PepsiCo Cuts Additives from Lay's, Tostitos to Redefine Snack Brand Value

Quick listen: Why PepsiCo’s clean-label rebrand is reshaping snack strategy — in under 2 minutes.

America’s favorite chips are going natural, whether shoppers are ready or not.

PepsiCo is overhauling two of its best-selling snack brands, Lay’s and Tostitos, removing artificial colors and flavors from both lines later this year.

The reformulation is part of a larger push within the company to meet growing consumer interest in simpler ingredient lists.

Instead of synthetic additives, the snacks will now focus on whole-food basics like potatoes, oil, and salt.

This announcement comes amid growing political and social pressure.

Health Secretary Robert F. Kennedy Jr. and the Make America Healthy Again campaign have called on food manufacturers to phase out synthetic dyes and processed oils.

PepsiCo responded not just by reworking its ingredient formulas but also by expanding its use of avocado and olive oil in place of canola and soybean oil across several product categories.

During a recent call with investors, PepsiCo CEO Ramon Laguarta framed the brand’s new direction in simple terms, pointing to the core ingredients behind Lay’s:

"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."

PepsiCo already sells some dye-free products under its Simply banner, but those have seen limited traction.

Now, by incorporating cleaner ingredients directly into its flagship brands, the company is testing how receptive consumers will be to these changes at scale.

Protein Meets the Snack Aisle

The company is also preparing to launch a new line of liquid protein drinks as it broadens its offerings in health-conscious categories.

This includes plans to add protein-fortified versions of PopCorners and Quaker snacks, in response to rising demand for functional foods that offer more nutritional value.

At the same time, PepsiCo said it is open to expanding its use of real sugar in beverages if customers express a preference for it.

This follows a recent statement from President Donald Trump, who claimed Coca-Cola would start using cane sugar in its U.S. products.

PepsiCo noted it already offers a sugar-sweetened version of its cola and would adjust further depending on market demand.

As the cost of living remains high, it’s unclear whether shoppers will accept higher prices for snacks made with cleaner ingredients.

To stay competitive, PepsiCo is monitoring consumer behavior while offering smaller pack sizes and value options across its lineup.

In parallel, the company is steering product development toward high-protein and clean-label foods, helping offset declining soda sales.

This approach positions PepsiCo for long-term growth in health-driven categories with greater margin potential.

Our Take: Will This Drive Loyalty or Just Shelf Space?

I see this as more than a formula change.

PepsiCo is betting that cleaner ingredients can rebuild trust and relevance in a category that’s easy to dismiss as junk food.

As a consumer, I am not loyal to labels.

I care about whether a brand is adapting with purpose.

From a business view, this isn't just about keeping up with trends.

It's about repositioning long-established products for a future where transparency and substance matter more than shelf appeal.

If the company stays consistent and prices smartly, this could change long-term buying behavior.

If it wavers, consumers will notice.

If you're tracking how PepsiCo blends culture with commerce, don’t miss how its Wear-A-Ball jacket turns fan gear into a statement on football identity and sustainability.

Your brand should be as crave-worthy as your product. These agencies make that happen.