PepsiCo Unveils Nutritional Makeover

(March 22) -- Some of the world's most ubiquitous chips, cereals and drinks are about to get a nutritional makeover.

That's because food and beverage mega-company PepsiCo has announced plans to cut back on the sodium, saturated fat and sugar content in its products.

The company, which owns familiar brand names like Frito-Lay, Quaker, Tropicana and Pepsi-Cola, has laid out a 10-year plan to hit the reduction targets. It says it will cut sodium by an average of 25 percent within five years, and plans to reduce saturated fat by 15 percent and sugar by 25 percent before 2020.

PepsiCo also announced plans to introduce new products that contain more whole grains, servings of fruits and vegetables, and nuts and seeds.

The overhaul comes on the heels of a recent appeal by first lady Michelle Obama, who last week urged major food companies to revamp their products to prioritize children's health. It's also comes after similar initiatives by Kraft, ConAgra Foods and Campbell Soup Co.

PepsiCo, second only to Coca-Cola in the global beverage market, will also eliminate all full-calorie soda and energy drinks from schools in more than 200 countries. Kids will instead be offered water, milk, portion-controlled juice and -- in secondary schools -- diet soda.

In 2006, Pepsi and Coca-Cola agreed to stop shipping full-calorie beverages to American schools. Last week, a study of the initiative by the American Beverage Association concluded that the guidelines had slashed 88 percent of the calories contained in at-school drinks.

Of course, the ongoing product revamps will do more than just trim American waistlines. As consumers demand healthier products, PepsiCo is intent on keeping up.

"We believe that a healthier future for all people and our planet means a more successful future for PepsiCo," Indra Nooyi, PepsiCo's CEO, said in a statement. "These commitments are shared by all of our businesses and reflect our focus on profitable, long-term growth."

While PepsiCo rolls out its new nutrition strategy, company investors are in New York for a two-day earnings outlook seminar that's also being broadcast online. According to Nooyi, the company anticipates robust profits, with double-digit growth over the next two years.

Coca-Cola also announced a new global policy on beverages, but it's less ambitious than Pepsi's. Coke will eliminate full-calorie offerings only in primary schools, and it's unlikely it will try to outdo other PepsiCo health targets.

"I think the approaches of the two companies show a difference in marketing strategy and how to deal with public pressure and public concern over obesity," Bruce Silverglade, legal affairs director for the Center for Science in the Public Interest, told NPR.

Coca-Cola spokeswoman April Jordin told NPR, "What we've got makes sense for us, so we're not going to react to Pepsi and just put something else out."