PepsiCo CEO issues pessimistic warning: U.S. inflation is making a comeback, and consumers are beginning to cut spending.

PepsiCo’s latest financial report and executive commentary send a clear signal: U.S. consumer resilience is facing renewed pressure from inflation, and growth previously driven by promotions is proving unsustainable. On July 9, CEO Ramon Laguarta stated in the earnings announcement that input-cost inflation in the U.S. will intensify in the second half of the year compared to the first half, further straining consumers’ budgets and slowing overall performance across food and beverage categories. This assessment is reflected in Q2 results: revenue rose 6.4% year-on-year to $24.2 billion—beating market expectations—but growth in North America’s snack business slowed markedly after the Super Bowl promotional boost faded, signaling weakening organic growth momentum. Although core markets face headwinds, PepsiCo maintains its full-year guidance unchanged, supported primarily by overseas growth and improved manufacturing efficiency. The company expects cost optimization initiatives and tariff refund applications to offset a substantial portion of the anticipated cost increases in the second half. Promotional fatigue and rising costs plunge PepsiCo’s North American business into renewed softness The earnings report shows that PepsiCo’s North American snack business (including brands such as Lay’s and Doritos) saw flat volume growth quarter-on-quarter in Q2, with organic revenue declining 2%—a sharp contrast to Q1. Earlier, the company had lowered prices on select snacks by up to 15% during its Super Bowl marketing campaign, temporarily boosting both sales volume and revenue. However, the promotional stimulus rapidly dissipated in Q2, returning growth to sluggish levels.

2026 Fortune Global 500 rankings released: Walmart relinquishes its 12-year reign at the top; Nestlé, PepsiCo, and Mondelez maintain their long-standing ‘top-tier formation’; Heineken drops off the list, and major beverage companies generally slide down the rankings.

Let’s first examine the ‘Food: Consumer Products’ sub-ranking. In the 2026 edition, the same ‘longstanding trio’ remains intact—Nestlé, PepsiCo, and Mondelez International—marking the most enduring lineup since 2023. However, multinational packaged-food giants now broadly confront sluggish consumption and intensified competition from private-label brands. As the world’s largest food company, Nestlé—despite a string of major developments in 2025—continues to defend its position as industry leader in this year’s ranking. In 2026, Nestlé ranks #93, climbing four places from its 2025 position. This reflects a 3.8% year-on-year increase in revenue (in USD), although profits declined by 12%. As previously reported by Xiaoshidai, Nestlé’s new CEO and new chairman had each been in office for less than six months when the 2025 results were released, facing mounting investor pressure for corporate revival. “I am encouraged by the progress made in 2025, but we still have much work ahead,” said CEO Philipp Navratil—the third CEO at this Switzerland-headquartered company in the past two years. Under his leadership, Nestlé is pursuing a strategic ‘divestment agenda’: it recently announced the sale of half its water business—including Perrier—to a U.S. private equity firm; it is also engaged in advanced negotiations with Froneri over the potential sale of its remaining ice cream business; and it plans to continue divesting its mass-market VMS (vitamins, minerals, and supplements) business. If fully executed, these moves are expected to modestly reduce the scale of the world’s largest food company. PepsiCo, trailing closely behind Nestlé, is likewise a veteran presence on this sub-ranking, placing #121 in 2026 versus #115 the prior year. In 2025, PepsiCo—generating $93.925 billion in revenue—made headlines in multiple ways, including engagements with activist investors and its $1.95 billion acquisition of U.S.-based prebiotic soda brand Poppi. Compared to its strong international performance, sluggish consumption in North America remains PepsiCo’s key pain point. To address this, the company is streamlining its North American product portfolio, cutting operating costs, and lowering prices. For 2026, CEO Ramon Laguarta projected growth in volume, net revenue, and operating margin for PepsiCo’s U.S. snack business. As for Mondelez International, it ranked #422 in 2026—up 14 spots from the previous year, marking the largest gain among the three. In 2025, Mondelez’s revenue grew 5.8% year-on-year, with organic net revenue up 4.3%, driven primarily by an 8% price increase—even as ‘volume/product mix’ declined by 3.7%. CEO Dirk Van de Put attributed this organic revenue growth to “strategic pricing implemented in response to record-high cocoa input-cost inflation” and “continued consumer loyalty to our iconic brands—even as they become more price-conscious.” Let’s revisit the revenue comparison among these three giants. Though all appear on the Global 500 list, their actual scales differ significantly—especially Mondelez’s.

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