PepsiCo's Supplier Diversity Program celebrates 40 years and commits to spending $400 million annually
, fromPepsiCo, Inc.
PepsiCo is celebrating this milestone by accelerating its Racial Equality Journey commitments to invest more in Black- and Hispanic-owned suppliers. PepsiCo's pep+ agenda focuses on sustainable growth and human capital. Diversifying its spending and engaging with advocacy groups to remove barriers for diverse suppliers.
PepsiCo is celebrating the 40th anniversary of its Supplier Diversity Program, where it spends more than $1 billion annually with certified, diverse suppliers, including Women, Black, Hispanic, Asian, LGBTQ+, Native American, and U.S. Veterans. PepsiCo has spent nearly $30 billion over the past 40 years, up from $5 million in 1982. The company is also expanding its base and increasing overall spend through new forums, mentorship, partnerships, and resources, including increased supplier certification support, to help businesses grow and sustain their economic impact.
As a leading food and beverage company in the U.S., PepsiCo has a responsibility to help address systemic barriers that limit or exclude diverse suppliers from developing and expanding their businesses. Working with diverse-owned businesses is one of the best ways we can build a more inclusive supply chain, which strengthens the communities where we operate and benefits our consumers and customers.
According to the National Minority Supplier Diversity Council, MBEs generate $400 billion annually and create or preserve 2.2 million jobs.
Increasing Black and Hispanic Supplier Spending
PepsiCo doubled its support for Black and Hispanic suppliers in 2020 as part of its Racial Equality Journey, a $570 million investment over five years to increase representation within its workforce, leverage its scale and influence across suppliers and strategic partners, and help drive long-term change by addressing systemic barriers to economic opportunity and advancement.
In 2021, PepsiCo spent nearly $500 million with Black and Hispanic suppliers, including adding more than 10 Black-owned and Hispanic-owned marketing agencies to its roster. This led to leveraging an award-winning Black woman-owned agency for the rebrand strategy of the Pearl Milling Company and the development of the P.E.A.R.L. (Prosperity, Empowerment, Access, Representation, Leadership) Pledge, which provides grants to non-profit organziations. It has also increased its spending with Black and Hispanic media companies by more than 50% of its 2020 budget.
PepsiCo hired Pink Patch Group, a Black-woman-owned certification consultancy, to help with supplier certification and remove economic barriers. A recent MIT study found that supplier diversity programs' onerous certification process hurts the companies they aim to help. Despite meeting the criteria, only 1% of diverse companies are certified. PepsiCo has helped Webber Marketing & Consultancy, LLC and Extrategic Culture with the process.
Extrategic Culture Co-Founder Jeffrey Duque thanked PepsiCo for believing in their abilities and being an invaluable ally during the certification process. Their support shows PepsiCo's commitment to a diverse supplier base that provides quality goods and services.
Christina Tyson, PepsiCo's Director of Supplier Diversity, said minority certification will help diverse businesses work with other Fortune 500 companies. Hiring a third-party consultant to help small diverse-owned businesses with certification is one step we're taking to drive racial equality and create systemic change in our communities.
Partnerships, advocacy, and mentoring help diversify spending.
PepsiCo has advanced its efforts to create opportunities for diverse businesses, deepen their relationships, and identify potential new partners through partnerships with the National Minority Supplier Development Council (NMSDC) and the National Black Growers Council (NBGC). The company has nearly doubled its spending on Black farmers and continues to mentor them on expanding their acreage and purchasing capacity.
"As farmers in underserved communities, we're often isolated,"
said P.J. Fifth-generation Virginia farmer and NBGC board chairman Haynie.
"Having relationships and mentors, and knowing you can call another grower to share information that will help your operation – whether they're 100 or 1,000 miles away – is a priceless tool in our toolbox. Companies like PepsiCo understand that."
Visit PepsiCo's Supplier Diversity Portal for business opportunities.
Source: Pepsico news