PepsiCo sets out agenda after crunch investor talks

Core Viewpoint - PepsiCo has outlined a strategy to enhance organic growth in response to pressure from activist investor Elliott Investment Management, emphasizing the need for a more focused and streamlined business model [1][2]. Group 1: Strategic Initiatives - The company has committed to reducing its stock-keeping units (SKUs) by nearly 20% in the US, aiming to simplify its supply chain [3]. - PepsiCo plans to aggressively cut operating costs and improve operational excellence, with savings directed towards investments in advertising, marketing, and consumer value [5]. Group 2: Financial Guidance - The guidance for organic growth in the current year remains unchanged at a low-single-digit pace, with expectations of achieving the higher end of the 2-4% range in the latter half of next year [4]. - Net reported growth is projected at 4-6% for fiscal 2026, benefiting from a one-percentage-point contribution from exchange rates [5]. Group 3: Product Strategy - The company intends to adopt a targeted approach to affordable price tiers by brand and channel to stimulate growth and enhance purchase frequency of mainstream brands [6]. - PepsiCo will continue to eliminate artificial colors and flavorings, focusing instead on simpler ingredients such as protein, fiber, and whole grains [6].