Creating a healthier relationship between people and food means transforming our portfolio and increasing people’s access to more nutritious options
Our Nutrition Story
Guided by the PepsiCo Nutrition Criteria, we continue to grow what we call our Everyday Nutrition business – products with positive nutrition like whole grains, fruits and vegetables, dairy, protein and hydration – which now accounts for 27% of the company’s revenue.
At the same time, we are transforming the nutritional profile of many of our products by reducing added sugars, sodium and saturated fat, accelerating a journey that we began before the turn of the 21st century.
Our Nutrition Story
Every day around the world, millions of people enjoy our food and beverages—and we welcome the responsibility that brings. Global health continues to be affected by noncommunicable diseases like heart disease and diabetes. Because of the role overall diet can play in these diseases, we seek to positively impact the future of food around the world while responding to local tastes and preferences.
This work began decades ago with a strategy that included the expansion of existing trademarks to include more nutritious product offerings, the reformulation of existing brands to improve nutrition without sacrificing consumer enjoyment and targeted acquisitions of complementary brands.
Most recently, we harnessed the power of some of our positive nutrition brands, including Quaker, Tropicana, Naked and KeVita, under a centralized team known as North America Nutrition (NAN). As more people seek functional foods, the NAN portfolio of brands can play an important role in making foundational nutrients like whole grains and fruits and vegetables as well as emerging, on-trend options like probiotics more accessible.
We realize that our global scale means even small changes can make a big difference. So we’re innovating to reduce added sugars, sodium and saturated fat in many of our products and make them more nutritious in response to changing consumer preferences—and we’re doing it while maintaining great taste. The goals for our products are informed by and aligned to the UN’s “Good Health and Well-being” and “Zero Hunger” Sustainable Development Goals.
Our Portfolio Transformation Journey
As part of the transformation of our portfolio of foods and beverages, we’re reviewing our recipes and reformulating many of our products to improve their nutritional profiles by incorporating new seasonings and ingredients and leveraging technological advances. Another important part of our portfolio transformation is growing the proportion of nutritious choices we offer consumers while proving that nutrition and hydration don’t need to be boring. Here’s a look at some of our product transformation milestones.
Since the launch of Aquafina in 1994, PepsiCo has been a leading player in the North American hydration category, which continues to grow. Propel water, launched by Gatorade in 2002, provides calorie-free refreshment with the added benefit of electrolytes and vitamins. More recently LIFEWTR and bubly flavored sparkling have joined the line-up.
In 1998, we acquired Tropicana, including Dole juice brands, making PepsiCo the leader in the 100% juice and juice drink category. In 2008 Tropicana debuted Trop50, made with real oranges and 50% less sugar and calories. In 2018 the innovation continued with the launch of Tropicana Coco Blends and Tropicana Kids. Tropicana is part of the North America Nutrition portfolio.
Quaker joined the PepsiCo family in 2001 and continues to be a trusted name in whole-grain goodness. Today, in addition to iconic Old Fashioned Oats, the Quaker line-up includes cold cereals, oat bars, rice cakes and Quaker Breakfast Flats and Oatmeal Breakfast Squares, which make the goodness of oats more accessible and convenient. Quaker Oats is part of the North America Nutrition portfolio.
Backed by more than a 50-year history of studying the best athletes in the world and grounded in years of hydration and sports nutrition research at the Gatorade Sports Science Institute, Gatorade provides scientifically formulated products to meet the sports fueling needs of athletes in all phases of athletic activity.
Since becoming part of the PepsiCo family in 2007, Naked Juice premium juice and smoothies has expanded to include Naked Coconut Water, Naked Pressed cold-pressed juices and Naked Fruit, Nut & Veggie Bars. Naked Juice is part of the North America Nutrition portfolio.
In 2008 PepsiCo and The Strauss Group formed a joint venture to jointly acquire the Sabra Dipping Company, a maker of hummus, dips and spreads. The portfolio today includes a variety of vegetable- and seed-based products from hummus and salsa to guacamole and bean dip.
Kevita has been making probiotic and kombucha beverages using unique ingredients and a proprietary fermentation process since 2009. The brand was welcomed into the PepsiCo family in 2016 and includes a line up of sparkling probiotics, kombuchas and apple cider vinegar tonics that are fermented and bottled in Ventura County, California. Kevita is part of the North America Nutrition portfolio.
Tomorrow’s food begins as today’s innovations. From new R&D centers to our nutrition company incubator, we’re continually exploring new ways to make great-tasting nutritious food and beverages.
In 2017, we launched a nutrition incubator program called Nutrition Greenhouse, designed to support European nutrition food and beverage entrepreneurs. We provide opportunities for the entrepreneurs behind these brands to collaborate with experts within PepsiCo—and we award cash prizes to the most promising companies. The incubator program expanded to North America this year.
From 2016 to 2017, we increased by 3 percent our beverage portfolio volume with 100 calories or fewer from added sugars per 12-ounce serving in our Top 10 beverage markets. As consumers move toward more nutritious beverage choices, we’re responding with a number of transformed or new products with lower or no calories. We continued to roll out reduced- and no-calorie versions of our iconic brands into global markets: Pepsi Black, Mirinda and 7UP.
Our snack transformations continues around the world. In 2017, in our Top 10 Foods Markets, 55 percent of our snacks portfolio did not exceed 1.3 milligrams of sodium per Calorie, and 66 percent did not exceed 1.1 grams of saturated fat per 100 Calories. In addition, more and more of our snack options include positive nutrition in the form of vegetables, whole grains and protein.
PepsiCo Nutrition Criteria
To meet our 2025 goals and further accelerate PepsiCo’s product transformation, we use a set of science-based nutrition guidelines called the PepsiCo Nutrition Criteria (PNC). These criteria are based on dietary and nutrient recommendations from leading global and national nutrition authorities, including the World Health Organization (WHO), the U.S. Department of Agriculture (USDA), the National Academy of Medicine and dietary guidelines from numerous countries. The PNC sets standards for nutrients to limit, and nutrients and food groups to encourage that are based on the latest science and country-specific dietary guidelines.