PepsiCo has followed its leading rival, Coca-Cola, in deciding to purge dozens of brands from its product portfolio.

In 2020, Coke implemented what could be thought of as a culling of its brands. It slashed the company’s offerings.

“The company expects to offer a portfolio of approximately 200 master brands, an approximate 50% reduction from the current number, and phase out some products, such as ZICO and Tab,” Coca-Cola said then in a news release.

Now, just a few years later, PepsiCo has shared that it plans to slash up to 20% of its product lineup as part of a deal with activist investor Elliott Investment Management.

That plan was shared in a December press release, but no mention was made of which brands would be retired. Now, some of the company’s product cuts have been discovered by a leading digital food reporter.

PepsiCo is making deep cuts

PepsiCo was not shy in stating its intent to make significant cuts.

“[The company is] aggressively reducing operating costs and improving operational excellence with savings generated to support meaningful investments in advertising and marketing and consumer value. For example, we have closed three manufacturing plants and shut several manufacturing lines this year and are in the process of reducing nearly 20% of SKUs in the U.S. by early next year,” the company shared.

When you cut that deep, some people are going to lose products to which they’re emotionally connected.

SnackWithZach, a food industry reporter on Instagram, shared products believed to be on the chopping block, many under PepsiCo’s Frito-Lay banner. These have not been confirmed by PepsiCo.

“Frito-Lay is discontinuing a bunch of different snacks from their portfolio this year, including stuff from Cheetos, Lay’s, and more. Here’s a list of stuff you’ll no longer be able to find in stores in just a few months,” he posted on Instagram.

• Up first, we have the Cheetos Cheese Pizza Puffs. These got replaced by the Flamin’ Hot Tail Pickle Puffs.
• Two cuts from Funyuns, or should I say Deep Cuts. The first is the Sour Cream and Onion. The second is the Spicy Queso.
• Two options are out for Smartfood as well. The first is Movie Theater Butter. The second is the Brown Butter and Sea Salt Kettle Corn.
• Going away from Lay’s are the Sweet and Spicy Honey, the Lightly Salted Barbecue, and the Baked Salt and Vinegar.
• Three of the Poppables are getting the axe. The first two are the Veggie Sea Salt and Ranch. The second is the Sea Salt Sweet Potato.
• The Jack Links and Fritos Chili Cheese Meat Stick is out. Just the meat stick it looks like, not the jerky.
• The 16-ounce jar of Tostitos Nacho Cheese Dip is finished.

PepsiCo has not confirmed these culled products or released its own list of impacted products.

Killing products is part of the business

At the time of its 2020 purge, Coca-Cola’s Cath Coetzer, the company’s global head of innovation and marketing operations, explained its decision.

“This isn’t about paring down to a specific number of product offerings under our brands. The objective is to drive impact and growth. It’s about continuing to follow the consumer and being very intentional in deciding which of our brands are most deserving of our investments and resources, and also taking the tough but important steps to identify those products that are losing relevance and therefore should exit the portfolio,” she said in a press release.

More Retail:

• Costco sees major shift in member behavior
• Retail chain shuts all locations as legal changes hit industry
• Lululemon struggles to reverse concerning customer behavior

Coca-Cola’s former CEO James Quincey also shared insight as to why products must be retired.

“In the end, it’s a Darwinian struggle for space in the supermarket or in the convenience store,” he told CNN Business. “The retailer wants to make as many dollars as it can for each spot on the shelf. If a brand, even a beloved one, sells a fraction of what these other bottles will sell, eventually it will get pulled out.”

The chips aisle is about to get a little less crowded.

Shutterstock

PepsiCo resets its strategy

Elliott Investment Management, which took a $4 billion stake in PepsiCo in December, pushed for these changes.

Amber Brooner, CRO at revenue management platform XTEL, which works with companies including Danone, Kraft Heinz, and Nestle on pricing strategy, referred to PepsiCo’s plan as a broad strategic reset, Modern Retail reported.

“Companies are revisiting price investment now because sustained price increases have begun to erode unit volumes,” she said, especially given the now-obvious trend of shoppers trading down to private-label and value-oriented offerings.

Analysts are mixed on PepsiCo’s moves.

Morgan Stanley’s Dara Mohsenian said the company “laid out 2026 goals that were likely slightly better than expected,” but cautioned that the guidance “was not necessarily conservative,” Investing.com reported.

PepsiCo CEO Ramon Laguarta is confident that the changes will be positive for the company’s snack lines.

“We expect Frito-Lay to grow volume, net revenue and operating margin this year. So that should be the framework that we operate in,” he said during the company’s fourth-quarter earnings call.

Related: 76-year-old comfort food chain closes most of its restaurants