Oct 8, 2026 · 7 min

Consumer shifts pressure PepsiCo and Levi as Xbox seeks new franchises

Pepsi and Levi Growth Concerns; Microsoft Xbox News

The episode connects changing consumer demand and fashion missteps with Microsoft’s effort to turn gaming properties into broader entertainment businesses.

3 key takeaways

1PepsiCo lowers its profit outlook as consumers move away from salty, sugary, and highly processed foods.
2Microsoft creates XP to expand Xbox franchises into film, television, products, and events.
3Levi Strauss faces slower direct-to-consumer growth after a baggy-jeans marketing focus missed changing preferences.

Don't miss

Microsoft’s creation of XP marks an explicit attempt to extend Xbox franchises from games into film, television, products, and events.

The brief

PepsiCo’s reduced profit outlook reflects a difficult shift in consumer tastes, as demand moves away from salty, sugary, and highly processed foods while North American costs rise.

Microsoft is creating XP to carry Xbox franchises into film, television, products, and events, with the Minecraft movie illustrating the commercial opportunity.

Levi Strauss’s direct-to-consumer growth slowed after a marketing focus on baggy jeans, turning a fashion bet into a broader question about reading consumer preferences.

The episode closes by previewing smart-city development, where artificial intelligence, innovation, and long-term planning shape responses to rapid urbanization, with Dubai as a key example.

What was said on this episode

9 statements · 3 positive · 6 negative

Romaine Bostickon PepsiCo price cutsNegative1:20
PepsiCo’s earlier marquee-brand price cuts have not sufficiently improved performance.
“They cut prices on some of the marquee brands earlier this year. That has not proven sufficient.”
Listen at 1:20
Tim Stenovecon Consumer preferences for processed foodsNegative1:35
Consumers are moving away from salty, sugary, processed foods.
“People don't want the salt. People don't want the sugar. They don't want the processed foods.”
Listen at 1:35
Tim Stenovecon Pepsi stockNegative1:52
Pepsi stock is down 14% year to date.
“Pepsi is down 14 percent.”
Listen at 1:52
Tim Stenovecon Coke stockPositive1:55
Coca-Cola stock is up 23% year to date.
“It's actually up 23 percent.”
Listen at 1:55
Romaine Bostickon Levi Strauss direct-to-consumer channelsNegative3:24
Levi Strauss posted its slowest direct-to-consumer growth since late 2022.
“Levi Strauss posting the slowest growth in its direct-to-consumer channels since, what, late 2022.”
Listen at 3:24
Romaine Bostickon Levi Strauss stockNegative3:48
Levi Strauss stock is down approximately 6% year to date.
“This stock has been down just about 6% this year through the close yesterday.”
Listen at 3:48
Romaine Bostickon Levi Strauss baggy-jeans advertisingNegative3:54
Levi’s baggy-jeans advertising contributed to its performance problem.
“part of the problem, Levi's back-to-school advertising focused on baggy jeans rather than low-rise.”
Listen at 3:54
Estefanía Tapiason DubaiPositive5:35
Dubai responded effectively to its sudden population increase.
“I think Dubai has learned a lot from a sudden increase in population, which doesn't happen everywhere in the world. And I think they reacted very well to it.”
Listen at 5:35
Estefanía Tapiason Dubai urban planningPositive5:43
Dubai has a long-term urban-planning vision.
“They have a long-term urban planning vision, which again doesn't happen everywhere in the world.”
Listen at 5:43

Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.

Books & mentions

Economy of Scale

Its smart-cities segment develops the episode’s discussion of urban innovation, AI, and Dubai.