Covid-19

AS THE CORONAVIRUS (COVID-19) CONTINUES TO SPREAD THROUGHOUT THE WORLD, WE ARE TAKING PROACTIVE STEPS GROUNDED IN SCIENCE TO PROTECT THE SAFETY OF OUR PRODUCTS, CARE FOR OUR MORE THAN 260,000 ASSOCIATES, THEIR FAMILIES AND SUPPORT OUR COMMUNITIES AROUND THE WORLD.

HEALTH AND SAFETY

As a global company, PepsiCo sources ingredients and makes, moves and sells products from around the world. Product safety is our top priority and we want to reassert that direct risk to our product or ingredients is very low. Based on industry guidelines from multiple health authorities, including the EFSA and FDA, there is no evidence that food or food packaging is associated with the transmission of COVID-19 and that no recalls are anticipated if a person who works in a food or beverage production facility is diagnosed. In addition, according to both the Centers for Disease Control (CDC) and the World Health Organization (WHO), transmission by anything other than person-to-person contact is not typical of this virus, which means the risk of transmission via food and beverage products and ingredients is also very low.  We are taking every precaution across our supply chain, and continue to work closely with authorities across our businesses and around the world to ensure the continued safety of our products and manufacturing locations everywhere we do business.

As a company, we are practicing social distancing at all our facilities around the world and have asked all PepsiCo associates who have the option, to work from home, and those who do not are adhering to social distancing guidelines from local and federal governments.

Global health agencies have made clear the most effective thing we can do to fight COVID-19 is to practice good hygiene, and we are taking this advice very seriously. We have increased cleaning frequency at all facilities globally and re-emphasized the importance of proper handwashing. Additionally, we are expanding the availability of hand sanitizer in our facilities, separating workstations, and providing masks for all of our frontline employees.

PAID SICK LEAVE

No one can take the place of our associates and we take their health and safety very seriously, especially those of our frontline associates who are continuing to make, move and sell our products and keep supermarket and grocery shelves stocked during this critical time. With this in mind, in our biggest market, the United States, we will provide our associates  100% of pay for a two-week period for those who need to quarantine, are assessed by a doctor and are symptomatic or have been diagnosed, or who are caring for a sick family member in their household. For those diagnosed or caring for a diagnosed family member, we will also provide a minimum of two-thirds of pay for up to 10 additional weeks.

If we were to close a facility due to COVID-19, and in the event that work could not be continued remotely, our associates in that facility will receive 100% of pay for up to 12 weeks. Finally, we recognize the burden inadequate childcare has on our associates during this time, so we are offering a minimum of two-thirds pay for up to 12 weeks, subject to approval, for associates who may be impacted by lack of available childcare due to school or daycare closures or the lack of availability of a regular caregiver because of coronavirus.

The additional compensation covers more than 90,000 frontline associates at both PepsiCo Beverages North America (PBNA) and PepsiCo Foods North America (PFNA) and consists of a minimum of an incremental $100 per week for full-time employees over the next month. We will also hire 6,000 new, full-time, full-benefit frontline employees across the U.S. in the coming months.

COMMUNITY IMPACT

As COVID-19 reduces access to food and other essential goods for communities around the world, PepsiCo is investing more than $60 million globally to bring food and other vital resources to the most affected communities. As part of this effort, the company is providing funding for protective gear for healthcare workers, testing and screening services, and is in the process of distributing more than 50 million nutritious meals to at-risk populations.

Globally, PepsiCo has committed $7 million to the UN Foundation as part of the “One World: Together At Home” campaign. Of these funds, $2 million is going to the World Health Organization COVID-19 Solidarity Response Fund and a total of $5 million is being distributed to the following charitable organizations responding to COVID-19: Egyptian Foodbank, the Netherlands Foodbank, the Belgium Foodbank, the Belgium Red Cross, the Netherlands Foodbank, the Netherlands Red Cross, Les Restos Du Coeur, Secours Populaire Francais, ANDES, Trussell Trust, FareShare, Food Forward, Red Cross South Africa, Solidarity Fund South Africa, CARE programs in Thailand, Save the Children programs in Italy, and United Way Westchester and Putnam in New York.

In North America, which has the most recorded cases of COVID-19 in the world, PepsiCo’s efforts are primarily focused on increasing access to nutrition for out-of-school children.

