"Elliot Investment Management took a $4 billion stake in PepsiCo just a few months ago and has been pressing the food and beverage giant over its slowing growth and what it perceives as a lack of large scale strategy. In September, it sent a letter to the PepsiCo board of directors, along with a presentation that outlines what Elliot sees as PepsiCo's problems and opportunities."
"the core argument is that Elliot feels PepsiCo has overexpanded its brand portfolio with too many underperforming products as Pepsi loses market share to Coke in its core beverage market, and costs have gotten out of control. Those two problems both led to the impending cuts. It's important to remember that PepsiCo is a huge company that owns dozens of food and beverage brands, so this doesn't mean there will be 20% fewer varieties of Pepsi drinks on the shelf."
Elliott Investment Management acquired a $4 billion stake in PepsiCo and pressed the company to address slowing growth and an absence of large-scale strategy. Elliott argued that PepsiCo overexpanded its brand portfolio with too many underperforming products, contributing to lost beverage market share to Coca-Cola and escalating costs. As a result, PepsiCo plans to cut around 20% of its products starting next year as part of a streamlining effort. PepsiCo's business spans many food and beverage brands, including Frito-Lay, Quaker, Tropicana, Celsius, Gatorade, and Aquafina, and the cuts target underperforming items rather than core Pepsi varieties.
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