Our Economic Impacts

PepsiCo has 18 mega-brands that generate $1 billion or more each in annual retail sales.

In addition to benefiting our own associates, this powerful performance helps support our independent bottler network and distribution operations, and contributes to the sales of retailers throughout the world. Our economic reach is broad and deep and sustainable.

Taxes
In 2008, PepsiCo paid billions of dollars in income taxes, net of refunds, worldwide. In addition to income taxes, PepsiCo paid hundreds of millions of dollars in payroll, property, transaction-based and other miscellaneous taxes worldwide. These tax payments make an important contribution to the countries and communities in which PepsiCo has a presence.

Political Contributions
PepsiCo believes that, both as a company and as individuals, it is important to be engaged in the public policy and political arena. PepsiCo has always disclosed information on how we are spending resources for political purposes as required by law and regulation. In 2005, PepsiCo developed a Political Contributions Policy that provides shareholders with details on the policies, procedures and criteria used in connection with all political contributions. In addition, we are now providing details of PepsiCo political contributions on our website. Shareholders were involved in discussions leading to the development of this policy.

Our Economic Contributions
Shareholders--We provide shareholders with a strong return on their investments. In 2008, we paid $2.5 billion in dividends and provided shareholders with a 12 percent return, which is stock appreciation plus dividends reinvested.

Employees--We directly employ approximately 198,000 employees. Our customers and business partners, such as franchised bottlers and licensees, employ tens of thousands of additional people as they manufacture and distribute our brands.

Retailers--We create income and profit for our customers, which means jobs and opportunities in millions of retail establishments around the world. Our brands are among the most profitable brands that retailers carry.

Suppliers--We purchase millions of dollars of supplies, services and raw materials that help to support hundreds of thousands of additional jobs in communities around the world.

Governments--Our businesses have a positive impact on the economies of the countries and localities in which we operate by generating billions of dollars of revenue for governments through taxes paid directly by PepsiCo and indirectly by PepsiCo employees, investors, commercial partners and suppliers.

Technology--We share expertise and technologies that provide important benefits to communities and countries. In emerging markets, such as India and China, our agricultural development programs have significantly improved crop yields for local farmers.

As a corporate citizen, PepsiCo Inc. and its companies have a long and proud history of supporting communities in which they do business. We give to nonprofit community groups and initiatives through the PepsiCo Foundation, Corporate Contributions, PepsiCo Community Affairs and our various operating divisions. We encourage employees to volunteer. Additionally, we provide gifts-in-kind, support community and nonprofit events, conventions and journals, and sponsor meetings.

In-kind donations include food, beverages, equipment and services and are estimated at cost to PepsiCo.

PepsiCo Foundation
As a corporate citizen, PepsiCo and its subsidiaries have a long history of supporting communities in which they do business. We give to nonprofit community groups and initiatives through the PepsiCo Foundation, Corporate Contributions, PepsiCo Community Affairs, and our various operating divisions. Additionally, we provide gifts-in-kind, support community and nonprofit events and conventions, and sponsor meetings.

Each of the PepsiCo entities that participate in philanthropic activities has developed its own processes for evaluating the impact and success of its charitable contributions.

For example, the PepsiCo Foundation focuses its grant making in the following areas:

• Global Health
• Environment
• Global Inclusion

The PepsiCo Foundation also provides assistance for humanitarian aid and recovery efforts following major disasters.

Grant requests must address specific criteria.

View our Grant Guidelines

To track the progress made and measure the impact of our contributions, the Foundation utilizes the methods detailed below.

PepsiCo Foundation grantees are required to submit semiannual progress and financial reports that include an accounting of the progress against goals over a given time period. The type of data captured is determined by the nature of the grant program and the expected outcomes the grantee described in their proposal plan.

Examples of the Foundation's efforts can be found throughout this report.

More information about the PepsiCo Foundation

Community Affairs
PepsiCo Community Affairs is an integral part of the way we do business. We are currently active in these areas:

Health and Wellness
We participate in conferences, events and volunteer activities to increase awareness of PepsiCo's commitment to health and wellness in ethnic communities. We also form partnerships with community-based organizations to encourage active lifestyles. We have key partnerships with The National Council of La Raza and the National Urban League.

Diversity and Inclusion
We create awareness of PepsiCo's goals of recruiting diverse associates by representing PepsiCo at national recruiting conferences, such as the National Black MBA Associations, Inc., and the National Society of Hispanic MBAs.

We provide leadership and support PepsiCo's commitment to increase procurement from minority-owned and women-owned businesses. We participate in events and conferences where we seek first- and second-tier suppliers. We provide support for events and initiatives of the following groups: U.S. Pan Asian American Chamber of Commerce (USPACC); National Minority Supplier Development Council (NMSDC); U.S. Hispanic Chamber of Commerce (USHCC); and Women's Business Enterprise National Council (WBENC). The PepsiCo Foundation continues its seed funding to the National Council of La Raza for a scalable national Latino education and workforce model.

Government and Legislative
In partnership with the Black Caucus and the Hispanic Caucuses, we build community awareness of PepsiCo's health and wellness commitment and program initiatives. We initiate and participate in panels and workshops with the goal of creating understanding and awareness of our commitment to health and wellness.

In-Kind Donations
PepsiCo provides in-kind donations for many nonprofit organizations. The largest program is America's Second Harvest and its network of food banks. We also make in-kind donations of products, premiums, equipment, meeting space and other services.

More information about Corporate and Divisional Donations