Faster, stronger, better. Annual report 2019 creating more smiles with every sip

WE ASPIRE 
TO DELIVER 
MORE THAN 
2 BILLION 
SMILES A DAY
• Broadening our portfolios to
win locally in convenient foods
and beverages
• Fortifying our North American 
businesses
• Accelerating international
expansion, with disciplined focus
on “right-to-win” markets
BECOMING 
FASTER
 MEANS
2019 PepsiCo Annual Report

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ASSOCIATES & COMMUNITIES
Creating meaningful opportunities 
to work, gain new skills and build 
successful careers, and a diverse and 
inclusive workplace
PLANET
Conserving nature’s precious resources 
and fostering a more sustainable planet 
for our children and grandchildren
CUSTOMERS
Being the best possible partner, driving 
game-changing innovation, and 
delivering a level of growth unmatched 
in our industry
SHAREHOLDERS
Delivering sustainable top-tier TSR 
and embracing best-in-class corporate 
governance
CONSUMERS
Creating joyful moments through our 
delicious and nourishing products 
and unique brand experiences
consumer-level data, we can understand 
the consumer in a more individualized way 
to both customize communication and 
execute in every store with precisely the 
right products, placed in the right location, 
at the right price;
• 
We strengthened our 
omnichannel 
capabilities
, particularly in e-commerce, 
where our measured retail sales were 
nearly $2 billion in 2019. To meet the 
growing need across channels for greater 
customization and faster innovation, we 
are investing in an end-to-end, agile value 
chain that can deliver more precision 
and variety to enable us to win in the 
marketplace;
• 
We migrated our 
organizational structure 
closer to the market
in order to improve 
speed, increase accountability, and 
become more locally focused;
• 
We 
evolved our values and ways of working
to foster a culture where employees 
act like owners, with a greater sense of 
empowerment and accountability. We 
call this 
The PepsiCo Way
, which includes 
a set of seven leadership behaviors that 
have been rapidly embraced by our 
organization; and
• 
We took a completely 
holistic approach 
to cost management
— one in which we 
manage 
all
costs as an investment. In 
doing so, we challenged the entire cost 
structure to evaluate the cost and benefit 
of our spending. In 2019, we 
delivered in 
excess of $1 billion in productivity savings
, 
and plan to deliver this amount annually 
through 2023.
Finally, as more is expected of leading 
corporations like PepsiCo by society, 
becoming 
Better
reflects both our 
responsibility and aspiration to continually 
integrate purpose into our business strategy 
and brands. In 2019, we prioritized and 
integrated a set of focused initiatives to 
help build a more sustainable food system. 
These included:
• 
Advancing benefits to farmers and 
communities through 
Next Generation 
Agriculture
. We have engaged more 
than 40,000 farmers on regenerative 
agricultural practices through our 
Sustainable Farming Program and 
leveraged over 230 demonstration farms 
to promote improved farmer livelihoods 
and agricultural resiliency. In 2019, 
nearly 80 percent of our global potatoes, 
oats, whole corn, and oranges were 
sustainably sourced.
• 
Driving 
Positive Water Impact
, including 
striving to improve water-use efficiency 
and aiming to expand access to safe 
water. We are adopting the Alliance for 
Water Stewardship standard in all of our 
high-water-risk watersheds, with pilots 
launched in South Africa, the United States, 
and Pakistan. At the Mexico City snacks 
plant, our largest snacks plant by volume 
in Latin America and second largest 
outside the United States, we are able to 
recycle and reuse roughly 70 percent of 
the water used in our processes.
• 
Striving to build a 
Circular Future for 
Packaging
and a world where plastic 
packaging need never become waste. 
In 2019, we announced new targets to 
continue increasing incorporation rates 
of recycled plastic and reduce virgin 
plastic usage, including our goal to reduce 
35 percent of virgin plastic content across 
our beverage portfolio by 2025. We also 
announced that we are transitioning 
LifeWTR
to be packaged in 100 percent 
recycled plastic in the United States and 
bubly
will be packaged exclusively in 
aluminum. 
Aquafina
will also be available 
in aluminum at U.S. food service outlets.