PepsiCo

1. Executive Dossier Summary

Company: PepsiCo, Inc.

Jurisdiction: United States (Global Headquarters: Purchase, New York); Israel (Regional Operational Headquarters via SodaStream International Ltd. and Tempo Beverages Ltd.)

Sector: Consumer Packaged Goods (Food & Beverage) / Agro-Industrial Manufacturing

Leadership: Ramon Laguarta (Chairman & CEO); Significant influence via activist investor Elliott Management (Paul Singer).

Intelligence Conclusions:

Structural Integration as a Pillar of the Occupation Economy

The forensic intelligence assessment definitively categorizes PepsiCo, Inc. not merely as a transient commercial actor engaging in trade with the State of Israel, but as a “Structural Pillar” of the Israeli economy. This classification is derived from a strategic pivot in the company’s operational model over the last decade, transitioning from a passive franchise-based presence to a model of heavy Foreign Direct Investment (FDI) and direct asset ownership. The acquisition of SodaStream in 2018 for $3.2 billion and the subsequent consolidation of the Sabra and Obela joint ventures in late 2024 for approximately $244 million represent a permanent entrenchment of capital. These transactions function as massive liquidity injections into the Israeli market, effectively stabilizing the economy against external boycott pressures and validating the state’s industrial prowess on the global stage.1

Direct Complicity in Militarized Infrastructure and Demographic Engineering

PepsiCo is directly implicated in “Militarized Infrastructure Construction” through its wholly-owned subsidiary, SodaStream International Ltd. The company’s flagship manufacturing facility, located in the Idan HaNegev Industrial Park near Rahat, is situated on land historically designated as the “Siyag” (Fence)—a military zone used to contain the indigenous Bedouin population post-1948. This facility serves as the economic anchor for the Israeli government’s “Prawer Plan” and subsequent development initiatives, which aim to forcibly urbanize Bedouin communities and extinguish their traditional land rights to facilitate Jewish-Israeli industrial expansion. By accepting substantial government grants (estimated at $23 million) to operate in this specific strategic zone, PepsiCo is financing the physical infrastructure of demographic engineering in the Naqab (Negev) region.1

Logistical Sustainment of the Military Apparatus

The audit identifies a robust “Dual-Vector” support system for the Israel Defense Forces (IDF). Structurally, PepsiCo’s exclusive franchisee and distributor, Tempo Beverages Ltd., is a contractually recognized supplier to the IDF’s “Shekem” (Canteen Services) system. This integration ensures that PepsiCo’s product portfolio is embedded within the daily logistical sustainment of active-duty soldiers on bases and in closed military zones. Financially, the long-standing joint venture with the Strauss Group (via Sabra Dipping Company) created a direct revenue conduit where 50% of North American profits flowed to a conglomerate with a documented, formal history of financing the Golani Brigade—an elite infantry unit frequently deployed in Gaza and the West Bank. The 2024 buyout of this joint venture, while altering the equity structure, constituted a recapitalization of the Strauss Group during a wartime economic downturn, providing liquidity to a key actor in the military-industrial complex.5

Governance Failure and Geopolitical Alignment

A rigorous application of the “Safe Harbor” test exposes a critical failure in PepsiCo’s corporate governance neutrality. The company demonstrated rapid, morally articulated divestment from the Russian Federation following the invasion of Ukraine in 2022, citing humanitarian principles and the violation of international law. In a stark display of asymmetry, PepsiCo has maintained full operational continuity in Israel throughout the bombardment of Gaza (2023–2025), refusing to condemn actions labeled as plausible genocide by the International Court of Justice. This divergent behavioral pattern confirms that PepsiCo’s corporate ethics are subordinate to US/Israeli foreign policy interests, effectively granting the target state a “Safe Harbor” from the ethical standards applied elsewhere.10

Digital Dependency and Vendor Lock-in

The technographic audit reveals that PepsiCo has adopted a “Full Stack” dependency on the Israeli cyber-defense establishment. The company’s global digital infrastructure is secured by vendors such as Wiz, SentinelOne, and Claroty—firms founded by and staffed with alumni of Unit 8200 (Israeli Military Intelligence). This creates a condition of “Vendor Lock-in,” where PepsiCo’s global security posture is inextricably linked to the R&D pipelines of the Israeli defense sector, validating the military-to-civilian commercialization model.14

