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  • Top Line

    1 - Grow international revenues at two times real global GDP growth rate.

    As the world’s second-largest food and beverage business, we make, market or sell our products in more than 200 countries. In fact, more than 45 percent of our business comes from outside the U.S. In 2010 ...

    Learn more Performance 1

  • 2 - Grow savory snack and liquid refreshment beverage market share in the top 20 markets.

    We’re committed to growing our businesses faster than the market. In 2010, we grew share in many of our top 20 markets where we increased the relevance of our brands to consumers, introduced new products ...

    Learn more Performance 2

  • 3 - Sustain or improve brand equity scores for PepsiCo's 19 billion-dollar brands in the top 10 markets.

    The reputation and performance of our brands are critical to building brand equity scores. We have sustained or grown brand equity in the majority of the top markets for most of our 19 billion-dollar ...

    Learn more Performance 3

  • 4 - Rank among the top two suppliers in customer (retail partner) surveys where third-party measures exist.

    We know that being viewed as a premier supplier by our customers is part of our success, and we pride ourselves on delivering superior value and expertise to our customers in important areas, including consumer insights, innovative marketing ...

    Learn more Performance 4
  • Bottom Line

    5 - Continue to expand division operating margins.

    PepsiCo is committed to delivering sustainable operating performance. In order to succeed, we know it’s important to balance both the short and the long term. The 2010 acquisition of our anchor bottlers in North America and Europe ...

    Learn more Performance 5

  • 6 - Increase cash flow in proportion to net income growth over three-year windows.

    In the three years ended 2010, operating cash flow significantly outpaced the rate of net income. We believe that our disciplined approach to cash flow management will enable us to continue to meet or exceed ...

    Learn more Performance 6

  • 7 - Deliver total shareholder returns in the top quartile of our industry group.

    We deliver strong returns to our shareholders through substantial profit growth, sound investment decisions and disciplined cash flow management. We increased our annual dividend in 2010 for the 38th consecutive year, from $1.80 to $1.92, or 7 percent ...

    Learn more Performance 7
  • Corporate Governance and Values

    8 - Utilize a robust corporate governance structure to best represent the interests of PepsiCo and its shareholders.

    PepsiCo maintains the highest standards of corporate governance, supported and monitored by a diverse and annually elected Board of Directors, and widely recognized by proxy advisory firms such as Institutional Shareholder Services ...

    Learn more Performance 8

  • 9 - Ensure our PepsiCo value commitment to deliver sustained growth through empowered people acting with responsibility and building trust.

    With clear values at the core of PepsiCo’s culture, empowered associates have the guidance they need to act and work responsibly. We have reinforced the importance of our values through training, annual Code of Conduct certification and ...

    Learn more Performance 9
  • Products

    10 - Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio.

    We’ve made great strides in increasing the amount of wholesome foods across our global portfolio. Through estimated 2010 U.S. data, the Quaker division is expected to have contributed nearly 500 million pounds of whole grains to the American diet. In Russia ...

    Learn more Performance 10

  • 11 - Reduce the average amount of sodium per serving in key global food brands, in key countries, by 25 percent by 2015, compared to a 2006 baseline.

    We are making good progress in reducing sodium in many of our key global food brands. In the U.K., Walkers has significantly reduced sodium by 25 to 55+ percent in its products since 2005, while continuing to be the country’s number one selling brand ...

    Learn more Performance 11

  • 12 - Reduce the average amount of saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020, compared to a 2006 baseline.

    We’ve been an industry leader in eliminating nearly all trans fats from our U.S. product portfolio and many of our global products; and now we’re committed to reducing the saturated fat content of our key global food brands. In India ...

    Learn more Performance 12

  • 13 - Reduce the average amount of added sugar per serving in key global beverage brands, in key countries, by 25 percent by 2020, compared to a 2006 baseline.

    While reducing added sugars in beverages is challenging — due to strong consumer taste preferences for sugar and complex regulatory processes for alternatives — we have set aggressive goals and are making progress toward achieving our 25 percent ...

    Learn more Performance 13
  • Marketplace

    14 - Display calorie count and key nutrients on our food and beverage packaging by 2012.

    We’re working to ensure that by 2012, basic nutritional information is available to consumers on packages (where feasible to print on the packaging and where permissible by local regulations) for all of our food and beverage products ...

    Learn more Performance 14

  • 15 - Advertise to children under 12 only products that meet our global science-based nutrition standards.

    PepsiCo has taken a firm stand on responsible marketing to children by joining other global food and beverage manufacturers in adopting a voluntary commitment to advertise to children under the age of 12 only products that meet specific nutrition criteria. In 2010 ...

    Learn more Performance 15

  • 16 - Eliminate the direct sale of full-sugar soft drinks to primary and secondary schools around the globe by 201.

    PepsiCo continues to implement a global policy for beverage sales in schools — focused on water, juice, milk and low-calorie beverages that support healthy nutrition habits among students. By 2012, when the global school beverage policy is fully implemented, we will ...

    Learn more Performance 16

  • 17 - Increase the range of foods and beverages that offer solutions for managing calories, like portion sizes.

    In 2010, we continued to provide consumers with options to manage calorie intake, from launching new products with zero- and low-calorie sweeteners to reformulating existing products with fewer calories. Naked Juice, for example, introduced two 100 percent juice smoothies ...

    Learn more Performance 17
  • Community

    18 - Invest in our business and research and development to expand our offerings of more affordable, nutritionally relevant products for underserved and lower-income communities.

    We have strengthened our efforts to introduce affordable nutrition and are making strides to meet this long-term goal. For example, we developed a plan to launch affordable, fortified snacks and biscuits in India to address iron-deficiency anemia, with a pilot launch ...

    Learn more Performance 18

  • 19 - Expand PepsiCo Foundation and PepsiCo corporate contribution initiatives to promore healthier communities, including enhancing diet and physical activity programs.

    The PepsiCo Foundation is committed to helping people with the greatest health disparities achieve improved health and nutrition through effective and sustainable programs. Through a combination of Foundation grants and corporate contributions, we increased ...

    Learn more Performance 19

  • 20 - Integrate our policies and actions on human health, agriculture and the environment to make sure that they support each other.

    Human health and environmental protection are two critical components of sustainable development. To ensure that our efforts in these areas are as cohesive and productive as possible, we have begun to develop a formal policy to coordinate our human health ...

    Learn more Performance 20
  • Water

    21 - Improve our water-use efficiency by 20 percent per unit of production by 2015.

