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Dec 9, 2025 8:00 AM

PepsiCo To Drop 20% Of Products, Embrace Cleaner Ingredients And Aggressive Cost-Cuts In Major Elliott-Driven Revamp

PepsiCo Inc. (NASDAQ:PEP) announced a set of operational changes backed by activist investor Elliott Investment Management on Monday, including a supply chain review and a streamlined product lineup.

PepsiCo To Cut 20% Lineup

The changes, which involve removing nearly 20% of its U.S. product lineup, are expected to “accelerate organic revenue growth, deliver record productivity savings and improve core operating margin, starting in 2026,” said PepsiCo’s CEO Ramon Laguarta.

PepsiCo is also ramping up its innovation strategy by rolling out cleaner-label products with simpler ingredients, no artificial colors or flavors, and added nutritional benefits like protein, fiber, and whole grains. This includes new Simply NKD Cheetos and Doritos, refreshed Lay's and Tostitos, and the upcoming 2026 launch of Doritos Protein.

The changes follow Elliott’s September disclosure of an approximately $4 billion stake in PepsiCo, advocating for adjustments in response to the ...