PepsiCo Faces Legal Heat: Gatorade Protein Bars Criticized For Excessive Sugar
Portfolio Pulse from Nabaparna Bhattacharya
PepsiCo (NASDAQ:PEP) faces a lawsuit for allegedly deceptive marketing of its Gatorade protein bars, which contain more sugar than protein. The lawsuit claims the bars are misleadingly marketed as healthy, despite having high sugar content. PepsiCo counters that the claims are implausible. PEP stock has lost over 5% in the past year. Investors can gain exposure to PEP via iShares U.S. Consumer Staples ETF (NYSE:IYK) and First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG).
August 15, 2024 | 4:46 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
First Trust Nasdaq Food & Beverage ETF, which includes PepsiCo, may see minor negative impact due to the lawsuit against PepsiCo.
As FTXG includes PepsiCo, the ETF might experience a minor negative impact due to the lawsuit, but the diversified nature of the ETF will likely mitigate significant losses.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
iShares U.S. Consumer Staples ETF, which includes PepsiCo, may see minor negative impact due to the lawsuit against PepsiCo.
As IYK includes PepsiCo, the ETF might experience a minor negative impact due to the lawsuit, but the diversified nature of the ETF will likely mitigate significant losses.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
PepsiCo is facing a lawsuit for allegedly deceptive marketing of its Gatorade protein bars, which could impact its brand reputation and sales.
The lawsuit could negatively impact PepsiCo's brand reputation and sales, especially if the claims are proven true. This legal issue adds to the stock's recent underperformance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100