    Water efficiency has long been an environmental focus at PepsiCo. Through the third quarter of 2010, our global food and beverage businesses reduced water-use intensity by 19.5 percent versus 2006. And we’re on track to achieve our 2015 target ...

    Learn more Performance 21

  • 22 - Strive for positive water balance in our operations in water-distressed areas.

    In 2009, PepsiCo's operations in India achieved positive water balance, enabling us to give back to society more water than we used to manufacture our products. To expand this achievement to other water-distressed areas where we have a presence ...

    Learn more Performance 22

  • 23 - Provide access to safe water to three million people in developing countries by the end of 2015.

    Having pledged more than $15 million since 2005 toward water projects, the PepsiCo Foundation is working to alleviate water scarcity in developing countries. In fact, the Foundation expects to provide access to safe water for one million people ...

    Learn more Performance 23
  • Land and Packaging

    24 - Continue to lead the industry by incorporating at least 10 percent recycled polyethylene terephthalate (rPET) in our primart sofr drink containers in the U.S., and broadly expand the use of rPET across key international markets.

    We've been an industry leader in the innovative use of food-grade rPET in beverage containers in the U.S. market. In 2010, we continued to meet our commitment by including an average of 10 percent rPET in our primary soft drink containers ...

    Learn more Performance 24

  • 25 - Create partnerships that promote the increase of U.S. beverage container recycling rates to 50 percent by 2018.

    We're creating national partnerships and developing new technologies to make recycling easier and more efficient. Last year, we launched the Dream Machine recycling initiative with Waste Management, Greenopolis and Keep America Beautiful, to promote increasing the U.S. beverage ...

    Learn more Performance 25

  • 26 - Reduce packaging weight by 350 million pounds-avoiding the creation of one billion pounds of landfill waste by 2012.

    We have made significant progress in reducing the amount of packaging we use to supply many of our products to consumers. For example, the 500ml Eco-Fina bottle weighs 10.9 grams, using 50 percent less plastic than the similar Aquafina packaging ...

    Learn more Performance 26

  • 27 - Work to eliminate all solid waste to landfills from our production facilities.

    Across our snack businesses in the U.S. and U.K., we’ve made considerable progress toward achieving the goal of sending zero waste to landfills. In 2009, PepsiCo generated an estimated 984,000 metric tons of solid waste from our global ...

    Learn more Performance 27
  • Climate Change

    28 - Improve our electricity-use efficiency by 20 percent per unit of production by 2015.

    We're achieving solid results by rolling out best practices throughout our manufacturing network to improve our electricity-use efficiency. For our global food and beverage manufacturing operations, we registered a nearly 9 percent improvement as of third quarter 2010 ...

    Learn more Performance 28

  • 29 - Reduce our fuel-use intensity by 25 percent per unit of production by 2015.

    Fuel-use intensity for our global food and beverage manufacturing operations has improved by more than 12 percent as of the third quarter 2010 versus the 2006 baseline. Our progress is the result of a number of innovations being introduced ...

    Learn more Performance 29

  • 30 - Commit to a goal of reducing greenhouse gas (GHG) intensity for U.S. operaions by 25 percent through our partnership with the U.S. Environmental Protection Agency Climate Leaders program.

    We have made important progress by establishing a rigorous new internal framework to drive our energy conservation efforts and are on track to meet our U.S. GHG intensity goal. Frito-Lay's transition to a more fuel-efficient fleet included a significant investment ...

    Learn more Performance 30

  • 31 - Commit to an absolute reduction in GHG emissions across global operations.

    We're making progress on our goal to reduce GHG emissions in our global manufacturing facilities and transportation systems. In South America, for example, the Green Stamp Program is optimizing vehicle efficiency through preventive maintenance and regular vehicle ...

    Learn more Performance 31
  • Community

    32 - Apply proven sustainable agricultural practices on our farmed land.

    We've been committed to sustainable agriculture practices for many years. In 2009, we launched our Global Sustainable Agriculture Policy — designed to encourage all of us, and our growers, to operate in a way that protects and nourishes land and ...

    Learn more Performance 32

  • 33 - Provide funding, technical support and training to local farmers.

    PepsiCo is supporting local farmers globally through funding and training. In 2010, together with 350 British farmers, PepsiCo launched an important initiative to cut our carbon emissions and water use by 50 percent over five years. To achieve this ...

    Learn more Performance 33

  • 34 - Promote environmental education and best practices among our associates and business partners.

    We have launched a host of initiatives with associates and partners that accelerate the adoption of environmental sustainability practices through education. In April 2010, more than 700 associates, suppliers and vendors, including representatives from 16 countries ...

    Learn more Performance 34

  • 35 - Integrate our policies and actions on human health, agriculture and the environment to make sure that they support each other.

    Human health and environmental protection are two critical components of sustainable development. To ensure that our efforts in these areas are as cohesive and productive as possible, we have begun to develop a formal policy to coordinate our human health ...

    Learn more Performance 35
  • Culture

    36 - Ensure high levels of associate engagement and satisfaction as compared with other Fortune 500 companies.

    We seek the insights of our associates through our biannual Organizational Health Survey to help us increase associate engagement and satisfaction globally, regionally and locally. By conducting the survey every two years, we’re able to analyze the data ...

    Learn more Performance 36

  • 37 - Foster diversity and inclusion by developing a workforce that reflects local communities.

    We have a core belief that making the most of diverse strengths and talents helps make our company successful. We take great care to weave diversity and inclusion (D&I) into the very fabric of our culture to improve as a global, multicultural and multigenerational ...

    Learn more Performance 37

  • 38 - Encourage our associates to lead healthier lives by offering workplace wellness programs globally.

    Our global wellness strategy is designed to engage associates and their families in developing and sustaining healthy behaviors to improve their overall quality of life. To support associate wellness, we offer on-site health and wellness services ...

    Learn more Performance 38

  • 39 - Ensure a safe workplace by continuing to reduce lost-time injury rates, while striving to improve other occupational health and safety metrics through best practices.

    The health and safety of our associates is of paramount importance to PepsiCo. We are continually working across our businesses to prevent occupational injuries and illnesses, striving for an incident-free workplace. In 2011, we created a new Global Operations organization ...

    Learn more Performance 39

  • 40 - Support ethical and legal compliance through annual training in our Code of Conduct, which outlines PepsiCo's unwavering commitments to its human rights policy to treat every associate with dignity and respect.

    We are fully committed to compliance with applicable laws and regulations and doing the right thing consistently, without compromise. To ensure ethical and legal compliance, we provide annual training on our Code of Conduct to salaried associates ...

