Pepsi CEO is bringing fiber to snacks while Doritos and Cheetos get a 'naked' makeover

Core Insights - PepsiCo is focusing on fiber innovation to address consumer deficiencies in the U.S. and plans to launch healthier versions of its popular snacks [1] - The company is under pressure from activist investor Elliott Investment Management, which has a $4 billion stake and is advocating for structural changes to enhance stock value [3] - PepsiCo's Frito-Lay division is facing challenges due to inflation and changing consumer preferences, but the company sees significant growth potential in this segment [5][6] Group 1: Product Innovation - PepsiCo is set to introduce "naked" versions of Doritos and Cheetos, eliminating artificial colors and flavors to attract health-conscious consumers [1] - Other products like Lay's and Tostitos will also receive a makeover, with new packaging emphasizing ingredient sourcing [2] Group 2: Investor Relations - Elliott Investment Management's proposed changes could potentially increase PepsiCo's stock price by up to 50% [3] - Discussions between PepsiCo and Elliott are described as "super constructive" and "collaborative" [3][4] Group 3: Market Performance - PepsiCo shares have declined by 4% year-to-date and 16% over the past 12 months, contrasting with Coca-Cola's 7% increase and the S&P 500's 15% rise [4] Group 4: Frito-Lay Division Challenges - The Frito-Lay division is experiencing slowing demand and rising costs, attributed to inflation affecting middle- and lower-income households [5] - Analyst insights indicate Frito-Lay's challenges include pricing issues, limited exposure to faster-growing snack categories, and a lack of protein offerings [7]