PepsiCo Faces Declining U.S. Snack and Beverage Demand, Adjusts Strategy

The company reports weaker North American sales, plans healthier product offerings, and forecasts modest growth for 2025.

PepsiCo's Q4 2024 revenue fell 0.2% year-over-year to $27.78 billion, missing Wall Street estimates, as North American snack and beverage volumes declined by 3%.
CEO Ramon Laguarta attributed the drop in demand to inflationary pressures, higher borrowing costs, and growing consumer focus on health and wellness.
The company is responding by expanding its portfolio with healthier options, including a recent $1.2 billion acquisition of Siete Foods, known for its grain-free and plant-based products.
PepsiCo forecasts low single-digit organic revenue growth and mid-single-digit core EPS growth for 2025, with plans to reinvest in North American operations to regain momentum.
International markets showed stronger performance, with revenue growth in regions like Africa, Asia, and Europe offsetting some of the North American decline.