PEP · 10-Q · 2026Q2 · Full report

Product Taxes and Regulations

PEPSICO INC · 2026-07-09 · Importance 46 · Surprise 42

PepsiCo reports that certain jurisdictions have imposed or are considering new or increased taxes or regulations on the manufacture, distribution or sale of its products or their packaging, including taxes targeted by ingredient (e.g., sugar) or by packaging type (e.g., plastic) and measures to improve recyclability. The company notes these measures vary by jurisdiction and could affect beverages and snack products differently depending on product profile, packaging and local rules. PepsiCo cannot predict the scope, form or ultimate financial impact of such measures and says it will monitor developments and consider mitigation actions, including advocacy for alternative measures. Management flags this as an ongoing regulatory risk that could alter competitive dynamics across jurisdictions.