PepsiCo CEO reveals how he is tackling weight-loss drugs and consumer affordability challenges

PepsiCo (PEP) CEO Ramon Laguarta will spend 2026 executing on a bold reinvention of the beverage and snack giant.

“This is part of our 2030 strategy. We know we need to transform ourselves. 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. The way we use technology today will not be the way that we can do things,” Laguarta told Yahoo Finance (video above).

Laguarta is focused on two main areas: innovation and overcoming the rising sales threat from GLP-1 weight-loss drugs.

Here’s what Laguarta told Yahoo Finance on each of these fronts:

On weight loss drugs: “We assume that consumers will sequentially adopt more GLP-1 medication in their lives either for real medical reasons or lifestyle reasons … So we’re leaning into action. We’re leaning into portion control for parts of the portfolio. We see that consumers are continuing to engage in our categories, but in a smaller portions… They want their favorites at smaller portions. That is a key strategic bet for us.

Now, there are many more things, such as hydration. Consumers need functional hydration. They want to drink more. Their body needs more liquids. I think we have tremendous platforms like Gatorade and Propel, and we’re leaning into those platforms to provide even more bespoke solutions for consumers. We know that consumers want more fiber because of the digestive problems.”

On addressing consumer affordability challenges: “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. We want to get the consumer back into our brands. It is one of the largest or the most important friction points in the category. We talk to consumers, they’re telling us, we would buy more of your products if you get elasticity right.”

PepsiCo shares rose following better-than-expected fourth quarter results. Sales beat analyst estimates in all divisions.

The company also reiterated the top- and bottom-line outlooks it shared back in December.

With promises of more cost cuts, lower prices, and a barrage of new products in areas like protein snacks, the Street has latched on to a few new catalysts for PepsiCo in 2026.

However, PepsiCo still has to deliver the goods, so to speak.

“The reiterated 2026 guidance was expected by investors, but there is still a high degree of skepticism despite easy comparisons (still a “show me the money” story),” said JPMorgan analyst Andrea Teixeira in a note to clients.