Audit Phase: V-ECON (Economic Forensics) | Target: PepsiCo, Inc. | Date: 2026-05-01
No public evidence has been identified of PepsiCo holding direct verified procurement contracts with named Israeli agricultural exporters — including Mehadrin, Hadiklaim, Galilee Export, or Agrexco successors — for produce categories such as Medjool dates, avocados, citrus, herbs, or potatoes.17 PepsiCo’s core product lines in the Israeli market are carbonated beverages, snacks, and home carbonation equipment; fresh produce retail procurement of the type associated with Israeli export agriculture is not a feature of PepsiCo’s business model in this geography. This conclusion is consistent across NGO databases, BDS campaign materials, and Israeli business press sources reviewed.1114 No public evidence identified.
PepsiCo’s primary commercial presence in the Israeli beverage market operates through a licensed bottling and distribution partnership with Strauss Group, Israel’s second-largest food and beverage company, with 2023 revenues of approximately NIS 9.6 billion.1213 Strauss Group holds the licence to manufacture and distribute Pepsi-Cola branded beverages within Israel under a joint venture arrangement historically branded as Pepsi-Cola Products Israel.1213 As Strauss Group is an Israeli-domiciled public company listed on the Tel Aviv Stock Exchange, this structure means Strauss Group — not PepsiCo directly — functions as the operative commercial entity for Pepsi-branded beverages in Israel. The relationship has been confirmed as ongoing as of 2023.13
PepsiCo’s wholly-owned subsidiary SodaStream International Ltd., acquired in December 2018 for approximately USD 3.2 billion,34 is incorporated in Israel and operates as PepsiCo’s most direct Israeli-domiciled corporate holding.12 SodaStream manufactures home carbonation equipment and CO₂ cylinders distributed globally under PepsiCo ownership. This constitutes an active and ongoing supply chain origination point within Israel proper (post-2020).12
Prior to January 2020, SodaStream operated a manufacturing facility in Ma’ale Adumim, an Israeli settlement in the West Bank (Area C).56 This facility was the primary production site for SodaStream hardware and CO₂ cylinders distributed to global markets, including the UK and EU, during the period between PepsiCo’s acquisition closing (December 2018) and the factory’s closure. The Ma’ale Adumim facility employed both Israeli settlers and approximately 700 Palestinian workers.57 SodaStream formally closed the Ma’ale Adumim facility and relocated production to the Lehavim plant in the Negev in January 2020.56 No settlement-based supply chain activity has been identified post-January 2020.
No public evidence has been identified of PepsiCo engaging in counter-seasonal fresh produce procurement from Israeli agricultural suppliers, nor of Israeli-origin produce or agricultural products reaching PepsiCo-branded products via white-label or reseller arrangements.1711 This conclusion is consistent with PepsiCo’s product profile (processed beverages and snacks, not fresh produce retail). No public evidence identified.
The primary Israeli-origin product distributed under PepsiCo ownership has been SodaStream home carbonation equipment and CO₂ cylinders. From the completion of the PepsiCo acquisition (December 2018) until January 2020, these products were manufactured at SodaStream’s Ma’ale Adumim factory — located in an Israeli settlement in the West Bank — and distributed to global markets including the UK and EU.5611
The Ma’ale Adumim facility was subject to sustained NGO documentation and BDS campaigning as a settlement-based manufacturing operation.1117 The OHCHR database of businesses active in Israeli settlements (published February 2020, covering activities up to 2018) listed SodaStream in connection with its Ma’ale Adumim operations.8 This listing predates the facility’s confirmed closure.
NGO and BDS materials argued that SodaStream products manufactured at Ma’ale Adumim during this period were distributed in UK and EU markets bearing “Made in Israel” or Israeli-origin labeling inconsistent with applicable guidance.11 No formal regulatory sanction by a UK or EU authority has been publicly confirmed in respect of this period.
SodaStream closed the Ma’ale Adumim facility and opened a replacement manufacturing plant at Lehavim, in the Negev desert within Israel’s pre-1967 borders, in January 2020.567 This relocation occurred approximately 13 months after PepsiCo completed its acquisition of SodaStream. Subsequent BDS commentary acknowledges the factory closure.11 Post-relocation, SodaStream manufacturing is no longer based in occupied territory.67 Confirmed as ongoing from January 2020.
UK DEFRA guidance (updated 2020) requires goods originating from Israeli settlements in the West Bank, Gaza Strip, and Golan Heights to be labeled as such rather than as “Produce of Israel.”9 The EU Interpretative Notice (November 2015) similarly requires differentiated origin labeling for goods produced in Israeli-controlled settlements.10
No documented regulatory citation, enforcement action, or government advisory has been publicly identified specifically naming PepsiCo or SodaStream as non-compliant with UK or EU settlement-origin labeling rules in the post-January 2020 period, following the Lehavim relocation.910 No post-2020 enforcement evidence identified.
