"PepsiCo said it will use the savings to invest in marketing and improved value for consumers. It didn't disclose which products or how much it would cut prices. PepsiCo said it also plans to accelerate the introduction of new offerings with simpler and more functional ingredients, including Doritos Protein and Simply NKD Cheetos and Doritos, which contain no artificial flavors or colors."
"In a joint statement with PepsiCo Monday, Elliott Partner Marc Steinberg said the firm is confident that 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 urgency 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."
"PepsiCo said it expects organic revenue to grow between 2% and 4% in 2026. The company's organic revenue rose 1.5%. the first nine months of this year. PepsiCo also said it plans to review its supply chain and continue to make changes to its board, with a focus on global leaders who can help it reach its growth and profitability goals."
PepsiCo will cut nearly 20% of its product offerings by early next year and plans unspecified price reductions. The company will redeploy savings into marketing and improved consumer value. PepsiCo will accelerate launches of simpler-ingredient and functional products such as Doritos Protein and Simply NKD Cheetos and Doritos, and has introduced a prebiotic cola. Changes follow a $4 billion stake and pressure from Elliott Investment Management, which cited lack of strategic clarity, slowing growth and eroding profitability. Elliott and PepsiCo expressed confidence the plan will drive revenue and profit through affordability, innovation, and aggressive cost reductions. PepsiCo expects organic revenue growth of 2–4% in 2026.
Read at www.latimes.com
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