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During a Belgian Economic Mission to the West Coast of the USA, today we announced plans to invest over €1 billion in Belgium from 2025-2027. This investment continues Amazon’s commitment to innovation and providing an even better experience to customers through low prices, selection, and convenience, while helping small businesses in Belgium succeed.

This represents our largest investment in Belgium to date, supporting jobs, infrastructure development, and Belgian partnerships including our continued work with bpost, Belgium’s national postal operator. In addition to supporting our Belgian customers, these investments will also help small and medium-sized businesses to expand their reach to customers both in Belgium and internationally, helping them grow their businesses while supporting job creation and economic growth. The announcement builds upon our growing presence in Belgium since opening our first office in 2015 and launching amazon.com.be in 2022. After investing more than €250 million in 2023 and €300 million in 2024, this new announcement accelerates our planned investment in the Belgian economy.

“Our planned investment of more than a billion euros in Belgium will go towards expanding our logistics network, enhancing our delivery capabilities, and strengthening our local infrastructure to better serve Belgian customers,” said Eva Faict, Country Manager for Amazon Belgium and the Netherlands. “Since launching amazon.com.be in October 2022, we’ve helped more than a thousand Belgian businesses reach new customers, created hundreds of local jobs, and worked with local delivery partners. This new investment will allow us to further support Belgian entrepreneurs with our technology and expertise, while continuing to offer customers low prices, wider product selection, and faster delivery options.”

Economic impact and growth

We have invested more than €800 million in Belgium since 2015. We now employ over 400 people across Belgium, from our Belgian headquarters in Brussels including AWS, to our delivery station in Antwerp, and our Mechatronics Research & Development Center in Hamme. In 2024 alone, third-party research by Keystone Strategy^[1] estimates that our investments supported more than 1,000 indirect jobs and 200 induced jobs^[2] in construction, logistics, and professional services.

“Amazon’s investment is a powerful endorsement of our region’s economic strengths. As a government, we are committed to fostering innovation and supporting companies that create sustainable jobs and economic opportunities across our regions. This significant investment demonstrates that our region continues to attract global technology leaders, strengthening our position as a strategic hub for digital commerce in Europe,” said Matthias Diependaele, Minister-President of Flanders.

According to Keystone estimates, Amazon’s investments contributed more than €140 million to Belgium’s GDP in 2024, with more than €350 million to Belgium GDP since 2015.

Supporting Belgian Small and Medium-sized Enterprises

The 2024 Amazon SME Impact Report^[3] shows that Belgian SMEs have achieved remarkable international success through e-commerce, with 90% of businesses selling on Amazon exporting their products internationally. These SMEs generated over €350 million in total export sales in 2023, demonstrating the store’s effectiveness in helping Belgian businesses expand internationally.

“Amazon’s €1 billion investment solidifies Belgium’s role as a leading hub for innovation and digital transformation, driving competitiveness, fostering job creation, and fueling economic growth. Today’s announcement demonstrates the strong potential of e-commerce for businesses of all sizes, with particular promise for Belgian SMEs. We see how this lever can help local entrepreneurs strengthen their market presence and even expand beyond borders, reaching millions of customers across Europe and beyond” said Eléonore Simonet, Belgian Minister for SMEs, Self-Employed and Small Businesses.

Building a more sustainable future

As a co-founder of The Climate Pledge, with the goal of reaching net-zero carbon by 2040 – an ambitious commitment we are actively working towards – Amazon is investing in sustainability across its businesses to drive down carbon emissions. Amazon’s commitment to sustainability takes root in concrete actions, from investing in the National Park Brabantse Wouden’s scientific research and habitat restoration to funding technology solutions that enhance biodiversity monitoring and visitor experience in Belgium’s newest national park with Leuven MindGate. We are decarbonising last-mile deliveries across Belgium, with over 9 out of 10 parcels delivered to customers by electric vans in Antwerp and electric cargo bikes serving Brussels’ Pentagon area. More than 50% of European shipments now come in reduced delivery packaging, such as a paper bag or cardboard envelope, or with no added packaging at all. To help customers in Belgium to make environmentally conscious choices, Amazon has launched the Climate Pledge Friendly programme, which features products that are certified by one or more of over 50 sustainability certifications, and to help customers give products a second life, they can take advantage of Amazon Used, Trade-in programs, and the Fix-it store. These initiatives demonstrate Amazon’s holistic approach to environmental stewardship, combining technological innovation, operational excellence, and customer empowerment to build a more sustainable future.

[1] All investment and economic impact figures have been estimated by Keystone Strategy, an independent macroeconomic consultancy.
[2] Indirect jobs = jobs supported through business-to-business transactions (supply chain)
Induced jobs = jobs supported through consumer spending of direct and indirect employees
[3] 2024 Amazon Small and Medium-sized Impact Report available here.

Ramon Laguarta was not widely known when he became PepsiCo’s chief executive in 2018, a veteran operator who had spent most of his career in Europe. His low profile stood in contrast to his former boss Indra Nooyi, one of few immigrant women atop corporate America and a regular at Davos with a keen eye for public relations.

Laguarta is now in the spotlight, willingly or not. Like Nooyi before him, he is staring down an activist investor agitating for a shake-up of the drinks and snacks powerhouse that owns brands such as Gatorade, Doritos and its namesake Pepsi cola.

