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A-Brands

PepsiCo Makes Sugar Reduction Pledge, Targets Healthier Products

PepsiCo has said that it plans to reduce the sugar content of its popular beverages in Europe by a quarter by the mid-part of the decade, as well as unveil a wider range of healthier, nutritious drinks and snacks.

"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 Silviu Popovici.

As part of its push, the company will reformulate products using low-calorie sweeteners, as well as launching a wider range of healthy snacks and bringing existing products into new markets.

A Major Market For PepsiCo

Europe accounted for nearly a fifth of PepsiCo's overall sales last year, making it the second-biggest revenue generating region after North America.

The company is planning for a 25% reduction in added sugar levels by 2025 and a 50% cut by 2030 in beverages like Pepsi-Cola, Lipton Ice Tea and 7UP sold across Europe.

With an eye on making 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, 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%.

Earlier this week, PepsiCo announced that it was transitioning to a more sustainable food supply chain, according to its annual Sustainability Report. It has also scaled up its regenerative farming practices.

News by Reuters, additional reporting by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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