• by Danielle Oster , October 13, 2025

In prepared remarks accompanying PepsiCo’s Q3 earnings report, the company committed to “optimizing our advertising and marketing spend to drive greater ROI,” under a section listing steps the company was taking to “reduce costs and improve core operating margin.”

Marketing Daily reached out to PepsiCo requesting clarification on the statement, and whether it reflected cuts to the company’s advertising and marketing budget, but had not received a response by presstime.  

PepsiCo CEO Ramon Laguarta Laguarta did speak to the success of recent campaigns and alluded to the company’s continued commitment to two of its biggest soda brands.

Laguarta noted the “success” of the Pepsi brand and momentum across “many markets” internationally, particularly pointing to the role of its non-sugar variety. In the U.S., he said the brand was focused on away-from-home and the “Food Deserves Pepsi” platform. Recent “Food Deserves Pepsi” activations include its “Philly Eats Fest,” and “Tailgate Crashers.”

“I think the meal occasion is critical for beverages, [and] it’s very important for cola. We are focusing more and more on… linking the brand to that particular occasion in a culturally relevant way,” he said, adding that the company had been “investing a bit more” in the flagship brand.

Laguarta explained that there were two brand platforms growing faster than others: Pepsi Zero Sugar, and flavored varieties. “Flavors…are bringing new consumers to the brand, younger consumers to the brand. That is positive news for the development of Pepsi,” he said. “We'll continue with those drivers. We'll continue to invest in what is clearly our most important brand in the beverage portfolio.”

He added: “For next year, we're assuming that Pepsi will continue to grow and we'll be able to add some new layers of growth with Mountain Dew. He called Mountain Dew’s flavor  Baja Blast “a very solid platform,” driving $1 billion in retail value when sales of the beverage at Taco Bell, where it initially launched as an exclusive, were taken into account. PepsiCo ran a Super Bowl ad centered around Mountain Dew Baja Blast for the second consecutive year.

Laguarta mentioned Mountain Dew’s upcoming Dirty Dew launch, a cream soda hybrid inspired by “dirty soda” trends on social media. “I think that will continue to expand the brand into more consumers,” he said.

He also called an upcoming Gatorade brand relaunch “critical” for the company. The global Gatorade brand relaunch is planned for a “Q1 to Q2 timeframe” for 2026, Laguarta said. Earlier this year, Gatorade launched what the brand claimed was its “largest-ever” campaign, reviving the “Is it in you?” tagline.

“We're leaders in a category [sports drinks] that needs to grow faster,” Laguarta said, explaining the company was working on “value” and marketing messaging around ”superior hydration” to support the brand.

“We know we have proven superior electrolyte combinations that deliver both faster hydration, better hydration, longer hydration,” he added. “We're working on different parts of the portfolio to convey that message to the consumer. We're optimistic about how that will play out for us.”

Rival Coca-Cola also relaunched its sports drink brand, Bodyarmor, recently expanding the “Choose Better” relaunch campaign to Canada.