In the U.S., PepsiCo is providing:

• 20 million nutritious meals to communities in need through The PepsiCo Foundation’s Food for Good program, a partnership with No Kid Hungry to provide emergency grants to schools and community organizations to ensure children nationwide have access to nutrition, and a partnership with the Baylor Collaborative on Hunger and Poverty and USDA to reach rural students
• $7 million to UnidosUS, the National Urban League, and local nonprofits in 15 U.S. cities to provide increased medical and economic aid to Black and Latino communities across the country
• $3 million to support Team Rubicon’s food delivery operations for partners Feeding America, Meals on Wheels, and others in 100 locations across the U.S.
• $2 million to the Children’s Health Fund to aid mobile health clinics administering COVID-19 screening, testing, personal protective equipment and support services in 21 communities
• $2 million to the National Restaurant Association Educational Foundation to support the Restaurant Employee Relief Fund and job training for women aimed at long-term economic recovery
• $500,000 to The Robin Hood Foundation’s Emergency Relief Fund to provide immediate financial support to nonprofits that serve vulnerable groups in New York City
• $500,000 to White Plains Hospital in Westchester to increase the hospital’s capacity and provide personal protective equipment to workers
• $250,000 to GENYOUth for their “For School’s Sake” Fund, which supports meal distribution and delivery at schools across the U.S. for children in need
• $150,000 to the Chicago Community COVID-19 Response Fund, created in partnership with the City of Chicago, the Chicago Community Trust and the United Way, to support the city’s most in-need residents
• $100,000 to the nonprofit Feeding Westchester to deliver healthy meals to Westchester residents
• $100,000 to the New York Community Trust Response & Impact Fund to accelerate FDA-approved rapid testing for COVID-19
• $100,000 to United Way Westchester and Putnam in New York
• $100,000 to the Bridgeport Rescue Mission to support COVID-19 testing in New York City

As part of its larger relief efforts in North America, PepsiCo is also investing:

• $100,000 to Food Banks Canada to deliver nutritious meals to all 10 Canadian provinces
• $50,000 to Food4Kids to support access to nutrition for children while they are out of school

In Europe, where entire countries are on lock-down and hospitals are over capacity, PepsiCo is concentrating its response on particularly hard-hit countries. Efforts are focused on bolstering the capacity of local health and relief systems, giving:

• $5 million to organizations in Russia, Belarus, Ukraine, Transcaucasia and Turkey to support healthcare providers and provide more than 1 million servings of food for those in need
• $500,000 to Save the Children in Italy
• $480,000 to Trussell Trust in the UK
• $336,000 to the Belgium Foodbank
• $320,000 to Les Restos Du Coeur in France
• $320,000 to Secours Populaire Francais
• $224,000 to the Netherlands Foodbank
• $160,000 to ANDES in France
• $160,000 to FareShare in the UK
• $600,000 to Red Cross outposts in Italy, Spain, and France to cover the needs of the most vulnerable groups in society, particularly seniors and children, many of whom are in confinement and isolation, by providing:
  • Personal protection equipment and health equipment for medical responders
  • Urgent health transportation for affected citizens
  • Logistical support for health facilities
  • Essential goods (food, hygiene, household cleaning, and sanitary products) for those unable to leave confinement
  • Socialization options for isolated groups in high-risk demographics
• $500,000 to Educo in Spain, funding 225,000 meals for more than 3,000 children through its Dining Scholarships program
• $200,000 to Banco Alimentar Contra A Fome in Portugal to provide close to 750,000 meals for people struggling with hunger as a result of COVID-19
• $140,000 to the Belgium and Netherlands Red Cross organizations to fund:
  • A dedicated helpline for those struggling mentally due to COVID-19
  • Support the “Watch Out for Each Other” network that links volunteers to those in need of practical and mental help as a result of the quarantine and home isolation
  • Collect protective equipment for frontline healthcare workers

To help Latin America respond to COVID-19, PepsiCo is helping strengthen local food bank capabilities and increasing access to nutrition and other resources for vulnerable children, providing:

• More than 10 million nutritious meals in Mexico for out of school children and their families through nonprofits Un Kilo De Ayuda and Save the Children. Additionally, children will be provided with kits and worksheets for educational and interactive activities
• $1.5 million for The Global FoodBanking Network to enable food banks in Mexico, Brazil, Colombia, Argentina, Guatemala, Chile, Peru, Panama, Ecuador, Costa Rica, Dominican Republic, and Uruguay to stock up on key food staples, hire additional staff, and train workers on how to reduce COVID-19 transmission, in accordance with World Health Organization guidelines
• 500,000 meals in Honduras and El Salvador in partnership with nonprofit Rise Against Hunger to support out of school children
• $100,000 for United Way to give more than 300,000 meals to Venezuela residents

PepsiCo is also investing in Africa, the Middle East, India, and South Asia, which require a unique response due to booming populations and diverse, emerging economies. Efforts there are focused on meal distribution, providing:

• More than 40 million meals in Pakistan, Bangladesh, Egypt, Ethiopia, Morocco, Jordan, Saudi Arabia, Uganda, and South Africa in partnership with local food banks and leading nonprofit partners
• Over 10 million meals and 25,000 COVID-19 testing kits in India in partnership with the Akshaya Patra Foundation, the Smile Foundation, The CII Foundation and the Foundation for Innovative New Diagnostics
• $1 million to the Egyptian Foodbank
  • $382,000 to Food Forward in South Africa
  • $210,000 to Red Cross South Africa
  • $110,000 to Solidarity Fund South Africa
• Over $280,000 to Tkiyet Um Ali’s Hospital Programs in Jordan
• $200,000 in funding to the Red Cross and Rafic Hariri University Hospital in Lebanon to strengthen the country’s health system

