PEPSICO INC (PEP) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that PEPSICO INC surfaced in its latest filing.

• Changes in funding for or restrictions on the inclusion of our products in benefit programs, such as the Supplemental Nutrition Assistance Program (SNAP) in the United States.
• U.S. tariffs imposed or threatened on China, the European Union, Canada, and Mexico, and retaliatory tariffs from those countries, have increased input costs.
• The ongoing conflict in Ukraine is called out as a geopolitical condition impacting markets.
• Recent intervention in Venezuela is called out as a geopolitical condition impacting markets.
• Mexico increased its flat tax on all sweetened beverages from approximately $0.09 to $0.17 per liter effective January 1, 2026.January 1, 2026
• Texas passed a law effective January 1, 2027 requiring warning labels on products containing certain ingredients, including artificial colors.January 1, 2027
• OECD model rules for a global minimum tax rate of 15% with widespread implementation expected by the end of 2026.2026
• European Union member states have enacted or are expected to enact legislation incorporating the global minimum tax.
• If we fail to achieve the commercial and financial priorities announced during 2025 to improve marketplace competitiveness, including in North American businesses.2025
• Commodity, packaging, and transportation costs were volatile during 2025.2025