Consumers
We are proud to offer our consumers a wide range of products that deliver great taste, nutritional value, convenience and affordability. We are committed to playing a responsible role in health and wellness by encouraging consumers to adopt healthy lifestyles, beginning with offering consumers a choice of a wide variety of products. We are finding innovative ways to reduce the use of energy, water and packaging, and to better serve consumer wants and needs through new products and packaging. We continuously expand our distribution network to make our enjoyable products more widely available. And we work relentlessly to improve productivity so we can offer affordable products to a broad range of consumers.

All PepsiCo business units conduct regular qualitative and quantitative research to understand our consumers' needs. Consumer insights are translated into product improvements, new product ideas and communications. In addition, our Consumer Relations group conducts a statistically significant annual survey via email to assess performance, identify trends and ensure satisfaction. Consumer satisfaction is monitored with a dedicated 24-hour toll-free number for consumer inquiries and feedback, globally through our Contact Us pages on the PepsiCo-branded websites and through social network sites. Consumers have a range of options for providing feedback to PepsiCo regarding product quality and service. All products are marked with a toll-free number to our communication centers. Additionally, global contact information can be accessed on our corporate website.

Ongoing performance standards at PepsiCo's consumer response centers are measured each period and include service levels, response rate, first-time resolution and turnaround time. In 2010, each of these categories met or exceeded the goal set for each category. For example, our Pepsi Beverages communications center operates at an over 99 percent service level. This indicates the center answers and handles calls without hold time for over 99 percent of calls, well above the industry standard.

Consumer Privacy

Consumer privacy is important to PepsiCo, and we make every effort to make sure consumers are provided with our policies, terms and conditions. Our business divisions and many markets maintain corporate and brand websites, fully accessible to all interested parties. Additionally, across the globe, PepsiCo has a vast array of brand-specific websites, including Facebook, YouTube and other web pages, where a wide range of consumer engagement campaigns take place. Consumers can voluntarily provide personal information to participate in programs and promotions utilizing a wide variety of available technology, and on a number of platforms. Where a website is hosted by PepsiCo, a privacy policy is conspicuously posted that outlines the types of information collected by each division on that site and how the information is used and protected. In running our websites, we comply with all applicable laws, rules and regulations. Also, personal information received through the Consumer Relations toll-free number is kept confidential.

Communities

We recognize our responsibility to be a contributing member of our communities, globally and locally. Our goal is to operate our businesses responsibly and seek to be a positive force. We support our communities through our businesses by contributing to not-for-profit groups and by working with organizations dedicated to improving the lives of people. We have advisory groups that focus on health and wellness and issues of concern to the African American, Asian and Latino/Hispanic communities, among others. We also work to be good stewards of the environment. In areas of the world where water scarcity is an issue, we are working to protect the resources we've used, and we are partnering with nonprofit groups to promote clean water access, as well as sustainable agricultural practices.

Associates

Approximately 294,000 of our associates worldwide (as of year-end 2010) are our greatest strength. Their hard work, dedication and resourcefulness enable PepsiCo to compete effectively, serve the needs of our retail customers and consumers, and deliver the results our investors expect. Our Talent Sustainability principles reflect our commitment to provide a work environment in which associates can achieve professional growth and personal fulfillment. We ask our associates to respond to an "Organizational Health" survey, generally every other year. Topics include benefits, working conditions, diversity and inclusion initiatives, and career development. We share the survey results with associates and develop action plans to address issues that are identified. We then make these plans part of our associates' performance goals.

Retail & Food Service Customers

Our retail and food service customers include supermarkets, grocery stores, mass merchandisers, club stores, drugstores, gas stations, convenience stores, restaurants, food service outlets, vending machine operations and others that carry our products and make them directly available to consumers. We provide not only our products, but also marketing support that contributes to their growth, profit and positive cash flow.

