Anti-diversity crusaders are once again claiming victory after yet another Fortune 500 corporation has abandoned its DEI programs in the face of pressure from US lawmakers and the courts.
This time it’s PepsiCo Inc. which has become the latest major corporation to scale back its diversity, equity, and inclusion (DEI) initiatives, a move that comes amid growing pressure from conservative activists like Robby Starbuck and an aggressive push by US president Donald Trump’s administration to eliminate what it calls “discrimination against white people.”
In an internal memo posted online by Starbuck, PepsiCo CEO Ramon Laguarta announced that the company will eliminate workforce representation targets, remove its ‘chief DEI officer’ position and shift its supplier diversity program to focus on all small businesses rather than prioritizing ‘minority-owned’ companies.
Laguarta wrote that PepsiCo has been “refining” its DEI strategy over the past year “to ensure it is aligned with our long-term business strategy, responsive to local markets, and focused on the principles that drive sustainable growth.” A PepsiCo spokesperson later confirmed the memo’s contents.
In addition to its signature soft drink, PepsiCo owns: Gatorade, Quaker Oatmeal/Cereal, Chewy Bars, Starbuck’s coffees in glass that’s sold at grocery stores, AMP Energy, Rockstar Energy, MUG Root Beer, Mountain Dew, SoBe, Cap’n Crunch, Sabra Hummus, Aunt Jemima, Tropicana, Rice-a-Roni, Cheetos, Doritos, Lays, Ruffles, Tostitos, Chesters, Cracker Jack, Frito-Lay, Miss Vickies, Rold Gold, Sun Chips, Mist Twist, Crush, Lipton Teas, Aquafina — and more.
The rollback follows a broader trend of corporations — including Amazon, Walmart, Harley Davidson, John Deere and others — scaling back their DEI policies in response to legal threats and public backlash from conservative activists.
The trend has accelerated since Trump took office for his second term last month and began purging DEI-related policies from the federal government. He was backed by a US supreme court ruling essentially outlawing affirmative action and what it says are ‘discriminatory’ hiring and procurement practices.
Trump has vowed to sign legislation banning DEI initiatives and has threatened criminal investigations into companies with hiring or contracting policies that he deems “illegal.”
“The days of anti-white racism being forced on American workers are over,” Trump said at a rally last week, promising to dismantle DEI policies at every level of government and pressuring corporations to follow suit.
In the middle of it all, Starbuck, a vocal critic of corporate diversity programs, has played a key role in pressuring companies to abandon DEI initiatives since taking up the cause last year.
He has used social media and investigative tactics to highlight what he calls “woke” corporate policies and has directly confronted executives about their hiring and contracting practices.
In his post about PepsiCo’s decision, Starbuck claimed credit for influencing the company’s shift, saying he had contacted the company about “doing a story about their woke policies.”
“I have to give their executives major credit for making these changes because these are some big changes,” he posted on Twitter (“X”).
He vowed to release similar details on rival Coca-Cola next week. Both companies are major recipients of government and military contracts, ostensibly under food programs.
Coca-Cola and Pepsi are two of the world's largest beverage companies. In 2022, Coca-Cola was the leading carbonated soft drink company in the US, with a volume share of 46.3%. PepsiCo was second, with a volume share of 24.7%.
In 2023, Coca-Cola paid about USD$2.5 billion in taxes while Pepsi paid $4.5 billion despite having a smaller market share.