PepsiCo CEO Reveals Dual-Front Strategy for Weight-Loss Drugs and Consumer Affordability

NEW YORK – PepsiCo CEO Ramon Laguarta is charting a course through two of the most formidable challenges facing the consumer goods industry: the seismic rise of GLP-1 weight-loss drugs and persistent consumer pressure on affordability. In a detailed discussion with Yahoo Finance, Laguarta outlined a multi-year reinvention strategy designed to ensure the snack and beverage giant not only survives but thrives in a rapidly changing landscape.

The plan, part of a broader "2030 strategy," acknowledges a fundamental truth: the PepsiCo of today cannot be the PepsiCo of tomorrow. This proactive pivot comes as the company navigates a complex environment, balancing better-than-expected fourth-quarter results with lingering skepticism from Wall Street about its long-term growth trajectory.

The Big Picture: A Proactive Transformation

Laguarta framed the company's future not as a reaction to market pressures but as a deliberate, forward-looking evolution. He emphasized that every aspect of the business—from its product portfolio to its customer engagement and use of technology—is under review.

"We know we need to transform ourselves," Laguarta stated, underscoring the urgency of the initiative. "The portfolio of today will not be the portfolio of the future. The way we serve our customers today will not be the way we serve them in the future."

This transformation is focused on two critical fronts: adapting to new consumer health paradigms driven by pharmaceuticals and winning back shoppers feeling the pinch of inflation.

Confronting the GLP-1 Gauntlet

The proliferation of GLP-1 medications like Ozempic and Wegovy, known for suppressing appetite and reducing cravings, presents a direct existential threat to a company built on indulgent snacks and sugary drinks. Rather than dismissing the trend, PepsiCo is integrating it into its core strategy.

Laguarta confirmed the company assumes "consumers will sequentially adopt more GLP-1 medication in their lives," for both medical and lifestyle reasons. In response, PepsiCo is "leaning into action" with a multi-pronged approach.

• Portion Control: The company is making a significant bet on smaller package sizes. Laguarta noted that consumers on these medications don't necessarily abandon their favorite brands but seek to consume them in smaller quantities. "They want their favorites at smaller portions," he said. "That is a key strategic bet for us." This strategy allows PepsiCo to maintain brand loyalty and revenue per ounce while adapting to reduced consumption volumes per occasion.

• Functional Hydration: Recognizing that GLP-1 users often need increased fluid intake, PepsiCo is doubling down on its hydration platforms. "Consumers need functional hydration... Their body needs more liquids," Laguarta explained. The company sees its Gatorade and Propel brands as "tremendous platforms" to provide more specialized and "bespoke solutions" for this growing consumer segment.

• Digestive Health & New Formulations: The strategy extends to addressing other physiological effects of the drugs. "We know that consumers want more fiber because of the digestive problems," Laguarta added, signaling a move toward products fortified with ingredients that support digestive wellness. This, combined with a promised "barrage of new products in areas like protein snacks," shows a clear pivot toward health-conscious innovation.

The Affordability Equation

Simultaneously, PepsiCo is tackling the "friction" caused by years of price hikes that have strained household budgets. After a period where inflation-driven price increases bolstered revenue, the company is now focused on winning back volume by addressing consumer affordability head-on.

Laguarta revealed a data-driven approach to pricing, moving away from broad-stroke increases toward targeted investments in value.

• Strategic Price Investments: The CEO described a methodical testing process for price adjustments. "We've been testing these [price] investments for over six months in multiple markets across the US, and we've seen the return on the decision," he said. The goal is to "get the consumer back into our brands" by optimizing price elasticity—the measure of how consumer demand responds to price changes.

• Listening to the Consumer: This strategy is a direct response to consumer feedback. "We talk to consumers, they're telling us, we would buy more of your products if you get elasticity right," Laguarta shared. This marks a strategic shift from a price-led to a volume-led growth model, aiming to make PepsiCo's portfolio more accessible without initiating a margin-destroying price war.

Performance Meets Skepticism

The strategic announcements are backdropped by a solid financial performance. PepsiCo's shares rose after it reported fourth-quarter sales that beat analyst estimates across all divisions. The company also reiterated its 2026 top- and bottom-line guidance, signaling confidence in its operational plan, which includes further cost-cutting measures.

However, Wall Street remains cautiously optimistic. While the strategy is clear, the focus has now shifted entirely to execution. The market has been burned by promises before, and analysts want to see tangible results.

JPMorgan analyst Andrea Teixeira captured the sentiment in a note to clients, describing the situation as "still a 'show me the money' story." She noted that while the reiterated guidance for 2026 was expected, "there is still a high degree of skepticism despite easy comparisons."

The Road Ahead

PepsiCo has laid its cards on the table. The company has a clear, logical, and ambitious plan to navigate the defining consumer shifts of this decade. The coming months will be critical in demonstrating that this strategy can translate into sustainable growth.

Key indicators to watch will include:

• Volume Growth: Will the targeted price investments successfully drive an increase in the volume of products sold, particularly in key markets like the U.S.?

• Innovation Traction: Will new products in functional hydration, protein, and fiber-rich snacks gain market share and resonate with the health-conscious consumers PepsiCo is targeting?

• Margin Management: Can the company balance lower prices and increased investment in R&D with its cost-cutting programs to protect profitability?

For Ramon Laguarta and PepsiCo, 2026 is shaping up to be a pivotal year. The blueprint for reinvention is in place; now, the monumental task of execution begins, with investors, competitors, and consumers watching intently.