    Learn more Performance 40
  • Career

    41 - Become universally recognized through top rankings as one of the best companies in the world for leadership development.

    We are committed to a robust and systematic approach to managerial and executive development and succession planning. Our agenda includes formal leadership-development programs as well as annual 360-degree feedback processes and ...

    Learn more Performance 41

  • 42 - Create a work environment in which associates know that their skills, talents and interests can fully develop.

    We have established many programs that help our associates improve their skills and abilities. For example, we launched our annual Manager Quality Performance Index (MQPI) process in 2009 to collect data from associates on how well their managers provide ...

    Learn more Performance 42

  • 43 - Conduct training for associates from the front line to senior management, to ensure that associates have the knowledge and skills required to achieve performance goals.

    Training is an integral component of our talent and performance agendas. For example, more than 2,900 associates in 2010 registered and completed at least one course from our award-winning Finance University. And, more than 1,000 non-finance associates ...

    Learn more Performance 43
  • Community

    44 - Create local jobs by expanding operations in developing countries.

    In 2010, we announced numerous investments that will lead to job creation, including $2.5 billion in China over the next three years (in addition to the company’s $1 billion investment announced in 2008); $250 million in Vietnam over the next three years; and $3 million in Peru ...

    Learn more Performance 44

  • 45 - Support education through PepsiCo Foundation grants.

    In 2010, the PepsiCo Foundation contributed a total of $7.6 million in grants to support education. The Foundation is proud to be the founding private-sector partner of Diplomas Now, an innovative school turnaround model that keeps at-risk students in school ...

    Learn more Performance 45

  • 46 - Support associate volunteerism and community-involvement through company-sponsored programs and initiatives.

    All around the world, thousands of PepsiCo associates are engaged in volunteer activities that improve their communities. In 2010, for example, 200 associates in Mexico worked with United Way to help renovate a school for children with ...

    Learn more Performance 46

  • 47 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

    In 2010, the PepsiCo Foundation matched $5.1 million in associate charitable contributions. And over the past 12 years, the Foundation has provided $47 million in matching gifts to qualified nonprofit agencies working in environmental, educational, civic, arts and...

    Learn more Performance 47
Performance 1
We opened a snacks plant in Azov, Russia, in 2009, and announced plans to build a beverage plant on the same property in 2010. This is just part of our commitment to growing international revenues through investments.

1 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

As the world’s second-largest food and beverage business, we make, market or sell our products in more than 200 countries. In fact, more than 45 percent of our business comes from outside the U.S. In 2010, our revenues outside the U.S. grew approximately 30 percent, significantly above our target of two times the real global GDP growth rate. Notably, our India business grew at about 2.5 times India's real GDP growth rate and our Brazil business grew at about 3.5 times Brazil's real GDP growth rate. And we continue to strengthen our growth potential with strategic investments in key markets. In 2011, for example, we acquired a controlling interest in Wimm-Bill-Dann, Russia’s largest food and beverage business, and made plans in 2010 to build a new plant, part of a $1 billion investment program there. We also initiated a $2.5 billion investment program in China in 2010, which includes plans to open 10 to 12 new food and beverage plants and R&D facilities over three years. With these and other investments, we expect to continue increasing our international revenues at a faster pace than that of the world economy.

Performance 2

2 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We’re committed to growing our businesses faster than the market. In 2010, we grew share in many of our top 20 markets where we increased the relevance of our brands to consumers, introduced new products that meet changing tastes or extended our portfolio into fast-growing category sub-segments. For example, Pepsi Max offers a zero-calorie beverage option in markets where consumers are looking for healthier choices while maintaining great taste. In 2011, we are pursuing similar strategies: 50 percent of Frito-Lay’s snacks will be made with all-natural ingredients, a highly demanded consumer product sub-category.

Performance 3
Gatorade's Mission Control monitors, reacts and engages with consumers in real time across the social web, building awareness of the brand.

3 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

The reputation and performance of our brands are critical to building brand equity scores. We have sustained or grown brand equity in the majority of the top markets for most of our 19 billion-dollar brands. Driving these overall positive results have been very successful consumer engagement programs on our billion-dollar brands across the globe, such as the “Do Us a Flavour” competitions in the U.K. (Walkers), the Netherlands (Lay’s) and India (Lay’s). These programs allow consumers to have a say in selecting new flavors introduced by the brands, through text and online messages. Mountain Dew developed a partnership with consumers in the DEWmocracy 2 campaign to create three new DEW flavor innovations. And through the Gatorade Mission Control social media platform, which tracks online sports performance conversations in real time and then uses the information to deepen consumer engagement, we are able to adjust marketing plans and influence product innovation.

Performance 4

4 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We know that being viewed as a premier supplier by our customers is part of our success, and we pride ourselves on delivering superior value and expertise to our customers in important areas, including consumer insights, innovative marketing and supply chain management. Assessing our performance through our customers’ eyes ensures we are focused on the areas they believe are most important. Many retailers today have supplier scorecards that measure important sales and operational metrics. In addition, we also leverage third-party benchmarking tools from the U.S.’s Kantar Retail surveys and globally through the Advantage Group International survey. In Kantar Retail’s 2010 surveys, PepsiCo ranked among the top two foodservice suppliers in the U.S. and ranked number four among retail customers. We delivered year-over-year improvements in the areas of supply chain management and customer sales teams. Where we have dedicated PepsiCo Power of One retail customer teams, we ranked number three overall and number one for insights. Inter­nationally, we had strong results in the Advantage Group International’s Advantage Report in a number of countries. In the U.K., Walkers was ranked number two for overall performance among sixteen confectionery and snack food companies. Tropicana, in the U.K., was ranked number one out of thirteen companies in the refrigerated dairy and juice category. In Canada, Frito-Lay was ranked number three among a total of 23 fast-moving consumer goods companies in the grocery channel. Going forward, we plan to expand our Power of One approach to a broader set of key customers and expect the efforts to translate into positive results in future surveys.

Performance 5

5 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

PepsiCo is committed to delivering sustainable operating performance. In order to succeed, we know it’s important to balance both the short and the long term. The 2010 acquisition of our anchor bottlers in North America and Europe, for example, enables us to drive growth, ensure a dynamic future for PepsiCo and create a more integrated supply chain. As expected, the decision to acquire these bottlers reduced overall division operating margins in 2010. However, we also understood that realizing operational synergies would better position us to increase margins over the long term. We also invested in some key growth drivers of our business, including expanding our business in China (one of our priority growth markets) and increasing advertising and marketing spending in our North America beverage and U.S. Quaker Foods businesses. Through these and other investments, we expect to increase overall division operating margins over time.