2. Corporate Overview & Evolution

Origins & Founders

PepsiCo was established in 1965 through the merger of the Pepsi-Cola Company and Frito-Lay, Inc., creating a quintessential American industrial conglomerate. Its historical relationship with the Middle East was initially defined by the Arab League Boycott, which for decades effectively barred Coca-Cola from the Arab world while PepsiCo dominated the region. Conversely, PepsiCo was largely absent from the Israeli market until the early 1990s. The geopolitical shifts following the Oslo Accords dismantled these barriers, allowing PepsiCo to enter Israel via franchise agreements, marking the beginning of a normalization process that would eventually evolve into deep structural integration.

The pivotal evolution in PepsiCo’s trajectory occurred under the “Performance with Purpose” strategy, which sought to diversify the portfolio toward “healthier” and “sustainable” products. This strategic imperative drove the company to target Israeli firms—specifically Strauss (for hummus/dips) and SodaStream (for sparkling water)—as the primary vehicles for this transformation. This shift marked a transition from a “Trading Partner” model, where the company merely sold syrup to a local bottler, to an “Indigenous Capital” model, where PepsiCo directly acquired strategic national assets.

Assessment:

This evolutionary path highlights that PepsiCo’s complicity is not an accidental byproduct of global trade but a deliberate strategic choice. The decision to acquire SodaStream for $3.2 billion was made with full knowledge of the company’s controversial history in the occupied West Bank and its role in the Negev. By proceeding with the acquisition, PepsiCo’s leadership made a calculated decision to absorb the reputational risk in exchange for technological access, thereby legitimizing the economic fruits of the occupation economy.2

Leadership & Ownership

The governance structure of PepsiCo reflects a technocratic elite that is deeply enmeshed with global finance and agribusiness, reinforcing a worldview that prioritizes market stability and innovation over human rights compliance.

Ramon Laguarta (Chairman & CEO):

Laguarta has been the architect of deepening ties with Israel. His tenure is characterized by a staunch refusal to engage with the Boycott, Divestment, and Sanctions (BDS) movement. Following the SodaStream acquisition, Laguarta personally visited the facility in the Negev, framing the deal not just as a financial transaction but as an “entrance” into the Israeli ecosystem. His leadership rhetoric often employs the language of “bridges” and “constructive engagement” to deflect criticism regarding the company’s operations in militarized zones. Under his watch, the company has navigated the 2023-2025 conflict by maintaining “Business as Usual,” implicitly endorsing the stability of the regime.15

Board of Directors:

The composition of the Board of Directors suggests a governance culture insulated from the ethical implications of the occupation.

• Daniel Vasella: Formerly of Novartis, Vasella brings deep ties to the pharmaceutical and biotech sectors, which are heavily integrated with Israeli R&D. His presence reinforces a “technocratic normalization” where Israel is viewed solely as an innovation hub, stripping away the political context of its land and resource policies.¹⁰
• Alberto Weisser: With a background in global agribusiness (Bunge), Weisser’s expertise aligns with PepsiCo’s reliance on global agricultural supply chains. This perspective often normalizes the extraction of resources (such as water and crops) from disputed territories under the guise of efficiency and global trade flows.¹⁰
• Robert C. Pohlad: As Chair of the Nominating & Corporate Governance Committee, Pohlad’s philanthropic networks intersect with organizations that actively combat BDS narratives, creating a structural barrier to any board-level consideration of divestment.¹⁰

Elliott Management (Major Shareholder):

A critical development in 2024/2025 is the aggressive entry of Elliott Management, the activist hedge fund led by Paul Singer, which has secured a stake valued at approximately $4 billion. Paul Singer is a prominent neoconservative donor with a documented history of ideological support for pro-Israel causes and hawkish foreign policy think tanks.

