PepsiCo to cut ~20% of U.S. product offerings in major reset

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PepsiCo has announced a major overhaul of its U.S. product portfolio, trimming nearly 20% of its product offerings in response to slowing consumer demand and pressure from activist investor Elliott Investment Management. The changes are part of a broader strategy to reduce costs, improve value for shoppers, and refocus the brand’s food and beverage lineup.

The company plans to phase out a range of snack and soda variants by early 2026, affecting flavours, pack sizes and other specific stock‑keeping units—not entire brands. PepsiCo said it will use the savings from the reductions to lower prices on some products, invest in marketing, and expand offerings with simpler, functional ingredients. For example, new items like Doritos Protein and Simply NKD variants are part of the innovation push aimed at aligning with evolving consumer preferences for health‑forward options.

The reset follows months of engagement with Elliott, which disclosed a roughly $4 billion stake in PepsiCo and urged a simplified, more competitive portfolio amid decelerating growth in North America. The activist investor believes the current complexity of PepsiCo’s range has weighed on performance and profitability, pushing the company to take decisive action on both pricing and product strategy.

PepsiCo’s CEO has emphasised the urgency of these actions to accelerate revenue growth and improve core operating margins, with the expectation that a leaner product line and sharper price architecture will resonate with cost‑conscious consumers. Industry analysts note that while the cuts signal a significant shift in strategy, balancing affordability with growth remains a key challenge for the snack and beverage giant.