The 29-year PepsiCo veteran on Thursday will face investors for the first time since hedge fund Elliott Management went public with a $4bn stake in the company last month, one of its biggest investments.

Thursday’s third-quarter results will be scrutinised for signs of how Laguarta will respond to Elliott’s demands. The earnings presentation is expected to be Laguarta’s last before the deadline for Elliott to wage a proxy contest at the end of November. How he rises to the challenge may determine whether the hedge fund takes that path.

The activist’s 75-page slide presentation asserts that weakening sales and profit margins in PepsiCo’s North American businesses and an unwieldy product portfolio have put it at a disadvantage to rival Coca-Cola and other competitors, wiping away more than $40bn in market capitalisation over the past three years.

“I think he’s going to get a real test here on his leadership and his resolve,” said Kevin Grundy, a senior consumer goods analyst at BNP Paribas.

Elliott’s case against PepsiCo is less dramatic than Nelson Peltz’s demands for Nooyi to engineer a full break-up more than a decade ago. Nooyi, who promoted a lofty agenda of “performance with purpose”, resisted those calls, but after a two-year stand-off agreed to give Peltz’s hedge fund Trian Management a board seat in 2015. A few years later, she left the top job.

Whether Laguarta decides to play peace broker or dig in may yet define the tactics that Elliott decides to deploy. Marc Steinberg, the Elliott portfolio manager leading the PepsiCo investment, last year masterminded one of the most conciliatory campaigns in Elliott’s history, reaching a speedy détente with industrials giant Honeywell after taking a $5bn position. The company has since added Steinberg to its board.

Laguarta, a cheerful 61-year-old Catalan, oversaw the company’s international growth before taking the reins at its headquarters in the New York City suburbs. Since he became chief executive, PepsiCo’s revenue has increased by nearly 40 per cent. He has divested poorly performing brands such as Tropicana and Naked Juice while making more than $10bn in acquisitions, according to data from S&P Capital IQ.

But over the course of his tenure he became overly focused on quarterly earnings, according to several former executives. He has struggled to sell colleagues and investors on his vision of how to respond to changing consumer habits, such as the impact of weight-loss drugs on taste preferences, rattling the wider consumer sector, the executives said.

He has rankled some of his senior colleagues, in particular by involving his wife Maria in corporate affairs, including strategy meetings and retreats on several occasions, according to people familiar with the matter. His wife also played a role in promoting PepsiCo’s culinary initiatives, which explained how its products could be used in home recipes.

Laguarta has acknowledged a need for a turnaround and has taken steps that include shuttering two snack manufacturing plants to adjust to shrinking US demand.

“Under Ramon’s leadership, PepsiCo has taken a series of steps to best position the company for the long term,” the company said in a statement, pointing to cost-cutting efforts, investments in core brands such as Gatorade and Walkers crisps and the growth of the international business, which has averaged 10 per cent annual growth over the past five years.

“Maria is passionate about PepsiCo and our products, and is an advocate for the culinary aspects of our portfolio,” the company added.

Elliott expressed its “deep respect for the company and its leaders” in a letter to PepsiCo’s board last month, but said investors were sceptical of the company’s prospects. Charts in Elliott’s presentation show how PepsiCo has been outpaced by rivals Coca-Cola and Procter & Gamble, set roughly over the timeline of Laguarta’s seven-year tenure.

The hedge fund also called for better corporate oversight and accountability, hinting at the appetite for a board refresh. Elliott declined to comment.

The first part of Laguarta’s reign looked good. Consumers binged on PepsiCo’s fizzy drinks and snacks while locked down during the Covid-19 pandemic, and the soaring price inflation that followed drove its market capitalisation to an all-time high of more than $260bn in 2023 — tantalisingly close to surpassing Coca-Cola’s market value.

But by the end of 2023 the momentum came out of the business as snack and drinks sales in North America began to decline, as higher prices finally drove away some consumers.

Now PepsiCo is valued at $90bn less than its rival. Elliott draws brutal comparisons to Coca-Cola, highlighting PepsiCo’s relentless soda sales declines. Elliott pinpoints Coca-Cola’s decision to farm out beverage bottling to independent companies as key to its continued success, and argues PepsiCo should do the same with its mostly in-house North American bottling system.

Elliott also called for PepsiCo to sell off legacy food brands that it contends no longer fit its snack-heavy portfolio, such as Pearl Milling baking mixes and syrups, and breakfast cereals such as Cap’n Crunch. Proceeds could be reinvested in acquisitions of high-end or healthy snacking brands, Elliott added.

PepsiCo added in its statement that Laguarta has “repositioned the portfolio” through acquisitions, including of prebiotic soda company Poppi and healthy tortilla chips brand Siete Foods.

Some PepsiCo investors have endorsed Elliott’s ideas, but questioned whether they differ from changes already under way inside the company. “I appreciate Elliott’s suggestions as they correspond with many of the ideas the current management has,” said Kai Lehmann of Flossbach von Storch, a large PepsiCo shareholder. Still, he said the company “needs a greater sense of urgency as PepsiCo risks falling behind”.

In a statement last month, the company said it was reviewing Elliott’s proposals as it “maintains an active and productive dialogue with our shareholders”. A former executive close to Laguarta said the company’s previous experience with activism may mean it is better prepared this time around. “They didn’t pick an easy target,” said the person.