• Assessment: The presence of Elliott Management constitutes a “Governance Lock.” Activist investors of this magnitude exert tremendous pressure on corporate strategy. Given Singer’s ideological profile, any attempt by PepsiCo management to divest from Israel—even for purely reputational reasons in the face of boycotts in the Global South—would likely trigger a shareholder revolt. Elliott’s involvement effectively aligns PepsiCo’s strategic compass with the interests of the pro-Israel donor class, insulating the company from ethical pressure while exposing it to heightened financial risk from consumer boycotts in the Muslim world.¹⁰

Analytical Assessment:

The leadership and ownership structure of PepsiCo indicates a systemic alignment with Israeli state interests. The company does not merely operate in Israel; it actively collaborates with the state to advance mutual economic goals. The acquisition of SodaStream and the partnership with Strauss are not isolated business deals but strategic alliances that integrate PepsiCo into the “Start-Up Nation” narrative. This dependency is reinforced by the reliance on Israeli cyber-security technologies, creating a scenario where the company’s operational resilience is tethered to the capabilities of the Israeli defense sector. Consequently, the leadership views the Israeli market not as a liability to be managed, but as a core asset to be protected, rendering the company structurally resistant to standard human rights due diligence processes.1

3. Timeline of Relevant Events

Date	Event	Significance
1991	Market Entry via Tempo Beverages	Following the collapse of the Arab League Boycott’s effectiveness, PepsiCo re-enters the Israeli market through a franchise agreement with Tempo Beverages. This marks the beginning of the normalization of the brand within the Israeli economy.
2008	Formation of Sabra Joint Venture	PepsiCo enters a 50/50 Joint Venture with the Strauss Group to form Sabra Dipping Company. This creates a direct financial conduit where 50% of profits flow to a company deeply embedded in the military-industrial complex.3
2010	Strauss “Adoption” of Golani Brigade	The Strauss Group’s corporate website explicitly states its “adoption” of the Golani Brigade, funding welfare and recreation for the unit. PepsiCo maintains the JV, tacitly accepting the military affiliation of its partner.5
2015	SodaStream Relocation to Negev	Under intense BDS pressure, SodaStream closes its factory in the illegal West Bank settlement of Mishor Adumim and moves to Idan HaNegev. PepsiCo views this as “de-risking,” ignoring the displacement of Bedouins at the new site.6
Aug 2018	Acquisition of SodaStream ($3.2B)	PepsiCo acquires SodaStream for $3.2 billion, transforming from a trader to a major industrial landowner. This FDI injection validates the Israeli economy and signals global confidence in the market.4
2019	Negev Factory Expansion	PepsiCo announces a $92.5 million expansion of the Rahat facility, accepting ~$23 million in Israeli government grants. This binds the company’s operations to state development goals in the Naqab.2
Feb 2022	Ukraine Invasion Response	PepsiCo suspends production of Pepsi, 7Up, and Mirinda in Russia, citing “horrific events.” This establishes a precedent for exiting markets based on violations of international law and humanitarian concerns.11
Oct 2023	Gaza Conflict Response	Following Oct 7, PepsiCo issues a statement on “violence” but maintains full operational continuity in Israel. Sabra/Strauss intensifies support for the IDF via “Friends of the IDF” partnerships.13
Nov 2024	Sabra/Obela Buyout Agreement	PepsiCo agrees to acquire full ownership of Sabra and Obela from Strauss for ~$244 million. This provides a massive liquidity exit for the military-linked Strauss Group during a wartime economic contraction.3
Sep 2025	Elliott Management Stake	Activist investor Elliott Management discloses a $4 billion stake in PepsiCo. The fund’s pro-Israel leadership creates a formidable barrier to any future divestment initiatives.19
Dec 2025	Sabra Deal Closure & Boycott Impact	Expected completion of the Sabra transaction. Simultaneously, reports emerge of significant market share loss in MENA (Egypt, Pakistan) due to consumer boycotts, highlighting the financial cost of complicity.26

4. Domains of Complicity

Domain 1: Military & Intelligence Complicity (V-MIL)

Goal: The primary objective of this domain analysis is to rigorously establish the extent to which PepsiCo’s operations, supply chains, and subsidiaries provide material support, logistical sustainment, or infrastructure to the Israel Defense Forces (IDF) and the military occupation apparatus.

