PepsiCo is recalling more than 122,000 cases of Gatorade across the United States after certain bottles were found to contain food colorings that were not disclosed on their labels.
The recall covers 122,021 cases of 28-ounce Gatorade Lemon Lime, Lemon Lime Zero, Orange and Orange Zero distributed across 37 states. The affected drinks may contain Yellow No. 5 and/or Yellow No. 6 despite the dyes not appearing on the product labels.
PepsiCo voluntarily initiated the recall on Sept. 25, before the US Food and Drug Administration classified it as a Class II recall on Oct. 2. Fifteen product lots are affected, with expiration dates extending from April through June 2027.
A Class II recall means exposure to the affected product could potentially cause temporary or medically reversible health consequences, while the probability of serious health consequences is considered remote.
(Source: US Food and Drug Administration)
Unlike recalls involving bacteria or foreign objects, the Gatorade action centers on incorrect labeling. Yellow No. 5 and Yellow No. 6 are permitted food colorings, but their presence must be disclosed, particularly because some consumers can be sensitive to the additives.
PepsiCo Stock Shows Little Sign of a Recall-Driven Selloff
The recall comes as PepsiCo is already dealing with pressure on Wall Street, but there is currently little evidence that the Gatorade issue itself has materially affected the company's stock price.
PepsiCo shares closed at $125.89 on Oct. 2, the same day the FDA classified the recall, and gained roughly 0.23% during the session. The stock fell about 2% over the preceding five trading days and remained down more than 10% for the year.
Instead, recent weakness in PepsiCo shares has largely coincided with broader concerns surrounding its North American business, pricing strategy and softer consumer demand. Analyst downgrades have also weighed on sentiment ahead of PepsiCo's third-quarter earnings report on Oct. 8.
