PepsiCo Restructure to Focus on Automation, Digitalization, Simplification
PepsiCo plans to refocus its business, trimming its portfolio offerings and investing in digital capabilities to better position the company for growth.
The revamped strategic initiative includes accelerated efforts around automation, digitalization and simplification, yielding expected productivity-related revenue growth in the 2% to 4% range during the second half of 2026.
This will fund investments in advertising, marketing and consumer value.
The company is currently reviewing its North America supply chain and go-to-market optimization initiatives, looking to take a "nuanced approach that factors in key components such as return on investment, scale and market share at a U.S. state level."
As part of this, PepsiCo will reduce nearly 20% of its SKUs in the U.S. by early next year. It has already closed three manufacturing plants and several lines this year.
Additionally, it will continue its move away from artificial colors and flavors, instead implementing simpler ingredients with more protein, fiber and whole grains. Within its promotion and pricing strategy, PepsiCo will focus on affordability, lowering prices to drive increased purchasing frequency for its key brands.
“PepsiCo Foods North America will play a critical role toward achieving [our] targets, and we feel encouraged about the actions and initiatives we are implementing with urgency to improve both marketplace and financial performance," Ramon Laguarta, PepsiCo CEO, said in a statement.