Evidence & Analysis:

1. Logistical Sustainment of the IDF (The Shekem Vector)

The most direct operational link between PepsiCo and the Israeli military is mediated through its exclusive franchisee and distributor, Tempo Beverages Ltd. Tempo is a publicly traded Israeli company (partially owned by Heineken) that serves as the physical arm of PepsiCo in the territory. The forensic audit confirms that Tempo is a recognized supplier to the IDF’s “Shekem” (Canteen Services) system.5

• Operational Mechanism: The Shekem system is the logistical backbone for soldier sustainment on bases. It functions as the sole provider of supplemental caloric intake, hygiene products, and morale goods to active-duty personnel who are restricted to base. By supplying Pepsi, 7-Up, Mountain Dew, and Malt Star beer to this network, Tempo ensures that PepsiCo products are integrated into the daily institutional supply chain of the military.
• Systemic Implication: This activity transcends incidental “market drift” where a soldier might purchase a beverage at a civilian kiosk. This constitutes a contract-based institutional supply entering closed military zones. The delivery vehicles require specific security clearance to enter bases, and the volumes are negotiated at an institutional level. This places PepsiCo squarely in the category of “Logistical Sustainment” (Band 3.1–3.9), as it aids in the maintenance of the “home front” and base quality of life which are essential for long-term military operations and morale.⁵

2. Militarized Infrastructure Construction (The Negev Vector)

PepsiCo’s direct ownership of SodaStream International Ltd. represents a deeper, more structural complicity in the state’s geo-strategic control of land. The SodaStream manufacturing facility is located in the Idan HaNegev Industrial Park, adjacent to the Bedouin township of Rahat.

• The “Siyag” Context: The land on which the factory sits was historically classified as a military zone known as “The Siyag” (Fence), used to contain the Bedouin population under military rule after 1948. The state’s current Prawer Plan (and subsequent development initiatives) aims to industrialize this land to permanently prevent indigenous Bedouin claims to it.
• Demographic Engineering: By anchoring a major multinational factory in this specific location, PepsiCo provides the economic justification for the forced urbanization of the Bedouin. The state policy involves demolishing “unrecognized” Bedouin villages to force their residents into planned townships like Rahat, where they serve as a wage-labor force for factories like SodaStream. PepsiCo accepted an estimated $23 million in government grants to expand this facility, effectively subsidizing the state’s demographic engineering goals.²
• Analysis: This activity constitutes “Militarized Infrastructure Construction”. The factory is not merely a commercial asset; it is a tool of the state’s demographic war, used to hold territory and transform the indigenous economy from agricultural independence to industrial dependence. As the 100% owner of the subsidiary, PepsiCo is the Direct Operator of this displacement infrastructure.¹

3. Financial Linkages to Combat Units (The Strauss Legacy)

For over 15 years, PepsiCo operated Sabra Dipping Company as a joint venture with the Strauss Group. Strauss has a formal, documented history of “adopting” the Golani Brigade, an elite infantry unit of the IDF.

• Fungibility of Capital: While the late 2024 buyout agreement alters the ongoing ownership structure, the historical complicity is severe and the financial impact of the buyout is profound. For over a decade, 50% of every dollar of profit generated by Sabra in the US flowed to Strauss. Strauss, in turn, used its corporate funds to finance “care packages,” recreational equipment, and welfare support for Golani soldiers. This effectively made PepsiCo a secondary financier of a specific combat unit accused of war crimes in Gaza and Lebanon.⁹
• Recapitalization: The 2024 buyout transfers approximately $244 million to the Strauss Group. In the context of the 2023-2025 economic downturn in Israel—caused by the war and mobilization—this transaction acts as a recapitalization of a military-linked firm. It provides massive liquidity to a key pillar of the defense-industrial support network, allowing Strauss to stabilize its balance sheet and continue its domestic operations.³

Counter-Arguments & Assessment:

• Counter-Argument: PepsiCo Global does not manufacture weapons or hold direct contracts with the Ministry of Defense for lethal aid. Tempo is an independent franchisee, and the Sabra JV has been dissolved.
• Rebuttal: The “Corporate Veil” does not absolve complicity. PepsiCo exerts strict control over its brand licensing and standards. It allows Tempo to sell to the Shekem system. Furthermore, SodaStream is 100% owned; there is no veil there. The infrastructure support in the Negev is a direct corporate act. Regarding Sabra, the buyout is a massive capital injection into a complicit partner, not a neutral exit.
• Conclusion: The evidence confirms High Complicity. The combination of direct infrastructure ownership in a militarized zone (Negev) and logistical supply to bases (via Tempo) creates a structural link to the military apparatus.

