PepsiCo CEO Ramon Laguarta is steering the snack and beverage giant through twin headwinds: GLP-1 weight-loss drugs suppressing appetites and persistent inflation squeezing disposable income. The company cut prices on Doritos and Lay's earlier this year, sparking a volume rebound that delivered 1% growth in the first half — a marked improvement from prior years — though at the cost of lower profit margins.

Laguarta said the price reductions achieved their primary goal: recovering consumption. PepsiCo is gaining market share volume even as the overall category expands. The strategy reflects a bet that volume recovery now positions the company for pricing power later, once consumer pressure eases.

Beyond pricing, Laguarta sees opportunity in smaller-portion packs and functional beverages like teas marketed for mental focus — categories that align with GLP-1 users' reduced calorie needs and heightened health awareness. PepsiCo is also testing automated trucks to offset logistics costs.

For investors, the volume rebound signals pricing elasticity remains intact, but margin compression is the near-term trade-off. The real test comes when PepsiCo attempts to restore prices without ceding the share gains it bought with discounts.