PepsiCo acquires Poppi (prebiotic soda) for $1.95 billion
PepsiCo announced the acquisition of Poppi, a prebiotic soda brand, in March 2025 and completed the deal in May 2025. The transaction valued Poppi at $1.95 billion (including ~$300M in tax benefits; net purchase ~$1.65B plus performance-based earnout). Poppi makes low-calorie, low-sugar drinks with prebiotics, fruit juice, and apple cider vinegar. Founded in 2015 by Allison and Stephen Ellsworth, the brand had grown rapidly with Gen Z and millennial consumers. It was PepsiCo’s largest beverage acquisition since Rockstar (2020).
PepsiCo sued in D.C. over Aquafina “pure water” claims; testing allegedly finds BPA
The Plastic Pollution Coalition filed a complaint in Washington, D.C. in April 2025 against PepsiCo for false and deceptive marketing of Aquafina bottled water. The complaint alleged that independent testing revealed Aquafina’s “pure water” contains bisphenol A (BPA), an endocrine-disrupting chemical, and that PepsiCo’s marketing misled consumers. The action was part of a broader push against bottled-water greenwashing; a similar lawsuit against Danone (Evian) survived a motion to dismiss in March 2025. PepsiCo has denied the allegations.
PepsiCo layoffs and restructuring after deal with Elliott Investment Management
Following an agreement with activist investor Elliott Investment Management, PepsiCo announced in December 2025 that it would reduce its U.S. product lineup by 20% and restructure its workforce to cut costs and improve productivity. WARN notices in 2025 included 84 employees in Detroit, Michigan (July 2025), and layoffs at Frito-Lay in Orlando, Florida (affecting more than 450 people, announced late 2024, effective into 2025). The company described the moves as part of a broader efficiency and portfolio plan.
PepsiCo scales back plastic and sustainability targets; Greenpeace condemns dropping reuse goal
PepsiCo revised its packaging and sustainability goals in May 2025, drawing criticism from campaigners. The company abandoned its target to deliver 20% of beverages in reusable containers by 2030; reduced its virgin plastic reduction goal from 20% by 2030 to about 2% year-on-year; extended recycled-content targets (from 50% by 2030 to 40% by 2035); and moved “100% recyclable/compostable” packaging to 97% by 2030. PepsiCo cited “external factors” including China’s ban on recycled PET in food-grade packaging and India’s delayed approval of recycled PET. Greenpeace USA condemned the changes, stating they would “force more plastic pollution into our environment and burden our bodies with more toxic microplastics,” and noted that PepsiCo and Coca-Cola remain among the world’s top plastic polluters.
Frito-Lay Tostitos and Lay's recalls elevated to FDA Class I (undeclared milk)
Frito-Lay issued recalls for undeclared milk (allergy risk) in multiple products. In December 2024 the company recalled more than 6,000 bags of Lay's Classic Potato Chips (13 oz.) distributed in Oregon and Washington; the FDA upgraded this to Class I (highest risk—reasonable probability of serious adverse health consequences or death) in January 2025. In March 2025 Frito-Lay recalled Tostitos Cantina Traditional Yellow Corn Tortilla Chips (13 oz.) after some bags were filled with nacho cheese chips containing undeclared milk; fewer than 1,300 bags in 13 states were affected. The FDA classified the Tostitos recall as Class I. No allergic reactions were reported.
PepsiCo recalls ~70,000 drinks in 10 states over label error
PepsiCo recalled approximately 70,000 drinks across 10 states in 2025 due to a risky label error (e.g. undeclared allergen or incorrect ingredients). The recall affected popular beverage SKUs; consumers were advised to check lot codes and discard or return affected product. FDA and company notices provided details by product and state.
FTC sues PepsiCo for price discrimination; lawsuit dismissed in May 2025
The Federal Trade Commission filed a lawsuit against PepsiCo on January 17, 2025, alleging violations of the Robinson-Patman Act and FTC Act through price discrimination—discounts and services to favored customers that allegedly harmed competitors. On May 22, 2025 the FTC dismissed the case without prejudice. New FTC leadership called the suit "nakedly political" and lacking legal merit. PepsiCo had defended its trade practices as lawful and competitive.
PepsiCo and Frito-Lay sued over "natural" claims on Poppables (citric acid from mold)
A class action was filed in the Eastern District of New York in October 2025 against PepsiCo and Frito-Lay over Poppables snacks. Plaintiffs alleged that citric acid in the product is manufactured from black mold fermentation (Aspergillus niger) but the packaging is marketed as "natural" with "no artificial flavors," which they argued is misleading. The suit contended that mold-produced citric acid used for flavor enhancement should be considered an artificial flavor. PepsiCo/Frito-Lay typically defend such claims as consistent with FDA and industry usage of "natural."
