Overview

• Elliott Investment Management disclosed a roughly $4 billion position in PepsiCo and became one of the company’s top five active shareholders.
• PepsiCo shares rose about 3% to 5% in morning trading after the activist’s move became public.
• In a letter and presentation to the board, Elliott criticized soda share losses, the vertically integrated bottling structure, and brand proliferation, and it suggested refranchising and pruning parts of the portfolio.
• PepsiCo said it maintains a productive dialogue with shareholders and welcomes constructive input.
• The campaign arrives as PepsiCo works to bolster margins and demand, including closing two North American food plants and tightening logistics and marketing spend.