PepsiCo is winning over global consumers with packaging and functional innovation across its portfolio, including Gatorade and Propel, while the snack and beverage giant invests in tech capabilities to further deliver growth, company CEO and Chairman Ramon Laguarta shared during an investor presentation at the 2025 Consumer Analyst Group of New York conference.
“If you think about functional hydration, we have two great brands with Gatorade and Propel that keep innovating. They keep innovating in functionality, adding functionality like rapid hydration, but also in form and function,” Laguarta elaborated.
Gatorade and Propel represent $12 billion in global retail sale value annually and serve as innovation platforms, Laguarta explained. Last year, Gatorade launched a vitamin-enhanced Hydration Booster line that had a “heavy lifestyle lean.”
Additionally, PepsiCo’s acquisition of the other half of hummus brands Sabra and Obela from food manufacturer Strauss Group will help the company meet consumer demands for more protein, Laguarta noted.
Can multi-packs kickstart US snack sales?
PepsiCo’s multi-packs and small portion options are meeting consumer demand for on-the-go convenience and budget-friendly options, Laguarta noted.
“The multi-pack business in the US is already a $4.5 billion business. Five years ago, it was less than $1 billion,” Laguarta elaborated. “At the same time, we are providing consumers with different alternatives like mini canisters or minis in beverages that also help consumers with convenience and portion control.”
PepsiCo posted a 2.5% drop in volume sales for its North American snack business in its full-year 2024 results. Investors and market watchers raised concern that PepsiCo’s approach to maintaining dollar growth by increasing prices and shrinking product sizes (i.e., shrinkflation) — a tactic other large CPG companies deployed — is impacting volumes.
What to expect from PepsiCo growth over the next five years?
Over the next five years, Lay’s, Cheetos and Doritos will drive double-digit growth globally, while Pepsi and Gatorade are expected to grow by high single digits, according to PepsiCo estimates shared during the presentation.
PepsiCo expects growth in the US and abroad over the next five years, with double-digit growth in Mexico, India and Brazil and high single-digit growth in China and the UK. However, PepsiCo’s North America Beverage and Food businesses are expected to grow 6% and 7%, respectively, for the same period.
“Our investment in international is paying for us, and we continue to develop that business at a faster pace,” emphasized Laguarta.
PepsiCo advances digital transformation plans
PepsiCo is advancing a set of technology upgrades and strategies designed to improve consumer and employee engagement.
The company invested $12 billion in capital expenditures (CapEx) in fiscal year 2024 — a 40% increase from $8 billion in 2018 — to upgrade its tech infrastructure and support its supply chain and logistics with new technology.
“In 2019, we did have a step up in CapEx, and that was largely driven by two things. One was we really leaned into establishing this much more robust IT infrastructure and data foundation, and the other area was catching up on bottlenecks that we had throughout the supply chain, so that has led to some level of elevated CapEx over more recent years,” said Jamie Caulfield, CFO for PepsiCo.
PepsiCo is simplifying its IT systems, investing in data lakes and implementing enterprise resource software from SAP in the US, Laguarta noted. Connecting disparate IT systems and investing in data are crucial to fully utilize AI, which can improve supply chains, reduce manufacturing costs and improve sales.