Sugar

ESG Topics A-Z

To PepsiCo:

As consumers’ tastes evolve, and recommendations are developed by health authorities and regulatory bodies, we must continue to adapt our portfolio and product offerings to remain a leading convenient foods and drinks company.

To the World:

Global and many national dietary guidelines recommend reducing added or free sugars consumption as one aspect of a more comprehensive approach to overall health and wellness. The World Health Organization recommends people consume no more than 25 grams of free sugars per day.

Approach

We strive to act as an industry leader and set ambitious nutrition goals that are aligned with guidance from global health authorities. Our approach varies from market-to-market and brand-to-brand, reflecting differences in consumer expectations and regulatory requirements.

As part of our pep+ (PepsiCo Positive) ambitions, we aim to reduce added sugars across our beverage portfolio and offer more Positive Choices for consumers. We are working to limit products to 100 Calories or fewer from added sugars per 12 fluid ounce serving in at least 67% of our beverage portfolio by volume by 2025.¹ This goal is designed to shift a significant portion of our beverage portfolio towards lower added sugars levels that can help consumers to follow dietary recommendations.

Our two-pronged strategy to accomplish this is based on reformulating our existing beverages to reduce added sugars and innovating to develop new products that are significantly lower in added sugars. Progress towards this goal is led by a cross-functional team with members from the Research and Development, Marketing and Commercialization functions.

Progress

We continue to expand the presence of zero- and lower-sugar formulations of our core brands. In 2023, Pepsi Zero Sugar (also known as Pepsi MAX or Pepsi Black in some international markets) was available in 121 international markets.

Progress

In 2023, we offered no-sugar options in more markets: no-sugar Rockstar continued its expansion, and we expanded zero-sugar options of Pepsi Black with new flavor options.

Challenges

COVID-19 has reemphasized the importance of overall good health in the body's ability to both resist and cope with infectious disease. Our continued focus on providing consumers with positive nutrition choices can enable them to choose a healthy diet.

In the U.K., we launched a reformulated version of Pepsi with over 50% less added sugars than the original formulation. We expanded zero-sugar options of Pepsi Black with the launch of Pepsi Black Mango in China, the U.K. and South Korea.

In 2023 we announced the launch of Gatorade Water, a new no-sugar functional water. Gatorade Water is infused with electrolytes, but does not use sweeteners or sugar. The product hit shelves in 2024.

By the end of 2023, 62% of our beverage volume in our Top 26 global markets was in line with our goal of providing no more than 100 Calories from added sugars per 12 ounce serving, up from 56% at the end of 2022. Our global progress is based on our Top 26 Beverage markets, which represent 78% of our global beverage volume as of 2023.

What's next?

As we continue to pursue our added sugars reduction goal, we expect to focus on the following priorities to further transform our portfolio:

Further reformulation of core carbonated soft drinks in our biggest international markets;
Continued product innovation in low- and no-sugar beverages, including new flavors of Pepsi Zero Sugar/MAX, 7UP Zero and Lipton Zero; and
Further geographic expansion of PepsiCo low- and no-sugar flavored soda mixes, for fountain and other products.

¹ Our global results are based on our Top 26 beverage markets