In the United States, PepsiCo is undergoing a significant restructuring process, deciding to eliminate hundreds of products from its shelves as part of a strategic overhaul prompted by activist investor Elliott Investment Management. This announcement came in December 2025, following Elliott's acquisition of a $4 billion stake in the beverage and snack giant in September 2023. The company plans to reduce approximately 20% of its stock-keeping units (SKUs) by early 2026, which refers to specific versions of an item, such as flavor or size variations, rather than entire product lines. Alongside this, the company aims to cut prices and offer more affordable options to improve sales frequency and stimulate growth in its core brands. The changes announced by PepsiCo include the closure of three manufacturing plants earlier this year, as well as the shutdown of some production lines. These efforts reflect Elliott Investment Management's pressure on PepsiCo to streamline operations and tackle the company's eroding profitability and decelerating growth, which have made its stock trade at decade-low valuation levels. Elliott has urged PepsiCo to reassess its strategies, considering possible sales or outsourcing of its complex bottling operations, which Coca-Cola already outsources. Marc Steinberg, a partner at Elliott, has expressed confidence in the plans laid out by PepsiCo management, emphasizing the need for urgency in implementing these changes to foster revenue and profit growth. The company anticipates that the collective measures taken will not only simplify operations but also free up funds for reinvestment in its most productive areas. Additionally, PepsiCo is expecting its organic revenue to grow between 2% and 4% in 2026, and aims to achieve better profit margins by at least one percentage point in the next three years through these initiatives. In summary, the decisions made by PepsiCo are in response to ongoing concerns about its competitive position and market performance compared to rivals like Coca-Cola. This strategic shift is intended to enhance shareholder value and address the issues raised by investors, while simultaneously attempting to rejuvenate the brand's offerings and reaffirm its place in the market.