Activist -investor takes a $ 4 billion interest in Pepsico and sees a path to breathe new life into the sale

Activist -investor Elliott Investment Management takes a $ 4 billion interest in Pepsico and says there is a chance to breathe new life into the snack and drinking company.

Years of double -digit price increases from Pepsico and changing customer preferences have weakened the demand for his drinks and snacks, the company said in February. In July Pepsico said it is trying to combat the perception that his products are too expensive by expanding the distribution of value brands such as Chester’s and Santitas.

The stubborn inflation has influenced the behavior of consumers and many people have cut the discretionary purchases they make.

In April, Pepsico reduced its profit expectations for the entire year, with reference to increased costs of rates and a withdrawal of consumer spending. The company confirmed that guidance three months later. The tariff costs have since risen. In June the Trump government increased the rate on imported aluminum from 25% to 50%.

In a letter to the Pepsico board, Elliott said that the company is being hurt by a lack of strategic clarity, the expiration of growth and the extermination of profitability in his North -American food and beverages. But the company still believes in the potential of Pepsico, in particular the growing international business company.

“Although it is unhappy, this disappointing process has created a historical opportunity: with the right mindset and a suitable ambitious walk -through plan, Pepsico is today a rare opportunity to breathe new life into a leading global company and to unlock a significant shareholder value,” Elliott said. Pepsico shares climbed 2%on Tuesday. The share has fallen nearly 10% in the last 12 months, according to FactSet, but it has risen almost 12% in the past month because Elliott has purchased shares. Elliott said it wants to work with the board and management of Pepsico in ways to improve performance.

“The goals of Elliott at Pepsico are simple: help the company to sharpen the focus, encourage innovation, to become more efficient and to unlock the value that earns the leading brands, unparalleled scale and world class employees,” said it. “The path back to winning is clear and feasible.”

Pepsico will assess Elliott’s recommendations.

“Pepsico maintains an active and productive dialogue with our shareholders and values ​​constructive input about the delivery of long -term shareholders value,” said it on Tuesday.