Dedicated Customer Teams—staffed with Sales, Insights, Supply Chain, Customer Services and Finance professionals—work across our divisions to provide the highest level of service to our major customers. These individuals work to make sure we understand and address all customer feedback as quickly as possible. In addition to the day-to-day management of customer feedback, PepsiCo has established forums to solicit feedback. One such forum is PepsiCo's annual Innovation Summit held with major customers. These summits preview innovation for the following year and beyond. Customers are shown PepsiCo's proposed new products and are asked to provide feedback. In addition to Innovation Summits, PepsiCo conducts Supply Chain Summits with our top retail customers to build a strategic agenda around in-store conditions, cost removal and sustainability.

Investors

We strive to provide investors with a reasonable return on their investment, based on consistent financial growth in the marketplace and consistent financial results. We take a long-term view and make appropriate investments to strengthen our brands, develop our capabilities and pursue new opportunities. We seek healthy year-over-year growth and report honest, transparent and timely financial results. We conduct quarterly conference calls to provide updates to analysts and investors, and we broadcast our annual shareholder meeting on our website.

Knowing the commitment of many investor groups to sustainability, we apply for admission to the Dow Jones Sustainability Index (DJSI) each year. This year, PepsiCo is ranked as the number-one company in the DJSI Food and Beverage Super Sector, the only company based in the U.S. to earn a top ranking in the 19 super sectors assessed. In 2010, PepsiCo has been named as a member of the North America Index five times and named a member of the World Index four times. The DJSI World Index identifies those companies that exemplify leadership in sustainability among the leading 10 percent of the world's top 2,500 companies. The DJSI North America Index identifies those companies that exemplify leadership in sustainability among the 600 largest North American companies.

Partners

Our Related Party Bottlers

Prior to our acquisitions of Pepsi Bottling Group (PBG) and Pepsi Americas (PAS) on February 26, 2010, we had noncontrolling interests in these bottlers. Because our ownership was less than 50 percent, and since we did not control these bottlers, we did not consolidate their results. Instead, we included our share of their net income based on our percentage of economic ownership in our income statement as bottling equity income. On February 26, 2010, in connection with our acquisitions of PBG and PAS, we began to consolidate the results of these bottlers. Our share of income or loss from other noncontrolled affiliates is recorded as a component of selling, general and administrative expenses. See Note 8 in our 2010 Annual Report for additional information on these related parties and related party commitments and guarantees.

Suppliers

Our suppliers provide us with the goods and services needed in our business. We buy goods and services at competitive prices with the goal of allowing both our suppliers and PepsiCo to make a reasonable profit. We seek efficient suppliers with whom we can work and grow as long-term partners. We especially seek suppliers that are owned by minorities and women. We extend our commitment to sustainability to our suppliers through our Supplier Corporate Social Responsibility Assurance Program, which includes our Supplier Code of Conduct, Sustainable Packaging Policy and Sustainable Agriculture Practices. In 2008, PepsiCo implemented an Environmental Supplier Outreach Program designed to share resources, tools and expertise with key suppliers in the U.S. This program has been very successful and is in the process of being implemented globally.

PepsiCo takes pride in serving as a good corporate citizen and taking action or aligning itself with leading experts and organizations focused on emerging social and environmental issues. We are committed to making a positive impact on issues that address social initiatives, including diet and nutrition concerns, as well as environmental challenges, including climate change and protecting natural resources.

Through our memberships and partnerships, PepsiCo endorses a number of initiatives related to our businesses. In addition to the groups noted below, on a global level we have endorsed the United Nations Millennium Development Goals.

Select Professional Trade Groups

We are active members of numerous trade and professional groups. These associations are often local and specific to the business. Among these are:

• American Beverage Association (ABA)
• Beverage Industry Environmental Roundtable (BIER)
• The U.S. Chamber of Commerce
• The Grocery Manufacturers Association
• National Association of Manufacturers
• Snack Food Association
• International Life Sciences Institute (ILSI)
• International Society of Beverage Technologists (ISBT)
• National Safety Council (NSC)
• American Industrial Hygiene Association (AIHA)
• American Society of Safety Engineers (ASSE)
• ConMexico
• European Fruit Juice Association (AIJN)
• International Council of Beverages Associations (ICBA)
• CEEREAL European Breakfast Cereal Association
• FoodDrinkEurope

