PepsiCo’s Frito-Lay snacks division faces challenges with pricing, lack of exposure to growing snack trends, and flat volumes despite previous growth. Activist pressure from Elliott Investment Management urges brand innovation and efficiency to boost PepsiCo’s share price by 50%. The company’s concentration in salty snacks, accounting for 90% of Frito-Lay’s volumes, poses a hurdle as consumers seek healthier options. Analysts suggest PepsiCo may need to cut prices to spur volume growth amid tough competition from rivals like Mondelez and Campbell’s. The company’s beverage unit also struggles against Coca-Cola, with refranchising bottling operations as a potential solution. Investors await details on PepsiCo’s strategy, with concerns about weak consumer demand, tariffs, and food stamp reductions impacting results.

Read more at Yahoo Finance: Pepsi’s chips empire is losing its shine