Elliott Sends Presentation to Board of Directors of PepsiCo Inc.
Elliott Investment Management, holding a $4 billion investment in PepsiCo (NASDAQ: PEP), has sent a strategic presentation to the company's Board of Directors highlighting opportunities for substantial shareholder value creation. The activist investor identifies significant operational challenges in PepsiCo's business segments, particularly in PepsiCo Beverages North America (PBNA) and PepsiCo Foods North America (PFNA).
Elliott proposes a comprehensive turnaround plan focusing on portfolio restructuring, operational improvements, and enhanced accountability. The firm suggests potential refranchising of PBNA's bottling network and streamlining PFNA's asset base. According to Elliott, successful implementation of these initiatives could deliver more than 50% upside to shareholders.
[ "Elliott's substantial $4 billion investment demonstrates confidence in PepsiCo's potential", "Company maintains strong market positions in snacks and beverages across 200+ countries", "International segment shows rapid expansion with significant growth potential", "Proposed restructuring could deliver over 50% stock price appreciation" ]Elliott Investment Management, che detiene un investimento da 4 miliardi di dollari in PepsiCo (NASDAQ: PEP), ha inviato al Consiglio di Amministrazione una presentazione strategica evidenziando opportunità per creare un significativo valore per gli azionisti. L'investitore attivista individua rilevanti criticità operative nei segmenti di business di PepsiCo, in particolare in PepsiCo Beverages North America (PBNA) e in PepsiCo Foods North America (PFNA).
Elliott propone un piano di rilancio completo incentrato sulla ristrutturazione del portafoglio, sul miglioramento operativo e su una maggiore responsabilizzazione. La società suggerisce la possibile refranchising della rete di imbottigliamento di PBNA e la razionalizzazione degli asset di PFNA. Secondo Elliott, l'attuazione efficace di queste iniziative potrebbe offrire agli azionisti un rendimento superiore al 50%.
- Il consistente investimento da 4 miliardi di Elliott dimostra fiducia nel potenziale di PepsiCo
- L'azienda mantiene solide posizioni di mercato nel settore snack e beverage in oltre 200 paesi
- Il segmento internazionale mostra una rapida espansione con significativo potenziale di crescita
- La ristrutturazione proposta potrebbe generare oltre il 50% di rivalutazione del titolo
Elliott Investment Management, con una inversión de 4.000 millones de dólares en PepsiCo (NASDAQ: PEP), ha enviado una presentación estratégica al Consejo de Administración destacando oportunidades para crear un valor sustancial para los accionistas. El inversor activista identifica importantes desafíos operativos en los segmentos de negocio de PepsiCo, particularmente en PepsiCo Beverages North America (PBNA) y PepsiCo Foods North America (PFNA).
Elliott propone un plan integral de recuperación centrado en la reestructuración de la cartera, mejoras operativas y una mayor responsabilidad. La firma sugiere una posible refranquicia de la red de embotellado de PBNA y la racionalización de la base de activos de PFNA. Según Elliott, la implementación exitosa de estas iniciativas podría aportar a los accionistas un potencial alza superior al 50%.
- La significativa inversión de 4.000 millones de Elliott demuestra confianza en el potencial de PepsiCo
- La compañía mantiene sólidas posiciones en snacks y bebidas en más de 200 países
- El segmento internacional muestra rápida expansión con un importante potencial de crecimiento
- La reestructuración propuesta podría generar más del 50% de apreciación del precio de la acción
Elliott Investment Management는 PepsiCo (NASDAQ: PEP)에 대한 40억 달러 투자PepsiCo Beverages North America (PBNA)와 PepsiCo Foods North America (PFNA)에서 PepsiCo 사업 부문의 상당한 운영상 문제를 지적합니다.
Elliott는 포트폴리오 재구성, 운영 개선 및 책임성 강화를 중심으로 한 종합적 재건 계획을 제안합니다. 회사는 PBNA의 병입(병·캔 제조) 네트워크의 리프랜차이징 가능성과 PFNA 자산군의 간소화를 제안합니다. Elliott에 따르면 이러한 이니셔티브가 성공적으로 실행될 경우 주주에게 50% 이상의 상승 여력을 제공할 수 있습니다.
