PepsiCo inks sweetener deal

PepsiCo is spending $30 million in upfront payments for a four-year collaborative agreement with sweetener company Senomyx Inc. The partnership will focus on the discovery, development and commercialization of sweetness enhancers and natural "high-potency" sweeteners that will allow PepsiCo to sell lower-calorie drinks.

PepsiCo said Senomyx' technologies will allow the beverage giant to improve the nutritional profile of its products without sacrificing taste. PepsiCo wants to reduce added sugar per serving by 25 percent in key brands in key markets over the next decade.

Senomyx said it would expand its research efforts to discover enhancers of sweeteners such as sucrose and fructose. PepsiCo will have exclusive rights to the Senomyx sweet flavor ingredients developed under the collaboration for use in non-alcoholic beverages. Under the agreement, Senomyx will receive an upfront payment of $30 million from PepsiCo, $7.5 million of which was already paid. Senomyx also will be entitled to $32 million in committed research and development payments over the four-year research period.