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PepsiCo volumes slide as chief cites ‘constructive’ talks with Elliott

Weakness in North America comes as activist pressures management to deliver turnaround

PepsiCo reported declining sales volumes in its two biggest businesses and announced the departure of its chief financial officer after less than two years, as the food and beverage company engages with activist investor Elliott Management. 

The maker of Pepsi and Doritos said organic sales volumes fell 4 per cent at both its North American food and beverage businesses in the third quarter, underscoring how higher prices and health concerns were turning away some consumers.

Struggles in PepsiCo’s North American businesses have caught the attention of Elliott, which last month disclosed a $4bn stake and offered extensive recommendations for turning the business around. The campaign is intensifying pressure on chief executive Ramon Laguarta to boost sales that have slowed in the past two years. 

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