PepsiCo will cut sodium, sugar, fat in drinks, chips
By Emily Fredrix, AP Food Industry Writer

NEW YORK — PepsiCo (PEP) plans to cut the sodium in each serving of its key brands by one-fourth in five years.

The maker of Frito-Lay chips and Pepsi drinks announced several nutrition goals on Monday at the start of a two-day investor conference.

The company also set two goals for the next 10 years: to cut the average added sugar per serving by 25% and saturated fat per serving by 15%.

An array of food makers have announced similar goals recently as they come under more pressure from government and consumers.

Last week Kraft Foods (KFT)pledged to cut salt in its products sold in North America by an average of 10% over the next two years. ConAgra Foods (CAG) and Campbell Soup (CPB) have also announced sodium cuts.

Many health leaders have urged food makers to reformulate their products to reduce salt. First lady Michelle Obama has made the fight against childhood obesity a top priority. Last week she asked the nation's largest food makers at a meeting of the Grocery Manufacturers Association to "step it up" and put less fat, salt and sugar in foods.

PepsiCo CEO Indra Nooyi told investors Monday that shoppers are focusing more on value amid the recession and on improving their health. She said governments around the world are exerting pressure to improve nutrition, but the company isn't waiting for mandates.

"So we're off doing our thing because the consumer is shifting," she said at the event at Yankee Stadium.

Last week the company announced it would remove full-calorie, sweetened drinks from schools worldwide by 2012. Both PepsiCo, the world's second-biggest soft drink maker, and No. 1 player Coca-Cola (KO), adopted guidelines to stop selling sugary drinks in U.S. schools in 2006.

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