Rev. Al Sharpton Calls on PepsiCo to Reinstate DEI Initiatives
Rev. Al Sharpton is urging PepsiCo to recommit to its Diversity, Equity, and Inclusion (DEI) efforts, following reports that the global beverage and snack giant has scaled back key DEI programs. In a letter addressed to PepsiCo CEO Ramon Laguarta, Sharpton warned of potential national protests if the company does not restore its diversity-focused initiatives, particularly its supplier diversity program.
Sharpton, founder and President of the National Action Network, emphasized that PepsiCo had previously been recognized as an industry leader in advancing DEI. Citing past collaborations between PepsiCo and national civil rights organizations, he underscored that such partnerships contributed to economic empowerment in Black and Latino communities through supplier contracts and internal talent development.
“If PepsiCo follows in the troubling footsteps of companies retreating from their DEI commitments, it threatens to destabilize the economic gains made in marginalized communities,” Sharpton stated. He criticized the company for closing its DEI-focused People’s Center and for a lack of transparency around where DEI oversight now resides within the organizational structure.
The letter also referenced a broader trend within Corporate America, where companies are reportedly scaling back DEI initiatives following legal and political pressures. Notably, firms including Meta, Amazon, and Home Depot are said to have reduced DEI roles by more than 50% since 2022, a trend being closely monitored by consumer advocacy and civil rights organizations.
For FMCG companies such as PepsiCo, DEI programs are not only a reflection of corporate values but also play a strategic role in market reach and brand loyalty. Supplier diversity initiatives, in particular, can be instrumental in expanding distribution networks and fostering innovation through partnerships with minority-owned businesses.
Sharpton has called for a meeting with PepsiCo leadership to discuss how the company plans to move forward with its internal and external DEI commitments. Failure to engage, he warned, could result in national actions that include public mobilizations and organized consumer pushback.
As FMCG firms navigate evolving regulatory and social landscapes, the broader industry impact of PepsiCo’s decisions on DEI may influence brand positioning, stakeholder trust, and consumer engagement in key demographic segments.