Performance 6

6 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

In the three years ended 2010, operating cash flow significantly outpaced the rate of net income. We believe that our disciplined approach to cash flow management will enable us to continue to meet or exceed this goal in the future.

Performance 7

7 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We deliver strong returns to our shareholders through substantial profit growth, sound investment decisions and disciplined cash flow management. We increased our annual dividend in 2010 for the 38th consecutive year, from $1.80 to $1.92, or 7 percent, and we returned a total of $8 billion to shareholders in the form of share repurchases and dividends. From 2001-2005, our total cash returned to shareholders was $18 billion. Over the five-year period from 2006 to 2010, which included the economic turmoil of recent years, our total cash returned to shareholders was $29 billion. While delivering top-quartile returns remains a goal we continue to strive for, we’re proud that we delivered above-average total shareholder returns among the top 15 global consumer product companies in 2010, as well as in six of the last 10 years.

Performance 8

8 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

PepsiCo maintains the highest standards of corporate governance, supported and monitored by a diverse and annually elected Board of Directors, and widely recognized by proxy advisory firms such as Institutional Shareholder Services (ISS) and GovernanceMetrics International (GMI). In 2010, Ethisphere magazine rated PepsiCo one of the world’s most ethical companies. And again in 2010, we were included in the Dow Jones Sustainability Indexes (DJSI World and DJSI North America) with a “best in class” score for corporate governance in our industry group. We continue to achieve this level of success because we not only operate with strict corporate standards, but also track accountability and train our associates in our Worldwide Code of Conduct.

Performance 9

9 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

With clear values at the core of PepsiCo’s culture, empowered associates have the guidance they need to act and work responsibly. We have reinforced the importance of our values through training, annual Code of Conduct certification and our new-hire orientation processes. In our 2006 Organizational Health Survey we began measuring how well our values are embraced company-wide and have received very positive ratings. In our last all-employee survey in 2009, we again received very favorable ratings in all levels of the company, from the front line to senior executives. The aggregate global score from employees regarding our commitment to living our values was 82 percent favorable, a rating we continually strive to increase. In 2011, as part of our biannual survey process, we will once again seek feedback on our commitment to our values from our associates, including those from our recently acquired bottling organizations. (*)

Performance 10

10 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We’ve made great strides in increasing the amount of wholesome foods across our global portfolio. Through estimated 2010 U.S. data, the Quaker division is expected to have contributed nearly 500 million pounds of whole grains to the American diet. In Russia, with the acquisition of Lebedyansky in 2009, we became the number one juice company across Europe and expect to have sold 230 million servings of 100 percent juice in Russia in 2010. During the same year, Sabritas is estimated to have delivered more than 19 million pounds of nuts and seeds to Mexican consumers through its varied nuts and seeds product portfolio. In 2010, we also formed our Global Nutrition Group, which we believe will help us strive to become the leading provider of Good-for-You foods and beverages. This groundbreaking initiative is intended to help accelerate the growth of our Good-for-You products from $10 billion in net revenue in 2010 to $30 billion by 2020. $10 billion
In 2010, our Good-for-You portfolio
delivered $10 billion in net revenue.

Performance 11

11 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We are making good progress in reducing sodium in many of our key global food brands. In the U.K., Walkers has significantly reduced sodium by 25 to 55+ percent in its products since 2005, while continuing to be the country’s number one selling brand of crisps. In the U.S., Frito-Lay developed “Lightly Salted” versions of Fritos corn chips and Rold Gold Tiny Twist pretzels in 2010, each with 50 percent less sodium than their original versions. And in 2011, Frito-Lay in the U.S. will reduce sodium by nearly 25 percent, on average, across its entire flavored potato chip portfolio, including Lay’s. In Brazil, we reduced sodium in one of our most popular snacks, Fandangos, by more than 30 percent, while expecting to achieve volume growth of more than 50 percent from 2006 to 2010. In 2011, we will continue to invest in developing different approaches to sodium reduction in our food brands, including the development of different salt crystal shapes that deliver great taste with less sodium. With these and other initiatives, we believe we are on track to meet our 2015 goal.

Performance 12

12 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We’ve been an industry leader in eliminating nearly all trans fats from our U.S. product portfolio and many of our global products; and now we’re committed to reducing the saturated fat content of our key global food brands. In India, for example, we’re using blended rice bran oil, which has led to a 40 percent decrease in saturated fat in leading products such as Kurkure namkeen snacks and Lay’s potato chips. In China, increased sales of our Quaker products has been a driver behind a 10 percent decrease in saturated fat per serving across our foods portfolio. And in Russia, saturated fat levels have been reduced by almost 13 percent through the introduction of lower-saturated-fat versions of Cheetos and the more than 300 percent growth of low-saturated-fat Hrusteam products since 2006. In 2010, we launched versions of Cheetos and Fandangos in Brazil made with heart-healthier sunflower oil, and expect to incorporate it into other products throughout the world. To reach our 2020 goal, however, we will need to continue developing products that are great tasting with less saturated fat.

Performance 13

13 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

While reducing added sugars in beverages is challenging — due to strong consumer taste preferences for sugar and complex regulatory processes for alternatives — we have set aggressive goals and are making progress toward achieving our 25 percent reduction target by 2020. In the U.S., for example, we have further expanded the successful SoBe Lifewater zero-calorie line of products to now offer 11 different flavors with all-natural, zero-calorie sweetener. In Turkey, a leading beverage, Fruko Gazoz, has been reformulated with a sweetener blend that reduces added sugar content by 32 percent. Looking longer term, we established partnerships that help develop an all-natural sweetener designed to replicate the taste and feel of sugar; and we expect to continue to invest in sweetener technologies that will help us deliver products with fewer calories while preserving the great taste consumers expect.

Performance 14

14 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We’re working to ensure that by 2012, basic nutritional information is available to consumers on packages (where feasible to print on the packaging and where permissible by local regulations) for all of our food and beverage products in key markets. In countries where we’ve already met this standard, we’re also working toward an additional goal — displaying calorie or energy counts on the fronts of packages. We have already implemented front-of-pack labeling on many products in the U.K. and many other European countries, as well as in Australia. And we are rapidly expanding implementation in a number of countries around the globe, including the U.S., Canada, Mexico and Brazil. (*)

Performance 15

15 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

PepsiCo has taken a firm stand on responsible marketing to children by joining other global food and beverage manufacturers in adopting a voluntary commitment to advertise to children under the age of 12 only products that meet specific nutrition criteria. In 2010, we announced strict science-based criteria that ensure only our most nutritious products meet the standard for advertising to children under the age of 12. As verified by an independent third party, we achieved 98.5 percent compliance by the end of 2010 in globally representative markets such as India, China, Mexico and six countries in the European Union, all of which were monitored for compliance with our advertising-to-children policy. Additionally, we achieved 100 percent compliance with our U.S. and Canada advertising-to-children pledges, as verified by the Children’s Food & Beverage Advertising Initiative in the U.S. and Advertising Standards Canada.