Analytical Assessment: High Confidence. PepsiCo acts as a logistical partner and an infrastructural anchor for the state’s security-demographic goals.

Named Entities / Evidence Map:

• Tempo Beverages: Shekem Supplier, Franchisee.
• SodaStream: Idan HaNegev Operator, Prawer Plan beneficiary.
• Strauss Group: Golani Brigade financier, JV partner.

Domain 2: Economic & Structural Complicity (V-ECON)

Goal: To determine if PepsiCo’s economic footprint transcends simple trade and constitutes “Indigenous Capital” or structural integration that stabilizes the Israeli economy against external pressure.

Evidence & Analysis:

1. Foreign Direct Investment (FDI) as a Structural Pillar

The definitive feature of PepsiCo’s economic complicity is the shift from a franchise model to one of direct ownership.

• The SodaStream Acquisition ($3.2B): In 2018, PepsiCo acquired SodaStream for $3.2 billion. This was the largest acquisition of an Israeli consumer firm at the time. It was not just an investment; it was the absorption of a “National Champion.” By buying SodaStream, PepsiCo signaled to the global market that Israel is a safe jurisdiction for massive capital deployment, directly countering the BDS narrative at a critical time.⁴
• The Sabra/Obela Buyout ($244M): The consolidation of these brands represents a deepening of “Indigenous Capital.” PepsiCo is no longer just partnering with Israelis; it is the Israeli market leader in these categories. This creates a vested interest in the stability of the shekel and the Israeli regulatory environment. The cash transfer to Strauss serves as a stabilizing force for the broader Israeli food sector during wartime.³

2. Taxation and State Revenue

As a direct owner of manufacturing plants (SodaStream in Rahat) and a registrant of subsidiaries (VentureCo Israel Ltd), PepsiCo generates significant tax revenue for the Israeli state.

• Corporate Tax: SodaStream pays corporate taxes directly to the Israeli Treasury. These funds are fungible and contribute to the national budget, which funds the military and settlement enterprise.
• VAT and Payroll: The employment of over 2,000 workers at the Rahat facility generates income tax revenue. The domestic sale of products generates VAT. In a “Total War” economy (2023-2025), tax generation is a direct form of war financing.²

3. The “Winter Sourcing” Window (Agricultural Extraction)

The audit identified a specific supply chain vulnerability regarding agricultural aggregators and the export of produce.

• Mechanism: During the European winter (December–April), domestic stocks of potatoes and citrus in the UK and EU deplete. Israel holds a climatic advantage, allowing it to export fresh produce during this window.
• Complicity: PepsiCo’s European subsidiaries (Lays, Tropicana) likely source from major aggregators like Mehadrin and Galilee Export during this period to maintain production volumes. These aggregators are known to source produce from illegal settlements in the Jordan Valley and Golan Heights. By maintaining these supply lines, PepsiCo supports the agricultural viability of the settlement enterprise and the exploitation of occupied land resources.²

Counter-Arguments & Assessment:

• Counter-Argument: PepsiCo provides employment to Palestinians and Bedouins (e.g., at the SodaStream factory), promoting “economic peace.”
• Rebuttal: This is a coercive economic structure. The employment exists because the state destroyed the traditional Bedouin agricultural economy through land confiscation. Furthermore, employing an occupied population while paying taxes to the occupier is a classic structure of colonial exploitation, not benevolence. The “economic peace” narrative is a marketing tool used to obscure the underlying displacement.
• Conclusion: PepsiCo is classified as holding “Indigenous Capital”. It is a structural pillar of the economy, providing FDI, tax revenue, and export channels that normalize Israeli products globally.

Analytical Assessment: High Confidence. The $3.2B acquisition represents a permanent structural bond that makes PepsiCo a stakeholder in the survival of the Israeli regime.

Named Entities / Evidence Map:

• SodaStream International Ltd: Wholly owned subsidiary.
• VentureCo (Israel) Ltd: Holding company for investments.
• Mehadrin/Galilee Export: Agricultural aggregators (Supply Chain Risk).

Domain 3: Political & Ideological Complicity (V-POL)

Goal: To evaluate the company’s ideological alignment, lobbying activities, and consistency in applying human rights standards via the “Safe Harbor” test.

