PepsiCo to cut prices and eliminate products in major overhaul
PepsiCo to drop one-fifth of product lines in the US
- PepsiCo is set to overhaul its product portfolio, announcing plans to cut prices and streamline its offerings.
- The company intends to eliminate nearly 20 percent of its current product lines by early next year to free up capital for increased marketing investment and enhance consumer value.
- This strategic shift follows activist investor Elliott Investment Management acquiring a significant $4 billion stake and raising concerns over PepsiCo's strategic clarity, growth, and profitability.
- PepsiCo will also accelerate the launch of new items featuring simpler, more functional ingredients, such as Doritos Protein and the Simply NKD range.
- The company expects organic revenue to grow between 2 and 4 percent by 2026, driven by investments in affordability, innovation, and cost reduction, alongside supply chain and board reviews.