Grocerant Guru Perspective: Stop Paying for Shelf Space—Start Selling What Consumers Actually Want

 

From the Grocerant Guru’s vantage point, PepsiCo’s December announcement is less about activist pressure and more about an overdue market correction. Reducing prices, eliminating roughly 20 percent of SKUs by early 2026, and refocusing on core brands signals a recognition of a fundamental truth shaping food retail today: paying for shelf space does not build loyalty—delivering relevance, value, and choice clarity does.

For decades, large CPGs competed by flooding shelves. More facings, more line extensions, more marginal SKUs, and more trade spend bought visibility but diluted velocity. The result is what behavioral economists call the paradox of choice—too many options create confusion, slow decision-making, reduce satisfaction, and ultimately suppress sales. Consumers do not want infinite beverage choices; they want the right beverage, at the right price, in the right moment.

PepsiCo’s acknowledgment that years of double-digit price increases weakened demand is critical. Value perception matters more today than brand ubiquity. Shoppers are not rejecting brands; they are rejecting friction—friction at the shelf, friction at the register, and friction in deciding what to buy. Cutting SKUs is not retrenchment; it is strategic focus.

The company’s stated moves—sharper everyday value pricing, innovation around cleaner labels and functional benefits, and aggressive cost reduction—align with what the Grocerant Guru® has long advocated: sell beverages and snacks consumers want, priced competitively, without forcing retailers to subsidize inefficiency through shelf fees and excess assortment.

Importantly, PepsiCo’s shift away from artificial ingredients, toward protein-forward and functionally relevant offerings, is not about chasing trends—it is about restoring trust and usage frequency. Fewer, better products outperform bloated portfolios every time when execution is disciplined.

However, the real opportunity is not simply SKU reduction. The real unlock is how products are merchandised and bundled.

Grocerant Guru® Insight: Mix-and-Match Is the Growth Engine

Within the Grocerant niche, growth does not come from buying more shelf space; it comes from building solutions. Consumers think in occasions, not categories. A beverage is not a standalone decision—it is part of a meal, a snack, a routine, or a reward.

Mix-and-match product building—pairing beverages with fresh food, protein-forward snacks, or permissible indulgences—simplifies choice while increasing basket size. It transforms the shopping experience from selection to solution. This approach creates happier consumers because it reduces cognitive load and delivers value. It creates happier stakeholders because it increases velocity, margin, and loyalty without incremental trade spend.

The future is not more SKUs.
The future is curated choice, competitive pricing, and occasion-based solutions.

PepsiCo’s reset suggests the company is beginning to internalize this reality. Those who stop paying for shelf space and start paying attention to how consumers actually eat and drink will win—at retail, in convenience, and across the entire Grocerant ecosystem.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

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At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

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