Kaumil Gajrawala

Laguarta defined urgency as cutting non-growth costs, funding brands and raising execution standards, while reviewing partnerships and execution choices.

Laguarta said pricing will blend revenue management and productivity to absorb new inflation while staying affordable; no explicit direction on list price.

Laguarta clarified it means maximizing volume from trade investments customer-by-customer and holiday-by-holiday: simpler on everyday-low-price accounts, more complex on high-low where tweaks are focused.

Ramon described two consumer types: lapsed buyers returning through optimized value in multipacks, and new category entrants attracted by innovations like Naked and Gatorade with no artificial ingredients.

Ramon confirmed gains in both main shelf and perimeter, driven by increased unit throughput from affordability investments requiring more store capacity for in-store and online fulfillment.

Ramon said open to all ideas and all perspectives, but framed answer around three strategic considerations: future demand patterns (digital, delivery), technology enablement, and full PepsiCo P&L optimization. Did not commit to specific refranchising plans.

Ramon confirmed protein launch coming in a few months but declined specifics for competitive reasons. Jamie noted affordability is being addressed with much more precision by channel, pack size, and time of month.

Ramon noted GLP-1 consumers driving more protein, fiber, and hydration consumption; PEP well-positioned in fiber and hydration but innovating in protein. Current adoption around 7-8%.

Ramon explained the restructuring rationale as capturing international growth with focused organizations and US cost efficiencies, not a prelude to a split.

Schulten confirmed the base assumption is stable category growth and explained the sequence varies by category, using baby care value correction versus innovation-led category lift as the contrast.

Andre broke down the $1B into four components: petro-based feedstock costs, less efficient sourcing lanes with higher transportation, reformulation upcharges, and finished product logistics from diesel.

Andre confirmed about $150M after tax in potential IEEPA tariff refunds available but said recoverability depends on the U.S. administration laying out the process.

Andre said volume slow/flat through H1; improving value proposition without price changes key to reigniting usage and penetration; slow recovery expected.

Andre said no one-time effects; tariff relief came from broad exemptions on non-U.S. grown materials; benefits expected to accelerate.

Jon denied any philosophical pivot; attributed superiority gaps partly to cheap high-quality Chinese supply flowing into global markets.

Andre said innovation pace unchanged; focus is on simplicity and restaging, working with retailers on shelf simplification.

Jon attributed softness to a mild cough-cold season, but said share is still being built within cough-cold.

Andre described a stable, below-pre-COVID promo environment, no trading down, and flat private-label share; no material destocking.

Linda argued FY2026 bumpiness stemmed from ERP/operational disruption, not underinvestment, and that spend is targeted and adequate.

Luc: Remainder of year focused on stabilizing (incremental costs go away by Q4). Then optimization phase: redesign processes, reskill workforce. Benefits in supply chain (manufacturing, logistics) both P&L and balance sheet plus admin automation. Accelerating global business services adoption. All feeds pipeline of 25-50bps annual EBIT margin expansion. Gross margin expansion generally in line with EBIT expansion.

Luc unpacked: -3% ex-ERP = -1% underlying + 1pt timing benefit - 3pts out-of-stock headwind. Linda said share declined more than expected due to ERP ramp-up, particularly August. Not satisfied but fundamentals strong (household penetration stable, consumer value metric high). Laser-focused on recovery.

Linda said consumer fundamentals are fine but uncertainty is driving wallet trade-offs. Consumers buying experiences and convenience (wipes 40% Scentiva growth) while conserving on some essentials. One wallet managing multiple priorities. Not structurally unhealthy, under stress from uncertainty.

Linda explained retail sales (consumption) was similar across portfolio, Household sales gap driven by: retailer inventory adjustments in heavy goods, Kingsford timing/weather, Litter lapping prior-year promo. Not structurally different from other categories.

Luc explained U.S. ERP go-live July with phased manufacturing transition over six months. Shipping ahead of consumption to retailers + building own safety stock in Q4. Reverses in front half FY2026.

Linda described multi-pronged approach: new advertising, digital claims, subscription re-engagement, plus innovation plans for back half. Strategy working but more to come.

Linda said Canada ERP went smoothly; retailers barely noticed. U.S. implementation much more complex, to begin end of FY2025 with phased approach.

Murphy explicitly committed to the higher end of the 4% to 6% algorithm as the ambition on a sustained basis.

Henrique defended McDonald's relationship as intact, highlighted Sprite Berry Blast and Lunar Splash performing well in craft beverage space, deflected specifics on Red Bull.

John cited three factors: top line reflects momentum plus recovery needed in key markets, bias to invest ahead of the curve in brands and capabilities, and structural cycling plus below-the-line items from Coca-Cola Consolidated divestiture.

James distinguished beverage industry as structural growth category (4-5% annually for decades). Plans AI and agentic tech-driven productivity plus 2026 restructuring to fund continued growth.

John noted G10 hedges somewhat offsetting actual dollar weakness. EM currencies less hedged. Will provide 2026 FX outlook on October call.

John cautioned against reading dollar weakness from DXY since it only covers 6 currencies, heavily euro-weighted. Will flow through dollar weakness if it materializes broadly.

John acknowledged increased flexibility in 2026 but was nonspecific on M&A or buyback plans, calling it premature to detail 2026 capital allocation.

Fink said current marketing levels are healthy and do not imply higher spend; Hankinson is comfortable with full-year spend, but no run-rate figure was given.

Bill detailed Oro repricing to target high-end light beer, Premier repositioned at lower price point with early positive results. Price pack architecture ensures brands are available at accessible price points.

Bill distinguished between consumer interest (unchanged) and occasions (reduced), restaurants and social gatherings declining, but not a preference shift. Expects reversion when macro normalizes.

Bill denied structural issues, citing awareness gaps vs competition, shelf position runway, Modelo expansion into non-Hispanic community, and increased marketing returns.

Bill emphasized modular approach to capacity, noted $1.9B remaining buyback authorization. Garth highlighted approaching cash flow inflection with bias toward returning capital to shareholders.

Garth detailed $450M YTD repurchases and $2.2B remaining authorization, confirming continued opportunistic buyback approach.

Noel did not assume an inventory snap-back in guidance, focusing on driving consumption, and framed the Fresh launch as science-led and vet-driven.

Wallace attributed slowdown to consumer uncertainty causing pantry destocking and lower category penetration. Expects categories have bottomed but slow recovery. Sutula said FX used as flexibility in business model.

Wallace attributed to strategy execution not macro: therapeutic growing faster than wellness, broad-based growth across wet/dry/treats/dog/cat. Private label production ceased in July. Category flat.

Wallace attributed slowdown to macro uncertainty causing consumer caution and pantry destocking. Sutula noted oil down but palm/tallow up, modest net inflation expected.

Wallace attributed volume drag to private label (200bps) but highlighted 3% underlying growth, strong shares, prescription diet recovery. Sutula described RGM 2.0 as analytics-enabled pricing and promotion optimization.