PepsiCo’s Supplier Diversity Program Celebrates 40th Anniversary and Commits to Spending More than $400 Million Annually with Black and Hispanic-owned Suppliers

PepsiCo is recognizing this milestone by:

  • Accelerating its efforts to achieve its Racial Equality Journey commitments to increase its investment with Black-owned and Hispanic-owned suppliers. A goal part of PepsiCo’s pep+ agenda to create growth and shared value with sustainability and human capital at the center.  
  • Further diversifying its spend and deepening engagement with advocacy organizations to help remove barriers for diverse suppliers – from farmers and transportation providers to marketing agencies and professional service providers
  • Leveraging existing forums, such as its diverse-owned Media Days, to expand its base and increase spending with diverse-owned media and marketing agencies

PURCHASE, N.Y., July 6, 2022 /PRNewswire/ — PepsiCo is celebrating the 40th anniversary of its Supplier Diversity Program, where it currently spends more than $1 billion annually with certified, diverse suppliers, including Women, Black, Hispanic, Asian, LGBTQ+, Native American, Individuals with Disabilities, and U.S. Veterans. The anniversary commemorates a tremendous milestone for the company, from an initial spend of $5 million in 1982 to nearly $30 billion spent over the past 40 years across PepsiCo’s entire value chain. The company is also committing to expanding its base and increasing overall spend through new forums, mentorship, partnerships and resources, including increased support around the supplier certification process to help businesses grow and sustain their economic impact for years to come.

PepsiCo
Video produced by REVOLT and a 100% Black creative team

“As one of the leading convenient food and beverage companies in the U.S., we have a responsibility to leverage our size and reach to help address the systemic barriers that too often limit or exclude diverse suppliers from developing and expanding their businesses,” said Melani Wilson Smith, PepsiCo’s Global Chief Procurement Officer. “We’ve been on this journey for decades and we are committed to growing with our diverse suppliers and procuring new ones. Working with diverse-owned businesses is one of the more important ways we can help build a more inclusive supply chain which, in turn, strengthens the communities where we operate and yields greater value for our consumers and customers.”

Minority Business Enterprises (MBEs) are staples in the American economy, generating more than $400 billion in economic output annually and resulting in the creation and/or preservation of 2.2 million jobs, according to the National Minority Supplier Diversity Council.

Increasing spend with Black and Hispanic Suppliers

Building on the overall growth of its Supplier Diversity Program, in 2020, PepsiCo doubled-down on its support for Black and Hispanic suppliers as part of its Racial Equality Journey, a more than $570 million investment in a set of commitments 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 advancing economic empowerment for Black and Hispanic Americans.

As part of this journey, 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, which has resulted in 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 organizations working to empower Black women and girls across the country; and an award-winning Hispanic women-owned agency to launch ‘Juntos Crecemos‘, a multi-faceted platform to support small Hispanic-owned businesses. Additionally, through its diverse-owned media days, it has increased its spend with Black and Hispanic media companies by more than 50% of its 2020 spend. 

Removing barriers to economic advancement

PepsiCo has also hired Pink Patch Group, a Black-woman-owned certification consultancy, to help with the diverse supplier certification process and remove barriers to economic advancement. A recent MIT study revealed that the onerous certification process taxes the very companies that supplier diversity programs seek to help. In fact, only about 1% of diverse companies achieve certification despite meeting the required criteria. PepsiCo has since assisted several companies with the process, including Webber Marketing & Consultancy, LLC and Extrategic Culture, a culture-first social experience agency.

“We would like to give a special thanks to PepsiCo for believing in our capabilities and being an invaluable ally through the certification process,” said Jeffrey Duque, Co-Founder of Extrategic Culture. “Their support demonstrates PepsiCo’s commitment to developing a robust supplier base that includes diverse-owned businesses that provide quality goods and services.”

“We know that minority certification will allow diverse businesses to work with many Fortune 500 companies beyond PepsiCo,” said Christina Tyson, Director of Supplier Diversity at PepsiCo. “Hiring a third-party consultancy to assist small diverse-owned businesses with the certification process is one of several steps we’re taking to drive racial equality and create systemic change in the communities we serve.”   

Diversifying spend through partnerships, advocacy and mentorship

Through existing partnerships with organizations such as the National Minority Supplier Development Council (NMSDC) and the National Black Growers Council (NBGC), PepsiCo has also advanced its efforts to create opportunities for these diverse businesses, deepen their relationships and identify potential new partners. The company has nearly doubled its spend among Black growers within the agriculture segment and continues to mentor growers on expanding their acreage and capacity available to purchase.

“As farmers in underserved communities, we typically find ourselves isolated and concentrated,” said P.J. Haynie, a fifth-generation farmer from Virginia and board chairman of the NBGC. “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.”

