Pepsi to keep low-calorie products in schools

Snack food and beverage major PepsiCo plans to replace carbonated or sparkling beverages with juices and other low-calorie products in schools.

The move follows the company's decision to stop the supply and sale of high-sugar carbonated beverages in schools. The company, which is undergoing a portfolio transformation, has decided not to sell their colas or other flavoured carbonated beverages in both primary and secondary schools, and will stop supplying these completely by 2012.

PepsiCo plans to replace these products with their other non-carbonated and relatively low-calorie beverages like Gatorade and Tropicana juice.

"PepsiCo wants Gatorade to be a post-sports drink that students can consume after a strenuous sporting session, and Tropicana, of course, is just for a drink that both primary and secondary school children will enjoy as a health drink. We may add new low sugar products to our portfolio," said a source close to the development.

PepsiCo’s rival, Coca-Cola, had also declared a similar intention earlier. The company stated it would stop the supply and sale of all its beverages, carbonated or non-carbonated, to primary schools, unless there was a special request put in by parents or guardians to do so otherwise.

The company also said that when it would offer its beverages for sale in secondary schools, "we will work with school authorities to ensure that a full range of beverages — including water, juices and other beverages in both regular and low-calorie/calorie-free versions — is made available and will also provide fact-based nutrition information to facilitate informed choice".

Coca-Cola plans to maintain a record reflecting every school's decision on the beverages and packages selected. "If school authorities ask us to provide vending or cooling equipment, the company will make every effort to ensure that such equipment is accompanied by educational information and messages promoting active and balanced lifestyles.”

"We will publicly report on progress made on an annual basis and will strive to be fully compliant worldwide by the end of 2013, as our existing beverage contracts with schools expire," added the statement.