- Elliott의 40억 달러 규모의 대규모 투자는 PepsiCo의 잠재력에 대한 신뢰를 보여줍니다
- 회사는 200개국 이상에서 스낵과 음료 부문에서 강력한 시장 지위를 유지하고 있습니다
- 국제 부문은 빠르게 확장 중이며 상당한 성장 잠재력을 보입니다
- 제안된 구조조정은 주가를 50% 이상 상승시킬 수 있습니다
Elliott Investment Management, détenant un investissement de 4 milliards de dollars dans PepsiCo (NASDAQ: PEP), a transmis au conseil d'administration une présentation stratégique mettant en avant des opportunités de création substantielle de valeur pour les actionnaires. L'investisseur activiste relève d'importants défis opérationnels dans les segments d'activité de PepsiCo, en particulier PepsiCo Beverages North America (PBNA) et PepsiCo Foods North America (PFNA).
Elliott propose un plan de redressement global axé sur la restructuration du portefeuille, l'amélioration opérationnelle et une responsabilité renforcée. La société suggère un éventuel refranchisage du réseau d'embouteillage de PBNA et une rationalisation de l'assise d'actifs de PFNA. Selon Elliott, la mise en œuvre réussie de ces initiatives pourrait offrir aux actionnaires une hausse de plus de 50%.
- Le placement substantiel de 4 milliards de dollars d'Elliott témoigne de sa confiance dans le potentiel de PepsiCo
- La société conserve des positions solides sur les marchés des snacks et des boissons dans plus de 200 pays
- Le segment international connaît une expansion rapide avec un potentiel de croissance important
- La restructuration proposée pourrait permettre une appréciation du cours de l'action de plus de 50%
Elliott Investment Management, das eine 4 Milliarden US-Dollar-Investition in PepsiCo (NASDAQ: PEP) hält, hat dem Vorstand eine strategische Präsentation gesendet, in der Möglichkeiten zur erheblichen Steigerung des Aktionärswerts aufgezeigt werden. Der aktivistische Investor benennt erhebliche operative Herausforderungen in den Geschäftsbereichen von PepsiCo, insbesondere in PepsiCo Beverages North America (PBNA) und PepsiCo Foods North America (PFNA).
Elliott schlägt einen umfassenden Turnaround-Plan vor, der sich auf Portfolioumschichtungen, operative Verbesserungen und erhöhte Verantwortlichkeit konzentriert. Die Gesellschaft schlägt eine mögliche Refranchisierung des Abfüllnetzwerks von PBNA und die Straffung des Anlagenportfolios von PFNA vor. Nach Auffassung von Elliott könnte die erfolgreiche Umsetzung dieser Maßnahmen den Aktionären einen Mehrwert von über 50% bringen.
- Die substanzielle 4-Milliarden-Dollar-Investition von Elliott zeigt Vertrauen in das Potenzial von PepsiCo
- Das Unternehmen hält starke Marktpositionen im Snack- und Getränkegeschäft in mehr als 200 Ländern
- Der internationale Bereich weist eine rasche Expansion mit erheblichem Wachstumspotenzial auf
- Die vorgeschlagene Umstrukturierung könnte eine Kurssteigerung von über 50% bewirken
- None.
- PBNA has underperformed peers for more than a decade in growth and margins
- PFNA's growth has slowed with compressed profit margins
- Sharp stock price underperformance and discounted valuation
- Self-inflicted market share losses in soda business
- Operational inefficiencies from proliferation of brands and SKUs
Highlights Rare Opportunity to Revitalize a Beloved American Company and Unlock Substantial Shareholder Value
Seeks to Collaborate with Board and Management on Actionable Opportunities to Improve Performance
Full Presentation and Letter Available at ElliottLetters.com/PepsiCo
Elliott discussed PepsiCo's recent performance, which has been marked by a series of strategic and operational challenges. These have led to poor financial results, sharp stock-price underperformance and a highly dislocated valuation.
