PepsiCo Urgently Overhauling Portfolio Under Activist Pressure

PepsiCo Inc. said it is working to cut costs and overhaul its portfolio to meet consumers’ shifting tastes, while it engages in discussions with an activist investor.

PepsiCo Chief Executive Officer Ramon Laguarta said on a call with analysts Thursday morning that executives from Pepsi and Elliott Investment Management had so far met a couple of times and had constructive discussions, but that there were still “a few areas where we need to probably educate each other a bit more.” Laguarta said he expected to have more discussions with Elliott in the upcoming months and weeks.

He said PepsiCo is ...