PepsiCo acquires Sabra, Siete Family Foods, and Obela (better-for-you portfolio)
PepsiCo continued its portfolio transformation in 2024 with acquisitions of Sabra (hummus and dips), Siete Family Foods (grain-free tortillas, chips, and sauces), and Obela (dips and spreads). The deals expanded PepsiCo’s “better-for-you” and health-conscious snacking and dips portfolio, aligning with consumer demand for functional and wellness-focused products. Sabra had been a joint venture with Strauss Group; PepsiCo took full control. Siete, a family-owned brand, added grain-free and clean-label products to Frito-Lay and the broader portfolio.
PepsiCo, Coca-Cola, and ABA lobby to keep sugary sodas in SNAP (food stamps)
PepsiCo, Coca-Cola, and Keurig Dr Pepper have lobbied to block restrictions on sugary soft drinks and candy in the Supplemental Nutrition Assistance Program (SNAP). Proposals to remove soda from SNAP have been debated in Congress (including farm bill reauthorization) and by officials such as HHS nominee Robert F. Kennedy Jr. and Agriculture Secretary Brooke Rollins. PepsiCo reported $850,000 in in-house lobbying in Q3 2025, with SNAP purchasing restrictions a stated priority; it uses firms including Monument Advocacy, Fierce Government Relations, and Invariant LLC. The American Beverage Association spent $1.7 million in the first half of 2025—more than double the same period in 2024—to oppose such restrictions. Lawmakers have tried unsuccessfully for decades to limit soda and candy in food-assistance programs.
Bills and legislation PepsiCo has lobbied on (disclosed priorities)
PepsiCo’s federal lobbying disclosures and reporting name specific bills and issues. Against: (1) SNAP purchasing restrictions—the company lobbies to block any farm bill or standalone legislation that would bar sugary soft drinks and candy from the Supplemental Nutrition Assistance Program (food stamps). (2) Federal and local soda taxes—PepsiCo and the American Beverage Association have opposed federal excise taxes on sugary drinks and bankrolled campaigns against city soda taxes (e.g. Philadelphia, Berkeley, San Francisco). (3) Restrictions on marketing to kids—the industry has opposed bills such as the Stop Subsidizing Childhood Obesity Act (which would end tax deductions for marketing unhealthy food and beverages to children). For / general priorities: (4) H.R. 8467, the Farm, Food, and National Security Act of 2024 (farm bill)—PepsiCo lobbies on commodity programs, agriculture, and SNAP provisions affecting its supply chain and sales. (5) Tariff and trade policy, taxation (discriminatory taxes), food safety and labeling, environment and packaging, and transportation. LD-2 filings list issue codes including Food (FOO), Agriculture (AGR), Tax (TAX), Trade (TRD), Environment (ENV), and Transportation (TRA).
PepsiCo US federal lobbying and PAC political contributions
PepsiCo maintains an active federal lobbying presence tracked by OpenSecrets (org ID D000000200) from 1998 through 2024. In 2024 the company reported significant political contributions: $62,500 to the Democratic Governors Association and $50,000 to the Republican Governors Association, plus state and local PAC giving in California, Colorado, Florida, Illinois, Kansas, Indiana, Oregon, and Wisconsin. Policy priorities include agriculture, discriminatory taxation, trade, commodities, food security, recycling, environmental sustainability, SNAP/food assistance, and artificial intelligence. The Board’s Sustainability and Public Policy Committee oversees political spending. Since 2003 PepsiCo has reported over $71 million in federal lobbying expenditures across hundreds of disclosure reports.
Los Angeles County sues PepsiCo and Coca-Cola over plastic pollution and recycling claims
Los Angeles County filed a lawsuit against PepsiCo and Coca-Cola in October 2024, alleging both companies played a significant role in plastic pollution and environmental harm. The suit claimed they misrepresented plastic beverage containers as “recyclable” while knowing most end up in landfills or as litter. PepsiCo and Coca-Cola had been ranked as the world’s top plastic polluters in brand audits for five consecutive years. The county sought accountability for plastic waste and alleged deception about recycling effectiveness.
Investigation: PepsiCo sourced palm oil from deforested Indigenous land in Peru
A 2024 investigation by The Bureau of Investigative Journalism (TBIJ) and partners found that PepsiCo sourced palm oil from deforested territory claimed by the Shipibo-Konibo Indigenous people in Ucayali, eastern Peru, for at least three years. PepsiCo’s Peruvian suppliers bought palm oil from a consortium that shares storage with Ocho Sur, a company linked to an estimated 155 km² of forest loss over the prior decade. An estimated 30% of Peru’s palm plantations are on illegally deforested land; palm expansion in the region from around 2012 coincided with deforestation and land invasions affecting Indigenous communities’ food supply. PepsiCo has NDPE (No Deforestation, No Peat, No Exploitation) and RSPO commitments; campaigners said the findings showed gaps in tracing indirect supply chains.
