There is a wide variety of global issues that major production companies like PepsiCo should face. Therefore this company has set a target to reduce sugar amount in their produced drinks to participate in the global aim of reducing problems such as obesity and climate change.
The company has announced that by 2025 their aim is to reduce calorie levels in their at least 2/3 of their drinks, making it no more than 100 calories from added sugar per 12 oz serving. PepsiCo is planning to introduce more zero and low-calorie drinks. The move has come since health professionals and governments are blaming companies such as PepsiCo and Coca-Cola to be responsible for the massive epidemic of obesity and diabetes.
The new target of PepsiCo is reducing calorie levels by 40%, whereas previous target was to reduce the amount by 25% until 2020. Their goals also include lowering the levels of saturated fat and sodium, since they are also a major threat to health. Scientists from PepsiCo have said that since the science has evolved, the future aims can be more ambitious. There are new flavor enhancing ingredients and the drinks can be made using fewer sweeteners. It is all about having the proper knowledge and access to these ingredients.
World Health Organization has recommended increasing taxes on sweetened drinks, based on the experience of France and Mexico. BY increasing taxes, the consumption of these drinks gets lower and has a positive effect on health. Of course, the soft drink industry is opposed to these taxes.
For example, PepsiCo generates 63 billion dollar revenue each year. 12% of it comes from its cola brand, while 25% comes from Mountain Dew and the rest from waters and juices, as well as snacks.
Non-profit organizations are pushing the big production companies to take an action on sustainability. They suggest that food and beverage companies have to look at nutrition and go with the current direction the world is going. They believe that the steps taken by PepsiCo and WHO are good, but still there is more work to be done.
Also Coca-Cola Company has said to lower the calorie levels in their drinks and offer more non calorie options. PepsiCo is currently working on goals they have set 10 years ago, including environmental, nutritional and social improvements. It has been observed, that the company has also had financial progress. This company has saved 600 million dollars over the past 5 years by reducing water, energy and packaging use, as well as reducing waste. The company has observed that investments in sustainability have well paid off.
This is a good sign for future investors, who generally don´t believe in investing for sustainability. The hope is that in later years, examples such as PepsiCo will be a reason enough to invest in resolving global issues.