To learn more about potential business opportunities with PepsiCo, interested businesses can visit PepsiCo’s Supplier Diversity Portal.

Latest

THE BFM FUND RECEIVES EQUITY INVESTMENT FROM BANK OF AMERICA

The BFM Fund (Black Founders Matter), a Portland-based, seed-stage venture fund focused on Black and innovative founders, is slated to receive investment from Bank of America. The BFM Fund Logo Led by a full women of color leadership team, The BFM Fund will allocate Bank of America's investment into Black founders across various verticals within the United States. [...]

HBCU Grads Behind America’s Fastest-Growing Pizza Chain

The famed Black-owned hip-hop-inspired gourmet pizza chain Slim + Husky’s is ranked #5 in The Daily Meal's "101 Best Pizzas in America." The three remarkable owners dish out innovative pizza creations to underserved communities. [...]

Kaleidoscope X Da Brat Styling Collection Sells Out in Just Six Minutes!

One of the largest Black-owned hair-care brands in the U.S. [...]

National Alliance for Black Business (NABB) and the U.S. Department of Commerce’s Minority Business Development Agency (MBDA) Form a Historic Alliance to Develop Black-Owned...

On Wednesday, February 22, 2023, the U.S. Department of Commerce Minority Business Development Agency (MBDA), and the National Alliance for Black Business (NABB) signed a historic MOU during the NABB's first annual National Black Business Policy Conference in Washington, D.C. [...]
Kevin Ross
Kevin Rosshttps://blogwallet.com
Kevin "KevRoss" Ross is a music and radio industry expert. He is a 20 -plus year entrepreneur with the leading most successful industry trade publication and site Radio Facts (www.radiofacts.com). He has also published various books, magazines, performed marketing and promotions for major corporations and recording artists and he is on the advisory board of several industry organizations. This year Ross introduced his non profit organization LOMARI (Leaders of the Music and Recording Industry) to help teach young minority students how to market and manage their music and products.

YOU MAY ALSO LIKE

Hip Hop Legends Use Celebrity to Leverage Savvy Entrepreneur Deals

(Photo by Mike Coppola/Getty Images for iHeartRadio) More times than not in today’s media black men are portrayed in a negative light and the music industry sometimes gets that same stigma ... ... [...]

What Elon Musk’s $44B Buyout of Twitter Means for The Popular Social Media Platform

What Elon Musk's $44B Buyout of Twitter Means for The Popular Social Media Platform So Elon Musk bought Twitter, now what? After only a week of being Twitter's largest shareholder, the multi-billionaire and CEO and chief of SpaceX, Elon Musk, decided to outright buy the company for $44 billion and break the internet in one fell swoop. What the billionaire may do to the social media platform is anyone's guess, but based on a statement released after the deal was reached where Musk called Twitter “the digital town square where matters vital to the future of humanity are debated” [...]

Entrepreneur and Radio Icon Cathy Hughes Celebrates Lavish Birthday in Vegas (video)

We'd like to wish industry icon, Cathy Hughes, a belated happy birthday. Her party was in Vegas last month and we were just sent the video link by Al B Sure. (thanks, Al). Many happy returns... [...]

GSU Researcher Helps Improve Mental Health Literacy Among Barbers Serving Black Communities

The stigma of mental health is a prevailing issue among African Americans in general and African American men specifically, according to Dr. [...]

Blog Wallet Tips: 10 Must Haves That Entrepreneurs Need NOW

Some people believe in hoarding information and keeping it to themselves. I don't believe in that. If I find something great I want to share it with others. To a fault at times but who cares. Here are 10 things that make my life SO much easier that can probably help you too. Click "NEXT" for Next Item Below the Post. Enjoy... NeatConnect - WiFi Scanner for Receipts and Documents - $299 Retail Currently, on sale at Staples for $249.00 this is a MUST HAVE for the black entrepreneur. [...]

Self-Employed Tips for Greater Success

A Self-Employed Trip Turns into a Greater Education on Business Development In 2017 I took a 1-week trip to help out a few family members. [...]

Mayor Karen Bass, Gina Prince-Bythewood, Devyn Bakewell, Pat Prescott, Among Honorees at the Black Business Association 2023 Salute To Black Women

On Saturday, March 25, 2023, Black Business Association (BBA) President and CEO Sarah R. [...]

Former Head of Yeezy-Adidas Innovation Lab Launches FCTRY LAb with $6 Million Fundraise; Representing One of the Largest Investments in a Black Founder in...

FCTRY LAb Co-Founders Omar Bailey and Abhishek Som FCTRY LAb is a BIPOC-led, LA-based footwear prototyping lab and venture studio aiming to democratize sneaker production and open-source innovation for emerging and established designers and brands of all sizes. [...]

Leave a Reply