New York court dismisses state’s plastics pollution lawsuit against PepsiCo
A New York state court dismissed the lawsuit brought by state Attorney General Letitia James against PepsiCo and Frito-Lay in November 2024. The AG had sued in November 2023, alleging PepsiCo polluted the environment and endangered public health through single-use plastic packaging and that the company’s products made up about 17% of plastic waste found in and near the Buffalo River. Judge Emilio Colaiacovo ruled that PepsiCo could not be held legally responsible for how consumers dispose of its products and that responsibility rests with individuals who litter, not the manufacturer.
Quaker Oats (PepsiCo) recalls 60+ granola products for salmonella; FDA blasts Danville facility
Quaker Oats, owned by PepsiCo, recalled more than 60 granola bars, cereals, and snacks (including Quaker Chewy Bars, Cap'n Crunch treats, Simply Granola, Gatorade protein bars, and some Frito-Lay variety packs) from December 15, 2023, with an expanded notice on January 11–12, 2024. All products came from PepsiCo’s Danville, Illinois, plant. The FDA found Salmonella Cubana in environmental swabs; its June 2024 warning letter stated the same strain may have been present since at least 2020—with 13 positive samples since June 2022—and that PepsiCo failed to take adequate corrective action despite its own pathogen-monitoring rules. PepsiCo closed the Danville facility in June 2024. No confirmed illnesses were reported.
PepsiCo layoffs and closure of four bottling plants; hundreds of jobs cut
PepsiCo closed four bottling plants and cut nearly 400 jobs in 2024 as it streamlined operations. WARN notices during the year included 136 employees in Ohio, 131 in Illinois, and 127 in Pennsylvania, among others. The company also announced layoffs at Frito-Lay facilities in Orlando, Florida, affecting more than 450 people (notices in late 2024, effective into 2025). Total WARN-reported layoffs from February 2010 through August 2025 exceeded 1,400 employees across multiple states including California, Illinois, Michigan, Ohio, Oklahoma, Pennsylvania, and Texas.
Teamsters in three states file unfair labor practice charges against PepsiCo with NLRB
Five Teamsters local unions in Illinois, Indiana, and Iowa filed unfair labor practice charges against PepsiCo with the National Labor Relations Board (NLRB) in April 2024. The charges alleged that PepsiCo’s work rules unlawfully prohibited workers from discussing wages, hours, and other terms of employment, and from forming unions, contacting the NLRB, and engaging in other protected concerted activity. The filings came during contract negotiations at multiple locations. PepsiCo denied the allegations and said it had been negotiating in good faith. Additional NLRB charges were filed in late 2024 and 2025 (e.g. Las Vegas—discharge, interrogation, retaliation, surveillance; Chicago—refusal to furnish information; Indiana—changes in terms and conditions).
New York Attorney General sues PepsiCo over plastic pollution and public health
New York Attorney General Letitia James sued PepsiCo and its Frito-Lay subsidiary in November 2023, accusing the company of polluting the environment and endangering public health through single-use plastic packaging. The complaint alleged that PepsiCo products accounted for about 17% of plastic waste found in and near the Buffalo River and that the company failed to warn consumers about health risks. The suit was dismissed in November 2024 when a state judge ruled that PepsiCo could not be held liable for how consumers dispose of its products.
PepsiCo and payroll vendor settle Kronos ransomware wage case for ~$36.6 million
A Kronos ransomware attack (December 2021–February 2022) crippled PepsiCo’s timekeeping system and caused pay errors for nearly 24,000 employees across seventeen pay periods. A class action alleged PepsiCo failed to track and pay workers correctly. PepsiCo and its payroll vendors (New Tiger LLC, Ultimate Kronos Group) agreed to settle for approximately $36.6 million—including about $23.9 million in unpaid wages and $12.75 million in supplemental payments. A federal judge preliminarily approved the settlement in December 2022; final approval followed in 2023. The settlement covered current and former PepsiCo and subsidiary employees who received inaccurate pay between December 5, 2021 and April 8, 2022.
EPA settles with two PepsiCo trucking subsidiaries over California diesel emissions violations
The U.S. EPA settled with two PepsiCo subsidiary trucking companies—FL Transportation, Inc. and New Bern Transport Corporation—for violations of California’s Truck and Bus Regulation. The companies failed to verify that hired trucks complied with state emissions standards; a combined 104 truck fleets were not verified. Diesel emissions contribute to fine particle pollution and health impacts including asthma and impaired lung development in children. The settlement required $48,875 in combined civil penalties and $146,250 in spending on air filtration systems at Southern California schools. According to Good Jobs First’s Violation Tracker, PepsiCo has paid millions in environmental penalties since 2000 across dozens of records.
PepsiCo acquires Rockstar Energy Beverages for $3.85 billion
PepsiCo agreed to acquire Rockstar Energy Beverages for $3.85 billion in March 2020. Rockstar, founded in 2001, sells energy drinks in 30+ flavors in more than 30 countries; PepsiCo had distributed Rockstar in North America since 2009. The deal expanded PepsiCo’s energy portfolio (alongside Mountain Dew Kickstart, GameFuel, and AMP) and reduced reliance on traditional sugary sodas. It was PepsiCo’s first major acquisition since SodaStream (2018).
