Our Economic Contributions

We make economic contributions in the following ways:

Shareholders
We provide shareholders with a strong return on their investments. In 2005, we paid $1.6 billion in dividends and provided shareholders with a 15% return, which is stock appreciation plus dividends reinvested.

Associates
We directly employ approximately 157,000 people. Our customers and business partners, such as franchised bottlers and licensees, employ tens of thousands of additional people as they manufacture and distribute our brands.

Retailers
We create income and profit for our customers, which means jobs and opportunities in millions of retail establishments around the world. Our brands generated an estimated $85 billion in retail sales during 2005, and they are among the most profitable brands that retailers carry.

Suppliers
In 2005, we purchased more than $10 billion in supplies, services and raw materials. These purchases help to support hundreds of thousands of additional jobs in many communities. Goods and services from women–owned and minority-owned businesses accounted for $921 million in 2005. We have a robust Supplier Diversity program. Our chairman and chief executive officer serves as chairman of the National Minority Supplier Development Council (NMSDC).

For more information visit the Supplier Diversity section of our website:
http://www.pepsico.com/PEP_Diversity/index.cfm

Governments
Our businesses have a positive impact on the economies of the countries and localities in which we operate by generating billions of dollars of revenue for governments through taxes paid directly by PepsiCo and indirectly by PepsiCo's employees, investors, commercial partners and suppliers. In 2005, PepsiCo paid $1.3 billion in income taxes worldwide. In addition to corporate income taxes, PepsiCo paid hundreds of millions of dollars in payroll, property, transaction-based and other miscellaneous taxes worldwide. These tax payments make an important contribution to the countries and communities in which PepsiCo has a presence.

Technology
We share expertise and technologies that provide important benefits to communities and countries. In emerging markets such as India and China, our agricultural development programs have significantly improved crop yields for local farmers. For example, in China, we share knowledge about potato farming with the Chinese Ministry of Agriculture and we have established an advanced potato research laboratory. In India, we are using our knowledge to improve the water supply for the Kerala area.