Evidence & Analysis:

1. The “Safe Harbor” Double Standard

The comparative analysis of PepsiCo’s response to the Russian invasion of Ukraine versus the Israeli bombardment of Gaza provides the strongest evidence of ideological bias and political alignment.

• Ukraine (2022): PepsiCo acted swiftly, suspending the sale of Pepsi, 7Up, and Mirinda in Russia. The corporate language used in press releases (“horrific events,” “deadly conflict,” “refugees”) was active, emotive, and condemnatory. The company explicitly aligned itself with the US/EU sanctions regime.¹¹
• Gaza (2023-2025): In contrast, PepsiCo has maintained full operational continuity in Israel. The language used in statements was passive (“violence,” “tragedy”), refusing to attribute responsibility to the IDF or name the aggressor. Despite the ICJ ruling on plausible genocide, PepsiCo did not pause investments; in fact, it increased its commitment by buying out the Sabra stake from Strauss. This asymmetry proves that PepsiCo does not apply a universal human rights standard; its “neutrality” is selective and grants Israel a “Safe Harbor” from corporate sanctions.¹⁰

2. Lobbying and Institutional Normalization

PepsiCo actively facilitates the normalization of the occupation through trade bodies and sponsorship.

• “Walk with Israel”: PepsiCo brands have been identified as sponsors of nationalist events, such as the “Walk with Israel” in Toronto. These events explicitly celebrate the state and often fundraise for the IDF, crossing the line from commerce to ideological endorsement.¹⁰
• PAC Contributions: PepsiCo’s Political Action Committee (PAC) contributes to US incumbents who are heavily backed by AIPAC. While not a direct donation to AIPAC, the alignment of funding supports the legislative “Iron Dome” that protects Israel from diplomatic censure. Additionally, PepsiCo funds the American Beverage Association, which lobbies for anti-BDS legislation at the state level, effectively financing the suppression of the boycott movement.¹⁰

3. Marketing Militarism

Through the Sabra brand, PepsiCo (via Strauss) leveraged military affiliation as a marketing asset.

• The Golani Connection: The “adoption” of the Golani Brigade was used to build brand authenticity in Israel. Marketing campaigns, such as “nostalgic” chocolate bars raising funds for soldiers, commercialize militarism. PepsiCo, as a joint venture partner, profited from this “Patriot Marketing” while the JV was active. The brand equity of Sabra is partly built on this nationalist narrative.⁵

Counter-Arguments & Assessment:

• Counter-Argument: PepsiCo claims it is a non-political entity focused on “refreshing the world” and serving consumers everywhere.
• Rebuttal: The “Safe Harbor” failure disproves neutrality. A corporation cannot be “non-political” in Gaza while being explicitly “political” in Ukraine. The inconsistency reveals the bias. Furthermore, the sponsorship of nationalist events and the funding of anti-boycott legislation are explicit political acts.
• Conclusion: PepsiCo exhibits Severe Political Complicity. It actively insulates Israel from the consequences of its actions through normalization and inconsistent ethical standards.

Analytical Assessment: High Confidence. The divergence in crisis response constitutes active ideological protection of the target state.

Named Entities / Evidence Map:

• Elliott Management: Activist Investor (Ideological pressure).
• American Beverage Association: Anti-BDS lobbying vehicle.
• Sabra Dipping Co: Vehicle for militarized branding.

Domain 4: Digital & Technological Complicity (V-DIG)

Goal: To map the company’s dependency on Israeli cyber-warfare technologies and its integration into the state’s “Digital Sovereignty” initiatives.

Evidence & Analysis:

1. Structural Dependency on the “Unit 8200” Stack

PepsiCo has not merely purchased software; it has adopted a “Full Stack” reliance on vendors originating from the Israeli military intelligence sector (Unit 8200). This creates a condition of “Structural Dependency.”

