Offering a wide variety of products is not always synonymous with success, and that is precisely what is happening to PepsiCo. Following the closure of several factories, such as those in New York and Florida, the company that manufactures products like Cheetos, Gatorade, and Aquafina has announced the removal of hundreds of items from shelves starting in January 2026, with the goal of promoting consumer affordability and increasing the company’s profits. In total, it will withdraw around 20% of stock-keeping units (SKUs) from the U.S. market.
Company statements reported by FoodBev refer to the company’s intention to continue providing financial, labor, and transition assistance to employees affected by the closure of the two Frito-Lay plants in Orlando and the PepsiCo New York plant. These new measures respond to the suggestions of one of the company’s main shareholders, Elliot Investment Management, who has not only pointed out to the company that they need to save money and improve the business, but has also raised the possibility of outsourcing bottling operations. Ramon Laguarta, CEO of PepsiCo, stated that sales growth is expected by 2026.
Goodbye to PepsiCo products
Starting in January 2026, you may notice that some PepsiCo products will disappear from supermarket shelves as a result of an internal restructuring of the company. The goal is to support consumers amid inflation rates, as well as to improve the company’s own revenues. According to information published by FoxBusiness, the company had to discuss with investors to make decisions that would enhance the company’s performance.
It is estimated that around 20% of the stock units (SKUs) sold in the United States will be reduced in January. This removal is not related to a specific product line, but to the multiple versions of a single product, which will be withdrawn. According to a PepsiCo statement, this measure aims to improve the “purchase frequency of our main brands,” meeting consumer needs.
Factory closures
Before announcing this new measure, PepsiCo had already carried out the closure of several of its production factories in the United States, which had been operating for decades. This is the case of two Frito-Lay plants in Orlando, Florida (one already closed last November 4 and the second will close on May 9, 2026), and a PepsiCo plant based in New York that closed earlier this year.
According to the company’s statements to FoodBev about these closures, it was “difficult… as we know how much this site and its people mean to the Orlando community. This action was driven by business needs, and we are committed to treating all affected employees with care—providing transition assistance, career support, and pay and benefits during this time”.
Investor pressure
As we have mentioned, reaching the implementation of this measure required several discussions with investors. The one that carried the most weight was Elliot Investment Management, which has a $4 billion stake in PepsiCo, and has long been warning the company of the need to reduce costs and improve the business. In addition to the removal of some products, they also suggested the idea of outsourcing bottling operations, as Coca-Cola does.
According to statements by Marc Steinberg, partner at Elliot, to Fox Business, “We appreciate the collaboration with PepsiCo’s management team and the urgency they have shown.” He added that the company was “confident that PepsiCo will create substantial value for shareholders as it executes this plan.” For his part, PepsiCo CEO Ramon Laguarta indicated that sales are expected to increase by between 2% and 4% by 2026.
Frequently asked questions
Why are some products going to stop being sold?
Because the company needs to reduce costs and increase its revenue, although it also refers to wanting to help the consumer with inflation prices.
When will the affected products no longer be available?
Starting in January.