Performance 16

16 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

PepsiCo continues to implement a global policy for beverage sales in schools — focused on water, juice, milk and low-calorie beverages that support healthy nutrition habits among students. By 2012, when the global school beverage policy is fully implemented, we will no longer sell full-sugar soft drinks directly to primary or secondary schools worldwide. These changes have already been made in a number of key markets. For example, between 2006 and 2009, we voluntarily discontinued direct sales of full-sugar soft drinks to K–12 schools in the U.S. and replaced them with smaller-portioned and lower-calorie beverage options. We also do not sell full-sugar soft drinks directly to primary and, in some cases, secondary schools in most of Europe, Canada, Australia and the majority of countries in the Arabian Peninsula.

Performance 17

17 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

In 2010, we continued to provide consumers with options to manage calorie intake, from launching new products with zero- and low-calorie sweeteners to reformulating existing products with fewer calories. Naked Juice, for example, introduced two 100 percent juice smoothies that have 35 percent fewer calories than regular Naked Juice Smoothies, and Tropicana added new flavors — such as Pomegranate Blueberry, Pineapple Mango and Farmstand Apple — to its Trop50 line, which offers 50 percent less sugar and fewer calories with no artificial sweeteners. In the U.K., we launched a 600ml zero-calorie cola at the same recommended retail price as a 500ml full-sugar cola. And in Brazil, we recently acquired Amacoco that positions us to broaden the distribution and sales of our lower-sugar coconut water product line. On the foods side, we utilized our expertise in baking and air-popping technologies to manage calories. In Mexico, a baking technique is used to produce a version of Sabritas potato chips that has 20 percent fewer calories. Several of our products, including SunChips, Sabra, Quaker's Quakes and True Delights rice snacks were recognized on Good Housekeeping’s “Best Low-Calorie Snack” list.

Performance 18

18 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We have strengthened our efforts to introduce affordable nutrition and are making strides to meet this long-term goal. For example, we developed a plan to launch affordable, fortified snacks and biscuits in India to address iron-deficiency anemia, with a pilot launch scheduled for Andhra Pradesh in India in 2011. Additionally, we are investing in research to identify key nutrient-dense staple crops that can be used in locally produced nutritious foods and snacks for sub-Saharan Africa.

Performance 19

19 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

The PepsiCo Foundation is committed to helping people with the greatest health disparities achieve improved health and nutrition through effective and sustainable programs. Through a combination of Foundation grants and corporate contributions, we increased our annual investment from $4.2 million in 2006 to $4.7 million in 2010. In the U.S., the Foundation has contributed $2.5 million to the Healthy Weight Commitment Foundation — a coalition of businesses, nonprofit organizations and athletes committed to reducing obesity by 2015. The grant is being used for a public education campaign for moms and kids, and to implement a school-based program. PepsiCo continued to support the YMCA of the USA to improve the health, nutrition and well-being of underserved African-American and Latino populations — a collaborative program that has reached nearly 40,000 people in 85 communities. The Foundation’s strong partnership with Save the Children has reached approximately 850,000 people in India and Bangladesh to help improve health and nutrition. And the Foundation’s partnership with the World Food Program (WFP), which leverages PepsiCo’s supply chain expertise to improve the WFP’s logistics efficiency, will indirectly benefit approximately 90 million people served by the program.

Performance 20

20 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Human health and environmental protection are two critical components of sustainable development. To ensure that our efforts in these areas are as cohesive and productive as possible, we have begun to develop a formal policy to coordinate our human health, agriculture and environment-related initiatives. In 2010, we championed a coordinated approach within the World Economic Forum (WEF) and, in partnership with some of the world’s foremost thinkers in these key areas, called for governments and corporations to embrace an integrated approach to sustainable development and nutrition. In 2011 and beyond, we will accelerate our efforts, engaging our internal team of experts to create an integrated framework for company policies and practices that can be used to reach our goal and to serve as a basis for our Global Nutrition Group.

Performance 21
At our Frito-Lay facility in Casa Grande, Arizona, we are applying membrane bioreactor and low-pressure reverse osmosis technology to purify and recycle up to 75 percent of the site’s process water.

21 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Water efficiency has long been an environmental focus at PepsiCo. Through the third quarter of 2010, our global food and beverage businesses reduced water-use intensity by 19.5 percent versus 2006. And we’re on track to achieve our 2015 target for company-owned facilities. Upgrading our facilities with new technologies is one important way we are reaching this goal. For example, our Frito-Lay facility in Casa Grande, Arizona has been equipped with a state-of-the-art water filtration and purification system that can recycle and reuse up to 75 percent of the water used in production. Similar technology is also being deployed in our Tingalpa facility in Australia, a water-stressed area. We will continue to apply lessons learned in one facility to others across our global footprint. (*)

Performance 22

22 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

In 2009, PepsiCo's operations in India achieved positive water balance, enabling us to give back to society more water than we used to manufacture our products. To expand this achievement to other water-distressed areas where we have a presence, we have launched a number of projects. In 2010, for example, we began working with The Nature Conservancy to develop ways to identify areas of high water risk, so we can focus our attention and resources on achieving “net positive water impact” in the most vulnerable areas where we operate. We have selected watersheds in China, Mexico, Europe, India and the U.S. to pilot the development of a flexible and robust system that allows PepsiCo plants not only to characterize their water risk, but also identify locally relevant restoration initiatives that will improve water availability. (*)

Performance 23

23 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Having pledged more than $15 million since 2005 toward water projects, the PepsiCo Foundation is working to alleviate water scarcity in developing countries. In fact, the Foundation expects to provide access to safe water for one million people by the end of 2011, and to increase the number to three million people by 2015. The bulk of the Foundation’s work is being done in partnership with Water.org, Safe Water Network, China Women’s Development Foundation and Earth Institute at Columbia University. Together, we make vitally important water kiosks, household connections and municipal village systems available. At the village level, with the Foundation’s funds, our partners can install farming irrigation, rainwater-harvesting systems, construct cisterns, and support sanitation and hygiene education programs.

