PepsiCo to cut prices and 20% of products under a new deal

"PepsiCo plans to cut prices and eliminate some of its products under a deal with an activist investor announced Monday. The Purchase, New York-based company, which makes Cheetos, Tostitos, and other Frito-Lay products as well as beverages, said it will cut nearly 20% of its product offerings by early next year. 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. The company also recently introduced a prebiotic version of its signature cola. PepsiCo is making the changes after prodding from Elliott Investment Management, which took a $4 billion stake in the company in September."

"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." Elliott said it plans to continue working closely with the company."

PepsiCo will cut nearly 20% of its product offerings by early next year, eliminate some items, and lower prices under a deal with an activist investor. The company plans to use savings from the reductions to invest in marketing and improved consumer value. PepsiCo will accelerate launches of simpler, more functional-ingredient products such as Doritos Protein and Simply NKD Cheetos and Doritos and has introduced a prebiotic version of its cola. Elliott Investment Management took a $4 billion stake and pressed for strategic changes. PepsiCo expects 2–4% organic revenue growth in 2026 and will review its supply chain and board.

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