No publicly stated PepsiCo corporate policy specifically addressing the sourcing or labeling of goods from occupied or contested territories has been identified in PepsiCo’s Sustainability Reports,15 proxy statements, or other public corporate disclosures.1 No public evidence identified.
The OHCHR published its initial business database in February 2020, covering activity through 2018.8 Whether SodaStream has been formally reviewed or re-assessed in subsequent OHCHR database updates following the Ma’ale Adumim closure has not been confirmed in available public sources. The status of any post-2020 review cycle remains unverified.8
PepsiCo’s single largest and most material direct capital investment within Israel is the acquisition of SodaStream International Ltd., completed in December 2018 at a transaction value of approximately USD 3.2 billion.3416 SodaStream is incorporated in Israel and retains manufacturing, R&D, and headquarters functions there as a wholly-owned PepsiCo subsidiary.12 This constitutes an active, ongoing operational investment. SodaStream’s Lehavim manufacturing plant (Negev, Israel proper) represents continued fixed capital investment in Israeli productive infrastructure post-2020.67 Specific capital expenditure figures for the Lehavim facility have not been disaggregated in public PepsiCo consolidated filings.
PepsiCo’s commercial relationship with Strauss Group is a licensing and distribution arrangement, not a direct equity investment by PepsiCo in Strauss Group.1213 No evidence of PepsiCo holding an equity stake in Strauss Group has been identified. The financial terms of the licensing agreement, including any royalty rate, are not publicly disclosed.13
SodaStream operates its global R&D and product development functions from its Israeli headquarters in the Airport City area near Ben Gurion International Airport, encompassing carbonation technology, flavour systems, and hardware engineering.12 This constitutes an active, PepsiCo-owned R&D presence within Israel. PepsiCo has engaged with Israel’s Start-Up Nation Central innovation ecosystem, consistent with its broader global corporate innovation strategy.14 However, a separately branded PepsiCo innovation lab in Israel distinct from SodaStream’s existing R&D operations has not been confirmed in public sources reviewed. No public evidence identified of such a separately branded facility.
PepsiCo, Inc. is incorporated in North Carolina, USA, headquartered in Purchase, New York, and publicly traded on NASDAQ (ticker: PEP).1 Major institutional shareholders include Vanguard Group (~8–9%), BlackRock (~7–8%), and State Street (~4–5%). No Israeli state entity, Israeli sovereign wealth fund, or Israeli-domiciled entity holds a disclosed controlling or significant beneficial ownership stake in PepsiCo. No private equity sponsor and no dual-class share structure tying governance or ownership to Israeli interests has been identified.1 No public evidence identified of Israeli beneficial ownership at the parent level.
No public evidence has been identified of PepsiCo’s parent-level treasury holding Israeli sovereign bonds, Israeli-domiciled company equity (other than through the wholly-owned SodaStream subsidiary), or Israel-focused investment funds.1 No public evidence identified.
PepsiCo maintains the following confirmed operational presence in Israel:
Pepsi-Cola branded beverages are manufactured and distributed by Strauss Group from Strauss-owned Israeli production facilities under licence.1213 These facilities are not PepsiCo-owned assets.
No evidence has been identified of PepsiCo-branded offices, warehouses, or retail operations in the West Bank, Gaza Strip, or Golan Heights post-January 2020.56 Pre-2020, SodaStream’s Ma’ale Adumim settlement factory constituted a presence in occupied territory; its closure is confirmed.56
SodaStream employed approximately 700 Palestinian workers at the Ma’ale Adumim facility prior to closure — a figure widely cited in press coverage and BDS debate.5711 Post-closure, SodaStream stated it made efforts to relocate Palestinian employees to the Lehavim plant, though Israeli work-permit requirements complicated access for West Bank residents.7 SodaStream’s post-2020 Israeli workforce total has not been disaggregated in PepsiCo’s consolidated filings. PepsiCo’s global headcount is approximately 315,000 employees (FY2023, consolidated);1 Israeli employee count is not separately disclosed.
SodaStream International Ltd. is registered as an Israeli corporate entity and subject to Israeli corporate taxation. Specific Israeli tax payment amounts are not disclosed in PepsiCo’s consolidated filings.1 Israeli corporate tax filings are not publicly accessible. Tax contribution figures cannot be confirmed from available public sources.
PepsiCo does not identify Israel as a named strategic growth market or regional hub in its public annual reports or investor presentations.1 Israel is not separately broken out as a reporting segment; it falls within a broader geographic category (likely AMESA — Africa, Middle East and South Asia — or the Europe segment, depending on internal classification). SodaStream is characterised in PepsiCo investor materials as part of its “Beyond the Bottle” and SodaStream Business Unit strategic growth drivers, with a global rather than Israel-specific market framing.115 No public evidence identified of PepsiCo characterising the Israeli domestic market as a named strategic priority distinct from SodaStream’s global operations.
