Elliott plans activist campaign at PepsiCo with USD4b stake: WSJ
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The news: Activist investor Elliott Investment Management has built an approximately USD4 billion ($6.14 billion) stake in PepsiCo and plans to push for changes at the food and beverage company to address its flagging share price, according to sources cited by the Wall Street Journal.
The numbers: The WSJ reports that PepsiCo’s company’s market value has shrunk to about USD200 billion, more than a 25% drop from a peak of USD270 billion in May 2023.
The context: Elliott’s position now makes it one of PepsiCo’s top five active investors excluding index funds, sources told the masthead. Elliott’s specific ideas for changes couldn’t immediately be learned.
Tariff pressures and increasingly price-sensitive consumers have added to PepsiCo’s problems in recent months. The company has dropped to fourth place from second in soft drinks sales volume (which accounts for around 60% of its revenue), with Coke, Dr Pepper, and Sprite coming in ahead.
PepsiCo brands also include Mountain Dew, Gatorade, Lay’s, Doritos and Quaker Oats.
The source: Wall Street Journal