PepsiCo sells Tropicana, Naked Juice, KeVita and other juice brands for $3.3 billion to PAI Partners
PepsiCo agreed to sell Tropicana, Naked Juice, KeVita, and other juice and juice-based brands in North America and Europe to French private equity firm PAI Partners for $3.3 billion. PepsiCo had acquired Tropicana in 1998 for roughly $3.3 billion and Naked Juice later for about $150 million. Under the deal, PepsiCo retained a 39% non-controlling stake in the new entity (Tropicana Brands Group) and exclusive U.S. distribution rights. The juice portfolio had operating margins below PepsiCo’s benchmark; the sale simplified the portfolio and shifted focus toward snacks and zero-calorie or better-for-you beverages.
PepsiCo sells Russian beverage and dairy business (Wimm-Bill-Dann) to Multipro
Following Russia’s invasion of Ukraine, PepsiCo announced it would halt new investments and capital expenditure in Russia and scale back its portfolio there. In 2022 it agreed to sell its Russian beverage and dairy operations (the former Wimm-Bill-Dann businesses) to Multipro, a Russian entity. Russia’s Federal Antimonopoly Service (FAS) approved the deal in May 2022. The sale did not include PepsiCo’s snack business (e.g. Lay’s, Doritos) in Russia, which the company later also divested. Terms of the beverage/dairy transaction were not disclosed.
PepsiCo named top plastic polluter in global brand audits (Break Free From Plastic)
Break Free From Plastic’s global brand audits ranked PepsiCo among the world’s top plastic polluters every year from 2019 through 2023. In 2019 PepsiCo was #3 (Coca-Cola #1, Nestlé #2); in 2020 and 2021 it was #2 behind Coca-Cola; in 2022 it remained in the top three with Coca-Cola and Nestlé; in 2023 it was #4 (Coca-Cola, Nestlé, Unilever, then PepsiCo)—with PepsiCo’s branded waste items in some counts outnumbering Coca-Cola in absolute pieces, though Coca-Cola’s waste was found in more countries. Audits relied on hundreds of thousands of pieces of plastic collected by volunteers in dozens of countries. Campaigners argued that despite PepsiCo’s commitments to halve virgin plastic use by 2030, pollution remained high and stronger reuse and reduction policies were needed.
PepsiCo layoffs in Barrington, Illinois (212 employees)
PepsiCo filed a WARN notice in 2022 affecting 212 employees in Barrington, Illinois. The layoffs were part of the company’s ongoing restructuring and facility consolidation. Total WARN-reported layoffs from 2010 through 2025 exceeded 1,400 across multiple states.
Frito-Lay workers in Topeka, Kansas strike over forced overtime and “suicide shifts”; contract ratified
More than 600 workers at the Frito-Lay plant in Topeka, Kansas (BCTGM Local 218) went on strike in July 2021 over forced overtime and brutal schedules. Workers described “suicide shifts”—back-to-back 12-hour shifts with only eight hours off between them—and reported working up to 84 hours per week, seven days a week, with some going months without a day off. They initially rejected a company offer of a 2% annual raise as inadequate. After nearly three weeks, workers ratified a new two-year contract that guaranteed at least one day off per week, eliminated mandatory suicide shifts, provided a 4% wage increase over two years, and gave the union more input on staffing and overtime. Some workers still felt the wage gains were modest given cost-of-living pressures.
Frito-Lay voluntary recalls of Lay's and Ruffles for undeclared milk
Frito-Lay issued voluntary allergy alerts and limited recalls for undeclared milk in several chip products. In August 2020 the company recalled Lay's Barbecue Flavored Potato Chips in multiple sizes (1 oz. to 15.5 oz.) after some bags were filled with another flavor containing milk; distribution covered 11 western and southwestern states. In January 2021 it recalled Ruffles Original Potato Chips (13.5 oz. Party Size)—about 50 bags—in Iowa, Kansas, Missouri, Nebraska, Oklahoma, and Arkansas. In August 2021 it recalled Wavy Lay's Original (7.75 oz.)—about 31 bags—in North Carolina, South Carolina, and Virginia. No allergic reactions were reported.
PepsiCo acquires CytoSport (Muscle Milk) and Pioneer Foods South Africa
In August 2019 PepsiCo agreed to acquire CytoSport, Inc. (brands Muscle Milk, Evolve) from Hormel Foods for undisclosed terms. CytoSport was a leading U.S. maker of protein shakes and powders; the deal strengthened PepsiCo’s sports nutrition and “better-for-you” beverage portfolio. Separately, in July 2019 PepsiCo announced the acquisition of Pioneer Foods of South Africa for about $1.7 billion (ZAR 24.4 billion). The transaction closed in early 2020, adding brands such as Weet-Bix, Ceres juices, and White Star maize meal and expanding PepsiCo’s presence in sub-Saharan Africa.
