PepsiCo ECONOMIC

Supply Chain & Sourcing Relationships

• PepsiCo describes its global food-and-beverage operations as relying on company operations, authorized bottlers, contract manufacturers, and other third parties across more than 200 countries and territories.¹

• PepsiCo’s reviewed filings identify Israeli subsidiaries and manufacturing facilities, but they do not disclose an itemized Israeli supplier list or a named agricultural-procurement relationship.^{1, 2, 3}

• No public evidence identified of direct PepsiCo sourcing from Mehadrin, Hadiklaim, Galilee Export, Agrexco successors, or another named Israeli agricultural exporter.^{1, 2}

• No public evidence identified of a PepsiCo Israeli importer-of-record structure for regional agricultural goods, recurring counter-seasonal Israeli-produce procurement, or third-party white-label sourcing of Israeli produce.^{1, 2}

• In March 2022, PepsiCo announced a partnership with Israeli-headquartered, privately held N-Drip to support farmer adoption of its irrigation technology across 10,000 hectares (25,000 acres) by 2025 through PepsiCo’s agricultural footprint and supply-chain farmer network.⁴

• PepsiCo’s agriculture-partnerships material characterizes N-Drip as technology deployment for farmers in PepsiCo’s supply chain, including deployments in India, South Africa, Vietnam, Greece, and the United States; it does not describe N-Drip as an agricultural-commodity supplier to PepsiCo.⁵

• PepsiCo’s current water material states that the N-Drip partnership expanded in 2025 to a 275-acre Florida farm, while a separate PepsiCo account describes Florida projects using N-Drip and Netafim on nearly 700 acres of sugarcane farms.^{6, 7}

• The retrieved PepsiCo materials describe a technology-adoption partnership rather than commodity sourcing, and disclose neither a PepsiCo equity stake, purchase of N-Drip shares, loan, acquisition, exclusive supply agreement, nor a monetary commitment specifically attributable to N-Drip.^{4, 6, 5}

• PepsiCo’s 2022 announcement states that N-Drip had raised $40 million from strategic and financial investors in the United States and Israel, but does not identify PepsiCo as an investor.⁴

• A 2025 trade publication reported that Nebraska growers encountered N-Drip through a Frito-Lay PepsiCo cost-share programme that had ended by publication; as secondary reporting, this does not establish a contract value, dates, equity terms, or PepsiCo ownership of N-Drip.⁸

• No public evidence identified of an N-Drip supplier contract for Israeli-grown crops, Israeli agricultural-commodity procurement through N-Drip, or N-Drip activity in settlements or occupied territory.^{4, 6, 5}

• Beyond the N-Drip and Netafim initiatives described above, no additional Israeli irrigation-firm partnership was verified in this bounded research.^{4, 6, 5, 7}

• The reviewed materials do not establish current reseller, distribution, sales, or service activity by PepsiCo or SodaStream in West Bank settlements, East Jerusalem settlements, or the Golan Heights.^{1, 9}

Product Origin, Labeling & Regulatory Compliance

• SodaStream’s current customer-support material states that Pepsi-branded, bubly, and SodaStream Classics flavours are produced at its Ashkelon, Israel factory.¹⁰

• The cited SodaStream support material does not identify export destinations or country-of-origin labelling practices for those flavour lines.¹⁰

• SodaStream’s 2010 SEC filing disclosed a leased Israeli manufacturing facility in Mishor Adumim, east of Jerusalem, before PepsiCo’s 2018 acquisition.^{11, 12}

• A 2011 Who Profits report characterized SodaStream’s principal production site as the Mishor Adumim industrial zone and alleged that products made there bore “Made in Israel” labels; the underlying label samples, customs records, and government enforcement materials were not retrieved in the supplied research.^{13, 11}

• Who Profits reported in 2015 that SodaStream’s sole West Bank facility had closed and that its withdrawal was finalized, which predates PepsiCo’s December 2018 acquisition.^{9, 12}

• AFSC’s current company page likewise reports that SodaStream closed the Mishor Adumim factory in September 2015 and moved manufacturing inside the 1967 borders; this is consistent with the retained Who Profits account and remains pre-acquisition information.^{14, 9, 12}

• No public evidence identified in the reviewed materials of post-acquisition regulatory findings, customs action, or corporate policy concerning settlement-origin product labelling.^{1, 2, 9}

• No public evidence identified in the reviewed primary filings and cited accountability materials of a regulatory enforcement action, court judgment, or parliamentary finding against PepsiCo concerning settlement-origin labelling, settlement operations, or post-2024 continuation of such activity.^{1, 9, 15, 16}

Investment, Capital & Financial Exposure

• PepsiCo completed its acquisition of all outstanding SodaStream shares on 5 December 2018 for $144 per share.¹²

• The 2018 merger materials describe SodaStream International Ltd. as an Israeli company and provide for it to become an indirect wholly owned PepsiCo subsidiary through PepsiCo’s Dutch acquisition vehicle.^{17, 18}

