PepsiCo is removing hundreds of brands after pressure from activist investors

PepsiCo said it is removing hundreds of products from the shelves next year after negotiations with a terrorist investor pressured the company to cut costs to cut costs.

On Monday, the food giant, whose brands include fritos, gatorade, doritos, cheetos and aquafina, immediately closed three production plants and closed some production lines and closed production lines or shut down other construction lines this year.

A SKU is a specific version of an item such as a different size, flavor or package type. However, it does not mean that the entire product line.

PepsiCo said it also plans to offer more affordable pricing options to encourage growth and improve “purchase frequency of our standard products.” It is focused and quickly introduces products that meet the needs of the consumer, such as products made without artificial colors and flavors and that include more protein, fiber and whole grains.

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The company’s strategy comes amid ongoing negotiations with Elliott Investment Management, which unveiled a $4 billion stake in PepsiCo in September. Elliott wrote a letter to PepsiCo, pushing it to take several steps to reduce costs and revitalize the business, which it argued had been underperforming in recent years and trades near decade-low valuation levels. Its sales also lag behind one of its biggest competitors: coca-cola.

In its letter, Elliott urged the company to consider selling or outsourcing its complex, expensive operations, which Coca-Cola is already doing. It also recommended that the company reduce the unnecessary change of the drink to make the business easier and cheaper to run. For food, Elliott said PepsiCo needs to cut costs to match current sales levels and sell non-core or underperforming business segments.

The intention is that these measures will greatly help the company to increase its profits, to move the energy and free up money for the renewal of the company’s strong areas.

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“We appreciate our close cooperation with PepsiCo’s management team and the urgency they have shown,” said Marc Steinberg, a partner at Elliott.

Customers fill cups with PepsiCo. Inc. drinks at the grocery store food court. (Calbalan O’Hare/Bloomberg)

Marc Steinberg, a partner at Elliott, praised PepsiCo’s urgency in dealing with its problems and believes that its strategies to make hot products, accelerate the introduction of new products and increase profits.

“We are confident that PepsiCo will build significant shareholder value as it exits this program, and we look forward to our continued involvement with the company,” Steinberg said.

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PepsiCo CEO Ramon Lagunta also expressed confidence in his plans, which he believes will help them accelerate organic revenue growth, bring record production and improve operational structure starting in 2026.

Doritos are sold at the dollar general department store. (Photographer: Luke Sharrett / Bloomberg via Getty Images)

The company said it expects sales from its core business to grow between 2% and 4% throughout 2026. The company expects to hit the high end of the first half of the year. Businesses that PepsiCo buys or sells in 2025 are expected to add to this growth, the company added.

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With cash reserves and good business performance, PepsiCo also expects its margins to grow by at least one percent over the next three years.