Why is PepsiCo's North American food business struggling despite price cuts on major snacks like Lay's and Doritos?

PepsiCo's North American food business saw sales slip 2% and volume flat in the second quarter ended June 13, despite earlier price cuts of up to 15% on key brands including Lay's, Doritos, Cheetos, and Tostitos — marking a reversal from first-quarter volume growth of around 2%, and reflecting that volumes have fallen four times in the last six quarters due to shifting consumer habits, GLP-1 drug usage, rising living costs, and a broader move toward healthier eating.

How does PepsiCo's recent performance compare with Coca-Cola's, and what does that reveal about their respective business models?

PepsiCo's North America beverage volume fell 4% in the latest quarter, while Coca-Cola reported 4% growth in the region three months earlier, highlighting the challenges facing PepsiCo's snack-heavy portfolio — whose food brands generate about 58% of its annual revenue — as consumers become more selective, whereas Coca-Cola’s beverage-focused model has proven more resilient amid the shift toward intentional snacking and reduced consumption of sweet and salty snacks.

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