PepsiCo Faces Boycott Threat Over DEI Policy Rollbacks
PepsiCo is at the center of growing industry scrutiny following backlash over recent cutbacks to its Diversity, Equity, and Inclusion (DEI) programs. Rev. Al Sharpton and the National Action Network (NAN) have called for a potential boycott of PepsiCo products, citing concerns over the company’s commitment to workplace equity and representation.
The civil rights group has called for an urgent meeting with PepsiCo’s executive leadership to address the rollback, which they argue undermines years of progress in corporate diversity. The group specifically referenced shrinking DEI teams and stagnant minority hiring statistics as key concerns. PepsiCo has agreed to the meeting, which is expected to take place in early May.
“They’re not being transparent. They did not tell us that they were going to start stripping diversity programs,” Sharpton told reporters, signaling that the planned dialogue will be far from symbolic.
This mounting pressure comes amid broader shifts across Corporate America, where several companies are quietly scaling back DEI initiatives following legal and political scrutiny. PepsiCo—one of the world’s largest FMCG players—finds itself on the frontline of this cultural and operational crosscurrent.
A boycott from a high-profile advocacy group like NAN could have ramifications for PepsiCo’s consumer perception, brand equity, and retailer relationships—particularly among Black and multicultural demographics that play a pivotal role in the U.S. beverage and snacks market.
The stakes are heightened by PepsiCo’s market visibility. Its sprawling beverage and snack portfolio, which includes brands such as Pepsi, Gatorade, Lay’s, and Doritos, means the company could face significant reputational and financial impact if the boycott gains traction across national or regional markets.
Industry analysts are closely watching how PepsiCo manages this challenge. Any strategic pivots or reaffirmations of its DEI commitments could influence how other FMCG giants approach similar internal reviews. Meanwhile, industry stakeholders—including retailers and brand partners—are increasingly mindful of the reputational risks tied to perceived regressions in corporate social responsibility.
With a meeting now on the calendar and external pressure mounting, PepsiCo’s next steps could set a precedent in how major consumer-facing brands navigate the evolving expectations around diversity and corporate ethics.