Elliott Management pushes for PepsiCo overhaul after US$4B stake purchase 

USA – Elliott Management has revealed a US$4 billion (€3.44 billion) stake in PepsiCo, marking one of its largest investments and setting the stage for a campaign to restore growth at the global beverage and snack giant. 

The activist investor is urging PepsiCo to implement a strategic turnaround, focusing particularly on the underperformance of its North America beverages unit.  

Elliott argued that the division has lagged behind rivals due to market share losses in carbonated soft drinks and a diluted focus from the launch of multiple new brands and products. 

In a letter to PepsiCo, the firm stressed the importance of defending the company’s core soft drink franchises through increased marketing and innovation while pursuing selective expansion into faster-growing categories.  

Elliott also called for a reassessment of PepsiCo’s bottling operations, suggesting that a re-franchising model similar to Coca-Cola’s could unlock value and improve efficiency. 

The campaign comes as branded packaged food companies face pressure from weak sales and elevated commodity costs. PepsiCo’s share price has fallen about 25% since reaching a record high in May 2023, reflecting investor unease over its growth trajectory. News of Elliott’s investment lifted shares by roughly 2%, signalling optimism that the intervention could drive meaningful change. 

PepsiCo’s challenges reflect broader shifts in consumer demand. With more consumers gravitating toward healthier options, the company has been repositioning its portfolio to highlight nutritious drinks and snacks.  

Earlier in 2025, it announced plans to rebrand Lay’s and Tostitos by removing artificial colours and flavours, in line with rising health-conscious preferences. 

Elliott’s involvement adds to a history of activist campaigns in the food and beverage sector. The firm has previously influenced strategic restructurings at major corporations, including Honeywell.  

PepsiCo itself has faced past activist pressure, most notably from Nelson Peltz nearly a decade ago, when he unsuccessfully sought to split the company’s beverage and snack businesses. 

In response to Elliott’s proposals, PepsiCo said it would consider the recommendations within the framework of its ongoing strategy, which prioritises targeted innovation and continued portfolio transformation.  

The outcome of this engagement could determine the company’s next phase as it seeks to balance growth ambitions with evolving consumer expectations. 

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