PepsiCo has announced a strategic plan aimed at addressing consumer affordability concerns by reducing prices and streamlining its product lineup. The company intends to eliminate around 20% of its U.S. product lines by early next year, using the savings to enhance marketing and consumer value. Specific products targeted for discontinuation or price changes have not been publicly disclosed.
This initiative follows extensive discussions with Elliott Investment Management, an activist investor that acquired a $4 billion stake in PepsiCo in September. Elliott has been advocating for strategic changes aimed at improving profitability and competitiveness, especially in North America’s food and beverage sectors.
Additionally, PepsiCo is conducting a thorough review of its North American supply chain to uncover cost-saving opportunities. This year, the company has already closed three manufacturing plants and shut down several production lines, all part of an overarching strategy to improve operational efficiency and sustain long-term profitability.
In a move to align with evolving consumer preferences, PepsiCo plans to introduce new products featuring simpler, more functional ingredients. Innovations include protein-enriched snacks and versions of popular products without artificial additives, along with a prebiotic cola.
Looking ahead, PepsiCo projects organic revenue growth of 2–4% in 2026, supported by productivity savings and margin-expansion strategies. CEO Ramon Laguarta emphasized that PepsiCo Foods North America will play a crucial role in achieving record productivity savings and improving operating margins. Both PepsiCo and Elliott are optimistic about the potential of this collaborative plan to enhance profitability and market performance, while also addressing consumer affordability.
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