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.
Racial Equality Journey message on 2021 progress from our CEO
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.
A message from our CEO
Over the past seven months, the COVID-19 pandemic and its economic fallout have laid bare many of the systemic inequities facing racial minorities in the United States. We’ve watched helplessly as the virus disproportionately claimed Black and Brown lives, and borne witness on a national scale to the pain and frustration, the outrage and indignity, endured by so many of our friends and colleagues with heartbreaking frequency.Continue reading the message +
2020 Racial Equality Journey message from our CEO
Through it all, one of the few bright spots has been the way we’ve rallied together as a company to support each other and stand up for our PepsiCo values. As we all know, PepsiCo is built on a foundation of diversity. We have long recognized that our company thrives when we reflect the communities we serve, and that our size and scale endow us with the ability, and responsibility, to help build a more equitable, more inclusive world.
This recognition is woven into many of our processes, from talent acquisition to innovation, and Raising the Bar on Talent and Diversity is a key behavior of The PepsiCo Way. Even still, as I said in June when we launched our Racial Equality Journey with a $400 million set of initiatives focused on lifting up Black communities, we know we have a lot of work to do—especially when it comes to building a more fair, safe and equitable society for all.
I was proud our launch in June focused on supporting Black Americans, and those efforts continue today. But that was only the beginning. The struggle for equality exists in many forms for different communities around the world. That is why I am equally proud to announce we are taking the next step in our Racial Equality Journey by accelerating our engagement with Hispanic Americans, both internally and externally.
As you can imagine, this effort is very personal for me. Beyond the deep commitment to equality inherited from my parents, having lived for several years as a Spanish-speaking immigrant in the U.S., I have grown to identify with this country’s vibrant, diverse Hispanic community. When I became CEO, I vowed to use my position to make the road easier for Hispanics and other groups impacted by systemic inequality, and that’s exactly what PepsiCo’s Racial Equality Journey is all about.
I’m pleased to say we are already taking important steps to meet the unique needs of Hispanic Americans, including:
- Implementing a multi-part strategy to support Hispanic talent within PepsiCo and the communities we serve. This includes attracting, retaining and developing Hispanic talent and doing our best to foster an inclusive culture that allows Hispanic associates to thrive.
- Investing in initiatives that help prepare people for the future of work.
- Identifying and supporting Hispanic-owned companies that can help accelerate our business.
- Forming dedicated Hispanic Business Units in both our North American beverage business (PBNA) and foods business (PFNA), laser focused on meeting the diverse needs of Hispanic consumers across the U.S. and Canada.
But we know that this is far from enough. That’s why I and our senior leadership team have spent the past few months engaging in conversations and listening to PepsiCo associates, including the leadership of our Hispanic Employee Resource Group (ERG), Adelante, as well as Hispanic community leaders and other advisors. We also formed a taskforce in partnership with the Global Diversity & Engagement team to determine how PepsiCo could best serve the Hispanic community in the U.S.
With these conversations in mind, we are proud to announce a three-pronged effort to lift up Hispanic Americans over five years, leveraging our scale and reach to catalyze positive change for People, Businesses, and Communities:
1. For People, that means a focus on increasing Hispanic managerial representation at PepsiCo;
2. For Businesses, that means building a network of resilient Hispanic-owned companies; and
3. For Communities, that means providing access to nutrition as well as higher education to unlock opportunity for Hispanics across America.
To accomplish these goals, we’re launching a $172 million set of initiatives over the next five years, in addition to our target spend with Hispanic suppliers.
As we embark on this new chapter of our Racial Equality Journey, we’re mindful of the need to ensure our methodology and approach remain consistent and convey an ambition commensurate with the scale of the challenges and opportunities. That is why our effort to support Hispanic communities focuses on the same three strategic pillars as our effort to support Black communities announced in June.
When it comes to People, we are focused on increasing our U.S. Hispanic managerial representation with targeted recruitment, retention and development, along with educational support and increasing cultural competency through specialized trainings. We’ll do this by:
1. Expanding Hispanic managerial representation to 10% of our workforce by 2025 to mirror workforce availability of the communities where we work by adding 120 Hispanic managers, including 50 Hispanic executives
2. Accelerating diverse recruitment efforts in partnership with national and local Hispanic organizations, plus minority-owned search firms
3. Retaining and developing our current Hispanic associates through targeted mentorship and capability building programs
4. Providing educational support through coaching and professional skills development
5. Building inclusion capability at all levels through increased training, building awareness and leadership development
When it comes to Business, we plan to help build a network of resilient Hispanic-owned companies by fortifying our current spending and growing organically with Hispanic-owned suppliers, partners and small businesses. This means aiming to increase relevant investments and expanding capabilities by:
6. Continuing to work toward this year’s $275 million investment in Hispanic-owned businesses by establishing relationships between top Hispanic-owned companies and PepsiCo buyers, while also expanding Hispanic-owned supplier capability in areas such as agriculture and sustainable packaging. We’ll use our scale to increase Hispanic representation across our suppliers, marketing agencies and professional service providers
7. Investing $87 million in PepsiCo’s Hispanic Business Units to further support our Hispanic customers
8. Using our scale to increase Hispanic representation across our suppliers, marketing agencies and professional service providers
9. Investing $50 million over five years to strengthen Hispanic-owned businesses by supporting business development, providing access to capital not available through traditional sources, and providing tools to address structural barriers to success
When it comes to supporting Hispanic Communities, we are providing access to higher education to unlock opportunity for Hispanics across America. We plan to invest $35 million over five years, which will focus on:
10. Expanding existing two-year/trade certificate Community College Scholarship program to include additional scholarships for Hispanic students
11. Providing scholarships for students transitioning from 2- to 4-year programs in our core headquarter locations: New York, Dallas, and Chicago
12. Funding community organization partners that deliver programs to uplift the Hispanic community
13. Expanding our flagship Food for Good program to provide jobs and access to nutritious food in more Hispanic communities
As we continue our journey to help forge a truly inclusive environment, we are going to keep listening—to leaders, communities, and all of you—and we will keep working to do the right thing. The road will be long, but the destination is worth it. As the Spanish proverb goes, “Donde hay gana, hay maña” — where there’s a will, there’s a way.
Thank you for your ongoing support of PepsiCo’s efforts to promote diversity and engagement in our company and communities. By continuing to reach for our highest ideals, I am confident we will not only keep winning in the market, we will also help bring about a more equitable world with fairness, safety and opportunity for all.
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