Inside PepsiCo's beverage overhaul: a Gatorade reboot, the $2 billion Poppi buy, and a gut-health play, all under activist scrutiny | Fortune
Briefly

Inside PepsiCo's beverage overhaul: a Gatorade reboot, the $2 billion Poppi buy, and a gut-health play, all under activist scrutiny | Fortune
""We take pride in the science," says Krishnan as he gives Fortune a tour of the Gatorade Sports Science Institute in Valhalla, N.Y., 30 miles north of New York City. At that research facility, athletes are evaluated using treadmills, glucose monitors, and other technology for how much their sodium levels vary and how quickly the electrolytes and sodium in Gatorade work to replenish them."
"Krishnan, a nearly 20-year PepsiCo veteran who was appointed to the North American beverage job in early 2024, has taken the reins of a years-long effort to return Gatorade, the original bright-colored sugary sports drink, known for its orange thunderbolt, to growth. The Gatorade overhaul has included some new items focused on protein and a bigger push for alternative versions of the product such as powdered Gatorade."
"The stakes are high for PepsiCo: With $29 billion a year in revenue, North America Beverages is the food-and-beverage giant's single biggest division. And Krishnan is facing intense pressure to make bold changes not just at Gatorade but across the beverage portfolio: In early September, activist investor Elliott Management took a $4 billion stake in PepsiCo, which it called a "dramatic underperformer," and sent an open letter outlining ways PepsiCo could improve growth and profitability."
Ram Krishnan, a trained engineer and nearly 20-year PepsiCo veteran, leads PepsiCo's North American beverages division since early 2024. He emphasizes scientific optimization of Gatorade formulations, probing electrolyte balances and added protein. The Gatorade Sports Science Institute evaluates athletes with treadmills, glucose monitors, and sodium tracking to measure electrolyte replenishment. Krishnan has overseen a product overhaul including protein-focused items and powdered formats, plus a planned Gatorade Lower Sugar with 75% less sugar and no artificial flavors or sweeteners. North America Beverages generates about $29 billion annually, and activist investor Elliott Management has pressed PepsiCo after taking a $4 billion stake.
Read at Fortune
Unable to calculate read time
[
|
]