PepsiCo, Inc. was not founded in Israel. It was formed through the 1965 merger of the Pepsi-Cola Company (founded 1898, North Carolina) and Frito-Lay, Inc. PepsiCo is incorporated in North Carolina, USA, with no Israeli founding history.1
SodaStream, as a PepsiCo subsidiary, carries a distinct heritage: originally founded in the United Kingdom in 1903 as a home carbonation device manufacturer, it was subsequently acquired by Israeli interests, reincorporated as an Israeli company, and listed on NASDAQ in 2010 before PepsiCo’s 2018 acquisition.3416 SodaStream thus introduces Israeli corporate heritage and legal domicile into PepsiCo’s portfolio.
No evidence has been identified of Israeli state ownership of PepsiCo or SodaStream, Israeli government board appointees at either entity, or designation as critical Israeli national infrastructure.12 SodaStream is recognised in Israeli economic press as a significant industrial and export brand,14 but no formal government designation has been confirmed. Source classes checked: Israeli government records, corporate filings, NGO investigations.1714 No public evidence identified.
PepsiCo has no golden shares, founder shares, or charter restrictions tying its governance to the Israeli state.1 Standard US public company governance (Delaware/North Carolina framework) applies. SodaStream, as a wholly-owned subsidiary, does not maintain independent public governance structures. No public evidence identified of structural ties to Israeli state policy objectives.
PepsiCo does not disclose Israel-specific revenue in its segment reporting.1 Revenues are reported at geographic segment level (PBNA, Europe, AMESA, APAC, FLNA, QFNA). SodaStream revenues are consolidated into the global PepsiCo figure; in some periods these have been noted as part of the SodaStream Business Unit reporting, but are not geographically disaggregated at the country level in public filings. External market research characterises the Israeli carbonated soft drinks and sparkling water market as a small to mid-tier regional market in global terms.1 No precise PepsiCo Israel-attributed revenue figure has been publicly disclosed.
PepsiCo is a US-domiciled parent. Profits generated by SodaStream’s Israeli operations flow upward to PepsiCo, Inc. (Purchase, NY, USA) as the 100% beneficial owner of SodaStream International Ltd.123 This represents outward profit flow from Israel to a US parent. Under the Strauss Group licensing arrangement, Strauss Group retains profits from Pepsi-branded beverage sales within Israel, with royalty or licensing fees flowing outward to PepsiCo.1213 The precise royalty rate is not publicly disclosed. No Israeli-domiciled entity holds ownership of PepsiCo, so there is no inward profit repatriation to Israel from PepsiCo’s global operations. Direction of profit flow: outward (Israel → US parent).
SodaStream is regarded in Israeli business press as a significant Israeli industrial export brand and one of the country’s more prominent consumer technology manufacturing companies, with the Lehavim plant functioning as one of the larger manufacturing facilities in the Negev region.14 No formal Israeli government designation of PepsiCo or SodaStream as a sector anchor or critical infrastructure provider has been identified in public sources reviewed. No formal government designation identified.
The following limitations constrain the completeness of economic contribution analysis:
https://www.sec.gov/Archives/edgar/data/77476/000007747624000010/pep-20231230.htm ↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩↩
https://www.sec.gov/Archives/edgar/data/77476/000007747624000010/pep-20231230ex211.htm ↩↩↩↩↩↩↩↩
https://www.pepsico.com/news/press-release/pepsico-to-acquire-sodastream-international-ltd08202018 ↩↩↩↩
https://www.reuters.com/article/us-sodastream-intl-m-a-pepsico/pepsico-to-buy-sodastream-for-3-2-billion-idUSKBN1KI14A ↩↩↩
https://www.reuters.com/article/us-sodastream-westbank/sodastream-closes-west-bank-factory-opens-new-plant-in-israel-idUSKBN1ZE1XK ↩↩↩↩↩↩↩↩↩
https://www.theguardian.com/world/2020/jan/29/sodastream-opens-new-plant-after-closing-west-bank-factory ↩↩↩↩↩↩↩↩↩
https://www.timesofisrael.com/sodastream-opens-negev-plant-employing-former-west-bank-workers/ ↩↩↩↩↩↩↩
https://www.ohchr.org/en/hr-bodies/hrc/regular-sessions/session28/database-hrc-res-31-36 ↩↩↩
https://www.gov.uk/guidance/labelling-of-produce-from-the-occupied-palestinian-territories ↩↩
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52015XC1112%2802%29 ↩↩
https://www.business-humanrights.org/en/companies/pepsico/ ↩↩↩↩↩
https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/2022-sustainability-report.pdf ↩↩
https://www.forbes.com/sites/greatspeculations/2018/08/20/pepsicos-3-2-billion-sodastream-acquisition/ ↩↩
https://www.amnesty.org/en/latest/campaigns/2023/01/israel-occupied-territories-businesses-must-end-complicity/ ↩
