There is a major reform process underway

PepsiCo (Beep) has doubled its snacks business after years of declining volume growth.

On Thursday before the market opens, the company Overcoming low earnings estimates From Wall Street in the third quarter report. but Snacking continued to slow down In the US: North American food revenue decreased 3%, units sold decreased 4%.

PepsiCo CEO Ramon Laguarta told Yahoo Finance that a comprehensive overhaul is underway.

“The situation in the United States is accelerating,” Laguarta said in a phone interview. “We’re very careful about taking costs out of the system, especially Frito-Lay…. It’s been a very meaningful restructuring.”

This year, the company laid off 7,000 people from the Frito-Lay network, calling it “difficult” but “something we had to do.” Beginning in May and extending into the fourth quarter, investors can expect “some additional planned lockdowns and warehouse closures,” Laguarta said.

In September, activist investor Elliott Management revealed A A share worth $4 billion In the company, which calls for a transformation, especially in the field of snacks.

The company is also facing pressure from RFK Jr Make America healthy again Initiatives (multiple).

In its prepared remarks, the company shared plans to remove artificial flavors from snacks like Cheetos and Doritos. It also plans to expand the use of avocado oil and olive oil across its Lay’s brand – and focus on its healthy snack brands such as Simply, Sabra, Sun Chips and Siete Foods, which the company supplies. Acquired earlier this year.

Additionally, new pack sizes are in the works, as well as a Doritos protein chip and more fiber, whole grain and protein offerings from brands like Quaker, Sun Chips, PopCorners and Smartfood.

Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].

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