Differences bubble up between PepsiCo and Coca-Cola on diversity programs

PepsiCo confirmed Friday that it's ending some of its diversity, equity and inclusion initiatives, even as rival Coca-Cola voiced support for its own inclusion efforts.

In a memo sent to employees, PepsiCo CEO Ramon Laguarta said the company will no longer set goals for minority representation in its managerial roles or supplier base. The company will also align its sponsorships to events and groups that promote business growth, he said.

Laguarta wrote that inclusion remains important to PepsiCo, whose brands include Gatorade, Lay's potato chips, Doritos, Mountain Dew as well as Pepsi. The Purchase, New York-based company’s chief diversity officer will transition to a broader role focused on employee engagement, leadership development and ensuring an inclusive culture, he said.

Since President Donald Trump returned to the White House last month, U.S. government agencies, companies and schools have rushed to reevaluate policies and programs they adopted with the goal of reducing discrimination against members of minority groups, women and LGBTQ+ people.

Trump ended DEI programs within the federal government and has warned schools to end DEI programs or risk losing federal money.

PepsiCo’s rollback came as Coca-Cola reaffirmed support for its DEI efforts.

In its annual report, Atlanta-based Coke warned that its business could be negatively affected if it is unable to attract employees that reflect its broad range of customers.

“Failure to maintain a corporate culture that fosters innovation, collaboration and inclusion … could disrupt our operations and adversely affect our business and our future success,” the company said.

Coca-Cola has set a goal of having women in 50% of its senior leadership roles by 2030. Coke has also said that it wants race and ethnicity representation that reflects national census data at all levels of the company in the U.S.

Robby Starbuck, a conservative activist who targets corporate DEI programs, applauded PepsiCo's actions on Friday. In a post on X, Starbuck said Coca-Cola “should be very nervous about continuing with their woke policies.”

PepsiCo joins a long list of companies that have reigned in diversity, equity and inclusion programs in the wake of Trump's election victory and before that, a 2023 U.S. Supreme Court ruling that outlawed affirmative action in college admissions.