American food-and-beverage company, maker of Pepsi, Lay's and Quaker Oats. More than half its revenue comes from packaged food. Its brands account for 11% of the American soft-drink market, compared with 17% for Coca-Cola's, according to Beverage Digest. Unlike Coca-Cola, PepsiCo has continued to make its own drinks in its home market rather than franchising out bottling operations.
PepsiCo's market value has slumped by 15% since the start of 2023, hurt by hefty price rises it applied to its food and beverages amid the post-pandemic inflation surge—exceeding even those of its competitors. Cost-conscious shoppers fled to upstart brands and retailers' in-house alternatives. The company has also suffered from growing health-consciousness among consumers, the boom in weight-loss drugs and the rise of ultra-processed-food concerns.
In 2025 Elliott Management took a stake worth $4bn in PepsiCo and demanded cost cuts, a trimmed product range, renewed focus on marketing core sodas and outsourced bottling in America. PepsiCo fended off the hedge fund's attempt at a board seat but agreed to lower prices, axe a fifth of its snack brands and shut some factories. Underperforming labels such as Quaker Oats may be sold off. The company is considering experimenting with outsourcing bottling in a few American states.
In 2025 PepsiCo acquired Poppi, a prebiotic-soda brand, for $2bn. The deal has helped boost beverage sales.
In early 2026 PepsiCo reported that operating profits were up by 24% year on year in the first quarter, beating the 19% increase reported by Coca-Cola. Fears that PepsiCo might be displaced by Dr Pepper as America's second-biggest fizzy-drink seller appear to have subsided.
Economists can certainly disappoint you. One said that the economy would turn up by the last quarter. Well, I'm down to mine and it hasn't.