PepsiCo has announced plans to integrate its two largest businesses in North America—snacks and beverages—in a major productivity push aimed at enhancing agility and competitiveness in the market.

Chairman and CEO Ramon Laguarta revealed the strategy during the company’s second-quarter earnings presentation on 17 July, describing the initiative as “One North America.”

“This will modernise our company and improve our agility and marketplace competitiveness over time,” Laguarta said in prepared remarks.

The integration is expected to involve Frito-Lay North America, which reported revenues of $24.8 billion in 2024, and PepsiCo Beverages North America (PBNA), which posted $27.8 billion. It remains unclear if Quaker Foods North America, with 2024 revenues of $2.7 billion, will also be included, though Laguarta suggested it was likely in response to analyst questions.

“When it comes to the North America market, we have one new layer of opportunity that is going to give us a lot of opportunities to improve our cost structure over the next three, four years,” he said. “We’re going to start looking at those businesses in a more integrated way to perform some of the value chain tasks in an integrated way.”

The move is designed to unlock cost savings and operational efficiencies while creating new growth opportunities. “This, for us, is a huge idea to optimise how we do most of the tasks in our value chain, how we do this at low cost and better performance,” Laguarta explained.

PepsiCo’s international business, which accounted for 40% of the group’s $91.8 billion revenue in 2024, continues to be a major growth driver. However, Laguarta highlighted foodservice as an emerging area of focus, supported by innovation in both out-of-home and retail channels.

PepsiCo is also preparing for a major launch into the protein beverages segment, offering products without artificial ingredients. “We will be participating in the liquid-protein space with, I think, superior propositions that have no artificials, that are great tasting, and that I think will give us the return on what is clearly a consumer trend that is scaling up in the US,” Laguarta said.

Chief Financial Officer Jamie Caulfield noted that PepsiCo expects to deliver 70% more productivity savings in the second half of 2025 than in the first six months, with a particular focus on Frito-Lay operations. “We’re pushing on every cost lever that is available and that’s what’s going to drive the incremental productivity in the second half,” Caulfield said.

The finer details of how the integration will work, including whether PepsiCo will consolidate its divisions into one standalone unit or maintain separate reporting lines, have yet to be announced.