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PepsiCo to Cut 20% of U.S. SKUs, Target Price Reductions in Elliott-Backed Overhaul

Pressure from Elliott’s $4 billion stake prompted a collaborative overhaul to revive North American performance.

Overview

  • The company said it will remove nearly one‑fifth of U.S. products by early 2026 and pursue targeted price cuts to deliver sharper everyday value.
  • Savings from SKU reductions and cost cuts will be redirected to advertising and consumer value to drive higher purchase frequency.
  • The product strategy accelerates cleaner‑label launches, including Simply NKD Cheetos and Doritos with no artificial colors or flavors and a Doritos Protein line.
  • PepsiCo guided to 2%–4% organic revenue growth in 2026, began a North America supply‑chain review, and signaled continued board refreshment without granting Elliott a seat.
  • Workforce changes are expected after employees were told to work remotely this week, building on earlier closures of three U.S. plants and several manufacturing lines.