Catenaa, Tuesday, September 02, 2025- Elliott Management on Tuesday disclosed a $4 billion stake in PepsiCo, prompting the beverage maker’s stock to rise about 6%, as it plans to restore growth to PepsiCo.
PepsiCo should conduct an operational review and put into place oversight and structure around reviews, the activist investor said in a presentation to the company’s board.
The company has been tackling choppy demand for its snacks business, and working through shifting consumer preferences to healthier drinks and sodas by investing in beverage companies such as energy drink maker Celsius.
The Paul Singer-founded Elliott’s bet in Pepsi is worth $4 billion, becoming the consumer giant’s top five active investors excluding index funds, according to FactSet.
The activist investor sent a presentation and letter to Pepsi’s board of directors on Tuesday, detailing a clear agenda focused on restoring business momentum.
Elliott has previously led activist campaigns at companies such as Honeywell, where it orchestrated a break-up of the heavy machinery maker, and Starbucks, where it pushed for a change in leadership.
“While unfortunate, this disappointing trajectory has created a historic opportunity: With the right mindset and an appropriately ambitious turnaround plan, PepsiCo today represents a rare chance to revitalize a leading global enterprise and unlock significant shareholder value,” Elliott wrote in its letter.
In July, Pepsi reported quarterly earnings and revenue that topped analysts’ expectations, as the company projected that weak North American demand would rebound as strategy changes take hold.
Elliott, with over $70 billion in assets under management, has a long history of activism that has at times yielded strong returns for investors. It’s a large holder of Phillips 66 and Southwest Airlines and has been driving changes at those two companies.
