PepsiCo is focusing on regenerative agriculture, sustainable sourcing, and reducing emissions, as well as introducing more sustainable packaging, indicating a commitment to long-term sustainable growth.

PepsiCo is scaling new business models that require little or no single-use packaging, such as SodaStream, and offering returnable bottles in certain markets.

The company is investing in technology and digitalization, including artificial intelligence and data analytics, to enhance consumer insights and research, and strengthen omnichannel capabilities.

PepsiCo is committed to employee growth and development through various training programs, and continues to improve the attraction, retention, and advancement of diverse associates.

The company continues to identify and implement productivity initiatives to achieve a lower cost structure and operate more efficiently.

PepsiCo continued to experience increased commodity, packaging, and other input costs, as well as supply constraints related to the conflict in Ukraine, inflationary cost environment, and labor shortages, which may continue into fiscal 2024.

The conflict in Ukraine and related sanctions have resulted in volatile commodity markets, supply chain disruptions, increased risk of cyber incidents, and other disruptions to the company's operations.

Changes in consumer preferences, including health and wellness trends, and the continued acceleration of e-commerce, could lead to reduced demand for PepsiCo's products.

New or increased legal and regulatory requirements to reduce emissions, limit water use, and expand mandatory reporting of environmental metrics could impact PepsiCo's business and financial performance.

PepsiCo faces intense competition from international beverage and convenient food companies, as well as regional, local, and private label manufacturers and economy brands.

Sales to Walmart and its affiliates represent approximately 14% of PepsiCo's consolidated net revenue, and the loss of this customer could have a material adverse effect on certain divisions.

PepsiCo competes primarily on the basis of brand recognition and loyalty, taste, price, value, quality, innovation, distribution, shelf space, advertising, marketing and promotional activity.

PepsiCo experienced increased commodity, packaging, and transportation costs during 2023, which may continue and impact margins and operating results.

The company has experienced and could continue to experience disruptions in its manufacturing operations and supply chain due to various factors, including geopolitical conflicts, natural disasters, and labor shortages.

PepsiCo continues to implement productivity initiatives to achieve a lower cost structure, improve decision-making, and operate more efficiently.

PepsiCo engages in various research and development activities and invests in innovation globally with the goal of meeting the needs of its customers and consumers and accelerating growth.

The company is focused on developing new technologies, ingredients, flavors, and substrates, as well as improving manufacturing processes and implementing product improvements to reduce added sugars, sodium, or saturated fat.

PepsiCo is investing in packaging technology and new package designs, including reducing the amount of plastic in packaging and developing recyclable, compostable, biodegradable, reusable, or otherwise sustainable packaging.

PepsiCo announced a 7% increase in its annualized dividend to $5.42 per share, effective with the dividend expected to be paid in June 2024, demonstrating a commitment to returning value to shareholders.

The company expects to return a total of approximately $8.2 billion to shareholders in 2024, comprising dividends of approximately $7.2 billion and share repurchases of approximately $1.0 billion.

PepsiCo plans to continue making necessary expenditures for compliance with environmental laws and regulations and to achieve its sustainability goals, which may impact capital expenditures.

PepsiCo is working to expand and share regenerative practices across seven million acres, sustainably source key crops and ingredients, and improve the livelihoods of more people in its agricultural supply chain.

The company is working to build a circular and inclusive value chain through actions aiming to achieve net-zero emissions by 2040, become net water positive by 2030, and introduce more sustainable packaging.

PepsiCo continues to evolve its portfolio of convenient food and beverage products to be positive for the planet and people, including by incorporating more diverse ingredients and reducing added sugars and sodium.

The deadly conflict in Ukraine and related sanctions have resulted in worldwide geopolitical and macroeconomic uncertainty, impacting commodity markets, supply chains, and creating increased risk of cyber incidents.

The retail landscape continues to evolve, including continued growth in e-commerce channels and hard discounters, which could impact PepsiCo's ability to maintain and develop successful relationships with key customers.

Certain jurisdictions have either imposed or are considering imposing new or increased taxes on the manufacture, distribution or sale of PepsiCo's products, which could adversely affect the company's business and financial performance.