PepsiCo sues Indian potato farmers over Lay’s variety (FC5), then withdraws after backlash
PepsiCo sued nine potato farmers in Ahmedabad, India, in April 2019 for allegedly growing the FC5 potato variety without permission—a strain developed by PepsiCo for Lay’s chips and supplied to contracted farmers. The company initially sought about $143,000–$150,000 in damages per farmer and demanded they either sell their potatoes to PepsiCo or stop cultivating FC5. Farmer groups and political parties, including groups with ties to the ruling BJP, condemned the suits as harassment and a threat to seed and food sovereignty. Facing public and government pressure, PepsiCo offered to settle and in May 2019 formally withdrew all lawsuits against the nine farmers, citing a commitment to working amicably with Indian farmers.
PepsiCo announced an agreement to acquire SodaStream International Ltd. in August 2018 for $144 per share (transaction value $3.2 billion) and completed the deal in December 2018. SodaStream is the world’s #1 sparkling water brand by volume and makes at-home sparkling water makers. The acquisition supported PepsiCo’s “Beyond the Bottle” strategy and sustainability goals by promoting reusable bottles and reducing single-use plastic. CEO Ramon Laguarta cited alignment with consumer demand for customization and lower environmental impact.
PepsiCo acquires Bare Snacks (baked fruit and vegetable snacks)
PepsiCo announced a definitive agreement to acquire Bare Foods Co. (Bare Snacks) in May 2018. Bare makes baked fruit and vegetable snacks—apple chips, banana snacks, coconut snacks, vegetable chips—with simple ingredients. It began as a family-owned organic apple farm in Washington and became a leader in baked, non-fried snacks. Bare continued to operate from San Francisco, reporting to Frito-Lay North America, and expanded PepsiCo’s “better-for-you” portfolio under its Performance with Purpose strategy.
PepsiCo probes palm oil supplier over deforestation in Indonesia’s Leuser Ecosystem
PepsiCo faced allegations that one of its palm oil suppliers, PT Surya Panen Subur II, was operating in Indonesia’s critically endangered Leuser Ecosystem (Sumatra), a key habitat for orangutans, tigers, and elephants. PepsiCo stated it would investigate the deforestation claims and enforce its no-deforestation and sustainable palm oil commitments. The company had pledged to source 100% RSPO-certified palm oil and to exclude suppliers linked to recent deforestation. The incident highlighted ongoing challenges in tracing and policing palm oil supply chains in Southeast Asia.
Kerala orders PepsiCo to cut groundwater use by 75%; plant halts production
During severe drought in Kerala, the state government ordered industries using water as a raw material to reduce consumption by 75%. PepsiCo’s manufacturing unit in Kanjikode, Palakkad (operated by franchisee Varun Beverages), had been accused of over-extracting groundwater—reportedly drawing more than 600,000 liters per day in a water-scarce region. Under the order, the company had to cut extraction to about 150,000 liters daily, which led the plant to cease production in February 2017. The episode echoed long-standing local concerns about beverage plants depleting groundwater, similar to protests that had forced Coca-Cola to close its Plachimada plant in Palakkad in 2004. The Kanjikode plant later closed permanently in 2020 following labour disputes.
PepsiCo recalls 16.9-ounce Pepsi bottles in Michigan over metal particles
PepsiCo received 18 complaints of a metallic taste in 16.9-ounce Pepsi bottles sold in Michigan. Investigation found small particles of iron and chromium (0.1–0.3 mm) from a parts failure in the manufacturing process. Affected bottles had product codes HC022373 and HC022473. The company removed product from approximately 200 Michigan stores and urged consumers to return affected bottles for a full refund. No injuries were reported.
PepsiCo announced a definitive agreement to acquire KeVita, Inc. in November 2016 and completed the deal in December 2016. KeVita was a leader in fermented probiotic beverages (sparkling probiotic drinks, kombucha, apple cider vinegar tonics). PepsiCo had taken a minority stake in KeVita in 2013 before buying the remainder; the full acquisition was valued at approximately $200 million. KeVita was later included in the 2021 sale of Tropicana and juice brands to PAI Partners.
Quaker recalls Quinoa Granola Bars for possible Listeria (supplier sunflower kernels)
Quaker Oats (PepsiCo) recalled Quaker Quinoa Granola Bars in May 2016 after an ingredient supplier distributed sunflower kernels contaminated with Listeria monocytogenes. The recall covered two products with specific UPCs and best-by dates through October 2016. No illnesses were reported. The recall was part of a broader sunflower-kernel-related Listeria recall that affected multiple manufacturers.
