Overview

• Elliott Investment Management disclosed an approximately $4 billion position, making it a top-five active shareholder, as PepsiCo shares rose as much as about 6% on the news.
• In a letter and board presentation, Elliott projected more than 50% upside if PepsiCo refranchises bottling in North America, simplifies its beverage portfolio, and divests non-core brands.
• PepsiCo said it maintains an active dialogue with investors and will evaluate Elliott’s perspectives within its strategy to drive sustainable growth.
• The push follows weakening North American demand, soda market-share losses to Coca-Cola, Dr Pepper and Sprite, and cost pressures that include higher U.S. aluminum tariffs.
• Elliott points to its track record at companies like Southwest, Starbucks and Phillips 66 as it advocates operational changes, though any restructuring of PepsiCo’s integrated model would be complex and its outcome uncertain.