Performance 24

24 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We've been an industry leader in the innovative use of food-grade rPET in beverage containers in the U.S. market. In 2010, we continued to meet our commitment by including an average of 10 percent rPET in our primary soft drink containers in the U.S. We’re particularly proud that our Naked Juice brand has commercialized a 100 percent post-consumer-recycled plastic bottle in the domestic grocery channel. Innovation is also driving our effort to expand the use of rPET internationally. For example, in France, during the third quarter of 2010, we began selling 1.5-liter containers of Tropicana that incorporated 50 percent rPET. This change represents an annual savings of approximately 1.1 million pounds of resin. In 2011, we have plans to expand our use of rPET in countries outside the U.S. by more than 2.5 million pounds.

Performance 25

25 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We're creating national partnerships and developing new technologies to make recycling easier and more efficient. Last year, we launched the Dream Machine recycling initiative with Waste Management, Greenopolis and Keep America Beautiful, to promote increasing the U.S. beverage container recycling rate from 38 percent in 2009 to 50 percent by 2018. The program, which includes reward-point incentives, encourages beverage container collection at public locations — such as grocery stores, gas stations, sports arenas, college campuses and schools — using intelligent kiosks equipped with scanners. With these and other efforts, we hope to encourage consumers to recycle and other organizations to establish recycling systems, because we can't reach this goal alone. We need everyone — industry and consumers — to join us.

Performance 26

26 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We have made significant progress in reducing the amount of packaging we use to supply many of our products to consumers. For example, the 500ml Eco-Fina bottle weighs 10.9 grams, using 50 percent less plastic than the similar Aquafina packaging produced in 2002. This change helped us achieve a total packaging weight reduction of 103 million pounds in 2009 — getting us close to 30 percent of our 350-million-pound goal. We are confident that moves like this and other new initiatives in beverage and food product packaging will help us reach our 2012 goal. 103-million-pound
reduction in packaging weight in 2009.

Performance 27

27 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Across our snack businesses in the U.S. and U.K., we’ve made considerable progress toward achieving the goal of sending zero waste to landfills. In 2009, PepsiCo generated an estimated 984,000 metric tons of solid waste from our global manufacturing facilities. Of that total, 17 percent was discarded in a landfill, and 82 percent was sent off-site for beneficial uses, such as recycling. Currently, nine PepsiCo U.K. sites send zero waste to landfill. In 2010, 13 Frito-Lay North America manufacturing sites averaged less than 1 percent of solid waste disposed to landfill. In 2011, Frito-Lay North America expects that 20 facilities will achieve this mark, and we believe 10 facilities will send zero waste to landfills by the end of the year. We are now introducing waste-reduction plans and training in many of our facilities around the world to further our progress. (*)

Performance 28
The solar power system at Frito-Lay’s Casa Grande, Arizona plant is one way the facility hopes to operate almost entirely on renewable energy sources.

28 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We're achieving solid results by rolling out best practices throughout our manufacturing network to improve our electricity-use efficiency. For our global food and beverage manufacturing operations, we registered a nearly 9 percent improvement as of third quarter 2010, compared to the 2006 baseline, and we’re on target to achieve our 2015 goal. This improvement in electricity efficiency was accomplished through numerous lighting, compressed air and motor efficiency projects across all PepsiCo business units. These reductions in electricity use helped enable Frito-Lay to receive six additional LEED awards for Existing Buildings Gold Certifications in 2010 from the U.S. Green Building Council Leadership in Energy and Environmental Design. The Perry, Georgia; Topeka, Kansas; Modesto, California; Beloit, Wisconsin; Jonesboro, Arkansas; and Killingly, Connecticut manufacturing sites joined the Casa Grande site in 2010. (*)

Performance 29

29 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Fuel-use intensity for our global food and beverage manufacturing operations has improved by more than 12 percent as of the third quarter 2010 versus the 2006 baseline. Our progress is the result of a number of innovations being introduced in facilities around the world. In 2010, we extended the deployment of our new high-efficiency heat exchangers to production plants in the U.K., Portugal, Spain and India. This device, which was piloted in Australia and Russia, significantly improves heat transfer and recaptures heat lost in the potato chip frying process. Frito-Lay’s Topeka, Kansas facility has reduced its natural gas consumption per pound of product by 40 percent since 1999 by installing new technologies, including high-efficiency oven burners and a high-efficiency biomass boiler. In addition to these and other technologies, our resource conservation programs are providing an essential foundation for helping our plants to reduce fuel-use intensity and keeping us on track to meet this 2015 goal. (*)

Performance 30

30 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We have made important progress by establishing a rigorous new internal framework to drive our energy conservation efforts and are on track to meet our U.S. GHG intensity goal. Frito-Lay's transition to a more fuel-efficient fleet included a significant investment in electric-powered commercial trucks. In 2010, 13 electric Frito-Lay delivery trucks began their routes in the U.S. and Canada, with another 163 scheduled for launch in 2011. We believe this will make Frito-Lay the largest operator of all-electric private delivery trucks in North America. These trucks are estimated to emit 75 percent less greenhouse gas than conventional diesel trucks and will eliminate the need for approximately 500,000 gallons of fuel annually. (*)

Performance 31

31 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We're making progress on our goal to reduce GHG emissions in our global manufacturing facilities and transportation systems. In South America, for example, the Green Stamp Program is optimizing vehicle efficiency through preventive maintenance and regular vehicle inspections, as well as through guidance on improving fuel-efficiency procedures for truck drivers and route salespeople. To date, approximately 80 percent of PepsiCo’s fleet in Peru, Ecuador, Chile, Colombia, Argentina and Venezuela has participated in the program, with plans for further improvements underway. In the U.S. and Canada, the new Enterprise Transportation Management System is also driving route efficiency, productivity and cost savings. (*)

Performance 32

32 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We've been committed to sustainable agriculture practices for many years. In 2009, we launched our Global Sustainable Agriculture Policy — designed to encourage all of us, and our growers, to operate in a way that protects and nourishes land and communities. For example, we worked with a grower to determine whether alternative fertilizers could significantly reduce the carbon footprint associated with the agricultural production of oranges. If successful, these fertilizers could reduce the total carbon footprint of Tropicana Pure Premium juice by as much as 15 percent. We’re also working to develop the first certification program of sustainable practices for our global suppliers. In 2011, the program will be piloted in the U.S. and then adopted worldwide. By including industry peers in the development process, we hope to establish a standard for all consumer goods companies interested in certifying their farming practices in areas such as water and energy management, soil conservation, nutrient and pesticide use.

