Adds shares, background throughout

Feb 3 (Reuters) - PepsiCo PEP.O topped fourth-quarter revenue expectations on Tuesday, benefiting from robust demand for its sodas in international markets, as well as strength in its low-sugar beverages in the U.S.

The company's shares were down about 1% in premarket trading. They fell about 5% in 2025, and have lagged rival Coca-Cola KO.N over the last five years.

Demand for more localized flavors of both snacks and sodas in countries such as India and Brazil boosted sales, even as it overhauls its portfolio in the U.S. to meet the shifting tastes of consumers.

The company announced a review of its North America supply chain in December, weeks after activist investor Elliott Management built a stake and pushed for big changes at its struggling food business.

PepsiCo is planning to cut prices by up to 15% on products such as Lay's and Cheetos due to consumer complaints about high costs, the Wall Street Journal reported on Tuesday, citing company executives.

The company did not immediately respond to a Reuters request for comment.

PepsiCo, like other consumer-facing companies such as P&G and Coca-Cola, have turned focus to lower entry price points and smaller pack sizes as U.S. consumers looked to make their budgets last in the face of inflation and challenges such as the government shutdown last year that delayed access to food stamp benefits.

As part of its review, the company is also planning to reduce the number of products it offers by roughly 20% in the U.S. this year. It has also shut some manufacturing plants for the snacks division, and cut jobs to trim costs.

The company has invested in rebranding key products such as Lay's and Tostitos chips to suit consumers' hunt for cleaner ingredients amid increased use of weight-loss drugs and the Trump administration-backed Make America Healthy Again movement.

Its beverages business in North America is undergoing a facelift with its prebiotic soda offering, as well as low- and zero-sugar beverages.

Volumes in the key North America food business fell 1% in the fourth quarter, following a 4% drop in the prior three months.

PepsiCo stuck to its annual core earnings per share target of 5% to 7% growth that it had issued in December.

The Gatorade maker reported revenue of $29.34 billion for the three months ended December 27, compared with estimates of $28.97 billion, according to data compiled by LSEG.

International beverages volume grew 3%, while overall volumes in the beverages segment was up 1%.

The company reported quarterly core earnings per share of $2.26, compared with estimates of $2.24.