PepsiCo’s Great Beverage Meltdown: Is It Too Late for Its Soda Empire?

PepsiCo, once a formidable rival to Coca-Cola in the global soda market, is now facing one of its most challenging periods in decades. Its flagship cola brand recently slipped to the No. 3 position in the U.S., behind Coca-Cola and Dr Pepper, highlighting the severity of the erosion in its core beverage business. Ram Krishnan, the CEO of PepsiCo Beverages North America, is spearheading a turnaround mission with aggressive in-store visits, a refreshed marketing strategy, and operational restructuring. Despite generating $92 billion in revenue in 2024, PepsiCo’s U.S. beverage volume—including Diet Pepsi and Pepsi Zero Sugar—fell 32% between 2010 and 2023, while Coca-Cola’s dropped by only 14%. The company has been investing heavily in international markets and its food division, but its inability to stabilize its soda business has triggered concerns among investors and independent bottlers.