PepsiCo CEO reveals how he is tackling weight-loss drugs and consumer affordability challenges

Core Insights - PepsiCo's CEO Ramon Laguarta emphasizes a significant transformation strategy for the company by 2030, focusing on innovation and adapting to changing consumer preferences [1][2] Group 1: Strategic Focus Areas - The company is addressing the rising threat from GLP-1 weight-loss drugs by adjusting its product offerings, including portion control to meet consumer demand for smaller servings [2] - There is a strong emphasis on hydration, with plans to leverage existing brands like Gatorade and Propel to provide tailored hydration solutions [3] - To tackle consumer affordability challenges, PepsiCo has been testing price investments across multiple U.S. markets, aiming to enhance brand engagement and address elasticity concerns [3] Group 2: Financial Performance and Outlook - Following better-than-expected fourth quarter results, PepsiCo's shares rose, with sales exceeding analyst estimates across all divisions [3] - The company reiterated its top- and bottom-line outlooks for 2026, promising cost cuts, lower prices, and new product launches in areas like protein snacks [4] - Despite the reiterated guidance being anticipated by investors, skepticism remains regarding the company's ability to deliver on these promises, as noted by analysts [5]