PepsiCo’s Mike Del Pozzo maps affordability to new pack sizes and a refreshed Gatorade playbook

PepsiCo is taking a two-pronged approach to a tougher consumer environment, pairing more affordable purchase options with brand and product updates aimed at changing how people shop for beverages. In public remarks connected to PepsiCo U.S. beverages leadership, Mike Del Pozzo described how the company is trying to relieve price pressure in convenience retail while continuing to innovate across its drink portfolio.

For convenience stores in particular, Del Pozzo said PepsiCo is testing new price points and pack sizes as consumers show more price sensitivity and retailers grapple with weaker traffic. He pointed to a pricing problem in which a 20-ounce carbonated soft drink can be “pushing on” three dollars, and he said PepsiCo is experimenting with a 13-ounce can as well as “mini cans” that could cost about $1.50.

Del Pozzo also linked the affordability effort to merchandising and promotion tactics, arguing that PepsiCo’s priority is getting more people into the store and increasing what they buy once they are there. He said the company is working with convenience partners on individualized promotions and on using capabilities to make sure items are available at the right time for shoppers, while acknowledging the work is early and could take time to show results.

That push toward meeting consumers where they are buying intersects with PepsiCo’s broader modernization plan for brands such as Gatorade. PepsiCo announced a rebrand that explicitly targets non-athletes and “ways to hydrate” for everyday situations, from travel to walking and even hangovers, moving the message beyond a narrow sports identity.

According to The Associated Press, the Gatorade update includes new packaging that highlights how different drinks and powders work, and it reflects a shift in demand toward beverages with perceived health benefits. Del Pozzo, speaking about the brand and the competitive sports-hydration shelf, also warned that the category is becoming crowded, with new entrants building on the science PepsiCo says it created. He argued PepsiCo needs to talk more overtly about that science and why the brand believes it is future-forward.

As part of the refresh, the brand will more clearly label products that it says can hydrate better or faster than water, and PepsiCo said a new drink called Gatorade Longer Lasting is set to go on sale the next year. Del Pozzo also described adjustments aimed at drawing in additional shoppers, including lower-sugar options and removing artificial colors, while still catering to athletes’ needs.

Across both themes, the common thread is adapting product and brand packaging to how consumers are behaving now, not only what they are buying. For affordability, that means smaller formats and targeted in-store promotions designed to reduce the perceived “sticker shock” of larger servings. For modernization, it means rewriting the rationale for established brands so shoppers understand why the product fits everyday routines.

Still, details in the public remarks leave key questions unanswered. PepsiCo has not disclosed specific timelines for when each convenience-store format will scale nationwide, what volumes it expects from the smaller pack experiments, or how it is weighing margin tradeoffs versus share gains. Likewise, while Gatorade’s rebrand is described at a high level, the company did not break out expected performance targets for each new label claim or product line. What to watch next is whether these format and messaging changes translate into measurable improvement in shopper traffic and repeat purchases in convenience and whether the “non-athlete hydration” positioning expands Gatorade’s reach without diluting the brand’s competitive credibility.