PepsiCo acquires Wimm-Bill-Dann (Russia) for ~$3.8 billion; reaches 100% ownership
PepsiCo completed the acquisition of approximately 66% of Wimm-Bill-Dann Foods, Russia’s leading food-and-beverage company, in February 2011 for about $3.8 billion, raising its total stake to ~77%. By September 2011 it had acquired all remaining shares via a squeeze-out and reached 100% ownership. The deal made PepsiCo the largest food-and-beverage business in Russia and in Eastern Europe and Central Asia, and increased its global revenues from nutritious and functional foods from about $10 billion to nearly $13 billion.
PepsiCo Kerala plant lockout and closure after labor strike (Varun Beverages)
PepsiCo’s manufacturing unit in Kanjikode, Palakkad, Kerala (operated by franchisee Varun Beverages Ltd) was placed in lockout on March 22, 2020 after prolonged labor unrest. Workers from unions affiliated with CITU, INTUC, and BMS had been protesting since December 2019, demanding wage increases and better conditions for contract laborers; about 280 contract workers and 110 regular employees joined the strike. Management cited assaults and losses and declared the lockout. In September 2020 Varun Beverages filed a mandatory closure notice (Section 25-O); the plant closed 90 days later, ending roughly two decades of operation. The facility had 112 permanent and about 240–500 contract workers; permanent staff received statutory compensation; contract workers’ compensation was uncertain.
PepsiCo layoffs in California and elsewhere (WARN filings)
PepsiCo filed WARN notices in 2020 affecting 156 employees at PepsiCo Sales Inc. in Beverly Hills, California, among other layoffs. The company’s workforce reductions during the COVID-19 period were part of broader cost and restructuring efforts. Total WARN-reported layoffs from 2010 through 2025 exceeded 1,400 across multiple states.
PepsiCo completes acquisition of Pepsi Bottling Group and PepsiAmericas for $7.8 billion
PepsiCo completed the acquisition of The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) on March 1, 2010, for a total value of approximately $7.8 billion. After initial offers were rejected in spring 2009, PepsiCo reached definitive merger agreements in August 2009 at $36.50 per share for PBG and $28.50 per share for PAS (with a cash/stock option). The deal consolidated about 80% of PepsiCo’s North American beverage volume under one roof and was projected to generate $300 million in annual pre-tax synergies by 2012. PepsiCo became the largest food and beverage company in North America by revenue.
PepsiCo acquires 66% of Wimm-Bill-Dann (Russia) for about $3.8 billion
PepsiCo agreed to acquire a 66% stake in Wimm-Bill-Dann (WBD), Russia’s largest food and beverage company, for approximately $3.8 billion in December 2010. WBD had leading positions in dairy, juice, and baby food in Russia and the CIS. PepsiCo had already built a significant presence in Russia (e.g. Lebedyansky juice, Sandora Ukraine). The deal made PepsiCo the largest food and beverage company in Russia. PepsiCo acquired the remaining shares in 2011. In 2022 PepsiCo sold the Russian beverage and dairy operations (the former WBD businesses) to Multipro following the invasion of Ukraine.
PepsiCo agrees to $3 million settlement in overtime class action (bulk customer reps)
PepsiCo agreed to a $3 million settlement in a class action brought under Massachusetts labor law and the Fair Labor Standards Act (FLSA). The suit alleged that PepsiCo improperly calculated overtime for approximately 4,349bulk customer representatives using a fluctuating workweek method—dividing weekly wages by hours worked and then applying half that rate to overtime hours—which plaintiffs claimed shortchanged workers. The settlement included about $1 million in plaintiff attorney fees and a $15,000 incentive award for the named plaintiff. According to Good Jobs First’s Violation Tracker, PepsiCo has paid tens of millions in wage-and-hour penalties since 2000 across multiple cases.
Pepsi Beverages pays $3.13 million to resolve EEOC race discrimination in hiring
Pepsi Beverages Co. agreed to pay $3.13 million to resolve Equal Employment Opportunity Commission (EEOC) charges of nationwide hiring discrimination against African Americans. The EEOC found that Pepsi’s criminal background check policy violated Title VII of the Civil Rights Act: the company denied employment to applicants who had been arrested pending prosecution or convicted of certain minor offenses, disproportionately excluding more than 300 Black applicants. As part of the settlement, Pepsi implemented a new background check policy, offered employment opportunities to affected individuals, and committed to Title VII training for hiring personnel and managers.
Indian Supreme Court quashes adulteration case against PepsiCo (pesticide in soft drinks)
India’s Supreme Court quashed a criminal prosecution against PepsiCo in November 2010 in the long-running pesticide-in-soft-drinks case. In August 2003 the Center for Science and Environment (CSE) had alleged that Pepsi and Coca-Cola sold in India contained pesticide residue over 30 times European limits. Several states banned or restricted sales; in October 2006 a Kerala food inspector found carbofuran in Pepsi products, leading to prosecution. The Court ruled that the levels (0.001 mg/L) fell within tolerance limits set in 2009 and that no prescribed standards existed at the time of the original allegations. PepsiCo denied the charges throughout and had offered independent testing.