• Wiz (Cloud Security): PepsiCo uses Wiz to secure its global cloud infrastructure. Wiz was founded by Assaf Rappaport (ex-Unit 8200). This deployment gives an Israeli firm deep visibility into PepsiCo’s entire data structure, effectively making it the “eyes” of the corporation’s cloud.¹⁴
• SentinelOne (Endpoint Security): This is critical for securing laptops and servers across the enterprise. It is a mission-critical component of PepsiCo’s business continuity planning.
• Claroty (OT Security): This is the most critical finding in the digital domain. Claroty secures the physical bottling plants and manufacturing facilities (Operational Technology). By installing Claroty (backed by Team8, a Unit 8200 foundry), PepsiCo grants an Israeli firm access to the “nervous system” of its production lines.
• Implication: This creates Vendor Lock-in. PepsiCo cannot divest from Israel without ripping out its entire cyber-security architecture. This dependency essentially holds the company’s digital safety hostage to continued relations with the Israeli tech sector.¹⁴

2. PepsiCo Labs & “Hydro-Diplomacy”

• PepsiCo Labs Israel: The company operates a dedicated tech scouting arm in Israel to identify and acquire dual-use technologies. This unit acts as a funnel, integrating Israeli startups into PepsiCo’s global value chain.²⁹
• N-Drip: PepsiCo invested in N-Drip, an Israeli gravity irrigation firm. This partnership is a form of “Greenwashing” or “Hydro-Diplomacy.” It promotes Israeli technology as a solution to global climate challenges, obscuring the reality of water apartheid in the West Bank where Palestinians are systematically denied access to water resources. PepsiCo helps export the narrative of Israel as a “benevolent innovator” rather than a resource occupier.²

3. Project Nimbus Integration

SodaStream’s operations in Israel rely on Google Cloud and AWS regions built for Project Nimbus (the Israeli government cloud).

• Data Residency: By hosting data in these regions, PepsiCo contributes to the aggregate demand that makes Project Nimbus commercially viable. It places corporate data on infrastructure that is legally accessible to the Israeli security services under emergency regulations, integrating PepsiCo’s data footprint with the state’s digital sovereignty.¹⁴

Counter-Arguments & Assessment:

• Counter-Argument: These are best-in-class technologies; the usage is commercial, not political.
• Rebuttal: The procurement validates the military-to-civilian pipeline of the Israeli economy. It rewards the state for developing surveillance and cyber-offense capabilities (which are then commercialized). The “Claroty” link in OT security represents a physical risk exposure that goes beyond simple software licensing.
• Conclusion: Moderate-High Complicity. While PepsiCo is a buyer (not a seller) of these tools, its dependency and investment activities (N-Drip) actively strengthen the Israeli tech sector’s global legitimacy.

Analytical Assessment: Moderate Confidence. The dependency is clear, but it falls under “Procurement” rather than “Direct Enablement” of military ops.

Named Entities / Evidence Map:

• Wiz / SentinelOne / Claroty: Unit 8200 Vendors.
• PepsiCo Labs: Tech scouting vehicle.
• N-Drip: Greenwashing partner.

5. BDS-1000 Classification

Results Summary:

Final Score: 733

Tier: Tier B (Severe Complicity)

Justification summary:

PepsiCo’s complicity is structural and deep, driven primarily by its Economic and Military entanglements. The 2018 acquisition of SodaStream ($3.2B) and the 2024 buyout of the Sabra/Obela joint venture ($244M) have transformed the company from a mere trader into a key “Indigenous Capital” holder within the Israeli economy.

• Economic (Dominant Driver): PepsiCo is classified as holding “Indigenous Capital” (Band 8.5) due to its full ownership of SodaStream and Sabra. These are not foreign branches but “National Champions” fully absorbed into PepsiCo’s portfolio, making the company a structural pillar of the economy.
• Military: The company engages in “Militarized Infrastructure Construction” (Band 5.5) through SodaStream’s facility in the Naqab (Negev), which anchors the state’s Prawer Plan for Bedouin displacement. Additionally, its franchisee (Tempo) provides logistical sustainment to IDF bases via the “Shekem” system.
• Political: The Sabra brand, through its connection to the Strauss Group, has historically leveraged “Militaristic Branding” (Band 6.8) by financially supporting the Golani Brigade, creating an ideological alignment that persists through the brand’s identity.
• Digital: While PepsiCo is heavily reliant on the “Unit 8200” cyber-stack (Wiz, SentinelOne), this falls under “Soft Dual-Use Procurement” (Band 3.9) due to the “Customer Cap” rule, though the dependency is systemic.