Performance 33
The web-based “precision farming” technology in the U.K., i-crop™, is designed to help farmers produce more while using less water.

33 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

PepsiCo is supporting local farmers globally through funding and training. In 2010, together with 350 British farmers, PepsiCo launched an important initiative to cut our carbon emissions and water use by 50 percent over five years. To achieve this, we're exploring a host of innovations with our growers, including i-crop™ “precision farming” technology (developed with Cambridge University); new low-carbon fertilizers; a plan to replace more than 75 percent of our current potato stock with varieties that give greater yields with less waste and The Cool Farm Tool software for measuring carbon emissions. As the U.K.’s largest buyer of potatoes and a major purchaser of oats and apples, we expect a significant, positive environmental impact from these steps. Similar agricultural initiatives are underway on every continent. In India, for example, we are teaching contract farmers sustainable agriculture practices, and helping 12,000 farmers form a cooperative and establish credit through the State Bank of India.

Performance 34

34 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We have launched a host of initiatives with associates and partners that accelerate the adoption of environmental sustainability practices through education. In April 2010, more than 700 associates, suppliers and vendors, including representatives from 16 countries and every PepsiCo division, convened at the Global Sustainability Summit in Dallas, Texas, to share best practices in environmental sustainability. The PepsiCo Green volunteer organization inspires associates across the globe to set the standard for environmental sustainability by voluntarily raising awareness and inspiring wider eco-friendly practices both in the workplace and at home. From its 2007 launch, PepsiCo Green has grown virally in the U.S. and globally, expanding to 19 countries in 2010.

Performance 35

35 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Human health and environmental protection are two critical components of sustainable development. To ensure that our efforts in these areas are as cohesive and productive as possible, we have begun to develop a formal policy to coordinate our human health, agriculture and environment-related initiatives. In 2010, we championed a coordinated approach within the World Economic Forum (WEF) and, in partnership with some of the world’s foremost thinkers in these key areas, called for governments and corporations to embrace an integrated approach to sustainable development and nutrition. In 2011 and beyond, we will accelerate our efforts, engaging our internal team of experts to create an integrated framework for company policies and practices that can be used to reach our goal and to serve as a basis for our Global Nutrition Group.

Please note that this commitment and copy is the same as commitment 20.

Performance 36

36 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We seek the insights of our associates through our biannual Organizational Health Survey to help us increase associate engagement and satisfaction globally, regionally and locally. By conducting the survey every two years, we’re able to analyze the data, create meaningful action plans and measure plan effectiveness. We also benchmark our results against other highly respected companies from different industries, using data from the Mayflower Group, a survey consortium of companies to which PepsiCo belongs. In our last full survey, conducted in 2009, we learned that 73 percent of our associates rated PepsiCo as a favorable place to work compared with other companies, 11 percentage points higher than the Mayflower benchmark. Our overall associate engagement index was also favorable at 75 percent. And our associate response rate of 89 percent was well above survey industry benchmarks. In 2011, we will again conduct our Organizational Health Survey of all associates, including those in our recently acquired bottling organizations, in approximately 80 countries and in 38 languages.

Performance 37

37 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We have a core belief that making the most of diverse strengths and talents helps make our company successful. We take great care to weave diversity and inclusion (D&I) into the very fabric of our culture to improve as a global, multicultural and multigenerational company capable of serving the world’s communities effectively. To ensure that our focus on D&I is supported at all levels of the company, we seek the feedback of our associates as part of our biannual Organizational Health Survey. The feedback is encouraging. In 2009, our last full survey, 80 percent of our associates said their managers support their involvement in D&I activities, a 14 percentage point improvement since the question was first asked in 2004. Feedback externally is also positive. PepsiCo is frequently benchmarked for its global D&I initiatives, often by many of our most-valued retail customers. And in 2010, our D&I leadership and initiatives were once again recognized by numerous organizations and publications. The chart below provides a snapshot of PepsiCo’s 2010 diversity statistics after the integration of our anchor bottlers and other acquisitions by the company.

2010 Diversity and Inclusion Statistics

Performance 37 Table

Performance 38

38 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Our global wellness strategy is designed to engage associates and their families in developing and sustaining healthy behaviors to improve their overall quality of life. To support associate wellness, we offer on-site health and wellness services in many countries around the world, including China, India, Mexico, South Africa, the U.K. and the U.S. These initiatives, which vary by location, include routine medical care at work sites, education programs on health, nutrition and exercise, programs on smoking cessation, on-site fitness centers and organized programs to encourage exercise. In 2010, we conducted an inventory of our wellness efforts globally with the intent of helping accelerate improvements, share best practices and grow beyond the 36 countries in which we currently offer programs. Our associate wellness efforts have been recognized in the U.S. by the National Business Group on Health, which awarded PepsiCo the 2010 Best Employers for Healthy Lifestyles Platinum Award. In addition to helping our associates, our focus on health and wellness brings a financial benefit. A 2009 study of our U.S. medical claims data found that associate participation in these programs significantly reduced healthcare and insurance costs over time. We are looking to track the impact of our programs around the world to identify sustained cost-saving trends.

Performance 39
Two of Frito-Lay North America’s 500 “Million Milers,” pictured below, have career milestones of more than one million accident-free miles.

39 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

The health and safety of our associates is of paramount importance to PepsiCo. We are continually working across our businesses to prevent occupational injuries and illnesses, striving for an incident-free workplace. In 2011, we created a new Global Operations organization, which will help us strengthen health and safety governance in our supply chain globally as we leverage best practices across sectors while implementing locally relevant safety strategies. The new organization builds on the progress we made with the creation of the PepsiCo Health and Safety Leadership Council in 2008 to ensure we have the strategies, frameworks and systems to effectively manage risks, build health and safety leadership capabilities, identify global metrics and track performance. Areas of focus include machinery safety, fleet safety, activities requiring a permit to work and sales security. We are currently in the process of developing and implementing measurement tools to consistently track safety data on a global basis. These processes have been put in place due to the significant growth of the PepsiCo organization in recent years with the acquisitions of our two largest bottlers and the Lebedyansky juice business in Russia — all of which have increased the number of our manufacturing facilities, sales activities, associates and contractors worldwide.

