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.

• The Coca-Cola Company is identified as the primary beverage competitor in the United States.
• In 2025, the company announced commercial and financial priorities to improve marketplace competitiveness and financial performance, including in its North American businesses.2025
• The company continued to experience volatility in its commodity, packaging and transportation costs during 2025.2025
• Ongoing conflict in Ukraine and recent intervention in Venezuela have impacted and could continue to impact the business.
• U.S. tariffs imposed or threatened to be imposed on China, the European Union, Canada and Mexico and any retaliatory actions taken by such countries.
• Changes to governmental subsidies provided to consumers such as SNAP in the United States.
• Multi-year phased business transformation initiative to migrate systems including financial processing systems to enterprise-wide solutions, with systems deployed in certain countries and segments.
• Multi-year phased implementation of shared business service organizational models.
• Organizational restructuring.
• Mexico increased its flat tax on all sweetened beverages, effective January 1, 2026, from approximately $0.09 (1.64 Mexican pesos) to $0.17 (3.08 Mexican pesos) per liter.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
• Certain jurisdictions impose color-coded labeling requirements (red, yellow, green) indicating levels of sugar, sodium, or saturated fat.
• The United States is considering restrictions on 'ultra-processed' foods.
• Subject to the California Consumer Privacy Act, as amended by the California Privacy Rights Act.
• Subject to the European Union’s General Data Protection Regulation (GDPR).
• Subject to the U.K. General Data Protection Regulation.
• Subject to China’s Personal Information Protection Act.
• European Union member states have enacted or are expected to enact legislation incorporating the OECD global minimum tax rate of 15% with widespread implementation expected by the end of 2026.end of 2026
• Compliance with competition and antitrust laws is of special importance due to our competitive position.
• Compliance with anti-corruption laws is of special importance.
• The legal and regulatory landscape for artificial intelligence is uncertain and evolving, potentially increasing compliance costs or limiting use of the technology.