The plans come after the food regulator urged such a change in April.
Nestle (NSRGY) has joined several consumer companies that have decided to remove artificial colors from food products sold in the United States, following government recommendations.
The local unit of the Swiss consumer products giant said it would eliminate synthetic food colors from its U.S. food and beverage portfolio by mid-2026. It added that 90% of its current categories already do not contain synthetic colors.
The move follows an April announcement by the U.S. food regulator outlining plans to urge the industry to eliminate artificial dyes from foods by the end of next year. However, it had noted that a formal agreement had yet to be reached.
Supporters argue that artificial colorants pose health risks, including increased hyperactivity, while the industry counters that such claims lack solid scientific evidence.
On Stocktwits, the retail sentiment for Nestle's over-the-counter U.S. shares was 'bullish' on the latest reading. The shares are up 21% year-to-date.

Nestle's move follows that of peers General Mills (GIS) and Kraft-Heinz (KHC).
Last week, General Mills, known for its cereals, said the change would impact only a small portion of the K-12 school portfolio. Ketchup maker Kraft-Heinz said it would replace artificial dyes with natural substances and reinvent products where that is not feasible.
Walmart's (WMT) Sam's Club made a similar announcement in May.
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