PepsiCo's Racial Equality Journey Hispanic Initiative Progress Update
A Message from Our CEO
At PepsiCo, we know that our company can only succeed when our associates and the societies we serve thrive. That’s why we are committed to fostering a diverse workforce that reflects our consumer base and society at all levels in the company and we are helping to build a more equitable and inclusive world, where everyone has a voice and an opportunity to achieve their full potential.
This objective became even more critical last year after we witnessed the global pandemic disproportionally impact Black and Hispanic communities across the U.S. and the systemic inequities these communities continue to face.
In response, we took a big and necessary step forward by announcing our Racial Equality Journey—an initiative to elevate diverse voices within our company, our supply chain partners, and our communities, whilst helping to dismantle longstanding racial barriers for Black and Hispanic Americans. We committed to invest $172 million over the next five years to increase Hispanic representation at PepsiCo and support Hispanic-owned businesses and communities, in addition to spending $224 million with Hispanic suppliers in 2020.
Today, as we mark the one-year anniversary of the launch of our Hispanic Racial Equality Journey, I am proud to share some of the measurable progress we have made across our 3 pillars, People, Business and Communities.
We are on track to reach our goal and increase our Hispanic managerial population to 10% of our workforce and add 50 Hispanic associates to our executive ranks by 2025, mirroring the workforce availability of the communities where we operate.
- As of Q2 2021, our Hispanic managerial representation is up to 9%, including adding 28 Hispanic associates to our executive ranks.
We are expanding our coaching and professional skills development programs to enable further professional and personal growth, and career advancement.
- We recently launched BOLD (Breakthrough Organizational Leadership Development), a six-month executive developmental program for Hispanic and Black managers.
- We’ve accelerated our engagement and recruitment of diverse talent through our U.S. Campus program, resulting in an increased acceptance rate from Hispanic students at Hispanic Serving Institutions (HSIs). Additionally, we had the most diverse intern class to date, enabling us to continue to develop a pipeline of diverse talent.
- More than 10,000 North American PepsiCo associates have completed our Inclusive Leadership Training, facilitated by diversity experts.
We launched the Juntos Crecemos platform to strengthen Hispanic-owned businesses.
- A $50 million investment to strengthen Hispanic-owned small businesses, specifically restaurants, bodegas and carnicerías, over the next 5 years. In addition to providing funding, store essentials, and other resources, small business owners participating in Juntos Crecemos have access to the Hispanic Digital & Delivery Program, a customized eight-week consultation curriculum tailored to meet their specific needs, including helping them improve online presence, delivery logistics, online ordering and marketing practices. Participants also have access to consultation from PepsiCo experts, who provide coaching and guidance on devising solutions for business challenges.
- As part of the Juntos Crecemos platform, The PepsiCo Foundation launched the IMPACTO Hispanic Business Accelerator, which will provide $10 million over the next five years to help 500 Hispanic-owned small food and beverage businesses impacted by the pandemic in 13 U.S. cities. The funding is helping these owners create economic opportunity within their communities by providing bi-lingual business coaching and other resources. We are pleased to report that funding has already reached 150 IMPACTO grantees, including La Peña Restaurante in Chicago, IL; De Mi Fogón in Houston, TX; Cuernavaca’s Grill in Los Angeles, CA; 8 Burger in Miami, FL; and Claudy’s Kitchen in Bronx, NY.
We’re continuing to deliver against our $87 million investment in PepsiCo’s Hispanic Business Units to further support our Hispanic customers.
- We established Hispanic Business Units across our foods and beverages sectors and announced a multi-million investment to expand U.S. distribution of our Frito-Lay Gamesa brand. This investment includes launching 30 new Gamesa direct-store delivery routes that provide elevated service and growth potential in key Hispanic markets.
We’re continuing to increase Hispanic representation across our suppliers, marketing agencies, and professional services.
- We have a solid pipeline to expand our existing Hispanic supplier base across a variety of categories, including marketing, capital, and transportation. We project to increase our 2021 spend by $6 million to approximately $230 million.
We’ve reached a milestone in our plan to invest $40 million over five years to support two-year/trade certificate Community College scholarships (Uplift Scholarship) and establish scholarship support for students transitioning from 2-year to 4-year programs (S.M.I.L.E. Scholarship).
- We’re expanding our Uplift Community College Scholarship program to distribute approximately 500 scholarships across 20 cities by end of 2021. We’re on track to grant 2,000 scholarships to Hispanic students by the end of 2025.
- Our S.M.I.L.E. (Success Matters in Life & Education) initiative has awarded scholarships to 25 students to help them transition from 2-year to 4-year colleges and universities. These recipients were granted $25,000/year, and more than 50% are Hispanic students.
We exceeded our goal to invest $1 million to replicate community initiatives, such as Southern Dallas Thrives, to create opportunities for underserved communities in the U.S.
- We launched Team of Champions, a national purpose platform building on our global UEFA Champions League partnership to improve access to soccer in underserved communities. The $1 million commitment over three years will make actionable investments on and off the field to help create transformational change for Hispanic and Black communities across the United States.
- We launched Pathways to Readiness and Empowerment Program (PREP) Stronger Together in partnership with leading community organizations, including Chicago Cubs Charities, UCAN, and Chicago Jesuit Academy. This program includes investing more than $5 million dollars to put nearly 3,000 young people from Chicago’s South and West Sides on the path to high-quality careers over the next five years.
As you can see, we have made significant progress on our journey. I am proud to say PepsiCo’s commitment to diversity, equity and inclusion is stronger today than at any time in our history, and I am even more proud of the role all of you have played in helping us advance from awareness to commitment to action. But we must remember that this is only the beginning. There is still much more work to do, and I am confident that, if we stay focused and stay together, we can reach our ultimate goal: building a more diverse, equitable and inclusive workplace and world.