Q&A – Annual Shareholders' Meeting 2021

Below are responses to questions submitted by shareholders during PepsiCo, Inc.’s 2021 Annual Shareholders’ Meeting that we were unable to answer due to time. In a few cases, we have consolidated multiple questions on the same topic, made minor edits for clarity and/or corrected typos. We have excluded questions that violate our Rules of Conduct of the meeting and have not included comments and statements (positive or negative) where no actual questions were asked. Our responses to these questions, including any forward looking statements, are as of the date of the meeting (May 5, 2021) and we do not undertake any obligation to update any such statements which are subject to risks and uncertainties (for additional information please refer to our most recent filings with the Securities and Exchange Commission).

Q – Does the company anticipate that the predicted 2 year severe drought conditions in the western US will impact crops that serve as product resources either supply or price wise? If yes, how does the company anticipate mitigation for that?

A – PepsiCo has a comprehensive water risk strategy based on 4 pillars: operational water efficiency, agricultural water efficiency, replenishment, and advocacy.

We monitor water stress on an ongoing basis, including water stress in the Colorado River Water Basin and the western US generally, including California, Texas and other states.

Our supply chains are managed to be resilient, and if water scarcity should negatively impact one of our suppliers, we have the capability to adapt.

Q – How might political relationships between the US and Russia reflect in PepsiCo's business in Russia?

A – At PepsiCo, we seek to serve our customers in both countries, contribute to the livelihoods of our employees in both countries, and look forward to continued engagement between the two governments.

Q – We received multiple questions regarding PepsiCo's position on the issue of racial equality.

A – At PepsiCo, we believe in equality and enabling every human being to realize their full potential.

Increasing the diversity of our associates and creating a culture of inclusion is not only the right thing to do and consistent with our values, it is the right thing to do for our business. It will increase our understanding of consumers and customers and the value we provide to our communities, and will help us win in the marketplace.

This is why in 2020:

• PepsiCo launched our more than $500 million Racial Equality Journey.

◦ This commitment includes goals to increase Black and Hispanic managerial representation at PepsiCo in the U.S. to 10% of our workforce by 2025.

◦ Other initiatives include expanding our recruitment efforts; providing scholarships and supporting Black- and Hispanic-owned businesses; leveraging our scale with our suppliers to create significant change in our supplier base; and engaging with our customers to help diverse businesses grow and thrive.

• To build greater trust and accountability, we published on our website (1) a global workforce demographics data report, which will be updated every six months to show how we are progressing against our goals, and (2) our 2019 U.S. Consolidated EEO-1 Report as submitted to the U.S. Equal Employment Opportunity Commission.

We are committed to doing this work, because we know our company can only succeed when the society we serve flourishes.

Q – We received multiple questions regarding stock splits, with a representative question being as follows: "With the stock performing so well, will there be a stock split in the near future?"

A – We are aware stock splits are always an option. However, we believe the administrative costs of executing one outweigh the benefits.