PepsiCo Inc.: Establishing a Role in a Sustainable Society

In early 2021, PepsiCo Inc. (PepsiCo), one of the world’s largest food and beverage companies, was undergoing immense criticism for its role in global health issues including obesity, diabetes, heart disease, malnutrition, and cancer. As far back as 2010, executives at PepsiCo had recognized that “society, people, and lifestyles have changed” and that PepsiCo had no choice but to move in healthier directions. Although PepsiCo had made impressive strides in reducing the negative health impacts of some of its products, criticism persisted that it was not going far enough.

This case is suitable for courses in business and society, business strategy, and marketing at the undergraduate and graduate levels. The case describes how PepsiCo’s efforts to increase profitability led to a significant number of social issues related to health and well-being. Students are tasked with ascertaining whether PepsiCo should and could move in a more sustainable direction where consumer health and well-being are central to the company’s core strategy. In light of the inherent conflict between the interests of society and those of the food and beverage industry, the case examines how PepsiCo should respond to growing pressure to address its role in consumer health issues. After working through the case and assignment questions, students will be able to<ul><li>discuss the rich tension between the interests of the food and beverage industry and those of society;</li><li>understand how the pursuit of profitable growth is inextricably tied to health issues;</li><li>use the value creation and value capture framework to tease out the tension between the food and beverage industry and society; and</li><li>apply the five sustainability strategies framework (i.e., denial, defence, isolated, embedded, and transformational).</li></ul>

• obesity
• health
• sustainability