Why PepsiCo Chose To Discontinue Nearly 20% Of Its Products In 2025

Get ready to see some serious changes on certain grocery store shelves in the coming year. PepsiCo, the company behind tons of beloved brands, including Lay's (as well as the brand's dips), Funyuns, Jack Link's, Quaker, Gatorade, and Muscle Milk, recently announced that it plans to cut out about one in five of its product offerings in 2026. The brand has yet to reveal which offerings will disappear. 

The change was spurred by an open letter and presentation from Elliot Investment Management, an activist investment group that currently holds a $4 billion stake in PepsiCo. According to the presentation, PepsiCo has specifically struggled in its North American market. Its international market has shown strong growth, but this is insufficient in balancing the share loss, margin erosion, and slow growth in the North American sector. 

Per the Associated Press, PepsiCo has landed on a deal with Elliot Investment Group which includes seriously cutting down on product offerings. The company says that it plans to focus on marketing and value for the ever-evolving North American customers. Basically, investors claim that PepsiCo has taken its eye off of the prize, and major changes are necessary to get sales back on track. Let's take a look at what factors in 2025 necessitated a change in PepsiCo's strategy — and what you might see from the company in the coming year as its strategy shifts. 

In 2025, PepsiCo struggled to meet sales expectations, reporting disappointing first and second quarters. The company managed to have some success in the third quarter of the year as it worked to promote its value brands such as Santitas and Chester's, but Elliot Management Group believes that the company is nowhere near meeting its potential. PepsiCo stated in February 2025 that the reason for the dip in sales was twofold: Both the company's own price hikes and consumer demand for healthier, more protein-driven snacks contributed to PepsiCo's economic underperformance.

The company states that it's aiming to speed up its plans to offer snacks without artificial colors or ingredients, as well as high-protein options (keep an eye out for Doritos Protein, or try making your own Doritos at home in the meantime). PepsiCo is also planning to lower prices, but it hasn't been transparent about exactly what that will look like for consumers. The bottom line: You're likely to see some serious changes from the company over the coming year (PepsiCo is still planning on holding a 2026 Pepsi Challenge at the Super Bowl, however), and investors believe these changes will result in a resurgence of the company's profitability.