U.S. Spotlight Index

Global Index

India Spotlight Index

U.S. Spotlight Index

PepsiCo, Inc.

Corporate Profile

Rank
3
Score
4.4

Product Profile

Rank
6
Score
4.8

Product Profile

Revenue Score
Bottled water 0-10% 2.1
Carbonates 20-30% 2.2
Juice 0-10% 3.8
Sports and Energy Drinks 10-20% 1.5
Savory Snacks 40-50% 2.7
Company type
Publicly traded
Headquarters
U.S.
No. of U.S. employees
113,000
U.S. revenue range*
USD 40-45 billion
* Source: Euromonitor International, 2017.

Nutrition

3
4.4

Corporate Profile

  • Governance

    Overall scores
    Rank 3
    Score5.064
    Scores per criterion
    Criterion Absolute score Weighted score
    Strategy 7.275 2.422575
    Management 6.416 2.136528
    Reporting 1.5 0.4995
    Average scores
    Lowest 0.347
    Average 3.4163
    Highest 7.203
  • Products

    Overall scores
    Rank 3
    Score5.087
    Scores per criterion
    Criterion Absolute score Weighted score
    Formulation 2.674 1.337
    Profiling 7.5 3.75
    Average scores
    Lowest 0.084
    Average 3.168
    Highest 7.452
  • Accessibility

    Overall scores
    Rank 2
    Score1.541
    Scores per criterion
    Criterion Absolute score Weighted score
    Pricing 0.417 0.2085
    Distribution 2.666 1.333
    Average scores
    Lowest 0
    Average 0.6996
    Highest 2.946
  • Marketing

    Overall scores
    Rank 3
    Score4.971
    Scores per criterion
    Criterion Absolute score Weighted score
    Policy (all) 3.542 0.8855
    Compliance (all) 0 0
    Policy (children) 7.771 1.94275
    Compliance (children) 8.571 2.14275
    Average scores
    Lowest 0.704
    Average 3.879
    Highest 6.98
  • Lifestyles

    Overall scores
    Rank 3
    Score5.868
    Scores per criterion
    Criterion Absolute score Weighted score
    Employees 6.188 2.060604
    Breastfeeding 6.875 2.289375
    Consumers 4.542 1.512486
    Average scores
    Lowest 0
    Average 4.148
    Highest 7.38
  • Labeling

    Overall scores
    Rank 5
    Score6.25
    Scores per criterion
    Criterion Absolute score Weighted score
    Facts 6.25 6.25
    Average scores
    Lowest 1.25
    Average 5.75
    Highest 8.75
  • Engagement

    Overall scores
    Rank 2
    Score5.333
    Scores per criterion
    Criterion Absolute score Weighted score
    Lobbying 4.416 2.208
    Stakeholder 6.25 3.125
    Average scores
    Lowest 0.833
    Average 3.4706
    Highest 5.542

Main areas of strength

• PepsiCo ranks third in the U.S. Index Corporate Profile with a score of 4.4 out of 10.
• PepsiCo’s strategy ‘Performance with Purpose’, and its goal to transform its portfolio to meet consumers’ changing taste preferences and make healthier foods and beverages, is central to its growth strategy. This global strategy applies to the United States with formal accountability and day-to-day responsibility arrangements being in place.
• The progress on PepsiCo’s nutrition commitments in the United States was independently verified by the Partnership for a Healthier America (PHA) for the year 2016 and this arrangement will be continued until 2025. This is considered a leading practice among companies assessed.
• PepsiCo based its approach to added sugar reformulation on U.S. Food and Drug Administration (FDA) recommendations and commits to increase ‘positive nutrients’ such as whole grains, fruits and vegetables in its products.
• The company commits to improve the accessibility and affordability of its healthy products. This commitment is supported by commercial and non-commercial programs and includes a focus, especially within non-commercial programs, on priority populations in the United States whose access to healthy food is constrained by low income or geographic factors. Further, PepsiCo commits that products donated through its Food for Good program meet or exceed governmental standards, and include fresh fruits and vegetables, whole grains, low-fat milk and high-quality snacks.
• PepsiCo makes relatively strong commitments on responsible marketing to children in the United States, including the commitment not to perform marketing activities in elementary and middle or high schools.
• PepsiCo provides online nutrition information for more than 90% of its U.S. products through various websites and the Grocery Manufacturers Association (GMA) SmartLabel system.
• PepsiCo is one of two companies that expressed a commitment to engage with governments and policymakers to support measures that prevent and address obesity and diet-related chronic diseases. PepsiCo also provides information about its lobbying positions related to nutrition.

Priority areas for improvement

• PepsiCo ranks sixth on the U.S. Index Product Profile with a relatively low score of 4.8 out of 10. About 21% of sales were estimated to be derived from healthy products (defined as a Health Star Rating (HSR) of 3.5 or more) and 4% from products that meet World Health Organization (WHO) EURO criteria for marketing to children. PepsiCo does not disclose the percentage of healthy products in the United States, or the sales derived from them. It should improve its transparency in this area and step up its product reformulation, portion control, new product development and/or make acquisitions to improve the healthiness of its U.S. product portfolio.
• The company’s nutrition strategy in the United States should be strengthened by defining more nutrition objectives and by explicitly referencing priority populations in its commercial strategy and focus on nutrition and health, disclosing how it intends to reach these populations with healthy products in its commercial programs.
• PepsiCo’s product reformulation targets are not fully defined and do not cover all relevant products. PepsiCo should improve on this and it should report publicly what percentage of products already meet the company's targets in the U.S. market. In addition, it should commit to formulate all products sold under the Smart Snacks in School regulation in the same way as equivalent products, with a similar look and feel, are sold through other channels.
• The company publishes annual reports that cover global operations but provides limited specific information about the United States. PepsiCo should step up to industry-leading practice by reporting formally and regularly on its approach and progress to tackling nutrition issues in the United States.
• The company does not exclude brand-level sponsorship in relation to all public health and nutrition programs it funds. The company should commit that all public health and nutrition programs it funds are underpinned by a sound evidence base, are designed with expert advice and draw on stakeholder inputs.

Improving nutrition for all

The Access to Nutrition Index rates food and beverage manufacturers´ nutrition-related policies, practices and disclosures worldwide on a recurring basis.

Contact

Access to Nutrition Foundation
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3511 MJ Utrecht
The Netherlands
+31 (0)30 410 09 16

info@accesstonutrition.org

Funders

Bill & Melinda Gates Foundation

Ministry of Foreign Affairs

Robert Wood Johnson Foundation

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