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

OUR MISSION
CREATE 
MORE 
SMILES 
WITH 
EVERY 
SIP AND 
EVERY 
BITE
• Driving savings through holistic 
cost management to reinvest
to win in the marketplace
• Developing and scaling core
capabilities globally through 
technology
• Building differentiated talent 
and culture
BECOMING 
STRONGER
 MEANS
2019 PepsiCo Annual Report

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Helping build a more sustainable 
food system:
• Packaging
• Agriculture
• Water
• People
• Product
• Climate
• 
Improving Choices Across our Portfolio
by reducing added sugars, sodium, and 
saturated fat in many of our products.
• 
Mitigating the Impact of Climate Change
by reducing our absolute greenhouse gas 
emissions. We announced that in 2020 we 
will be shifting to 100 percent renewable 
electricity through a diverse portfolio 
of solutions in the United States, our 
largest market, meaning that a significant 
portion of our global electricity used will 
be renewable.
• 
Promoting 
People and
Prosperity
by 
working to advance respect for human 
rights, promote diversity and inclusion in 
our workplaces, and increase the earnings 
potential of women to drive economic 
growth and increase food security.
As we engage in the work to become 
Better
, 
our brands are leading the way forward:
• 
Lay’s
Smile campaign continues to raise 
awareness and funds for Operation Smile, 
which improves the health and lives of 
children and young adults suffering from 
cleft conditions;
• 
The 
Stacy’s
Rise Project awarded its 
first grant to an up-and-coming female 
entrepreneur in the food and beverage 
space; and
• 
Walker’s
created a recycling scheme for 
chip bags made from flexible film, in line 
with our goal to reduce the impact of our 
packaging on the environment.
Our commitment to becoming 
Better 
was 
also demonstrated by appointing our first 
ever Chief Sustainability Officer and by a 
Green Bond offering that generated almost 
$1 billion in net proceeds to advance our 
sustainability agenda. Ultimately, we are 
aiming to catalyze systemic change by 
developing solutions that can be scaled 
across markets and geographies, so that 
we can have an impact that lasts for 
generations.
To complement our 
Faster
, 
Stronger
and 
Better
initiatives, we are also making 
investments to broaden and fortify our 
portfolio for future growth.
Specifically:
• 
We’re investing in our 
SodaStream
business, which grew net revenue more 
than 20 percent in 2019, in order to capture 
an incremental growth opportunity;
• 
We recently acquired 
BFY Brands
, the 
makers of the fast-growing 
PopCorners
brand, which will enhance our premium 
snack portfolio;
• 
We are in the process of acquiring 
Pioneer 
Foods
, which will build a foundation for 
future growth and scale in Africa, a key 
emerging market where our growth 
opportunities remain vast;
• 
Just a few weeks ago, we entered 
into a definitive agreement to acquire 
Be & Cheery
, one of the largest online snack 
companies in China, a direct-to-consumer 
business model that will enhance our 
digital capabilities and position us 
to capitalize on continued growth in 
e-commerce in China and beyond; and
• 
We acquired 
CytoSport
, the makers 
of 
Muscle Milk
, which expands our 
presence in sports nutrition, providing 
opportunities for additional growth and 
category expansion.
As we aspire to achieve our vision to 
Be 
the Global Leader in Convenient Foods and 
Beverages by Winning with Purpose
, we 
believe these investments position us well 
to win in the marketplace.
Now, how will we build on this success in 
2020 and beyond? By continuing to invest 
back into the business to:
• 
Evolve our portfolio, including investments 
in both our large and emerging brands;
• 
Transform our value chain;
• 
Build next-generation capabilities,