Pepsi to cut sugar in soft drinks by 2025

PepsiCo announced on Monday that it will start reducing the amount of sugar in its soft drinks all over the world and that by 2025 at least two thirds of its drinks will have 100 calories or fewer from added sugar per 12 oz serving, up from about 40% now.

PepsiCo and rival company Coca-Cola have faced mounting pressure from health experts and governments who point to their products as a driver for obesity and diabetes, Fortune reports. Its 2025 goals also include targets for lowering sodium and saturated fat.
Pepsi soft drinks only account for 12% of PepsiCo’s $63 billion annual revenue. The rest comes from other labels such as Mountain Dew, Tropicana, snacks and dips.

The announcement comes after the World Health Organisation's recent report encouraging all countries to implement a tax on sugary drinks. Last week, Portugal announced it would be introducing a tax on sugary drinks in 2017. It joins France and Mexico, who currently have a tax in place.

Speaking to CNBC, Pepsi CEO Indra Nooyi said: "Technology breakthroughs right now are resulting in better-tasting colas, almost as good as the full-sugar colas, but with lower calories". And she added "So we're now faced with interesting opportunity to step the consumer down to lower sweetness levels." Pepsi’s lower-calorie initiatives aren’t limited to just North America. Low-calorie sodas will be launched in the U.K. and Mexico, Nooyi said.

This is not the first time Pepsi has announced its intentions to combat obesity. In 2010, Pepsi CEO Indra Nooyi led an initiative to reduce portion sizes for some of the company’s products and promote its ‘diet’ range as prominently as sugary alternatives.