PepsiCo announced Thursday it will relaunch its Lay’s and Tostitos snack brands later this year, removing artificial colors and flavors as part of a broader effort to promote cleaner ingredients in its top-selling chips.
The move comes amid growing pressure from U.S. Health Secretary Robert F. Kennedy Jr., who is encouraging Americans to eat “whole foods” and urging manufacturers to eliminate synthetic dyes. The push is also backed by the Make America Healthy Again (MAHA) movement.
“We’re trying to elevate the real food perception of Lay’s. If you think about the simplest and most natural snack, it is a potato chip; it’s a potato, it’s oil, and it’s a little bit of salt—the most simple, no artificial ingredients,” said CEO Ramon Laguarta during an investor call.
PepsiCo also said it plans to expand the use of healthier oils such as avocado and olive oil across its brands, moving away from canola and soybean oils, which have come under scrutiny from MAHA supporters.
Back in April, the company announced plans to transition its full product line to natural colors or provide consumers with dye-free options. Popular products like Cheetos and Gatorade still rely on synthetic dyes for their distinctive colors.
The company already offers artificial-free versions of Lay’s and Doritos under its Simply line. But that line has yet to gain strong traction. “The Simply line extension for existing chip brands is still in early innings – consumers have not engaged so far, and given that, it will be seen how consumers react to a rebranding of Lay’s and Tostitos over the next couple of quarters,” said Christian Greiner, senior portfolio manager at F/m Investments.
PepsiCo also said it is open to using sugar in its sodas if consumers prefer it. This follows President Donald Trump’s statement Wednesday that Coca-Cola will begin using cane sugar in its U.S. beverages—a core preference of the MAHA movement. Currently, both Pepsi and Coke primarily use high-fructose corn syrup, which is less costly.
These changes come at a time when consumers are cutting back on spending after years of price increases across the packaged food industry. PepsiCo has responded by offering smaller pack sizes and lower-priced options in its food portfolio.
“While there is clearly demand for cleaner ingredients in food and beverage products, it remains to be seen if consumers will be willing to pay up for these more premium products, especially in today’s inflationary environment and more price-sensitive consumer base,” said Arun Sundaram, analyst at CFRA Research.
Looking ahead, Laguarta said PepsiCo plans to enter the “liquid protein” market as interest in protein shakes continues to grow. He also noted the company will introduce new protein-rich options under its PopCorners and Quaker snack brands.
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