NEW YORK — PepsiCo Inc. announced last week that it will rebrand two of its flagship snack brands—Lay’s and Tostitos—to eliminate artificial dyes and flavors, part of a broader push to highlight cleaner ingredients and appeal to health-conscious consumers.
“We're trying to elevate the real food perception of Lay’s,” said PepsiCo CEO Ramon Laguarta on an investor call. “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. No artificial ingredients.”
The move comes as U.S. Health Secretary Robert F. Kennedy Jr. and the Make America Healthy Again (MAHA) movement are pressuring food manufacturers to eliminate synthetic additives and promote “whole food” diets. While PepsiCo already offers options without artificial ingredients under its Simply line, this marks the first time its core Lay’s and Tostitos brands will undergo such a sweeping reformulation.
In addition to reducing the use of synthetic dyes, PepsiCo will expand its use of avocado and olive oils across its snack portfolio, moving away from traditional canola and soybean oils, which MAHA has criticized for their questionable health benefits.
In April, the company announced plans to transition its entire product lineup to natural colors or offer dye-free alternatives. Popular brands such as Cheetos and Gatorade, known for their vivid hues, currently rely on synthetic coloring.
Market analysts remain cautious on whether the rebranding will resonate with shoppers. “The Simply line extension for existing chip brands is still in early innings—consumers have not engaged so far,” said Christian Greiner, senior portfolio manager at F/m Investments. “It will be seen how consumers react to a rebranding of Lay’s and Tostitos over the next couple of quarters.”
The company’s shift comes as consumers are increasingly price-sensitive amid ongoing inflation. While cleaner labels are in demand, premium prices may not appeal to all. “It remains to be seen if consumers will be willing to pay up for these more premium products,” said Arun Sundaram, analyst at CFRA Research.
To address affordability, PepsiCo is also introducing smaller pack sizes and lower price points in its snack offerings to meet demand for budget-friendly options.
PepsiCo is also responding to growing consumer preferences for natural sweeteners, announcing it will use sugar in Pepsi products where customers prefer it. The announcement follows President Donald Trump’s comment that rival Coca-Cola will begin using cane sugar in its U.S. beverages, another dietary principle advocated by the MAHA movement.
In a forward-looking move, Laguarta revealed that PepsiCo will also enter the liquid protein market, targeting the fast-growing segment for protein shakes. Additional protein-enhanced options will roll out under the PopCorners and Quaker brands.
MMR
As PepsiCo retools its iconic snack and beverage brands, the company aims to strike a balance between health-conscious innovation and the realities of inflation-weary consumers, betting that cleaner labels will help it remain competitive in a shifting landscape.
