PepsiCo Scraps DEI Programs While Coca-Cola Champions Them

PepsiCo confirmed Friday that it is ending some of its diversity, equity, and inclusion (DEI) initiatives, even as rival Coca-Cola reaffirmed its commitment to inclusion efforts, Associated Press (AP) reporter Dee-Ann Durbin wrote.

PepsiCo’s rollback comes as Coca-Cola strengthens its DEI efforts.

In a memo to employees, PepsiCo CEO Ramon Laguarta announced that the company would no longer set goals for minority representation in its managerial roles or supplier base.

The company will also realign its sponsorships to focus on events and groups that promote business growth.

Laguarta emphasized that inclusion remains important to PepsiCo, whose brands include Gatorade, Lay’s, Doritos, Mountain Dew, and Pepsi.

PepsiCo’s rollback comes as Coca-Cola strengthens its DEI efforts. In its annual report, the Atlanta-based company warned that its business could suffer if it fails to attract a workforce that reflects its diverse customer base.

PepsiCo’s chief diversity officer will transition to a broader role focused on employee engagement, leadership development, and fostering an inclusive workplace culture. Since Donald Trump’s return to the White House, U.S. government agencies, corporations, and educational institutions have been reexamining DEI policies adopted to reduce discrimination against minorities, women, and LGBTQ+ individuals.

Trump has eliminated DEI programs within the federal government and warned schools to discontinue such programs or risk losing federal funding.