PepsiCo has recently decided to remove certain beverages and snack brands as it trims its huge offerings available to web fans. Some consumers are disappointed as they will see some of their favorite brand of drinks and foods disappear from supermarket shelves as well as online next year.

CWEB analysts say that the reasons for removing the brands include cost cutting as well as pressure from activist investor. The global food and beverage giant is streamlining its processes. 

Elliot Investment Management disclosed that it has a $4 billion stock in PepsiCo and wrote a letter to the food giant asking it to take steps to reduce costs and to improve growth. PepsiCo has lagged behind its largest rival Coca-Cola and has also traded at low valuation.

PepsiCo is not expected to remove entire product lines, but will make changes in sizes, flavors, or package sizes of its products. It may remove flavors and sizes that have lower sales and lower purchase frequency.

The food and beverage giant is also planning to offer more affordable price options so that it can stimulate growth and also see higher sales in its “mainstream brands.”

PepsiCo has said that it will launch products that meet consumer needs and demands including products made without artificial colors and flavors. It will increase protein, fiber and whole grain content in some products.

Elliot Investment Management has also asked the company to outsource complex, bottling operations to save money. Coca-Cola has already taken similar steps. The letter also recommends that business operations could be simplified and made cheaper if the company cuts back on drink variations that are considered to be unnecessary.

Streamlining operations are expected to reduce costs, stimulate growth, and free investments for future profitable food and beverage products that will further stimulate growth of PepsiCo.