• The merger agreement provided that PepsiCo would maintain the Lehavim, Israel manufacturing facility in Israel for at least 15 years after closing, subject to stated adjustments.¹⁷

• PepsiCo’s fiscal-2025 annual-report materials list an owned manufacturing plant in Lehavim, Israel among significant properties, confirming an Israeli manufacturing footprint for the fiscal year ended 27 December 2025.^{1, 19}

• PepsiCo’s fiscal-2024 subsidiary list named So Spark Ltd., SodaStream Industries Ltd., SodaStream International Ltd., SodaStream Israel Ltd., and VentureCo (Israel) Ltd. as Israel-incorporated entities, and PepsiCo’s fiscal-2025 Exhibit 21 confirms the same listed Israeli-incorporated entities.^{2, 3}

• The reviewed subsidiary filings do not state the operational role, acquisition date, or ownership percentage for each named Israel-incorporated entity.^{1, 2, 3}

• Strauss Group’s FY2025 reporting describes Strauss Frito-Lay Ltd. as a 50%/50% joint venture: Strauss Group holds 50% and PepsiCo holds the remaining 50% through PepsiCo Europe.²⁰

• On 21 November 2024, PepsiCo granted Strauss, for US$100,000, an option to acquire up to 2.5% of Strauss Frito-Lay’s share capital at an exercise price of up to US$9.9 million, implying an approximately US$396 million valuation.^{21, 22}

• If exercised, the option would amend the shareholder agreement to give Strauss majority board voting power and CEO-nomination rights, subject to PepsiCo’s limited objection right and approval by Israel’s Commissioner of Competition.^{21, 22}

• Strauss’s FY2025 reporting states that the option may be exercised until 3 December 2026 and still records 50%/50% ownership; no public evidence identified in the reviewed materials of exercise, expiry, transfer, competition approval, or another ownership change after that disclosure.²⁰

• PepsiCo acquired Strauss Group’s remaining 50% interest in Sabra for $241 million cash on 3 December 2024, after which Sabra became wholly owned by PepsiCo; PepsiCo states that the acquisition accounting was finalized in the fourth quarter of 2025.^{1, 19, 2, 23}

• PepsiCo previously described Sabra as a North American business operating in the United States and Canada, so the 2024 transaction does not establish Sabra as an Israeli operating company.^{24, 23}

• PepsiCo also acquired the remaining 50% interest in Obela, while the parties described Obela as Geneva-based and operating in Australia, New Zealand, and Mexico; this transaction likewise does not establish Obela as an Israeli operating subsidiary.^{23, 25}

• No public evidence identified of PepsiCo-held Israeli sovereign bonds, Israel-focused funds, Israeli-state debt underwriting, or direct financing of Israeli defence firms or settlement-active companies.^{1, 2}

Operational Presence & Market Activity

• PepsiCo’s 2025 reporting identifies SodaStream as a PepsiCo brand and places the owned Lehavim manufacturing plant within its International Beverages Franchise segment.^{1, 19}

• The disclosed Lehavim plant is PepsiCo’s identified physical operating footprint in Israel in fiscal 2025.^{1, 19}

• SodaStream’s support material separately identifies an Ashkelon, Israel factory for specified flavour production, without establishing the relationship between that facility and the disclosed Lehavim plant.^{10, 19}

• Strauss Frito-Lay manufactures, markets, and sells salty snacks mainly in Israel, according to Strauss’s 2024 and FY2025 reporting.^{20, 22}

• A 2016 agreement gave Strauss Frito-Lay an exclusive, non-transferable PepsiCo licence to manufacture, distribute, and sell salty, spicy, and extruded snacks in Israel and to use relevant PepsiCo trademarks; the licence continues while Strauss Group or its wholly owned subsidiary remains a shareholder and the shareholder agreement remains effective.²⁰

• The licence was amended in 2018 to add exports to the European kosher market for Doritos, Cheetos, and Elite Crunch products, and in 2019 to add exports to United States and Canadian kosher markets for Lay’s, Doritos, Cheetos, and Elite Crunch products; these permissions do not establish actual export quantities or shipment destinations.²⁰

• Strauss’s FY2025 reporting also records a separate non-exclusive Elite-mark licence to Strauss Frito-Lay for salty-snack manufacture, sale, distribution, marketing, and trade in Israel, renewed on 1 January 2024 for five years subject to its stated termination mechanism.²⁰

• No public evidence identified in the reviewed Strauss and PepsiCo materials of Strauss Frito-Lay’s current factory locations, workforce, revenue, production volume, tax contribution, supplier list, market share, defence or IDF contracts, government-tender status, or actual licence-based export volumes.^{20, 26, 22}

• PepsiCo’s reviewed filings do not provide Israel-specific revenue, workforce numbers, production volume, tax paid, market share, or export destinations.^{1, 2}

• Modern Group Beverage Bottling Company’s self-published, undated webpage states that PepsiCo granted Pepsi and Mirinda franchises for Gaza and the West Bank in 1996 and describes Modern Group as a three-partner company established in 2015.²⁷

