PepsiCo plans to cut prices and eliminate some of its products under a deal with an activist investor announced Monday.
The Purchase, New York-based company, which makes Cheetos, Tostitos and other Frito-Lay products as well as beverages, said it will cut nearly 20% of its product offerings by early next year. PepsiCo said it will use the savings to invest in marketing and improved value for consumers. It didn't disclose which products or how much it would cut prices.
PepsiCo said it also plans to accelerate the introduction of new offerings with simpler and more functional ingredients, including Doritos Protein and Simply NKD Cheetos and Doritos, which contain no artificial flavors or colors. The company also recently introduced a prebiotic version of its signature cola.
PepsiCo is making the changes after prodding from Elliott Investment Management, which took a $4 billion stake in the company in September. In a letter to PepsiCo’s board, Elliott said the company is being hurt by a lack of strategic clarity, decelerating growth and eroding profitability in its North American food and beverage businesses.
In a joint statement with PepsiCo Monday, Elliott Partner Marc Steinberg said the firm is confident that PepsiCo can create value for shareholders as it executes on its new plan.
“We appreciate our collaborative engagement with PepsiCo’s management team and the urgency they have demonstrated,” Steinberg said. “We believe the plan announced today to invest in affordability, accelerate innovation and aggressively reduce costs will drive greater revenue and profit growth.”
Elliott said it plans to continue working closely with the company.
PepsiCo shares were flat in after-hours trading Monday.
PepsiCo said it expects organic revenue to grow between 2% and 4% in 2026. The company’s organic revenue rose 1.5%. the first nine months of this year.
PepsiCo also said it plans to review its supply chain and continue to make changes to its board, with a focus on global leaders who can help it reach its growth and profitability goals.
“We feel encouraged about the actions and initiatives we are implementing with urgency to improve both marketplace and financial performance,” PepsiCo Chairman and CEO Ramon Laguarta said in a statement.
PepsiCo said in February that years of double-digit price increases and changing customer preferences have weakened demand for its drinks and snacks. In July, the company said it was trying to combat perceptions that its products are too expensive by expanding distribution of value brands like Chester’s and Santitas.
FILE - Plastic bottles of Pepsi are displayed at a grocery store, Nov. 15, 2023, in New York. (AP Photo/Ted Shaffrey, File)
DUBAI, United Arab Emirates (AP) — Egypt and Iran, two Middle East nations which target gays and lesbians, have complained to FIFA over a World Cup soccer match in Seattle that is planned to celebrate LGBTQ+ Pride.
Leaders in the nation's soccer federations publicly rebuked the idea of playing the match June 26 at Seattle Stadium, which local organizers say will include a “once-in-a-lifetime moment to showcase and celebrate LGBTQIA+ communities in Washington.”
In Egypt, the soccer federation issued a statement late Tuesday saying it sent a letter to FIFA “categorically rejecting any activities related to supporting homosexuality during the match.”
Seattle PrideFest has been organized in the city since 2007 by a nonprofit which designated the June 26 game for celebration before FIFA made the World Cup draw Friday.
FIFA chose Saturday to allocate the Egypt-Iran game to Seattle instead of Vancouver, where the teams' group rivals Belgium and New Zealand will play at the same time.
Already, organizers in Seattle have promoted an art contest for the game, including one entry of a rainbow-flagged sun rising over Mount Rainier as a crab goalie goes for a soccer ball while holding a cup of coffee in its pinchers.
“With matches on Juneteenth and pride, we get to show the world that in Seattle, everyone is welcome,” Seattle's Mayor-elect Kate Wilson wrote on social media. “What an incredible honor!”
FIFA controls only stadiums and official fan zones in World Cup host cities and should have no formal authority over community events like Seattle PrideFest.
FIFA declined comment Tuesday to the Associated Press, and did not address a question if it would consider switching the Belgium-New Zealand game to Seattle.
In Iran, where gays and lesbians can face the death penalty, the president of Iran’s Football Federation Mehdi Taj criticized scheduling the match during an interview aired on state television late Monday.
Taj said Iran would bring up the issue during a FIFA Council meeting in Qatar next week. The longest-serving member of the 37-person council chaired by FIFA President Gianni Infantino is Egypt's Hany Abo Rida.
“Both Egypt and we have objected, because this is an unreasonable and illogical move that essentially signals support for a particular group, and we must definitely address this point,” Taj said. State TV on Tuesday confirmed a complaint would be sent to FIFA.
The Egypt soccer federation led by Ado Rida said of the pride celebration it “completely rejects such activities, which directly contradict the cultural, religious and social values in the region, especially in Arab and Islamic societies.”
It urged FIFA to stop the celebration to “avoid activities that may trigger cultural and religious sensitivity between the presented spectators of both countries, Egypt and Iran, especially as such activities contradict the cultures and religions of the two countries.”
Iran had threatened to boycott the World Cup draw in Washington, DC over complaints about five of its nine-person delegation, including Taj, not getting visas to enter the United States.
Iranians are subject to a travel ban imposed by President Donald Trump’s administration and the U.S. in the past has denied visas for those with ties to Iran's paramilitary Revolutionary Guard, like Taj. Iran ended up sending a smaller delegation including the team's coach.
Tensions remain high between Tehran and Washington over Iran's nuclear program, particularly after American warplanes bombed atomic sites in the country during Israel's 12-day war with the Islamic Republic in June. Unlike the 2022 World Cup, however, Iran is not scheduled to play the United States in the World Cup's opening matches.
Asked about the complaint Wednesday, Seattle's organizing committee said it was “moving forward as planned with our community programming outside the stadium during Pride weekend and throughout the tournament.”
“The Pacific Northwest is home to one of the nation’s largest Iranian-American communities, a thriving Egyptian diaspora and rich communities representing all nations we’re hosting in Seattle,” spokesperson Hana Tadesse said in a statement. "We’re committed to ensuring all residents and visitors experience the warmth, respect and dignity that defines our region.”
For years, Egyptian police have targeted gays and lesbians, sparking warnings even from the app Grindr in the past. Though Egypt technically does not outlaw homosexuality, authorities frequently prosecute members of the LGBTQ+ community on the grounds of “debauchery,” or “violating public decency.”
Iran also has targeted the LGBTQ community and its theocracy is believed to have executed thousands of people for their sexuality since the 1979 Islamic Revolution. Hard-line former President Mahmoud Ahmadinejad once famously went as far as to claim during a 2007 visit to the United States: “We don’t have homosexuals like in your country.” A crowd at Columbia University responded by laughing and heckling the leader.
FIFA risks being accused of a double standard if it sides with World Cup teams' federations over the city of Seattle.
At the 2022 World Cup in Qatar, FIFA fiercely defended the right of the host nation's cultural norms to be respected in full by visiting teams.
A group of European federations wanted their team captains to wear a “One Love” armband with some rainbow colors that symbolized human rights and diversity, which FIFA and Qatari officials viewed in part as criticism of the emirate criminalizing same-sex relations. Some Wales fans had rainbow hats removed before entering the stadium.
Qatar also will play in Seattle at the World Cup, on June 24 against a European opponent which could be Italy or Wales.
AP Sports Writer Graham Dunbar in Geneva contributed to this report
AP soccer: https://apnews.com/hub/soccer
From left: Alexi Lalas and Ronaldo listen as FIFA President Gianni Infantino and host Andrés Cantor applaude as Francesco Totti, and Hristo Stoichkov look on during the match schedule reveal for the 2026 soccer World Cup in Washington, Saturday, Dec. 6, 2025. (AP Photo/Chris Carlson)
