PepsiCo (PEP) came to a settlement with activist investor Elliott Investment Management that will include cutting costs and lowering prices in its food business.
The snack and beverage company will reduce expenses in its food and beverage operations, and will cut the number of individual products by 20% across its U.S. businesses, according to a WSJ report on Monday, which cited people familiar with the matter.
PepsiCo (PEP) also expects to lower prices for some food products next year, according to the report. Earlier Monday, Bloomberg reported that PepsiCo will review its North American supply chain as one of a number of options it’s looking at in a settlement with Elliott.
A potential settlement comes after Elliott took a $4 billion stake in PepsiCo (PEP) in September and pushed for engagement with the company’s board. Elliott wants PepsiCo to evaluate refranchising its bottling network, and divesting non-core and underperforming assets.