"While unfortunate, this disappointing trajectory has created a historic opportunity: With the right mindset and an appropriately ambitious turnaround plan, PepsiCo today represents a rare chance to revitalize a leading global enterprise and unlock significant shareholder value," Elliott wrote in its letter.
In its materials, Elliott detailed a clear agenda focused on restoring business momentum. Elliott encouraged PepsiCo's management and Board to embrace change and work toward becoming a faster growing, higher margin and far more valuable company. Elliott expressed its desire to work together to help PepsiCo build on its legacy of success and achieve its full potential.
The presentation and letter can be accessed at ElliottLetters.com/PepsiCo
The full text of the letter follows:
September 2, 2025
The Board of Directors
PepsiCo Inc.
700 Anderson Hill Road
Dear Members of the Board:
We are writing on behalf of Elliott Investment Management, L.P. ("Elliott" or "we"), which manages funds that together hold an investment of
The presentation we have published today, "Elliott's Perspectives on PepsiCo," lays out how PepsiCo can re-accelerate growth and boost financial results through greater focus, improved operations, strategic reinvestment and enhanced accountability. By embracing the proposed actions, PepsiCo possesses a unique opportunity to accelerate revenue and earnings growth and drive a meaningful valuation re-rating, which could deliver more than
We hope this presentation is received in the spirit in which it is shared: a desire to work together to help PepsiCo build on its legacy of success and achieve its full potential. We have deep respect for the Company and its leaders, and while we support the steps PepsiCo has recently announced, we and our fellow shareholders believe that there is an opportunity for much more. Our goal is to collaborate with the Board and management to return PepsiCo to its rightful place as a market-leading consumer packaged goods (CPG) powerhouse with superior results and impact.
PepsiCo Today
PepsiCo is a storied CPG bellwether with more than
PepsiCo's business comprises three segments: PepsiCo Beverages North America (PBNA), the formidable challenger to Coca-Cola; PepsiCo Foods North America (PFNA), a market-leading and highly profitable snacking franchise anchored by Frito-Lay; and a rapidly expanding International segment with a significant long-term growth runway.
As our presentation makes clear, despite its strengths, PBNA has underperformed its peers for more than a decade on both growth and margins. This long-term underperformance stems from several related strategic missteps, including self-inflicted share losses in soda, an underperforming vertically integrated bottling structure and a proliferation of new brands and SKUs that has strained focus and execution.
For years, the disappointing performance of PepsiCo's beverage business was more than offset by its resilient and high-performing foods business, PFNA. More recently, however, PFNA has begun to falter. Growth has slowed due to a challenging consumer backdrop and series of PepsiCo-specific issues, while substantial increases in investment spending well beyond the needs of the current demand environment have meaningfully compressed profit margins. We support management's recently announced initiatives to streamline the cost base, but given the degree to which PFNA's performance has eroded relative to its history and peer performance, we believe more action is warranted in order to perform to its potential – both in terms of realigning the cost base as well as evaluating other opportunities to improve efficiency and focus.
This lack of strategic clarity, decelerating growth and eroding profitability in the North American food and beverage businesses has obscured PepsiCo's enormous potential, including the significant attractiveness of its fast-growing International business. The result is that PepsiCo – long admired as one of the world's most respected and well-run CPG businesses – has become a dramatic underperformer. While unfortunate, this disappointing trajectory has created a historic opportunity: With the right mindset and an appropriately ambitious turnaround plan, PepsiCo today represents a rare chance to revitalize a leading global enterprise and unlock significant shareholder value.
