PepsiCo to reduce U.S. product lineup by 20% to boost growth

PepsiCo CEO Ramon Laguarta has announced a strategic overhaul of the company’s product portfolio following unsatisfactory snack volume performance in the United States. During the Q2 earnings report, Laguarta detailed a plan to drive growth through investments in affordable products, portfolio transformation, and expansion in ‘away-from-home’ consumption channels.

As part of this transformation, PepsiCo previously announced plans to reduce nearly 20% of its U.S. product offerings to focus on items with simpler ingredients and functional benefits. This move is expected to lead to the discontinuation of various niche formats and snack varieties by 2026.

Other major food companies are also adjusting their lineups due to shifting consumer preferences. For instance, Coca-Cola confirmed it is exiting the frozen-can category, ending its 80-year presence with the discontinuation of Minute Maid frozen juice concentrates.