Effective in 2025, PepsiCo is reorganizing its reportable segments to be consistent with changes to its organizational structure. The North America food businesses will be reported together, and international food businesses will be reorganized into three segments.

In December 2024, PepsiCo acquired the remaining 50% ownership in Sabra for $241 million in cash, resulting in Sabra becoming a wholly-owned subsidiary. This expands PepsiCo's presence in the refrigerated dips and spreads category.

On January 17, 2025, PepsiCo agreed to acquire Siete Family Foods, a Mexican-American foods business, for approximately $1.2 billion in cash. This acquisition will expand PepsiCo's portfolio in the Mexican-American foods category.

PepsiCo expanded and extended its 2019 Productivity Plan through 2030, expecting to incur additional pre-tax charges of approximately $6.15 billion. This demonstrates a commitment to long-term efficiency improvements.

PepsiCo is transforming its portfolio to reduce sodium, saturated fat, and added sugar, while incorporating more diverse ingredients. This is part of their consumer-centric portfolio transformation.

PepsiCo is working to help farmers adapt to climate change through investments in regenerative agriculture, training programs, and innovative technologies. This demonstrates a commitment to sustainable sourcing and reducing environmental impact.

PepsiCo acknowledges that demand for its products depends on its ability to innovate and respond to shifts in consumer trends and preferences, including the increasing use of weight-loss drugs. This highlights the risk of changing consumer behaviors.

PepsiCo recognizes that maintaining a positive reputation is critical and acknowledges that its reputation can be adversely impacted by various factors, including failures to maintain ethical business practices and negative perceptions toward environmental, social, and governance goals.

PepsiCo acknowledges that climate change may increase the frequency or severity of natural disasters and extreme weather conditions, which could impair production capabilities and disrupt the supply chain. This highlights the risk of environmental factors impacting operations.

PepsiCo acknowledges that its beverage and convenient food products are in highly competitive categories and markets, competing against international and local companies. The Coca-Cola Company is identified as the primary beverage competitor in many countries, including the United States.

PepsiCo believes that the strength of its brands, innovation, marketing, and flexibility of its distribution network allows it to compete effectively. This highlights the importance of these factors in maintaining its competitive position.

PepsiCo acknowledges that the retail landscape is evolving, including continued growth in e-commerce channels and hard discounters. The company's business will be adversely affected if it is unable to maintain and develop successful relationships with these retailers.

PepsiCo's future growth depends, in part, on its ability to continue to reduce costs and improve efficiencies, including digitalization of operations and organizational restructuring. This highlights the importance of productivity initiatives for financial performance.

PepsiCo acknowledges that it has experienced and could continue to experience disruption in its manufacturing operations and supply chain. This highlights the importance of managing supply chain risks.

PepsiCo acknowledges that water is essential to the production of its products and that lack of available water of acceptable quality can lead to supply chain disruption and higher compliance costs. This highlights the importance of water management for operational efficiency.

PepsiCo engages in a variety of research and development activities and invests in innovation globally with the goal of meeting the needs of its customers and consumers and accelerating growth. These activities principally involve creating consumer preferred products, improving manufacturing processes, and developing sustainable packaging.

PepsiCo is investing in technology and digitalization, including artificial intelligence and data analytics to enhance its consumer insights and research. This demonstrates a commitment to using technology to improve business operations.

PepsiCo continues on its multi-year phased business transformation initiative to migrate certain aspects of its systems, including financial processing systems, to enterprise-wide systems solutions. This demonstrates a commitment to improving efficiency and standardization.

PepsiCo expects to return approximately $8.6 billion to shareholders in 2025, comprising dividends of approximately $7.6 billion and share repurchases of approximately $1.0 billion. This demonstrates a commitment to returning value to shareholders.

PepsiCo announced a 5% increase in its annualized dividend to $5.69 per share from $5.42 per share, effective with the dividend expected to be paid in June 2025. This demonstrates a commitment to increasing shareholder returns.

PepsiCo used $5.0 billion for capital spending in 2024 and expects to continue to invest in capital projects. This is essential to product innovation and maintaining operational capabilities.

There is an increased focus in many jurisdictions in which PepsiCo's products are made, manufactured, distributed or sold regarding environmental policies relating to climate change, biodiversity loss, deforestation, regulating greenhouse gas emissions, energy policies and sustainability, including single-use plastics.

PepsiCo is reducing water use in its operations and agricultural practices and reducing its environmental impact in its operations throughout its value chain.

PepsiCo believes that human capital management, including attracting, developing and retaining a high quality workforce, is critical to its long-term success. The Board of Directors provides oversight on a broad range of human capital management topics, including corporate culture, pay equity, health and safety, training and development and compensation and benefits.

Fluctuations in exchange rates, including as a result of inflation, central bank monetary policies, currency controls or other currency exchange restrictions or geopolitical instability have had, and could continue to have, an adverse impact on PepsiCo's financial performance.

Certain jurisdictions in which PepsiCo's products are sold have either imposed, or are considering imposing, new or increased taxes on the manufacture, distribution or sale of certain of its products as a result of ingredients contained in such products. These tax measures have in the past and could continue to increase the cost of certain of its products, reduce overall consumption of its products or lead to negative publicity, resulting in an adverse effect on its business and financial performance.

PepsiCo's industry continues to be affected by disruption of the retail landscape, including the continued growth in sales through e-commerce websites and mobile commerce applications, including through subscription services, the integration of physical and digital operations among retailers and the international expansion of hard discounters.