PepsiCo Steps Up Partnerships with Minority-Owned Financial Enterprises

PepsiCo has stepped up its partnerships with minority-owned financial enterprises. In recent transactions, PepsiCo Treasury utilized The Williams Capital Group, L.P., as one of five co-managers in its recent issuance of $500MM of medium term notes. Williams Capital underwrote a portion of the note, which matures in 2007.

For the first time, PepsiCo also used The Williams Capital, L.P., as a buying agent for its share repurchase program. The Williams Capital Group, L.P., is minority-owned firm.

In a separate transaction, PepsiCo’s pension function tripled the amount of assets invested with Utendahl Capital Partners, L.P., also a minority-owned firm.

Utendahl was also part of the$2.3 billion 1999 public offering of The Pepsi Bottling Group (PBG) stock, and appeared to be the biggest stock deal ever to have a minority-owned firm as a co-manager. A total of nine minority-owned and women-owned firms participated in the PBG deal.

"These actions spotlight PepsiCo’s increasing success in including minority-owned enterprises in all of our business functions, and especially highlight the importance of including financial opportunities in our programs," says Bob Gonzalez, vice president of supplier diversity for PepsiCo.

In 2003, PepsiCo purchased $722 million in goods and services from minority-owned and women-owned businesses. Since beginning a program in 1982 to focus on increasing spending with diverse businesses, PepsiCo has spent more than $6 billion.