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Article

16 Aug 2023

Author:
B4Ukraine Coalition

Follow-up letter to PepsiCo regarding its ongoing business activities in Russia

We are writing to follow up on our previous correspondence with PepsiC...regarding potential inconsistencies between PepsiCo’s obligations, as articulated in the UN Guiding Principles on Business and Human Rights...and the company’s ongoing business operations and relationships in Russia that may contribute to, or be linked with, human rights harms...We are writing once again to formally notify PepsiCo on the serious and increasing risks the company faces by continuing its operations in Russia that may amount to complicity in human rights abuses committed by Russia...

Six months after making the pledge to suspend the production of the aforementioned beverages in Russia and after significant public backlash, PepsiCo finally stopped producing the drinks in the country. However, in January 2023, reports allege that PepsiCo will continue selling its Pepsi-Cola in Russia under a different name (Evervess-Cola).16 Moreover, some sources suggest that PepsiCo launched a new lemonade brand in the country, called the “Russian Gift” as a substitute for the suspended products. PepsiCo continues manufacturing and distributing other goods such as chips, snacks, and dairy products...

PepsiCo’s Lay’s chips are reported to have been found in food rations of Russian soldiers...

Despite PepsiCo’s promise to scale back its operations and suspend all advertising activities in Russia, the company’s career page lists over 537 open positions in the country...

Considering...significant position in the Russian economy, PepsiCo is also a significant taxpayer in Russia. This could make the company indirectly involved in financing Russian aggression since corporate taxes are currently estimated to make up approximately 10% of Russia’s GDP — enough to fund 43% of Russia’s military budget. Therefore, taxes paid by companies who stay in Russia indirectly contribute to the war...

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