Reinvigorating PepsiCo
Fortunately for PepsiCo, its problems are within its power to address. Its core brand portfolio remains among the most attractive in the CPG industry and its structural moats are as powerful as ever. As our presentation lays out, a clear agenda focused on restoring momentum in
A sharper, focused and more competitive PBNA would be fully equipped to take back market share, accelerate revenue growth and deliver meaningful margin expansion. And a leaner, stronger PFNA would have greater flexibility to reinvest in proven brands with enduring consumer loyalty, while also delivering an attractive financial profile. We believe an appropriately ambitious plan – to be clearly communicated, with updated financial targets – comprises the following elements:
- Review PBNA's Structure and Portfolio: PepsiCo should evaluate the potential refranchising of PBNA's operationally intensive bottling network – as its closest peer has and as PepsiCo itself has done in years past – to allow each business to focus on its core competencies. PepsiCo should also conduct a review of its brand and SKU portfolio with the goal of reducing operational complexity and creating a more focused PBNA.
- Realign PFNA's Asset Base and Portfolio: PepsiCo should conduct an operational review focused on aligning PFNA's costs to the present volume reality. Additionally, PFNA should streamline its portfolio by divesting non-core and underperforming assets. These steps would help restore PFNA's profit margins to appropriate levels while also freeing up significant capital for reinvestment.
- Invest in Profitable Growth: Across beverages and foods, the optimization steps outlined above would empower PepsiCo to reignite growth through targeted investment, stronger marketing support, bolder earlier-stage bets and disciplined capital allocation.
- PBNA must defend its core franchises in carbonated soft drinks with incremental marketing and innovation, while selectively expanding in growing categories.
- PFNA can enhance investment in proven brands, improve customer value perception, expand into attractive adjacencies and pursue accretive bolt-on M&A.
- Communicate a Clear Plan and Provide New Targets: PepsiCo leadership must embrace change and then commit to delivering it. Following the reviews outlined above, PepsiCo should clearly communicate to the market how management will implement these initiatives to accelerate growth and improve profitability. This commitment should be accompanied by a specific timeframe and milestones against which to evaluate its execution, including a new set of medium-term financial targets.
- Enhance Oversight and Accountability: After a period of dramatic underperformance, investors will be looking to ensure that PepsiCo is clearly positioned to seize this opportunity. It is critical that the Company put into place the appropriate oversight and structure around these reviews, be accountable for achieving its new targets and ensure that it has the right capabilities to drive successful execution.
The PepsiCo Opportunity
PepsiCo finds itself at a critical inflection point. The Company has an opportunity – and an obligation – to improve financial performance and regain its position as an industry leader. As shown in our presentation, the upside from a more focused, streamlined PepsiCo is substantial – greater strategic focus, faster organic growth and meaningful profit-margin expansion would warrant a valuation in line with peers, the market and PepsiCo's own history, representing a path to more than
Elliott's goals at PepsiCo are straightforward: help the Company sharpen focus, drive innovation, become more efficient and unlock the value that its leading brands, unmatched scale and world-class employees deserve. The path back to winning is clear and achievable.
We thank the Board and management for considering our thoughts, and look forward to working together to advance our shared commitment to PepsiCo's success.
Sincerely,
Marc Steinberg
Partner
Jesse Cohn
Managing Partner
About Elliott
Elliott manages approximately
We bring to each engagement a multidisciplinary team with expertise in strategy and operations, capital markets, corporate governance and communications. Elliott deploys significant resources and engages in extensive due diligence to understand the companies in which it invests. Consistent with this approach, we devoted substantial time and effort to evaluating PepsiCo and developing a perspective on its potential. Our work included rigorous analyses of public filings and market data; conversations with more than 100 former employees and industry executives; third-party surveys of consumers and retailers; and support from a top-tier team of strategy, operational, beverage, legal and financial advisers. This diligence gave us confidence that the priorities outlined in our presentation are actionable, can be achieved in partnership with the Board and management, and will strengthen PepsiCo's competitive position and long-term performance.
About Elliott
Elliott Investment Management L.P. (together with its affiliates, "Elliott") manages approximately
1 As of June 30, 2025.
Media Contact:
Casey Friedman
Elliott Investment Management L.P.
(212) 478-1780
cFriedman@elliottmgmt.com
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SOURCE Elliott Investment Management L.P.
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