PepsiCo to cut sugar in soda by 25% in EU health push

PepsiCo has announced plans for a 25% reduction in sugar content in its sodas and iced teas in the EU, and to launch a range of more nutritious snacks by 2025 in a bid to attract more health-conscious consumers in its second-largest market.

The company says its new health push will involve a reformulation of its products using low-calorie sweeteners, the launch of healthy snacks such as its PopWorks popcorn line, and take low-fat brands such as Lay's Oven Baked range to new markets.

Soft drinks makers have been under increasing pressure in Europe to reduce added sugar in their drinks. Several countries across the continent have already levied "sugar taxes" on certain products in a bid to reduce obesity and take on health issues.

Read more: EU competition watchdog launches investigation into Coca-Cola Co.

"In Europe today, almost one in three beverages we sell is sugar-free and we believe this trend will continue to grow over time," said PepsiCo Europe's Chief Executive Officer Silviu Popovici.

The European market accounted for around 20% of PepsiCo's overall sales in 2020, making it the second-biggest revenue-generating region for the company after North America.

The company has a 2025 date pencilled in for the 25% sugar reduction targets and a 50% cut by 2030 in drinks like 7UP, Pepsi-Cola and Lipton Ice Tea sold in Europe.

With an aim to make healthy snacks its fastest-growing food category over the next four years, PepsiCo is aiming for a more than tenfold increase in sales by 2025 and expanding it to a $1 billion portfolio by 2030.

UNESDA, which represents Europe's soft drinks industry including Coca-Cola and Suntory Beverage, said on Tuesday it would work to reduce average added sugars in beverages by 10%, bringing the overall reduction over the last two decades to 33%.

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