Health Care Reform

Our Health Care Commitment

PepsiCo values the health and well being of our associates, partners, customers and consumers. PepsiCo offers a wide range of benefits that encourage wellness, promote healthy living and give associates and their families tools and information to make educated health care decisions. Our company-sponsored approach to health and wellness encompasses physical, emotional and financial well being and includes prevention, screening, health care and health care savings accounts, dental care, retiree health care, life and disability insurance.

PepsiCo extends its commitment to health and wellness internally through employee programs such as HealthRoads. HealthRoads promotes healthier lifestyles through a combination of health assessments, personalized coaching, tobacco cessation, fitness and nutrition programs, online tools and worksite wellness initiatives. HealthRoads assists employees in navigating through the health care system and addresses increasing health care costs for employees and their families, as well as the company, by helping employees maintain good health and improve their health status.

Understanding the diversity of our global workforce, HealthRoads was launched in PepsiCo in Asia, PepsiCo United Kingdom developed a "Fit for Life" program and Vive Saludable (Live Healthy) was created within PepsiCo's Mexican division. In this way we seek to meet particular local needs with local programs. Our employee wellness programs integrate well with our core business and commitment to Human Sustainability, with a range of fun and healthy products, and efforts to make healthy choices easier. In addition, PepsiCo also maintains and enforces a strict global Occupational Health and Safety policy.

Understanding that Health Care is an issue that is complex and much larger than we can impact within PepsiCo, we are committed to the following guiding principles to engage with government, non-governmental organizations and appropriate external stakeholders.

Guiding Principles On Health Care Policies

• PepsiCo recognizes that the U.S. health care system needs improvement on many fronts. These include inadequate and inconsistent access to health care coverage for all Americans, weak support and incentives for prevention and health promotion, the high cost of health care, the lack of generally accepted quality standards, the complexity in using and understanding the health care system, and the lack of education available on how to use the system appropriately. PepsiCo in turn recognizes that now is a unique time to address this issue.
• PepsiCo will participate in developing a solution. We are a socially responsible company and committed to collaborating on solutions to major social and economic issues. We are eager to continue to share our substantial experience in providing health care benefits to a large and diverse workforce; and developing comprehensive workplace wellness programs.
• In particular, there should be more emphasis on prevention. Focusing on innovative prevention techniques will yield sustainable long term solutions.
• Greater cost-effectiveness must be part of the solution. Rising costs are severely stressing both employer-sponsored and government health care programs. There must be an emphasis on: preventive health care; wellness programs; improved treatment outcomes; greater transparency on prices and quality; improving technologies which reduce inefficiencies; and simplifying program administration. In addition, we recognize that all individuals also have a responsibility, and any solution must include opportunities and tools to educate individuals on areas such as wellness, prevention, and effective use of health care.
• Health care "fixes" should be addressed at the federal level, not piecemeal by states, counties, municipalities, and other local jurisdictions. State and local legislation should enhance and expand on an accepted federal program, with a goal of providing access to affordable health coverage for all U.S. citizens.
• Beyond the U.S., PepsiCo will work with the World Health Organization and the World Economic Forum's "Workplace Wellness Unit" to ensure that countries around the globe benefit from best practices and innovative ideas. At PepsiCo we recognize the impact which chronic disease is having on global populations, especially in developing countries. A work environment which enhances health and wellness demonstrates to employees their importance to the company by enabling them to live life to its fullest. Providing affordable, nutritious foods and access to physical activity is critical to a sound, sustainable health care system.

To help assure comprehensive and affordable health care, PepsiCo collaborates on solutions with following organizations such as the National Business Group on Health; The Conference Board; and the World Economic Forum.