PepsiCo Looks for New, No-cal, Natural Sweeteners

He said the taste and the cost of these new sweeteners must work just right for the company to use them. Typically, no-calorie drinks like Diet Pepsi have artificial sweeteners like aspartame.

PepsiCo laid out many changes to its beverage system this week before its investors, who are want hear about its plans now that it has completed its $7.8 billion buyout of its two largest bottlers in North America.

The deal lets them control distribution of the majority of their products, and be quicker to market with new drinks to keep up with shoppers' changing tastes. PepsiCo's products won't need to sit in warehouses and the company can more closely control how they are displayed in stores or even what products are sold where.

CEO Indra Nooyi had no qualms saying performance in the beverage business has been subpar in the past couple of years. Sales fell and the company tried to prop them up with promotions, such as discounts — but that's not considered a way to build long-term sales.

Now PepsiCo is pursuing new sales by reformulating brands and coming up with new drinks to keep shoppers interested. Nooyi said she expects the beverage business to return to profitable growth this year.

PepsiCo has removed all high fructose corn syrup from sports drink Gatorade and replaced it with cane sugar. Now the brand, whose sales have slumped among the worst of PepsiCo's brands in the recession, plans to offer a new line called "G Series Pro" at General Nutrition Centers stores.

The line is aimed at more serious athletes, rather than the casual ones who drink other variations of Gatorade. It features more nutrients and proteins and will be available at GNC stores in May. Later the line will expand to Dick's Sporting Goods and smaller sporting goods retailers.

The line has been in professional sports locker rooms for the past 15 years but is being expanded now to help the brand get back to a more serious, athletic connotation. It won't be available in grocery stores. Gatorade is also introducing a line of natural Gatorade products that feature natural coloring and flavoring, in addition to cane sugar starting next month at Whole Foods Inc.