Beverage industry pushes state preemption laws to block local soda taxes
The American Beverage Association and major soda companies, including PepsiCo and Coca-Cola, shifted strategy from fighting city-by-city soda taxes to passing state-level preemption laws that bar local governments from imposing such taxes. By 2019, Arizona, California, Michigan, and Washington had passed preemption laws. In Pennsylvania, after failing to overturn Philadelphia’s soda tax in court, the industry spent under $2 million on a lobbying campaign that led to a statewide ban on local soda taxes, preventing any other city in the state from following Philadelphia. Critics argued preemption blocked public health measures and local revenue; the industry framed it as protecting consumers and small businesses from patchwork taxes.
Soda industry sues to block Philadelphia’s sugary drink tax; tax upheld
Philadelphia enacted a 1.5 cents per ounce tax on sugar-sweetened beverages in 2016. The American Beverage Association, representing Coca-Cola, PepsiCo, and other producers, joined retailers and others in suing to block the tax, arguing it was unconstitutional and would harm businesses and low-income consumers. Courts ultimately upheld the tax. The ABA and industry then turned to state preemption: in 2017 the Pennsylvania legislature passed a law barring any other city in the state from imposing a similar local soda tax. The episode illustrated industry tactics: litigation against local taxes followed by state-level lobbying to prevent their spread.
Mexico enacts soda tax; Coca-Cola and PepsiCo oppose it, then fund research to undermine it
Mexico implemented a peso-per-liter tax on sugar-sweetened beverages and an 8% tax on high-calorie junk food in January 2014, becoming the largest economy to adopt such a policy amid high obesity rates. Coca-Cola and PepsiCo strongly opposed the tax beforehand, warning it would hurt sales in the world’s second-largest sugary-drink market. After the tax took effect, transnational food and beverage firms recruited scientists to produce research claiming the tax failed to reduce consumption or improve health; industry-funded studies were disseminated internationally to undermine the policy before independent peer-reviewed evidence was available. A BMJ analysis documented this as part of broader industry efforts to block soda tax implementation in Mexico and prevent its diffusion to other countries. Both companies later recovered volume by emphasizing water and non-carbonated drinks.
PepsiCo and beverage industry lobby against federal soda tax; ABA spending surge
PepsiCo joined the American Beverage Association (ABA) in a major lobbying campaign against proposed federal soda taxes during the 2009–2010 healthcare reform debate. The ABA increased lobbying spending by 3,785% from Q1 2009 to Q1 2010 (from $140,000 to $5.4 million). PepsiCo, Coca-Cola, and the ABA collectively spent an estimated $70 million on lobbying and issue ads opposing soda taxes between 2009 and early 2012; in 2009 alone the industry spent $40.4 million on lobbying (vs. $4.7 million in 2008). The federal soda tax proposal did not pass. PepsiCo testified before lawmakers disputing health-impact claims and the industry framed the tax as a “job killer.”
Consumer finds frog or toad in Diet Pepsi can (Florida); FDA investigates
A consumer in Ormond Beach, Florida reported finding what appeared to be a frog or toad (later confirmed by the FDA as “a toad or frog lacking internal organs”) inside a Diet Pepsi can purchased from Sam’s Club in July 2009. The FDA investigated the Orlando-area bottling plant (August 4–11) and found no adverse conditions or manufacturing link. The agency could not determine when or how the contamination occurred. PepsiCo stated the incident “affirmed” confidence in its manufacturing system and that such occurrences had never been traced to production. No recall was issued; the incident remained a single-can complaint.
PepsiCo offers to buy Pepsi Bottling Group and PepsiAmericas; merger agreements reached; acquires Karinto (Peru)
PepsiCo made unsolicited offers in April 2009 to acquire The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) at $29.50 and $23.27 per share (about 17% premium). Both bottlers rejected the offers in May. In August 2009 PepsiCo reached definitive merger agreements at $36.50 per share for PBG and $28.50 for PAS (cash/stock choice), for a total of about $7.8 billion. The deals closed in March 2010 and consolidated 80% of PepsiCo’s North American beverage volume. Separately, PepsiCo acquired Karinto, a Peruvian snack and food company, in 2009, strengthening its presence in Latin America.
PepsiCo acquires Lebedyansky (Russia), Sobol-Aqua (Russia), and V Water (UK)
In 2008 PepsiCo expanded in Russia and the UK. It acquired a majority stake in Lebedyansky, Russia’s largest juice producer, for about $1.4 billion (completed in 2009). It also acquired Sobol-Aqua (Russia) as part of a joint venture with PR Beverages, and V Water in the UK, a functional water brand. The Lebedyansky deal gave PepsiCo the leading juice position in Russia; the company later integrated these assets and in 2010–2011 acquired Wimm-Bill-Dann, becoming Russia’s largest food and beverage company.