• That webpage describes a Jericho plant with a PET line operating in 2018, a can line launched in October 2020, 10,000 square metres of land, and a 32-truck distribution fleet; a 2024 Moustadama case study identifies “Company Pepsi” as a Jericho soft-drinks facility that received energy-efficiency interventions during 2022–23.^{27, 28}

• These franchisee and project materials do not establish PepsiCo equity ownership, direct operation, or control of Modern Group or the Jericho plant, nor do they establish facilities or sales in Israeli settlements, East Jerusalem settlements, or the Golan Heights.^{27, 28}

• The supplied pre-scan found no mention of PepsiCo or SodaStream in the specified 2023 OHCHR settlement-activity database update, 2025 OHCHR update, or UN Special Rapporteur report A/HRC/59/23; this is a document-scoped absence rather than an ecosystem-wide conclusion.^{15, 29, 30}

• No public evidence identified in the reviewed filings of Israel as a separately described strategic market or regional hub for PepsiCo.^{1, 2}

Corporate Structure & Foundational Ties

• PepsiCo, Inc. is the SEC registrant and reporting parent for its consolidated subsidiaries, was incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986, and reports its principal executive office in Purchase, New York.¹

• PepsiCo reports six operating segments: PepsiCo Foods North America, PepsiCo Beverages North America, International Beverages Franchise, Europe Middle East and Africa, Latin America Foods, and Asia Pacific Foods.¹

• SodaStream International Ltd. was an Israeli company before its acquisition and became a PepsiCo-controlled business following the 2018 merger.^{17, 18}

• PepsiCo and Israel’s Strauss Group formed the North American Sabra joint venture in 2008, before PepsiCo’s later acquisition of Strauss’s remaining Sabra interest.^{24, 2}

• The November 2024 Sabra and Obela agreements were legally distinct from the Strauss Frito-Lay option and did not dissolve the Israel-based Strauss Frito-Lay joint venture.^{21, 20, 22}

• Ramon L. Laguarta has served as PepsiCo’s Chief Executive Officer since 2018 and Chairman since 2019, and PepsiCo’s current board page identifies him as its executive director alongside 12 independent directors.^{31, 32}

• PepsiCo’s 2026 proxy identifies The Vanguard Group as a more-than-5% beneficial owner with 137,677,940 shares, or 10.1% of the class, based on its May 2025 Schedule 13G/A.^{33, 34}

• The same proxy identifies BlackRock, Inc. as a more-than-5% beneficial owner with 111,846,376 shares, or 8.2% of the class, and states that PepsiCo’s current directors and executive officers collectively beneficially owned less than 1% of common stock as of 26 February 2026.³³

• No public evidence identified in the reviewed corporate records of Israeli state ownership, Israeli government board appointments, golden-share arrangements, Israeli tax-residency or permanent-establishment status, or a controlling individual shareholder of PepsiCo.^{1, 2, 33}

• No public evidence identified in the reviewed corporate disclosures and targeted live searches of material personal or family-office investments by PepsiCo’s founder, CEO, Chair, C-suite, directors, or a 10%-or-greater shareholder into Israeli companies; this is a search-scoped finding, not a conclusion about undisclosed holdings.^{33, 31, 32}

Profit Repatriation & Economic Contribution

• PepsiCo’s reviewed filings establish an Israeli subsidiary and facility footprint but do not separately report Israel-attributable revenue, Israeli profit flows, Israeli tax contribution, or Israeli workforce totals.^{1, 19, 2, 3}

• No public evidence identified of a quantified Israeli profit-repatriation flow in PepsiCo’s reviewed filings.^{1, 2}

• Strauss’s FY2025 reporting states that Strauss Frito-Lay pays PepsiCo quarterly royalties based on net sales, subject to a minimum, plus an annual technical-support payment; Strauss credited PepsiCo approximately NIS 10.5 million in 2025 and NIS 10 million in 2024 under that royalty agreement.²⁰

• PepsiCo Foundation’s 2024 giving report records a US$7,500 “Holiday Hunger: Volunteer Grant” to Leket Israel and a US$250,000 payment to Matan – Investing in the Community, labelled “Humanitarian Assistance / Disaster Relief,” with beneficiary country Israel.³⁵

• The Foundation report does not identify the programmes’ specific end beneficiaries or geographic allocation within Israel, and those grants are corporate-foundation giving rather than evidence of personal or family-office investment by PepsiCo’s executives, directors, or beneficial owners.³⁵

• No public evidence identified in the reviewed materials of a government or industry designation characterising PepsiCo or SodaStream as a key Israeli employer, sector anchor, or critical national-infrastructure provider.^{1, 2}

• Who Profits’ 2015 report stated that the replacement Lehavim plant received a 25-million-shekel government construction grant, but this historical third-party report does not establish a current government-support arrangement or PepsiCo-era grant relationship.^{9, 12}