Add thelocalreport.in As A Trusted Source
drink And Breakfast huge PepsiCo Ready to make radical changes to your product portfolioAnnounced plans to cut prices and streamline its offerings following pressure from activist investor Elliott Investment Management.
New York-based conglomerate, known for brands Such as CheetosTostitos, and its broader beverage line, intends to eliminate about 20 percent of its current product line by early next year. The strategic move is intended to free up capital for increased marketing investment and provide better value to consumers, although the specific products to be removed and the extent of price cuts have not been disclosed.
Concurrently, PepsiCo is accelerating the launch of new items with simpler, more functional ingredients. Examples include Doritos Protein and Simply NKD range of Cheetos and Doritos, which are free from artificial flavors or colours. The company also recently introduced a prebiotic version of its signature cola.
These significant changes come after Elliott Investment Management acquired a majority stake in PepsiCo for $4 billion last September. In a letter to the board, Elliott highlighted concerns over the company’s lack of strategic clarity as well as declining growth and declining profitability within its North American food and beverage divisions.
In a joint statement with PepsiCo on Monday, Elliott partner Mark Steinberg said the company is confident PepsiCo can create value for shareholders as it executes on its new plan.
“We appreciate our collaborative engagement with PepsiCo’s management team and the diligence they have demonstrated,” Steinberg said. “We believe the plan announced today to invest in affordability, accelerate innovation and aggressively reduce costs will drive greater revenue and profit growth.”
Elliott said he plans to continue working closely with the company.
PepsiCo shares remained flat in after-hours trading Monday.
PepsiCo said it expects organic revenue to grow between 2 percent and 4 percent in 2026. The company’s organic revenue grew 1.5 percent in the first nine months of this year.
PepsiCo also said it plans to review its supply chain and continue changes to its board, with a focus on global leaders who can help it reach its growth and profitability goals.
“We feel encouraged by the actions and initiatives we are promptly implementing to improve both market and financial performance,” PepsiCo Chairman and CEO Ramon Laguarta said in a statement.
PepsiCo said in February that years of double-digit price increases and changing consumer preferences had weakened demand for its beverages and snacks. In July, the company said it was trying to combat the perception that its products are too expensive by expanding distribution of value brands such as Chester and Sentitas.