Q&A – Annual Shareholders' Meeting 2023

Below are responses to questions submitted by shareholders during PepsiCo, Inc.’s 2023 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 3, 2023) 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 – Are you seeing inflationary pressures starting to slow?

A – Inflation continues to be above historical norms. However, our categories remain robust and consumer demand for our products remains strong. Our categories have proven to be resilient – we are able to offer good value to our consumers. Our objective is to keep our brands and categories affordable with the consumer at the center.


Q – What is the status of the Pepsi museum and how will Pepsi be involved?

A – We are excited about the plans for a Pepsi Museum in New Bern, NC where Pepsi-Cola was born 125 years ago.

We are working closely with the City of New Bern, the Tryon Palace Commission, and New Bern’s downtown development, Swiss Bear, in the planning of the museum and acquisition of Pepsi-Cola artifacts for its collection.

The PepsiCo Foundation has committed support to the organization that is leading the development of the Pepsi Museum and funding will be disbursed over three years.


Q – Could you please elaborate on our outlook for future consumer spending trends and our strategy to mitigate risk as the consumer economy faces any headwinds?

A – It is difficult to predict the future, but our categories and brands have performed well and the consumer has remained resilient. We focus on controlling what we can with a keen eye on keeping our brands and categories affordable and offering a large variety of consumer-centric choices when it comes to packages, textures, and flavors.


Q – Are the board and managers of the company aware of the downsides, the risk of backlash and brand damage which can come from politicization?

A – PepsiCo is an active partner in the communities in which we operate and our focus is on engaging in activities that support those communities.


Q – What actions has PepsiCo taken with regards to the war in Russia/Ukraine?

A – We believe that war is never an answer, and we stand with all those calling for peace in the face of a humanitarian and economic disaster. Our priority throughout has been supporting our Ukrainian associates – a company wide effort to support them and their communities in Ukraine and those who have had been forced to flee. This includes direct financial assistance, services, charitable donations, and in-kind product support – such as dairy, water, and fridges – to help humanitarian relief efforts. We have also restarted some of our operations in Ukraine.

We are grateful to our team in Ukraine who have demonstrated unbelievable resiliency and determination in the face of unimaginable circumstances—their safety and well-being have been our primary concern.

We have demonstrated our opposition to the Russian invasion through the suspension of discretionary capital investment, advertising and promotional activities and sales to our customers of Pepsi-Cola and certain of our other global beverage brands.