Select Memberships, Partnerships and Initiatives

Organization	Purpose
World Business Council for Sustainable Development	Member companies are united by a shared commitment to sustainable development.
World Economic Forum	Members are committed to improving society and the environment.
Ceres	Members engage with one another and help advance our goal of building a sustainable global economy.
Business for Social Responsibility (BSR)	Members benefit from the insights, expertise and relationships BSR has built through years of hands-on work in the field.
United Nations Global Compact (UNGC)	Members are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labor, environment and anticorruption.
	Human Sustainability
Healthy Weight Commitment Foundation	PepsiCo expanded its existing efforts to help reduce obesity in the U.S. by joining the Healthy Weight Commitment Foundation. This Foundation is a national effort designed to help reduce obesity—especially childhood obesity—by 2015.
International Food and Beverage Alliance (IFBA)	We are among nine leading food and beverage companies to sign the "Global Commitment to Action on the Global Strategy on Diet, Physical Activity and Health," a commitment addressed to the World Health Organization. We agreed to five key global commitments to action that will take place over the next five years, and we will report our progress in delivering these goals at the annual World Health Assembly meeting.
Oxford Health Alliance	With support from the PepsiCo Foundation, Oxford Health Alliance implemented Community Interventions for Health, a program to reduce chronic disease by targeting three risk factors: diet, physical activity level and tobacco use.
Save the Children	Save the Children became one of PepsiCo Foundation's grantees in November 2008 with a $5 million grant for a program aimed at decreasing newborn and child mortality and malnutrition in India and Bangladesh.
Alliance for a Healthier Generation	This is a joint alliance with the William J. Clinton Foundation and the American Heart Association to combat childhood obesity.
Children's Advertising Review Unit (CARU)	PepsiCo partners with this self-regulatory body in evaluating child-directed advertising activities.
Children's Food and Beverage Advertising Initiative (CFBAI)	We work with CFBAI to help shift our advertising mix to include healthier dietary choices and to promote healthy lifestyles.
Alliance for Family Entertainment	Members support family-friendly programming on TV.
Global Alliance for Improved Nutrition (GAIN)	PepsiCo supports GAIN—an organization dedicated to improving the nutrition and health of populations at risk.
United States Agency for International Development (USAID)	PepsiCo is partnering with USAID to develop a plan to support strategic improvements in the agricultural production of chickpea that aims to benefit small-holder farmers.
World Food Programme (WFP)	In Ethiopia, the PepsiCo Foundation is supporting the World Food Program to develop and pilot a chickpea-based supplementary food for children in 2011/2012.
Inter-American Development Bank (IDB)	PepsiCo's partnership with IDB is focused on an agriculture initiative that will significantly expand commercial sunflower production to provide a source of heart-healthy HOSO for cooking potato chips, biscuits, nuts and other snacks PepsiCo produces in Mexico under the Sabritas and Gamesa-Quaker brands. PepsiCo Foundation approved a $5 million contribution to the IDB AquaFund in January 2011 to expand water and sanitation with the goal to bring access to safe water to 500,000 people across Latin America. PepsiCo Foundation is proud to be the first private sector investor in the AquaFund.
Chicago Council on Global Affairs	Members share insights on current international developments and global issues.
	Environmental Sustainability
Carbon Trust	A U.K. organization established to address climate change.
The Earth Institute at Columbia University	One of the world's premier thought leadership institutions dedicated to global sustainable development.
CDP Supply Chain	PepsiCo is a member of the CDP Supply Chain group driving improvements in climate change through measurement and reduction of greenhouse gases in our supply chain.
Roundtable on Sustainable Palm Oil (RSPO)	PepsiCo is a member of the Roundtable on Sustainable Palm Oil (RSPO) with the goal to help bring about a greater supply of sustainable palm oil.
Sustainable Agriculture Initiative (SAI)	In 2009, PepsiCo joined the Sustainable Agriculture Initiative (SAI) Platform, which supports agricultural practices and production systems that preserve the future availability of resources and enhance their efficiency.
Air and Waste Management Association (A&WMA)	Environmental professionals share information.
