PepsiCo

American multinational food and beverage corporation owning Pepsi, Lay's, Gatorade, Doritos, Quaker Oats, and dozens of other iconic brands, with FY2025 revenue of $93.9 billion.

The origins of PepsiCo trace to two separate companies founded decades apart. Caleb Bradham, a pharmacist in New Bern, North Carolina, created a carbonated beverage he called "Brad's Drink" in 1893, which he renamed Pepsi-Cola in 1898. Bradham incorporated Pepsi-Cola Company in 1902. The company went bankrupt twice, in 1923 and 1931, before being acquired by Charles Guth, who rebuilt it as a competitor to Coca-Cola.

Herman Lay founded the H.W. Lay Company in 1932 in Nashville, Tennessee, as a potato chip distributor and manufacturer. The company grew through the South and eventually merged with the Frito Company in 1961 to form Frito-Lay, Inc.

PepsiCo was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay, Inc. The merger created a company with complementary beverage and snack food portfolios and shared distribution capabilities. Donald Kendall, CEO of Pepsi-Cola, and Herman Lay, chairman of Frito-Lay, led the merger.

PepsiCo's acquisition strategy accelerated in the 1970s and 1980s. The company acquired Pizza Hut in 1977, Taco Bell in 1978, and Kentucky Fried Chicken (KFC) in 1986, creating a major restaurant division. These restaurant businesses were spun off as Tricon Global Restaurants (later renamed Yum! Brands) in 1997, as PepsiCo refocused on its core food and beverage businesses.

The acquisition of Tropicana in 1998 for approximately $3.3 billion added a major juice brand to PepsiCo's portfolio. In 2001, PepsiCo acquired Quaker Oats Company for approximately $13.8 billion, a deal that brought Gatorade (the dominant sports drink brand), Quaker cereals, and other food brands into the portfolio. The Quaker acquisition was one of the most significant in PepsiCo's history, as Gatorade became one of the company's most valuable brands.

PepsiCo acquired SodaStream, the home carbonation company, in 2018 for approximately $3.2 billion, signaling the company's interest in at-home beverage preparation. In 2022, PepsiCo acquired Poppi, a prebiotic soda brand, for approximately $1.95 billion, reflecting the company's interest in functional beverages.

For full-year 2025, PepsiCo reported net revenues of $93.9 billion and net income of approximately $11.5 billion. The company announced its 54th consecutive annual dividend increase, reflecting its status as a Dividend Aristocrat.

PepsiCo's sustainability strategy is guided by its pep+ (PepsiCo Positive) framework, which integrates environmental responsibility, social impact, and economic viability across the company's global operations. The company has refined its sustainability goals to align with 1.5°C climate trajectory and expanded its regenerative agriculture commitments.

Climate action includes comprehensive emissions reduction targets validated by the Science Based Targets Initiative. PepsiCo aims to achieve net-zero emissions across Scope 1, 2, and 3 by 2040, with interim 2030 targets including reducing absolute greenhouse gas emissions by 75% for Scope 1 and 2, and 40% for Scope 3 from a 2015 baseline. The company's Climate Transition Plan details updated targets aligned with SBTi sectoral guidance for Forests, Land, and Agriculture (FLAG) and Energy and Industry (E&I) emissions.

Regenerative agriculture represents a cornerstone of PepsiCo's sustainability strategy. The company expanded its goal to drive regenerative, restorative, or protective practices across 10 million acres of land used to grow crops and ingredients by 2030, up from the previous 7 million acre target. PepsiCo works with farmers to implement sustainable farming practices that improve soil health, biodiversity, and water conservation while enhancing farmer livelihoods.

Sustainable packaging initiatives focus on circular economy principles and waste reduction. PepsiCo commits to using 100% recyclable, compostable, or biodegradable packaging across its portfolio and increasing recycled content in packaging materials. The company implements packaging design innovations to reduce material usage while maintaining product quality and safety.

Water stewardship programs address water security in high-risk areas across PepsiCo's agricultural supply chain and manufacturing operations. The company implements water efficiency measures, water replenishment projects, and watershed protection initiatives in water-stressed regions. PepsiCo's water conservation efforts include advanced manufacturing processes that reduce water intensity per unit of production.

The company's ethical framework encompasses comprehensive human rights policies, responsible sourcing standards, and workplace safety programs. PepsiCo maintains supplier codes of conduct addressing labor practices, environmental standards, and business ethics throughout its global supply chain. The company implements diversity and inclusion initiatives and maintains comprehensive employee safety and wellness programs.

Social responsibility programs include the PepsiCo Foundation, which supports community development, education, and nutrition programs worldwide. The company engages in disaster relief efforts, youth development initiatives, and partnerships with nonprofit organizations to address community needs in markets where it operates.

PepsiCo has received consistent recognition for sustainability leadership, innovation excellence, and corporate responsibility:

• Sustainability Magazine Top 250 Leaders (2025): Ranked #1 in sustainability leadership for food and beverage companies, recognizing the company's pep+ strategy and comprehensive sustainability integration
• Fortune World's Most Admired Companies (2025): Ranked among the world's most admired companies in the food, consumer products category for multiple consecutive years
• Kantar PowerRanking (2025): Ranked as the #1 supplier for the 10th consecutive year, demonstrating excellence in retail partnerships and supply chain performance
• Axios Harris Poll 100 (2025): Ranked for corporate reputation among America's most visible companies, reflecting public trust and brand recognition
• Forbes America's Best Large Employers (2024): Recognition as one of America's best large employers, demonstrating workplace excellence and employee satisfaction
• CDP Climate Leadership: Multiple years of recognition for climate disclosure and environmental performance, particularly in emissions reduction and water stewardship
• Dow Jones Sustainability Index: Consistent inclusion in DJSI for food and beverage companies, assessed for ESG performance among global industry leaders
• Fast Company Most Innovative Companies: Recognition for innovation in product development, packaging technology, and sustainable business practices
• Global 500 Blue Ribbon Companies: Recognition for financial performance and corporate governance excellence
• Supply Chain Excellence Awards: Recognition for ethical sourcing programs, supplier sustainability initiatives, and responsible agricultural practices
• Environmental Leadership Awards: Recognition for water conservation, renewable energy adoption, and sustainable manufacturing processes
• Marketing Innovation Awards: Recognition for brand marketing excellence, consumer engagement, and digital transformation initiatives

PepsiCo has faced criticism from public health advocates regarding the nutritional content of its products, particularly its sugary beverages and high-sodium snack foods. The company has responded by expanding its portfolio of lower-calorie and reduced-sodium products and by committing to reduce added sugars and sodium across its portfolio.

In 2017, PepsiCo withdrew a Pepsi advertisement featuring model Kendall Jenner after widespread criticism that the ad trivialized social justice movements. The company apologized for the advertisement.

PepsiCo has also faced scrutiny regarding its environmental impact, including plastic packaging waste and water usage in water-stressed regions. The company has committed to reducing virgin plastic use and improving water stewardship as part of its sustainability agenda.