In Asia Pacific, Australia/New Zealand, and China, areas that have been living with the devastating effects of COVID-19 longer than any part of the world, PepsiCo is supporting healthcare workers and addressing hunger, providing:

• $1.1 million in funding for protective gear for healthcare workers in China and South Korea with investments to The Hubei Red Cross Foundation and the China Women’s Development Foundation
• $1.1 million in funding for COVID-19 relief in Vietnam, which includes:
  • Over $550,000 to initiate the “Millions of Meals” program which will deliver more than 1 million meals to those in need
  • $300,000 to the Vietnam Youth Union to provide 1 million meals across 5 major cities in Vietnam
  • $200,000 to the Vietnam Young Physician Association to provide medical supplies for frontline hospitals in 5 locations across Vietnam
• $550,000 to Raks Thai Foundation in Thailand to deliver more than 1 million meals to vulnerable communities
• $500,000 to Project Ugnayan to deliver assistance to over 7.6 million people in the Manila metro area in The Philippines
• $300,000 to Foodbank Australia, which expects to deliver approximately 948,000 nutritious meals
• $330,000 to The Salvation Army Foodbank Project in New Zealand which aims to deliver more than 240,000 meals
• Over $80,000 for COVID-19 response to the Beautiful Foundation in South Korea to benefit 180 single mothers with emergency relief packages

The company will expand these investments in the coming weeks. Additionally, in April and May, The PepsiCo Foundation is offering a two-to-one matching program for all employee charitable contributions to select nonprofits providing COVID-19 relief globally, contributing up to $2 million in support to nonprofits chosen by employees.

DIVERSITY AND INCLUSION

PepsiCo and The Asian American Business Development Center (AABDC) jointly stand against anti-Asian racist acts that have become prevalent since the Coronavirus outbreak. We are troubled by the stigmatization of Asian Americans, particularly of East Asian origins, many of whom have faced indiscriminate blame for the pandemic solely due to their racial identities. As a result, we have signed the pledge and share the Joint Statement of AABDC to stand against hate and provide support to communities. Read more here.

PepsiCo, together with Ascend, ALPFA, Catalyst, The Conference Board, MLT, NABA, NCAI, NOD, Out & Equal and Tanenbaum, stand together on our mission to promote inclusion in these unprecedented times. A disproportionate number of Black and Hispanic communities are particularly vulnerable during this health and economic crisis. As a result, we join these organizations in affirming our commitment to promote inclusion, raise awareness, denounce bias and donate to these troubled communities. Read more our commitment here.

REMOTE WORK AND MEETING GUIDANCE

We have canceled all participation in face-to-face meetings both internally and externally for the foreseeable future and instituted a flexible working policy for roles that can be done remotely, encouraging as many associates who can work from home to do so. We are leveraging the most current global technology, like Zoom, to stay connected and facilitate the continuation of our work, and to continue to bring the full strength of PepsiCo to bring our foods and beverages to communities around the world.

TRAVEL GUIDANCE

To help prevent further spread of the virus, all air and long-distance rail travel continue to be limited to operationally essential and/or time-sensitive only and in adherence with any and all local and federal travel policies.

CRISIS AND RESPONSE TEAMS

Crisis management teams are in place at the enterprise level and in each of our Sectors to tailor our response locally. Each team is meeting daily to review and ensure we are following global standards to keep our business running and our employees safe, including protocols for dealing with potential exposure to COVID-19, and we’re continuously re-evaluating and refining our ways of working to best serve the communities we operate in during this challenging time.

We have also stood up a scientific steering committee with renowned infectious disease doctors to assess our plans and provide input on how we can continue to operate and do our part to keep our employees safe.

As the scientific and medical guidance continues to evolve, we will continue to adjust our approach and response to ensure the health and safety of our products, associates and their loved ones.

• More than 40 million meals in Pakistan, Bangladesh, Egypt, Ethiopia, Morocco, Jordan, Saudi Arabia, Uganda, and South Africa in partnership with local food banks and leading nonprofit partners
  • Over 10 million meals and 25,000 COVID-19 testing kits in India in partnership with the Akshaya Patra Foundation, the Smile Foundation, The CII Foundation and the Foundation for Innovative New Diagnostics
  • $1 million to the Egyptian Foodbank
    • $382,000 to Food Forward in South Africa
    • $210,000 to Red Cross South Africa
    • $110,000 to Solidarity Fund South Africa
  • Over $280,000 to Tkiyet Um Ali’s Hospital Programs in Jordan
  • $200,000 in funding to the Red Cross and Rafic Hariri University Hospital in Lebanon to strengthen the country’s health system