Recent Release | 24 Jan 2023

PepsiCo’s Racial Equality Journey: An Analysis of its Economic Impacts

Economic Consulting Team

Oxford Economics

Racial equality is a cornerstone of PepsiCo’s mission and has been for decades. A new initiative, the Racial Equality Journey (REJ) further drives PepsiCo’s objective to expand equity for Black and Hispanic individuals and combat discrimination. Through a five-year commitment of $570 million and thousands of volunteer hours, PepsiCo expands community and business value and supports long-term socioeconomic growth. To better understand and quantify this value, PepsiCo commissioned Oxford Economics to analyze the first year of impact, focusing on three pillars—Business, People and Communities. We also conducted a survey of 500 executives across the United States to understand their workforce, supply chain, and community diversity plans, with a focus on the benefits they have experienced from their investments and the challenges they face in achieving their goals. This was followed with interviews of a PepsiCo supplier, grant recipient, and two scholarship recipients about their experiences with PepsiCo’s funding and mentorship.

The Business pillar represents direct grants to small business owners who are Black and Hispanic—specifically those businesses that can be part of PepsiCo’s supply chain and businesses that provide food and grocery services in their communities. PepsiCo’s expenditure to diversify their own supply chain generated $613 million in economic value and supported 6,100 jobs. PepsiCo’s cash grants to nearly 1,000 Black and Hispanic-owned restaurants, bodegas and carnicerias supported an additional nearly 2,300 jobs. Separate targeted initiatives Dig In (a $40 million five-year initiative engaging Black-owned restaurants) and Juntos Crecemos (a $40 million initiative to strengthen small Hispanic-owned restaurants, bodegas and carnicerias) also drives significant value. With Dig In, PepsiCo invested $11.4 million in 2021, directly benefiting more than 8,000 Black-owned restaurants.

In supporting the People and Communities pillars, PepsiCo signed partnerships with community colleges totaling more than $11 million (and counting) to fund 4,000 scholarships—2,000 for Black and 2,000 for Hispanic students—for either 2-year degrees or trade certificates. 3,200 scholarships have already been underwritten. PepsiCo’s investment in skills during 2021 through 2023 period generates more than $343 million in additional lifetime earnings of the students receiving the scholarships.

Our survey of 500 executives reveals that businesses have ambitious goals to increase Black and Hispanic representation within their workforces and across their supply chains—but many have yet to implement the specific plans needed to achieve these goals. On average, executives in our survey expect to increase the proportion of Black- and Hispanic-owned businesses in their supply chains to 23% in the next two years—up from nearly 17% in 2021 and 14% two years ago.

Oxford Economics analysis of PepsiCo’s first year of the REJ, showcases the broader value and community benefits supported through targeted action and investment to increasing racial equity. The report dives deeper into each of these topics and tells key stories of the transformative value catalyzed by PepsiCo’s ongoing commitment.

About the team

Our economic consulting and thought leadership teams are world leaders in quantitative economic analysis and original, evidence-based research, working with clients around the globe and across sectors to build models, forecast markets, run extensive surveys, and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:

Hamilton Galloway

Head of Consultancy, Americas

+1 (646) 503 3068

Hamilton Galloway

Head of Consultancy, Americas

New York

Hamilton Galloway joined Oxford Economics in 2014 as Head of US Consultancy – a team focused heavily on developing quality, customized research, analysis and impact modeling services for a range of private and public organizations. Prior to joining Oxford Economics, Mr. Galloway worked nearly seven years as an economist, senior consultant and manager at Economic Modeling Specialists Int (EMSI), a data and analytic company based in the US.

Mr. Galloway’s work included building a consultancy presence in the US, conducting bespoke economic and labour market research and engaging public and private sector clients. In 2013/14 he lived and worked in the UK as a senior consultant, focusing on developing data-driven, decision-making analytics and reports for use across public entities and education. He has authored numerous reports, publications, as well as economic development user guides and even a textbook chapter.

Daniel Diamond

Economist

+1 347 652 1470

Daniel Diamond

Economist

New York

Since joining Oxford Economics in 2021, Daniel has completed a number of economic impact studies both in the US and globally for clients such as Pepsi, YouTube, and Visa. Prior to joining Oxford Economics, Daniel spent two years with the Overseas Development Institute, acting as an economic policy advisor to the Government of Malawi. He has also worked in anti-trust and competition economics for CRA. Daniel holds a MSc (Hons.) in economics from the London School of Economics, and a BA (Hons.) in economics from McGill University.

Sundus Alfi
Sundus Alfi

Senior Research Manager, Thought Leadership

+1 917 746 6820

Sundus Alfi

Sundus Alfi

Senior Research Manager, Thought Leadership

New York, United States

Sundus manages research programs for the Thought Leadership team, focusing on healthcare, the future of work, the data economy, and diversity and inclusion. She is involved in all aspects of research, from drafting hypotheses and designing global executive, employee, and consumer surveys to analyzing large datasets and reporting on the results in briefing papers and graphics. She also has experience conducting interviews, writing case studies, and presenting her research in webinars.

Sundus graduated from the University of North Carolina at Chapel Hill in 2018 with degrees in Public Policy and Economics.

Kayla Luparello

Research Associate, Thought Leadership

+1 (646) 503 3062

Kayla Luparello

Research Associate, Thought Leadership

New York

Kayla supports global research studies for Thought Leadership, working across business sectors and disciplines, with a specific focus in finance. Based in our New York office, Kayla works closely with senior staff to aid in all aspects of research programs and produce multi-media deliverables. Kayla graduated from Colby College with degrees in Government and Global Studies.

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