OSHA fines Pepsi-Cola and National Brand Beverage $195,000 for lockout/tagout violations
OSHA fined Pepsi-Cola and National Brand Beverage Ltd. of Pennsauken, New Jersey$195,000 for workplace safety violations. The agency issued willful citations related to lockout/tagout (LOTO) procedures—required to prevent machinery from starting while employees clear jams or perform maintenance. The investigation followed a complaint that workers were exposed to hazards when clearing jams on equipment used to stack and transport pallets, and that the company failed to provide adequate LOTO training. According to Good Jobs First’s Violation Tracker, PepsiCo has paid over $3.2 million in safety-related penalties across 140 records since 2000.
PepsiCo acquires Sandora (Ukraine) and Comercio de Doces Lucky (Brazil)
In 2007 PepsiCo acquired an 80% stake in Sandora, Ukraine’s leading juice company (brands including Sandora, Sadochok); it later increased ownership to 100%. The deal was part of PepsiCo’s expansion in Eastern Europe and was valued at roughly $542 million when combined with the PepsiAmericas (PAS) transaction in the region. PepsiCo also acquired Comercio de Doces Lucky Ltda in Brazil (brands Torcida, Fofura), strengthening its snack portfolio in Latin America.
PepsiCo acquires Naked Juice, IZZE, and Stacy's Pita Chips
In 2006 PepsiCo made several “better-for-you” acquisitions. It acquired Naked Juice (November 2006) from North Castle Partners for about $150 million—a leading U.S. maker of fruit and vegetable smoothies and juices. It acquired IZZE (September 2006), a sparkling juice brand. It also acquired Stacy's Pita Chips for $243 million (deal announced 2005, closed 2006), a premium pita chip brand founded by Stacy Madison. Naked Juice and IZZE were later included in the 2021 sale of Tropicana and juice brands to PAI Partners.
India CSE again finds pesticides in Coke and Pepsi; Kerala bans cola sales
India’s Center for Science and Environment (CSE) published a second report in August 2006 finding that Coca-Cola and PepsiCo soft drinks contained pesticide residues at levels it said were 24–34 times Indian and Western standards (e.g. average 11.85 ppb). Several states imposed restrictions; Kerala banned production and sale of cola products entirely. Politicians and activists staged protests; some smashed bottles. PepsiCo was seen as weathering the crisis better than Coca-Cola due to its diversified portfolio. The controversy reflected weak food-safety regulation and pesticide contamination in groundwater; the Supreme Court later quashed the criminal case against PepsiCo in November 2010.
India CSE report alleges pesticides in Pepsi and Coke; states ban or restrict sales
India’s Center for Science and Environment (CSE) reported in August 2003 that soft drinks sold by PepsiCo and Coca-Cola contained pesticide residue at levels it said were over 30 times European Commission limits, citing contaminated groundwater and inadequate filtration. Several Indian states banned or restricted sales of Coke and Pepsi; some lawmakers demanded a nationwide ban. PepsiCo denied the charges, said its products met Western standards, and offered independent testing. The controversy led to years of litigation and regulatory scrutiny; the Supreme Court ultimately quashed the criminal case against PepsiCo in 2010.
PepsiCo acquires Quaker Oats for $13.4 billion (Gatorade, snacks, cereals)
PepsiCo completed its acquisition of The Quaker Oats Company on August 3, 2001, for $13.4–13.8 billion, then PepsiCo’s largest deal. The main driver was Gatorade, which had about 80% of the U.S. sports drink market and roughly $2 billion in annual revenue. The deal also brought Quaker’s food portfolio: granola bars, rice cakes, Cap’n Crunch, and Aunt Jemima. The FTC investigated on antitrust grounds; the commission deadlocked 2–2 on blocking the merger and closed the investigation. PepsiCo agreed to sell its All Sport brand to Monarch Co. to address competition concerns. Quaker was integrated with Frito-Lay for distribution.
PepsiCo completed the acquisition of Tropicana Products, Inc. in July 1998 for approximately $3.3 billion in cash. Tropicana was the leading U.S. branded orange juice company (not-from-concentrate and chilled juice). The deal gave PepsiCo a major position in the juice category and expanded its beverage portfolio beyond carbonated soft drinks. In 2021 PepsiCo sold Tropicana, Naked Juice, KeVita, and related juice brands to PAI Partners for $3.3 billion, retaining a 39% stake and U.S. distribution rights.
PepsiCo federal lobbying (OpenSecrets from 1998); tax, trade, agriculture, food safety
PepsiCo Inc. has been tracked by OpenSecrets (ID D000000200) for U.S. federal lobbying since 1998. The company lobbies on commodities, environment/superfund, agriculture, taxation, labor and workplace issues, antitrust, science and technology, and food industry issues including safety and labeling. It has used firms such as Monument Advocacy, Cassidy & Associates, and Fierce Government Relations. Lobbying activity increased sharply during the 2009–2010 soda tax fight and remains substantial through the 2020s.
