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Supplier Diversity


Supplier Diversity Why It Matters

Approach


An important part of becoming PepsiCo Positive is building a more Positive Value Chain. This includes increasing inclusiveness and equity in our supply chain. As a result, we aim to purchase from a supplier base representative of our employees, consumers, retail customers, and communities. Developing partnerships with diverse suppliers helps us build the world-class supplier base we need to succeed by creating mutually beneficial relationships that expand PepsiCo's sphere of activity. Our approach helps to build community infrastructure by providing employment and training while creating role models and promoting buying from other diverse-owned businesses.

PepsiCo is committed to developing a robust supplier base that includes diverse-owned businesses who provide quality goods and services. Supplier diversity is an integral part of our goal of being the best in the industry. We encourage certified, diverse suppliers who can bring innovation and value to our supply chain to register in the supplier portal. This portal also serves as a way for PepsiCo employees to review the capabilities of registered suppliers and reach out to them directly. In addition, PepsiCo leverages its membership advocacy groups to seek out and meet prospective diverse suppliers.

We remain committed to increasing our spend with business enterprises across all diverse cohorts. These cohorts include, but are not limited to, ethnic minorities, women, differently-abled, U.S. veterans, U.S. service disabled-veterans, and LGBT+ suppliers.

Progress


In 2020, our diverse supplier spend was more than $1.6 billion in the United States. This includes Tier 2 spend reported by non-diverse suppliers, further demonstrating PepsiCo's commitment to expanding engagement of diverse suppliers in our supply chain.

Supplier Diversity Progress and Challenges

Under the guidance of our Racial Equality Journey commitments (announced in 2020), we aim to leverage our scale and influence across our suppliers, marketing agency partners, and customer base to increase representation and strengthen Black-owned and Hispanic-owned businesses. That means step changes in our spending and approach to our partnerships.

We are stepping up our spending efforts with Black-owned suppliers with an incremental spend of $350 million by 2025; expanding the supplier pipeline through advocacy and outreach; and building supplier capability targeting growth across services, agriculture, sustainable packaging, and operations.

We will build on our existing investment in Hispanic-owned businesses, including:

  • Building mentoring relationships between Hispanic-owned businesses and PepsiCo;
  • Investing $50 million over 5 years to strengthen Hispanic-owned business capabilities by supporting development tools and providing access to capital not available through traditional sources;
  • Using our scale to increase Hispanic representation across our suppliers, marketing agencies and professional service providers; and
  • Building Hispanic-owned supplier capability in areas such as agriculture and sustainable packaging.

These goals are directly linked to Business Commitments of PepsiCo’s Racial Equality Journey announced for the Black and Hispanic communities.

Strategic Partnerships


PepsiCo develops and maintains strong partnerships with advocacy organizations that identify and develop diverse suppliers. These organizations include:

  • National Minority Supplier Development Council (NMSDC)
  • Women’s Business Enterprise National Council (WBENC)
  • US Hispanic Chamber of Commerce (USHCC)
  • US Pan Asian American Chamber of Commerce (USPAACC)
  • The National LGBT Chamber of Commerce (NGLCC)
  • Disability:IN

PepsiCo is a sponsor of WBENCPitch, a female entrepreneur-focused pitch competition held in conjunction with the Women’s Business Enterprise National Council (WBENC). WBENCPitch features a series of pitch competitions and educational sessions to help women business enterprises hone their business pitch, gain meaningful exposure, and compete for grants and other prizes to invest in their business.

We are a national Sustaining Member of the National Black Growers Council (NBGC) whose mission is to improve the efficiency, productivity, and sustainability of Black row crop farmers.

We are constantly evaluating and evolving opportunities to grow and continue our work with advocacy groups, and look forward to enhancing our relationships with these organizations as we seek to further the capacity building and development of diverse-owned businesses.

What's Next

In the coming year, our supplier diversity program will continue to focus on building a Positive Value Chain through the following efforts:

  • Maintaining engagement and expanding leadership positions with our supplier diversity advocacy partners
  • Embedding economic inclusion in our corporate culture by rolling out a supplier diversity e-learning module that is mandatory for our approximately 1,100 procurement associates worldwide
  • Launching an economic impact report to gain more visibility into how our spend with diverse suppliers strengthens the communities in which we operate by causing job growth, increasing local business support, and expanding the tax base.