months, Kennedy's food-dye ban has found momentum in several state legislatures. West Virginia banned synthetic dyes and preservatives in food last month, while similar bills have been introduced in other states.