Performance 40

40 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We are fully committed to compliance with applicable laws and regulations and doing the right thing consistently, without compromise. To ensure ethical and legal compliance, we provide annual training on our Code of Conduct to salaried associates with e-mail accounts, who must certify that they have read and understand the Code and agree to abide by it. In 2010, approximately 57,000 associates in this target group completed this training and certification process. Our Code of Conduct, in 2010, also included in-person training for more than 100,000 associates outside of the target group. Distributed to associates, either electronically or in hard copy, our Code of Conduct is translated into 38 languages. In addition to our 2010 ranking as one of the world’s most ethical companies by Ethisphere magazine, we also ranked in the top quartile for compliance performance for the beverage industry in the 2010 Dow Jones Sustainability World Index.

Performance 41

41 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We are committed to a robust and systematic approach to managerial and executive development and succession planning. Our agenda includes formal leadership-development programs as well as annual 360-degree feedback processes and other measurement tools. To effectively prepare our managers and executives to lead in a challenging macroeconomic environment and to develop other associates, we have launched four new development programs in the last two years, spanning from first-time managers to senior leaders that provide leadership training to more than 2,700 associates around the world. To further support our leadership-development efforts, our Employee Resource Groups — with company sponsorship — offer additional avenues for leadership development that have demonstrated impact. We are pleased to be included in Fortune magazine’s most recent global ranking of the 2009 25 “Top Companies for Leaders” and the Hay Group’s 2010 ranking of the global top 20 “Best Companies for Leadership.” In 2010, we were also recognized as a “Best Company for Leadership Development” in India by the Great Places to Work Institute.

Performance 42

42 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

We have established many programs that help our associates improve their skills and abilities. For example, we launched our annual Manager Quality Performance Index (MQPI) process in 2009 to collect data from associates on how well their managers provide feedback, develop “stretch” assignments and recognize and reward achievements. With this annual input, and with input from managers and leaders, we have the opportunity to shape a workplace in which our associates can grow. In 2010, we saw a positive increase in the overall MQPI scores across our executive population, as compared to the baseline established in 2009. Our ongoing efforts enable us to build from a position of strength. In the Organizational Health Survey conducted in 2009, 72 percent of our associates said they had opportunities to improve their skills, 10 percentage points above the Mayflower benchmark, while 77 percent said they had received the training needed to do a quality job, 7 percentage points above the average.

Performance 43

43 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

Training is an integral component of our talent and performance agendas. For example, more than 2,900 associates in 2010 registered and completed at least one course from our award-winning Finance University. And, more than 1,000 non-finance associates completed one or more Finance University courses in 2010 with the aim of increasing their skills and improving their performance in their current roles. In another training initiative, supporting our commercialization competencies, a robust and continuously updated sales and customer management curriculum is available for all U.S. sales professionals. And, to enable us to deliver on our Research & Development (R&D)-related goals, we launched an R&D curriculum in 2010, available to our associates globally. Meanwhile, our operating groups continued to provide training for their frontline sales and operations teams. We were pleased last year to be named by Actualidad Económica magazine as “One of the Best Companies in Spain” for investment in training.

Performance 44
A PepsiCo associate doing a final quality check in the Pepsi line at PepsiCo's Chongqing facility; China's first “green” beverage plant is an example of our commitment to create jobs locally.

44 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

In 2010, we announced numerous investments that will lead to job creation, including $2.5 billion in China over the next three years (in addition to the company’s $1 billion investment announced in 2008); $250 million in Vietnam over the next three years; and $3 million in Peru over the next three years. We also signed a memorandum outlining plans to invest $140 million to build our tenth plant in Russia — part of a $1 billion investment program announced in 2009. The number of jobs created by these investments will be determined in the next few years. Meanwhile, last year we expanded our Sangareddy and Mahul beverage production facilities in India, as well as their corresponding beverage and food sales organization, creating 5,000 direct and indirect jobs. In Brazil, we grew production in São Paulo and Feira de Santana, and opened up a new business unit in Cachoeiro do Itapemirim, that created 360 jobs. Meanwhile, we are also creating jobs in the U.S. The investments we are making in our new Global Nutrition Group is one example, with many new positions based in Chicago, while in Virginia the Sabra Dipping Company joint venture opened its new manufacturing plant in Colonial Heights.

Performance 45

45 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

In 2010, the PepsiCo Foundation contributed a total of $7.6 million in grants to support education. The Foundation is proud to be the founding private-sector partner of Diplomas Now, an innovative school turnaround model that keeps at-risk students in school and on track to graduate. In three years, the Foundation will have committed $11 million to the program. The Foundation also funds the ExCEL Scholarship Program — available to children of active, full-time associates of PepsiCo. The program was created by the PepsiCo Foundation to help those who have the ability to achieve their full potential in college but have limited means to attend. Each year, the program awards up to 250 renewable scholarships worldwide, ranging from $1,000 to $10,000, for study at four-year colleges and universities, two-year colleges and vocational-technical schools in any country. In 2010 alone, the PepsiCo Foundation provided $3.1 million in scholarships.

Performance 46

46 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

All around the world, thousands of PepsiCo associates are engaged in volunteer activities that improve their communities. In 2010, for example, 200 associates in Mexico worked with United Way to help renovate a school for children with disabilities, and — for the fourth year — we continued our commitment to Vive Saludable Escuelas, which provides education on diet and physical activity to elementary and high school students throughout the country. In India, our HIV Prevention Education initiative reached more than one million people in the communities where we operate. The initiative is run by a large network of company volunteers in association with the country’s International Labour Organization. And in the U.S., the 2010 Pepsi Refresh Project awarded more than $20 million in small grants to help communities move forward in the areas of health, arts and culture, food and shelter, the environment, neighborhoods and education. One of the original projects included a $10,000 grant to Mosaic, our African-American Employee Resource Group, which coordinated the efforts of nearly 1,400 associate volunteers in 30 food banks across the U.S. The Pepsi Refresh Project will be expanding to additional markets (Europe, Latin America and the Middle East) in 2011.

Performance 47

47 - Match eligible associate charitable contributions globally, dollar for dollar, through the PepsiCo Foundation.

In 2010, the PepsiCo Foundation matched $5.1 million in associate charitable contributions. And over the past 12 years, the Foundation has provided $47 million in matching gifts to qualified nonprofit agencies working in environmental, educational, civic, arts and health and human services fields. Available to associates worldwide, matching gifts leverage and increase the impact of individual contributions. The matching gifts program also helped associates provide aid to populations affected by disaster. In 2010, for example, the PepsiCo Foundation matched associates' contributions to assist those affected by the Haiti earthquake, the Chile earthquake and the Pakistan floods, supplementing additional disaster relief aid provided by the Foundation and PepsiCo business units. $47 million
in matching contributions since 1999

 Contribution Summary
(in millions)
Performance 47 Table