Domain Scoring Summary

The BDS-1000 model requires a separate evaluation of the target’s complicity across four domains: Military (V-MIL), Digital (V-DIG), Economic (V-ECON), and Political (V-POL). Each domain’s score is a function of its measured Impact (I), Magnitude (M), and Proximity (P).

BDS-1000 Scoring Matrix – PepsiCo, Inc.

Domain	I	M	P	V-Domain Score
Military (V-MIL)	5.5	8.5	9.0	5.50
Economic (V-ECON)	8.5	9.5	10.0	8.50
Political (V-POL)	6.8	7.0	7.0	6.80
Digital (V-DIG)	3.9	9.0	8.0	3.90

V- {domain} Calculation

$$V_{domain} = I \times \min(M/7,1) \times \min(P/7,1)$$

• Impact (I): 0-10 scale based on the specific domain rubric.
• Magnitude (M): Measures scale (revenue, volume, duration).
• Proximity (P): Measures directness (contract vs. supply chain).

Final Composite

Using the OR-dominant formula with a side boost:

Let:

$$V_{MAX} = \max(5.50, 3.90, 8.50, 6.80) = 8.50$$

$$Sum_{OTHERS} = (5.50 + 3.90 + 8.50 + 6.80) – 8.50 = 16.20$$

BRS Score Formula

$$BRS\_Score = ((V_{MAX} + (Sum_{OTHERS} \times 0.2)) \div 16) \times 1000$$

Then:

$$BRS\_Score = ((8.50 + (16.20 \times 0.2)) \div 16) \times 1000 \\ BRS\_Score = ((8.50 + 3.24) \div 16) \times 1000 \\ BRS\_Score = (11.74 \div 16) \times 1000 \\ BRS\_Score = 0.73375 \times 1000 \\ BRS\_Score = 733.75$$

Grade Classification:

Based on the score of 734, the company falls within:

• Tier A (800–1000): Extreme Complicity
• Tier B (600–799): Severe Complicity
• Tier C (400–599): High Complicity
• Tier D (200–399): Moderate Complicity
• Tier E (0–199): Minimal/No Complicity

Tier: Tier B (Severe Complicity)

6. Recommended Action(s):

The forensic analysis justifies a Tier B (Severe Complicity) designation, necessitating a coordinated and escalated campaign strategy. The structural nature of PepsiCo’s involvement—ownership of land in the Negev and recapitalization of military-linked conglomerates—requires actions that target its reputation and cash flow.

1. Targeted Consumer Boycott (Sabra & SodaStream):

Prioritize the boycott of Sabra and SodaStream as the primary tactical targets. These brands are wholly owned (or soon to be) and represent the company’s direct physical footprint in the occupation economy. The narrative should focus on SodaStream’s role in the Prawer Plan (Bedouin displacement) and Sabra’s historical funding of the Golani Brigade. These narratives are emotionally resonant and factually robust.

2. Divestment Campaigns (Institutional Capital):

Initiate engagement with ESG (Environmental, Social, and Governance) funds and institutional investors. The argument should focus on Material Risk: PepsiCo’s operations in the Negev expose it to legal liabilities regarding indigenous land rights, and its double standard on human rights (Ukraine vs. Gaza) poses a governance risk. The presence of Elliott Management makes “moral suasion” difficult, so the focus must be on the financial liability of the “Resistance Economy” emerging in the MENA region, where local brands (e.g., Spiro Spathis, Matrix Cola) are eroding PepsiCo’s market share.27

3. Public Exposure of the “Safe Harbor” Hypocrisy:

Launch a media campaign highlighting the stark contrast between PepsiCo’s exit from Russia and its entrenchment in Israel. Use visual aids comparing the corporate statements on Ukraine (“Horror”) vs. Gaza (“Tragedy”) to expose the ideological bias. This undermines the company’s “neutral” branding and forces it to answer for its selective ethics.

4. Supply Chain Audit Demands:

Activists and European regulators should demand “Country of Origin” traceability for PepsiCo’s Lays and Tropicana products in the EU during the winter window. The high probability of sourcing from settlement-linked aggregators (Mehadrin) creates a legal vulnerability under EU labeling laws. Demanding transparency disrupts the supply chain and raises compliance costs.

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