PepsiCo plans to cut prices and eliminate 20% of its product offerings to invest in marketing and improved value for consumers, under a deal with activist investor Elliott Investment Management. The company aims to introduce new products with simpler ingredients and accelerate innovation following prodding from Elliott. PepsiCo expects organic revenue growth of 2-4% in 2026.

Elliott Investment Management, with a $4 billion stake in PepsiCo, pushed for changes due to decelerating growth and eroding profitability. In a joint statement, Elliott Partner Marc Steinberg expressed confidence in PepsiCo’s ability to create value for shareholders. PepsiCo shares were flat in after-hours trading, with plans to review its supply chain and board composition.

PepsiCo Chairman and CEO Ramon Laguarta expressed optimism about implementing urgent actions to improve marketplace and financial performance. Years of double-digit price increases and changing customer preferences have impacted demand for PepsiCo’s products. The company has been expanding distribution of value brands like Chester’s and Santitas to combat perceptions of high prices.

Read more at Yahoo Finance: PepsiCo to cut prices, eliminate products as part of a deal with an activist investor