PepsiCo (PEP) Consumer Analyst Group of New York Conference (CAGNY) 2026 summary

Strategic transformation and growth priorities

• Accelerating net revenue growth by transforming the portfolio, expanding away-from-home business, and focusing on innovation and consumer trends like health, wellness, and convenience.

• Multi-year productivity acceleration and record productivity years enable reinvestment in margins and growth.

• Emphasis on positive agriculture, water stewardship, and reducing plastics to ensure long-term supply chain resilience.

• Leveraging technology and data to drive efficiency, customer engagement, and supply chain optimization.

• North America and international businesses both contribute to growth, with international margins up 3 points in recent years.

Business overview and market position

• Achieved $94B net revenue and $15B core operating profit in 2025, with 58% from convenient foods and 42% from beverages.

• Portfolio includes over 30 billion-dollar brands, leading in savory snacks and strong in liquid refreshment beverages.

• North America generated $56B net revenue in 2025, up 35% since 2019, with an 18% core operating margin.

• International business delivered $38B net revenue in 2025, up 48% since 2019, with an 18% core operating margin.

• Products are sold in over 200 countries, with a diversified geographic and channel presence.

Portfolio innovation and consumer-centric strategies

• Restaging major brands with cleaner ingredients, new packaging, and health-focused benefits.

• Expanding offerings in reduced sodium, zero/low sugar, no artificial colors/flavors, and alternative cooking oils.

• Portion control and single-serve units now represent 70% of U.S. food business, supporting frequency and affordability.

• Targeting multi-year growth in fiber, hydration, protein, and energy categories, with new launches and medical communication on hydration.

• Away-from-home expansion includes crafted beverages, mini-meals, and new business models like D2C and in-store solutions.