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Key Points PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase.Company Overview
PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
How much of Pepsi’s revenue comes from haram?
While the majority of Pepsi’s products are halal, Pepsi recently partnered with Mountain Dew and started selling Alcoholic beverages.
Practical Islamic finance concludes
It’s unclear how much of Pepsi’s revenue comes from alcoholic beverages although we would not be surprised if this portion grew with time since Pepsi is relatively new in this space. This recent disposition of Pepsi with regards to alcoholic beverages, while not conclusively material, is cause for concern.
Does Pepsi rely on interest to operate?
| Recent Quarter ended 3/19/2022 | Fiscal Year ended 12/25/2021 | Fiscal Year ended 12/25/2020 | |
| Interest Expense | 240 | 1,863 | 1,128 |
| Total Operating Expense | 6822 | 31,237 | 28,495 |
| Interest Expense / Total Operating Expense | 3.52% | 5.96% | 3.96% |
*Numbers in millions, of U.S. dollars
Practical Islamic finance concludes:
Riba is used but not relied upon in Pepsi’s operations.
What is Pepsi's Environmental, Social, and Governance (ESG) impact?
Environment
Globally, as of 2020, nearly 87 percent of Pepsi’s direct-crop volume has been verified as sustainable, including 100 percent of the volume sourced from 28 countries. Pepsi is aiming to achieve net-zero emissions by 2040.
Social
Pepsi has a Glassdoor rating of 3.9 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.
Governance
No notable governance highlights.
Practical Islamic finance concludes:
Pepsi has a net positive ESG impact.
Comfort Rating
From Pepsi’s business, financial, and ESG reviews, Practical Islamic Finance rates Pepsi stock as
Uncomfortable to invest in from a Halal perspective.
Justification
Their product line includes alcohol-based beverages which are haram in Islam.
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