Financial investment firm Elliott Investment Management has acquired a $4 billion stake in the American beverages and snacks company PepsiCo, considering this move as an opportunity to revitalize the company’s performance and create shareholder value.

In a letter to PepsiCo’s board, Elliott Investment pointed out that the company suffers from a lack of clear strategic vision, slowed growth, and declining profitability in the North American food and beverage sector, but emphasized that PepsiCo still holds significant potential, especially internationally.

Elliott stated it seeks to engage with the board and management to discuss ways to improve performance and develop an ambitious transformation plan to enhance shareholder value.

PepsiCo had reported in February that years of price increases exceeding 10% and changing customer preferences weakened demand for its beverages and snacks.

In July, the company announced efforts to expand the distribution of valuable brands such as “Chesters” and “Sanitas” to counter perceptions that its products are expensive, especially amid ongoing inflation that has led consumers to cut back on discretionary purchases.