Overview

• Elliott disclosed a roughly $4 billion position and sent PepsiCo’s board a letter and presentation outlining changes to re-accelerate growth.
• Proposals include refranchising the North American bottling network, selling non‑core brands, streamlining SKUs, and tightening costs.
• PepsiCo said it values constructive shareholder input and will review Elliott’s perspectives, with engagement in early stages and no proxy fight announced.
• Shares rose about 3% to 6% after the campaign became public, reflecting investor expectations for potential value creation.
• Elliott argues PepsiCo has underperformed due to soda share losses and a complex, vertically integrated bottling model, projecting more than 50% upside if its plan is adopted, as the company continues separate cost cuts such as two recent North American plant closures.