PepsiCo announced plans to cut prices and eliminate nearly 20% of its product offerings by early next year, following pressure from activist investor Elliott Investment Management, which holds a $4 billion stake in the company.

The company aims to use the savings to boost marketing, enhance consumer value, and accelerate the launch of products with simpler, functional ingredients, such as Doritos Protein and prebiotic cola.

Elliott criticized PepsiCo for lacking strategic clarity and experiencing slowing growth and declining profitability in its North American business, and said the new plan will drive revenue and profit growth.

PepsiCo also intends to review its supply chain, make board changes, and target 2–4% organic revenue growth in 2026, the AP has reported.

The moves follow years of double-digit price increases and shifting consumer preferences, which have weakened demand for its drinks and snacks.