UN CEO Water Mandate	PepsiCo signed this mandate to contribute positively to the emerging water crisis.
Water.org	Water.org's WaterCredit Initiative is an innovative market-based initiative delivering dedicated microfinance loan products to increase access to safe water and sanitary facilities for over 1,400 local communities in India.
ENERGY STAR	PepsiCo participates in this U.S. Environmental Protection Agency program focused on improving energy performance.
European Organization for Packaging and the Environment (EUROPEN)	Members are dedicated to resolving the environmental challenges facing the packaging chain. PepsiCo is represented at the board level.
Exnora International	PepsiCo is working with this environmental group in India to manage solid waste in an environmentally friendly manner.
Beverage Industry Environmental Roundtable	Industry members are dedicated to addressing water and carbon emission reduction issues.
Keep America Beautiful	This group is dedicated to recycling and community cleanups. Pepsi-Cola is a Great American Cleanup founding partner.
Refrigerants Naturally!	We partner with this coalition of business and nongovernmental members, including Greenpeace, who are committed to moving to ozone-friendly point-of-sale refrigeration.
Safe Water Network	With support from PepsiCo Foundation, Safe Water Network is innovating commercially viable and sustainable water systems owned and operated by and for communities in India, Ghana and Kenya.
SmartWay Transport Partnership	This is a U.S. Environmental Protection Agency partnership. Members are committed to promoting greater energy efficiency and air quality within the freight transport business. Frito-Lay North America is a member.
Sustainable Packaging Coalition/GreenBlue	This industry-leading organization provides life-cycle analysis and design guidelines for sustainable packaging. PepsiCo is a member of the Executive Committee.
SUSTENTA	Members of this Mexican group are committed to the betterment of solid waste management.
Supplier Ethical Data Exchange (SEDEX)	PepsiCo joined this group to partner with suppliers to improve performance across the supply chain.
U.S. Climate Action Partnership (USCAP)	Member companies are working to encourage climate action to reduce greenhouse gas emissions.
AIM-PROGRESS	Members adopt common evaluation methods to determine performance within the supply chain and to drive efficiencies.
Greenopolis	PepsiCo partners with Greenopolis on the Dream Machine recycling initiative in introducing recycling kiosks and bins at popular public locations across North America.
Waste Management	PepsiCo partners with Waste Management on the Dream Machine recycling initiative in introducing recycling kiosks and bins at popular public locations across North America.
	Talent Sustainability
Cuban-American National Council	PepsiCo is working with this group to advance diversity and inclusion, including building leadership capacity.
Ethics Resource Center	Members are devoted to the advancement of high ethical standards and practices.
Global Business Coalition	Members lead the business fight against HIV/AIDS and related diseases.
Habitat for Humanity	This Tropicana and Tostitos partnership with the national organization builds homes for the needy.
MacBride Principles	Members subscribe to Northern Ireland diversity principles.
Make-A-Wish Foundation	Frito-Lay North America, America's Lay's brand, is an ongoing sponsor of this organization.
NAACP	PepsiCo is working with this group to advance national leadership and grassroots activism.
National Minority Supplier Development Council	Members support minority supplier development.
Organization of Chinese Americans	PepsiCo is working with this group to advance diversity and inclusion, especially through national leadership and grassroots activism.
OSHA Voluntary Protection Plan	This is a government health and safety program. Frito-Lay, Quaker, Tropicana and Gatorade plants participate in the OSHA VPP program.
Susan G. Komen Breast Cancer Foundation	Frito-Lay North America has joined with this group to use SunChips multigrain snacks to raise awareness for a cure for breast cancer.
Global Sullivan Principles of Social Responsibility	Members subscribe to human rights principles.
U.S. Pan Asian American Chamber of Commerce	PepsiCo is working with this group to advance diversity and inclusion, especially through national leadership and grassroots activism.
Women's Business Enterprise National Council (WBENC)	Members work to promote women's enterprise.
Calvert Investments	PepsiCo supports the Calvert Women's Principles, which provide companies with a set of goals they can aspire to and measure their progress against, while offering investors a set of tools they can use to assess corporate performance on gender equality issues.